CVRX

• Commercial Operations and Sales Team Challenges & Remediation • 60% of quota-carrying territory managers have been hired in the last 18 months, and rapid hiring/turnover have strained onboarding, training, and area sales director coaching capacity, leading to slower-than-expected productivity ramp-ups • Performance challenges are concentrated in regions with high turnover and new, less tenured leadership; stable regions with low turnover and seasoned leadership are delivering strong double-digit growth, validating the company's core strategy • Key remediation actions include: refining hiring profiles to reduce misalignment and early turnover; expanding onboarding to add 3 months of hands-on field mentorship to the original 3-month didactic curriculum; adding new field-based roles (reimbursement and business management) to free up area sales director time for coaching; redeploying senior leadership to directly support field commercial execution • No additional U.S. sales territories will be added for the remainder of 2026, as the company focuses on improving productivity in existing territories

• Reimbursement Updates • The company's largest Medicare Advantage payer implemented new AI-based prior authorization tools in February 2026 to meet shortened federal review timelines, which pushed initial 30-day approval rates down from ~80% to below 30% after a partial recovery earlier in the year; higher denial rates have reduced physician willingness to recommend Barostim to patients covered by this payer • Outside this specific payer, reimbursement trends are positive: overall 30-day Medicare Advantage prior authorization approval rate hit 60% in Q2 2026, up from 44% in 2025; Humana's new favorable written coverage policy has pushed Humana approval rates above 90%, and the company cites the Humana policy in all filings and appeals with other payers • Traditional Medicare performance is stable: 96% of Barostim procedure claims are now paid across all Medicare administrative contractors, following the implementation of a new Category 1 code in January 2026 • CMS rules support strong payment rates: the 2027 proposed outpatient prospective payment system maintains an approximate $45,000 payment per procedure, and the final 2027 inpatient prospective payment system increases the inpatient payment rate to $45,000 from $43,000 effective October 1, 2026

• Clinical and Long-Term Strategic Progress • The BENEFIT-HF clinical trial is tracking ahead of internal expectations for both center activation and patient enrollment; if successful, it will triple the company's total addressable market • The company is expanding investment in real-world evidence datasets, with multiple analyses underway and first publications expected in fall 2026; this data could support a label/indication expansion via the FDA's new real-world evidence regulatory pathway • As of Q2 2026, the company has 258 active implanting centers, up from 240 at the end of Q2 2025, with only one net center added since Q1 2026; no meaningful net center growth is expected for the remainder of 2026 as the company focuses on deeper adoption at existing centers • Leadership updates: Chief Marketing Officer Paul Verrastro moved to a new field support role to accelerate new hire productivity; Patrick Lyon was promoted to lead marketing; Matt Klein joined as new Vice President of Legal; the search for a new permanent CFO to succeed Jared Oasheim is ongoing with a strong candidate pool

• Full year 2026 total revenue guidance was lowered to a range of $58 million to $60 million, from the company's prior outlook
• Full year 2026 gross margin guidance is maintained at 86% to 87%
• Full year 2026 operating expense guidance was lowered to a range of $99 million to $101 million, driven by intentional spending reallocation to sales support and the elimination of planned spending for new sales territories that will not be launched in 2026
• Q3 2026 total revenue is expected to come in between $13.5 million and $14.5 million

CVRx operates two primary geographic product segments: U.S. and European Barostim therapy for heart failure. In Q2 2026, U.S. revenue was $14.8 million, an increase of 21% year-over-year (YoY), comprising 94.27% of total company revenue. U.S. revenue units grew to 466 from 391 YoY, with 56 active U.S. sales territories as of quarter end, up from 47 YoY. European revenue was $0.9 million, a 31% decrease YoY, comprising 5.73% of total company revenue. European revenue units decreased to 40 from 61 YoY, with the number of active sales territories remaining flat at 5. On a consolidated level, total Q2 2026 revenue was $15.7 million, representing 16% YoY growth. Gross profit was $13.7 million, a 20% YoY increase, with gross margin expanding to 87% from 84% YoY. R&D expenses increased $0.7 million to $3.1 million YoY, driven by higher headcount and clinical trial costs. SG&A expenses increased $0.3 million (1%) to $23.6 million YoY, driven by higher non-cash stock-based compensation and legal expenses, partially offset by lower advertising and travel costs.

• Unaddressed sales force execution gaps in high-turnover regions with new leadership are negatively offsetting strong growth from stable regions, creating significant short-term revenue headwinds
• Persistently low prior authorization approval rates from the company's largest Medicare Advantage payer have reduced physician adoption of Barostim therapy for patients covered by this plan
• Continued high sales force turnover above historical expectations has strained internal onboarding and leadership capacity, leading to slower productivity ramp-ups than planned
• The company has operated in the $50-$60 million revenue range for three years with approximately $100 million in annual operating expenses, generating consistent cash burn
• The company received a civil investigative demand from the U.S. Department of Justice in May 2026, with no further details provided in the call

Q: Is the recent higher sales force turnover outside normal expected levels, and how many of the departing reps were expected to be fully ramped by now? What is the current status of the ramp post-commercial realignment? / A: Overall turnover over the past 18 months, including additional higher-than-desired turnover in Q2 2026, has created unplanned pressure on onboarding processes. Most departing reps were longer-tenured employees from earlier in the company's history. The combination of high turnover and less tenured regional leadership has created slower productivity ramps for new hires, with recently activated territories growing slower than expected or historical averages. This issue is heavily concentrated in a small handful of regions.

Q: Only one net new active implanting center was added since Q1. What should we expect for center growth for the rest of 2026 amid the sales force challenges? / A: The low net center gain was not unexpected. The company's current strategy prioritizes deeper adoption at existing active centers, while sunsetting low-volume "dabbler" centers. Historically, most new center growth has come from new sales territories adding 3-5 new centers per territory manager. Since no new territories will be added in 2026, no meaningful net new center growth is expected for the remainder of the year, which aligns with the focus on deeper penetration at existing centers.

Q: What share of the rep base is delivering the strong double-digit growth you mentioned, and how do performance, tenure, and turnover differ between high-performing and low-performing regions? / A: Strong double-digit growth is seen across the majority of regions that have had limited turnover over 18 months and are led by tenured, experienced leaders who are fully executing the company's core program development strategy. In slightly less than half of regions, turnover rates are well above 50% and leadership is new and less tenured, leading to negative year-to-date implant growth that fully offsets gains from stable regions. Company leadership takes full responsibility for onboarding too many people over a short period, which overwhelmed internal capacity and slowed productivity ramps below expectations.

Q: With three years of revenue stuck in the $50-$60 million range with ~$100 million in annual expenses, is this a demand problem rather than just an execution problem? / A: Company leadership believes this is a fixable execution problem, not a core demand issue. Where the company's strategy is fully implemented, demand is growing steadily. Progress on core barriers to adoption (evidence, awareness, and patient access) is continuing: the evidence base for Barostim is expanding, payers are increasingly covering the therapy, and heart failure physician community engagement is positive. Changing a long-standing treatment paradigm in a conservative specialty like cardiology is inherently non-linear and slow, but the underlying market opportunity and demand for the therapy remain strong.