Hyperfine, Inc. (HYPR) Earnings

Management highlights

### Overall Financial Performance - Q2 2026 total revenue was $3.9 million, the company's second-highest quarterly revenue ever, representing 45% year-over-year growth. First half 2026 total revenue hit $7.8 million. - 12 systems were sold in Q2 2026, a 50% year-over-year increase; 22 systems were sold in the first half of 2026, a 57% year-over-year increase. - Gross margin hit 50.7% in Q2 2026, marking the fourth consecutive quarter with gross margin above 50%. - Net cash burn (excluding financing) was $7.9 million in Q2 2026, a 3% improvement year-over-year; first half 2026 net cash burn was $16.6 million, a 9% improvement year-over-year. - As of June 30, 2026, the company held $43.5 million in cash and cash equivalents, with a cash runway extending into 2028. ### Commercial Operational Progress - Hospitals/IDNs: Model 2 has expanded utility beyond niche critical care to emergency departments, hospital-based clinics, and neurological workflows. Clinical data presented in 2026 showed portable MRI reduced median order-to-scan-start time in EDs from 7.76 hours (conventional MRI) to 1.28 hours, reducing workflow bottlenecks and supporting more timely clinical decision-making. The company has secured new placements with multiple large health systems, including an initial order from a top 10 national IDN in early July 2026. - Neurology Offices: Over 12 Model 2 systems have been placed in neurology offices to date, with high scan volumes and demonstrated ease of use (office staff can operate the system without a dedicated MR technologist). Clinical data shows 92% blinded concordance with conventional MRI for pathology detection (rising to 98% when combined with clinical history), and 4x higher patient preference for portable MRI. - International: Following 2026 CE and UKCA mark approvals, Model 2 is now commercially available in the EU and UK, with the first two sales completed in Q2 2026. Model 2 has been added to France's Uniesha procurement listing, simplifying purchasing for French public hospitals, and the first India deployment was completed at AIM-CU Delhi following 2025 CDSCO approval for Model 1. ### Product Development - The 75% enrollment complete for the contrast-enhanced MRI clinical study, with FDA submission for labeling expansion targeted for end of 2026. Labeling for gadolinium-based contrast agents will broaden clinical utility for the office vertical and support reimbursement via dedicated contrast CPT codes. - The company plans to launch its next AI-enabled software release in late 2026, with improvements to image quality, clinical utility, scan speed, workflow, and user experience. - Early development and pilot programs are underway for neurosurgical workflow use cases (intraoperative/post-procedure assessment) and mobile deployment models for distributed care settings. ### Expense Management - R&D expenses were $3.9 million in Q2 2026, a 15% year-over-year decrease, following 2025 restructuring that allowed the company to focus R&D investment on highest-priority commercial growth initiatives. - SG&A expenses were $6.6 million in Q2 2026, a 3% year-over-year increase, with a single U.S. sales team covering both hospital and office markets to drive operating leverage.

Guidance

- Full-year 2026 total revenue guidance is maintained at $20 million to $22 million, representing approximately 55% year-over-year growth at the midpoint. No upward or downward revision was made. - Full-year 2026 gross margin guidance is maintained at 50% to 55%, consistent with four consecutive quarters of gross margins above 50% to date. - Full-year 2026 total cash burn guidance is maintained at $26 million to $28 million, representing approximately a 10% year-over-year decline at the midpoint (inclusive of debt service payments). No revision was made. - The company reaffirms that its current cash balance and improved cash burn profile extend its cash runway into 2028.

Segment performance

Hyperfine reports commercial performance across three core vertical segments: 1. Hospitals/IDNs: The largest vertical, with growing adoption of the Model 2 portable MRI system, expanded use cases beyond critical care into emergency departments and neurological workflows, and new placements including an initial order from one of the U.S.'s largest national IDNs in early Q3 2026. Revenue contribution is the largest of the three verticals, though exact absolute figures are not provided. 2. Neurology Offices: An emerging U.S. growth vertical, with over 12 total Model 2 placements post-launch, high scan volumes, and office staff able to operate the system without dedicated MR technologists. Exact absolute revenue and contribution figures are not disclosed, but it is expected to contribute meaningfully to second half 2026 growth. 3. International: A new emerging growth vertical, with 2 initial Model 2 sales in Q2 2026 following 2026 CE and UKCA mark approvals, regulatory approval in India, and procurement listing access for French public hospitals. It represented a higher percentage of total Q2 2026 unit sales than prior quarters. Financially, overall Q2 2026 total company revenue was $3.9 million, with $2.0 million in gross profit (50.7% gross margin overall).

Risks & headwinds

No new material risks or operational failures were discussed on the call. Management referenced that forward-looking statements are subject to existing material risks and uncertainties disclosed in the company's most recent SEC periodic filings, which could cause actual results to differ materially from projected guidance.

Analyst Q&A

• Q: The analyst asks what split of the projected second half 2026 revenue ramp comes from repeat add-on orders at existing IDNs versus new first placements at new IDNs, to understand the driver of expected growth. /

  A: Management states that second half 2026 growth includes multiple layers of activity, not just IDN orders. It includes both subsequent placements at existing IDNs and new placements at new IDNs, supported by the full annual capital planning cycle that is now available for Model 2 (launched mid-2025). Growth is also supplemented by continued expansion of the neurology office business, the upcoming new software release, and ongoing neurosurgery and mobile pilot programs.

• Q: The analyst asks how the company is positioning Model 1 versus Model 2 for neurology offices of different sizes, and if Model 1 will remain a lower-price offering for smaller practices. /

  A: Management notes that initial adoption of office-based systems has been concentrated in larger, higher-volume neurology practices, which have overwhelmingly selected Model 2 for its expanded capabilities. While a small number of Model 1 placements have been completed, the upcoming contrast labeling expansion will support additional, higher-reimbursement use cases for Model 2 in larger offices, so Model 2 is expected to be the primary offering for the neurology office vertical going forward.

• Q: The analyst asks for the breakdown of Q2 2026's 12 system sales across the three verticals, and when the neurology office channel will become a meaningful growth contributor. /

  A: Management confirms that Q2 2026 unit sales were distributed across all three verticals, with a higher percentage of international sales than in prior quarters, as noted in prepared remarks. Management adds that the neurology office vertical is expected to become a meaningful contributor to growth in the second half of 2026 and beyond, supported by the catalysts highlighted earlier in the call.