Pulmonx Corp. Q4 FY2025 earnings call

Glenn French mentioned conducting a thorough review of the business, re-accelerating U.S. sales growth, advancing TAM expanding clinical initiatives, and aligning spending with strategic goals. Derek Sung discussed a cost restructuring initiative that reduced ongoing operating expenses by over 10%, a $60 million credit facility refinancing, expectations for 2026 revenue, gross margin, and operating expenses, and commitment to operating leverage and reducing cash burn.

Total worldwide revenue in the fourth quarter of 2025 was $22.6 million, a 5% decrease from $23.8 million in the same period last year, and a 7% decrease on a constant currency basis. Worldwide revenue for the full year ending December 31, 2025 was $90.5 million, an 8% increase over the prior year and a 7% increase on a constant currency basis. U.S. revenue in the fourth quarter was $14.1 million, an 11% decrease from $15.9 million during the same period of the prior year. U.S. revenue for the full year 2025 was $57 million, a 1% increase over the prior year. International revenue in the fourth quarter of 2025 was $8.5 million, an 8% increase from $7.9 million during the same period last year, and a 2% increase on a constant currency basis. International revenue for the full year 2025 was $33.5 million, an increase of 23% over the prior year and a 19% increase on a constant currency basis. Gross margin for the fourth quarter of 2025 was 77.6% compared to 74% in the prior year. Gross margin for the full year 2025 was 74%.

Expect full year 2026 revenue in the range of $90 to $92 million. U.S. sales growth to resume in back half; international growth impacted by China initially but resume in second half. Gross margin for 2026 expected to be approximately 75% trending slightly higher in first half and lower in second half. Full-year 2026 operating expenses to fall between $113 and $115 million, inclusive of ~$21 million non-cash stock-based compensation expense.

Material risks and uncertainties associated with forward-looking statements, including clinical trial timing, market opportunity, physician engagement, expense management, and commercial expansion, as detailed in SEC filings.

Q: John Young asked about Salesforce turnover and sales incentives.

A: Turnover was half the sales organization over the year, incentives redesigned to be reasonable.

Q: Jason Bednar asked about U.S. sales growth delay and cost structure.

A: Springing off spongy ground, 10% cost reduction from G&A and marketing, continuing investment in growth niches.

Q: Rick Weiss asked about balancing AeroSeal investment and U.S. sales.

A: Convert2 trial execution not a large proportional burn, optimized and aligned to deliver on enrollment.

Q: Larry Beagleson asked about US sales force ramp and China/Japan contribution.

A: 6-9 months for new reps to ramp, China sales to resume in back half of 2026, Japan contribution not a huge growth driver in 2026.