Pulmonx Corp
For the period ended Mar 31, 2026. Filed May 4, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2026 · Filed May 4, 2026
LUNG$2.560.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-09-30; filed 2025-11-12.
0001127537-25-000059
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-05-04.
0001127537-26-000025
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 111 previous paragraphs and 111 current paragraphs.
66 unchanged; 22 reworded; 23 added; 21 removed; 2 previous and 0 current paragraphs rearranged.
Tables are not compared: 3 previous and 2 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (23)
Current report
Cost of Goods Sold and Gross Margin
Current report
Research and Development Expenses
Current report
Selling, General and Administrative Expenses
Current report
Interest Expense and Income
Current report
Other Income, Net
Current report
Cost of Goods Sold and Gross Margin
Current report
Cost of goods sold decreased by $1.7 million, or 26.7%, to $4.5 million for the three months ended March 31, 2026, compared to $6.2 million for the three months ended March 31, 2025. The decrease was mainly due to a decrease in the number of products sold and as a result decreased manufacturing costs. Gross margin increased by 5.4% to
Current report
Research and Development Expenses
Current report
Selling, General and Administrative Expenses
Current report
Interest Expense and Income
Current report
Other Income, Net
Current report
Perceptive Loan
Current report
On March 2, 2026 (the “Closing Date”), we entered into a Credit Agreement and Guaranty (the “Perceptive Agreement”) and a Security Agreement (the “Security Agreement”), with Perceptive Credit Holdings V, LP (“Perceptive”), as the initial lender, administrative agent and collateral agent. The Perceptive Agreement provides for a senior secured term loan facility in an aggregate principal amount of up to $60.0 million (the “Loan Facility”).
Current report
On the Closing Date, we borrowed an initial loan under the Perceptive Agreement in an aggregate principal amount of $40.0 million (the “Perceptive Loan”). The Loan Facility permits us to borrow up to an additional $20.0 million, in two additional equal tranches (the “Additional Loan Draws”). The first $10.0 million Additional Loan Draw becomes available if we reach at least $92.5 million in revenue for any trailing twelve-month period ending as of the end of last day of any fiscal quarter through, and including, the fiscal quarter ending September 30, 2027, and the second $10.0 million Additional Loan Draw becomes available if we reach at least $100.0 million in revenue for any trailing twelve-month period ending as of the end of last day of any fiscal quarter through, and including, the fiscal quarter ending December 31, 2027.
Current report
The Loan Facility has a maturity date of March 2, 2031 (the “Maturity Date”). The Loan Facility accrues interest, payable monthly in arrears, at an annual rate equal to the sum of (a) an applicable margin of 7.00% (the “Applicable Margin”) plus (b) the greater of (i) one-month term SOFR and (ii) 3.75%. Upon the occurrence and during the continuance of an event of default under the Perceptive Agreement, the Applicable Margin will increase by an additional 3.00% per annum at Perceptive’s election (retroactive to the date of such event of default), or automatically in the case of a payment or bankruptcy event of default.
Current report
On each payment date occurring on or prior to March 2, 2029, we have the option to pay interest as follows: 2.0% per annum paid-in-kind (“PIK”) by increasing the principal of the Perceptive Loan and the remaining interest payable paid in cash. For each payment date through March 31, 2026, we elected the PIK option, increasing the principal of the Perceptive Loan by $0.1 million.
Current report
The Perceptive Agreement contains certain representations and warranties, affirmative covenants, negative covenants, and events of default that are customarily required for similar financings. In addition, the Perceptive Agreement contains financial covenants requiring us to (i) at all times prior to the Maturity Date, maintain minimum unrestricted cash and certain types of marketable securities of at least $4.0 million and (ii) as of each calculation date set forth in the Perceptive Agreement, maintain our consolidated revenue determined in accordance with U.S. GAAP that is not less than the amounts specified in the Perceptive Agreement. The occurrence of an event of default under the Perceptive Agreement could result in, among other things, the declaration that all outstanding principal and interest thereunder are immediately due and payable in whole or in part.
Current report
We paid $1.6 million in fees to Perceptive and third parties which is reflected as a discount on the Perceptive Loan and is being accreted over the life of the loan using the effective interest method. Also, on the Closing Date, we issued to Perceptive a warrant to purchase up to 1,000,000 shares of our common stock (the “Initial Warrants”), and will issue warrants to purchase up to 500,000 shares of our common stock (which number of shares will be adjusted for any stock splits, stock combinations and the like that take place after the Closing Date and prior to the applicable funding date) if we borrow additional tranches of loan under the Perceptive Agreement (the “Additional Warrants” and together with the “Initial Warrants”, the “Warrants”). The Warrants had a fair value of $1.4 million as of the issuance date, which was accounted for as debt discount. The Warrants, regardless of issuance date, have an expiration date of March 2, 2033, may be exercised on a cashless or “net” basis, and will be automatically exercised, on a cashless basis, prior to their expiration if the value of the shares underlying the Warrants is greater than the then-applicable exercise price.
Current report
As of March 31, 2026, the Perceptive Loan had an annual effective interest rate of 13.9% per year.
Current report
Interest expense on the Perceptive Loan was $0.4 million during the three months ended March 31, 2026, including interest expense related to debt discount and debt issuance costs of the Perceptive Loan of less than $0.1 million.
Current report
In connection with our entry into the Loan Facility, on March 2, 2026, we repaid all outstanding indebtedness under the Amended and Restated Loan and Security Agreement, dated March 29, 2021, as amended (the “Amended and Restated CIBC Agreement”), among us and the Canadian Imperial Bank of Commerce, as lender, and terminated all our obligations and commitments thereunder.
Current report
Swiss COVID-19 Credit Agreement
Current report
Net cash used in investing activities in the three months ended March 31, 2026 was less than $0.1 million, consisting of purchases of property and equipment.
Removed paragraphs (21)
Previous report
Cost of goods sold increased by $0.1 million, or 1.7%, to $5.5 million during the three months ended September 30, 2025, compared to $5.4 million during the three months ended September 30, 2024. Gross margin was 74.7% during the three months ended September 30, 2025, compared to 73.7% during the three months ended September 30, 2024.
Previous report
Selling, general and administrative expenses increased by $0.2 million, or 0.7%, to $25.6 million during the three months ended September 30, 2025, compared to $25.4 million during the three months ended September 30, 2024. The increase in selling, general and administrative expenses was primarily due to an increase of $1.0 million in advertising and marketing related expenses, offset by a decrease of $0.8 million in payroll and personnel-related expenses for our sales, marketing and administrative personnel.
Previous report
Comparison of the Nine Months Ended September 30, 2025 and September 30, 2024
Previous report
Revenue
Previous report
Revenue increased by $7.9 million, or 13.1%, to $67.9 million during the nine months ended September 30, 2025, compared to $60.0 million during the nine months ended September 30, 2024. The sale of products in the United States increased by $2.3 million to $42.9 million during the nine months ended September 30, 2025, compared to $40.6 million during the nine months ended September 30, 2024. The sale of products in international markets increased by $5.6 million to $25.0 million during the nine months ended September 30, 2025, compared to $19.4 million for the nine months ended September 30, 2024. The increase in revenue reflects continued growth of Zephyr Valve procedure volumes.
Previous report
Cost of goods sold increased by $2.7 million, or 17.2%, to $18.3 million during the nine months ended September 30, 2025, compared to $15.6 million during the nine months ended September 30, 2024. The increase was mainly due to an increase in the number of products sold and increased manufacturing costs as we invested to support anticipated growth. Gross margin was 73.0% during the nine months ended September 30, 2025, compared to 74.0% during the nine months ended September 30, 2024. The decrease in gross margin was primarily due to geographic mix during the nine months ended September 30, 2025.
Previous report
Research and development expenses increased by $1.3 million, or 9.9%, to $14.9 million during the nine months ended September 30, 2025, compared to $13.6 million during the nine months ended September 30, 2024. The increase in research and development expense was primarily due to an increase of $1.5 million in costs associated with our clinical trials, including fees paid to clinical research organizations, an increase of $0.8 million in payroll and personnel-related expenses, and an increase of $0.7 million in services and other expenses in support of product development, offset by a non-cash impairment charge of $1.7 million related to certain previously capitalized software development costs recorded in the second quarter of 2024.
Previous report
Interest expense decreased by $0.3 million to $2.4 million during the nine months ended September 30, 2025 compared to $2.7 million during the nine months ended September 30, 2024 due to lower interest rates. Interest income decreased by $1.8 million to $2.2 million during the nine months ended September 30, 2025 compared to $4.0 million during the nine months ended September 30, 2024. The decrease was primarily due to a lower balance of cash, cash equivalents, and marketable securities, which resulted in reduced returns on these assets.
Previous report
Other income (expense), net was $0.8 million during the nine months ended September 30, 2025 and $0.2 million during the nine months ended September 30, 2024, primarily due to foreign currency exchange gains.
Previous report
CIBC Loan
Previous report
In February 2020, we executed a Loan and Security Agreement with Canadian Imperial Bank of Commerce (“CIBC”), which we subsequently amended in April 2020 and December 2020 (as amended, the “CIBC Agreement”). The CIBC Agreement originally provided us with the ability to borrow up to $32.0 million in debt financing (“CIBC Loan”) consisting of $17.0 million advanced at the closing of the agreement (“Tranche A”), with the option to draw up to an additional $8.0 million (“Tranche B”) and an additional financing tranche (“Tranche C”) of up to $7.0 million on or prior to February 20, 2022. Neither Tranche B nor Tranche C was drawn before the option expired.
Previous report
In March 2021, we entered into an Amended and Restated Loan and Security Agreement with CIBC (as amended, the “Amended and Restated CIBC Agreement”) which, among other things, extended the loan maturity date of the CIBC Loan from March 15, 2022 to February 20, 2025, and modified certain financial covenants.
Previous report
In October 2021, we entered into a Second Amendment to the Amended and Restated CIBC Agreement, which extended the interest only period of the loan from 24 months to 36 months. Under the amended terms, principal repayment would begin in February 2023.
Previous report
In October 2022, we entered into a Third Amendment to the Amended and Restated CIBC Agreement (the “Third Amendment”), which, among other things, extended the maturity date to October 31, 2027; provided a commitment for a new $20.0 million tranche of term loans that may be drawn at our option through October 31, 2023, subject to the satisfaction of certain conditions; and provided for a new interest only period of 24 months from the signing date of the Third Amendment, with the possibility of an additional extension of such interest only period of up to 12 months, subject to satisfaction of certain conditions.
Previous report
In February 2023, we drew $20.0 million of the Amended Tranche B which has the same interest rate and repayment terms as Tranche A of the CIBC Loan.
Previous report
In May 2024, as a result of satisfying certain conditions set forth in the Third Amendment, we extended the interest-only period of the CIBC Loan from 24 months to 36 months. Principal repayment will begin in November 2025. There was no change to the loan interest rate, maturity date, or other terms of the loan.
Previous report
In April 2025, we further amended the terms of the CIBC Loan to extend the interest-only period through maturity, with full principal repayment due in October 2027. There was no change to the interest rate or the maturity date of the loan.
Previous report
The loans provided under the Amended and Restated CIBC Agreement bear interest at a floating rate equal to 1.0% above the Wall Street Journal Prime Rate at any time. The loans are collateralized by substantially all of our assets, including cash and cash equivalents, accounts receivable, intellectual property and equipment. We may prepay the loans, subject to certain conditions. The Amended and Restated CIBC Agreement contains financial covenants that require us to maintain minimum cash and minimum revenue amounts, and the Amended and Restated CIBC Agreement contains other customary restrictive covenants, representations and warranties, events of default and other customary terms and conditions.
Previous report
We paid $0.5 million fees to the lender and third parties which is reflected as a discount on the loans provided under the Amended and Restated CIBC Agreement and is being accreted over the life of the loan using the effective interest method. During the three months ended September 30, 2025 and September 30, 2024, we recorded interest expense related to debt discount and debt issuance costs of the CIBC Loan of less than $0.1 million and less than $0.1 million, respectively. During the nine months ended September 30, 2025 and September 30, 2024, we recorded interest expense related to debt discount and debt issuance costs of the CIBC Loan of less than $0.1 million and less than $0.1 million, respectively.
Previous report
Interest expense on the CIBC Loan was $0.8 million and $0.9 million during the three months ended September 30, 2025 and September 30, 2024, respectively. Interest expense on the CIBC Loan was $2.4 million and $2.7 million during the nine months ended September 30, 2025 and September 30, 2024, respectively.
Previous report
Credit Agreement
Reworded paragraphs (22)
Previous wording
In 2018, we received pre-market approval (“PMA”) by the U.S. Food and Drug Administration (“FDA”) for the Zephyr Valve as a result of our breakthrough technology designation. The Zephyr Valve is commercially available in numerous countries globally. We have established reimbursement in major markets in North America, Europe and Asia Pacific and the Zephyr Valve has been included in treatment guidelines for COPD worldwide.
Current wording
In 2018, we received pre-market approval (“PMA”) from the U.S. Food and Drug Administration (“FDA”) for the Zephyr Valve following its Breakthrough Device designation. The Zephyr Valve is commercially available in numerous countries globally. We have established reimbursement in major markets in North America, Europe and Asia Pacific and the Zephyr Valve has been included in treatment guidelines for COPD worldwide.
Previous wording
We market and sell our products in the United States through a direct sales organization. Our sales territory managers are focused on promoting awareness and increasing adoption of our solution primarily among the pulmonologists performing interventional pulmonary procedures across approximately 500 high-volume hospitals in the United States. We are expanding our commercial operations in the United States while continuing to foster our international growth. We employ both direct and distributor-based sales models, with 93% of our revenue generated in markets where we sell directly for the nine months ended September 30, 2025.
Current wording
We market and sell our products in the United States through a direct sales organization. Our sales territory managers are focused on promoting awareness and increasing adoption of our solution primarily among the pulmonologists performing interventional pulmonary procedures across approximately 500 high-volume hospitals in the United States. We are expanding our commercial operations in the United States while continuing to foster our international growth. We employ both direct and distributor-based sales models, with 99% of our revenue generated in markets where we sell directly for the three months ended March 31, 2026.
Previous wording
To date, we have financed our operations primarily through the sale of our products, the sale of equity securities, and debt financing arrangements. We have devoted substantially all of our resources to research and development activities related to our solution, including clinical and regulatory initiatives to obtain marketing approval, sales and marketing activities, and investing in general and administrative infrastructure. We generated revenue of $21.5 million, with a gross margin of 74.7% and a net loss of $14.0 million, for the three months ended September 30, 2025 compared to revenue of $20.4 million, with a gross margin of 73.7% and a net loss of $14.1 million, for the three months ended September 30, 2024. For the nine months ended September 30, 2025, we generated revenue of $67.9 million, with a gross margin of 73.0% and a net loss of $43.6 million, compared to revenue of $60.0 million, with a gross margin of 74.0% and a net loss of $43.2 million, for the nine months ended September 30, 2024. As of September 30, 2025, we had an accumulated deficit of $511.1 million, cash and cash equivalents of $76.5 million, and $37.1 million of outstanding term loans and credit agreements, net of debt discount and debt issuance costs.
Current wording
To date, we have financed our operations primarily through the sale of our products, the sale of equity securities, and debt financing arrangements. We have devoted substantially all of our resources to research and development activities related to our solution, including clinical and regulatory initiatives to obtain marketing approval, sales and marketing activities, and investing in general and administrative infrastructure. We generated revenue of $20.6 million, with a gross margin of 77.9% and a net loss of $13.7 million, for the three months ended March 31, 2026 compared to revenue of $22.5 million, with a gross margin of 72.5% and a net loss of $14.4 million, for the three months ended March 31, 2025. As of March 31, 2026, we had an accumulated deficit of $535.2 million, cash and cash equivalents of $61.6 million, and $37.3 million of outstanding term loans and credit agreements, net of debt discount and debt issuance costs.
Previous wording
We intend to continue to promote awareness of our solution through training and educating physicians, pulmonary rehabilitation centers, key opinion leaders and various medical societies on the proven clinical benefits of Zephyr Valves. In addition, we intend to continue to publish additional clinical data in various industry and scientific journals and online and to present at various industry conferences. We plan to continue building patient awareness through our direct-to-patient marketing initiatives, which include advertising, social media and online education. We also intend to continue helping physicians in their outreach to patients and other healthcare providers. These efforts require significant investment by our marketing and sales organization, and vary depending upon the physician’s practice specialization, and personal preferences and geographic location of physicians, pulmonary rehabilitation centers and patients. In order to grow our business, we will need to continue to make significant investments in training and educating hospitals, physicians and patients on the advantages of our solution for the treatment of severe emphysema. We are also working to improve the efficiency of our commercial initiatives to accelerate patient identification and treatment conversion.
Current wording
We intend to continue to promote awareness of our solution through training and educating physicians, pulmonary rehabilitation centers, key opinion leaders and various medical societies on the proven clinical benefits of Zephyr Valves. In addition, we intend to continue to publish additional clinical data in various industry and scientific journals and online and to present at various industry conferences. We plan to continue building patient awareness through our direct-to-patient marketing initiatives, which include advertising, social media and online education. We also intend to continue helping physicians in their outreach to patients and other healthcare providers. These efforts require significant investment by our marketing and sales organization, and vary depending upon the physician’s practice specialization, and personal preferences and geographic location of physicians, pulmonary rehabilitation centers and patients. In order to grow our business, we will need to continue to make significant investments in training and educating hospitals, physicians and patients on the advantages of our solution for the treatment of severe emphysema. We are also working to improve the efficiency of our commercial initiatives for treating centers to accelerate patient identification and treatment conversion.
Previous wording
Our industry is highly competitive and subject to rapid change from the introduction of new products and technologies and other activities of industry participants. Our goal is to establish our solution as a standard of care for severe emphysema. Existing treatments include medical management, lung volume reduction surgery (“LVRS”), lung transplantation as well as other minimally invasive treatments. Some of our competitors have several competitive advantages, including established relationships with pulmonologists who commonly treat patients with emphysema, significantly greater name recognition and significantly greater sales and marketing resources. In addition to competing for market share, we also compete against these companies for personnel, including qualified sales and other personnel that are necessary to grow our business. Certain of our competitors may challenge our intellectual property, may develop additional competing or superior technologies and processes and compete more aggressively and sustain that competition over a longer period of time than we could. In addition to existing competitors, other companies may acquire or in-license competitive products and could directly compete with us. We must continue to successfully compete in light of our competitors’ existing and future products and related pricing and their resources to successfully market to the physicians who use our products.
Current wording
Our industry is highly competitive and subject to rapid change from the introduction of new products and technologies and other activities of industry participants. Our goal is to establish our solution as a standard of care for severe emphysema. Existing treatments include medical management, lung volume reduction surgery, lung transplantation as well as other minimally invasive treatments. Some of our competitors have several competitive advantages, including established relationships with pulmonologists who commonly treat patients with emphysema, significantly greater name recognition and significantly greater sales and marketing resources. In addition to competing for market share, we also compete against these companies for personnel, including qualified sales and other personnel that are necessary to grow our business. Certain of our competitors may challenge our intellectual property, may develop additional competing or superior technologies and processes and compete more aggressively and sustain that competition over a longer period of time than we could. In addition to existing competitors, other companies may acquire or in-license competitive products and could directly compete with us. We must continue to successfully compete in light of our competitors’ existing and future products and related pricing and their resources to successfully market to the physicians who use our products.
Previous wording
We currently derive substantially all of our revenue from the sale of our products to hospitals and distributors. We market and sell our products through a direct sales organization in the United States and through direct sales and several third-party distributors in select markets outside the United States. We currently generate most of our revenue from the sales of Zephyr Valves and delivery catheters. We also generate a smaller amount of our revenue from our Chartis System, which is comprised of sales of the balloon catheters, usage fees and sales of the Chartis console, and from our LungTraX Platform, which is used to identify patients potentially eligible for treatment with Zephyr Valves. No single customer accounted for more than 10% of our revenue during the nine months ended September 30, 2025 and September 30, 2024.
Current wording
We currently derive substantially all of our revenue from the sale of our products to hospitals and distributors. We market and sell our products through a direct sales organization in the United States and through direct sales and several third-party distributors in select markets outside the United States. We currently generate most of our revenue from the sales of Zephyr Valves and delivery catheters. We also generate a smaller amount of our revenue from our Chartis System, which is comprised of sales of the balloon catheters, usage fees and sales of the Chartis console, and from our LungTraX Platform, which is used to help identify patients potentially eligible for treatment with Zephyr Valves. No customer accounted for more than 10% of our revenue for the three months ended March 31, 2026. We had one customer that accounted for 10% of our revenue for the three months ended March 31, 2025.
Previous wording
Other income (expense), net primarily consists of foreign currency exchange gains and losses.
Current wording
Other income, net primarily consists of foreign currency exchange gains and losses.
Previous wording
Revenue increased by $1.1 million, or 5.5%, to $21.5 million during the three months ended September 30, 2025, compared to $20.4 million during the three months ended September 30, 2024. The sale of products in the United States increased by $0.2 million to $14.0 million during the three months ended September 30, 2025, compared to $13.8 million for the three months ended September 30, 2024. The sale of products in international markets increased by $0.9 million to $7.5 million during the three months ended September 30, 2025, compared to $6.6 million for the three months ended September 30, 2024. The increase in revenue was primarily attributable to the continued growth of Zephyr Valve procedure volumes.
Current wording
Revenue decreased by $2.0 million, or 8.7%, to $20.6 million for the three months ended March 31, 2026, compared to $22.5 million for the three months ended March 31, 2025. The sale of products in the United States decreased by $0.9 million to $13.3 million for the three months ended March 31, 2026, compared to $14.2 million for the three months ended March 31, 2025. The sale of products in international markets decreased by $1.0 million to $7.3 million for the three months ended March 31, 2026, compared to $8.3 million for the three months ended March 31, 2025. The decrease in revenue was primarily attributable to a lack of sales into China as we await the renewal of our registration certificate.
Previous wording
The increase in gross margin was primarily due to geographic mix during the three months ended September 30, 2025.
Current wording
77.9% for the three months ended March 31, 2026, compared to 72.5% for the three months ended March 31, 2025. The increase in gross margin was primarily due to geographic mix during the three months ended March 31, 2026.
Previous wording
Research and development expenses increased by $1.1 million, or 29.4%, to $4.8 million during the three months ended September 30, 2025, compared to $3.7 million during the three months ended September 30, 2024. The increase in research and development expense was primarily due to an increase of $0.5 million in costs associated with our clinical trials, including fees paid to clinical research organizations, an increase of $0.3 million in payroll and personnel-related expenses, and an increase of $0.3 million in services and other expenses in support of product development.
Current wording
Research and development expenses increased by $0.1 million, or 3.0%, to $4.9 million for the three months ended March 31, 2026, compared to $4.8 million for the three months ended March 31, 2025. The increase in research and development expense was primarily due to an increase of $0.2 million in payroll and personnel-related expenses, and an increase of $0.1 million in costs associated with our clinical trials, including fees paid to clinical research organizations, offset by a decrease of $0.2 million in testing and other expenses in support of product development.
Previous wording
Selling, general and administrative expenses increased by $3.3 million, or 4.4%, to $78.5 million during the nine months ended September 30, 2025, compared to $75.1 million during the nine months ended September 30, 2024. The increase in selling, general and administrative expenses was primarily due to an increase of $4.1 million in advertising and marketing related expenses, offset by a decrease of $0.4 million in professional services consulting expenses, and a decrease of $0.3 million in payroll and personnel-related expenses for our sales, marketing and administrative personnel.
Current wording
Selling, general and administrative expenses decreased by $2.0 million, or 7.8%, to $24.1 million for the three months ended March 31, 2026, compared to $26.1 million for the three months ended March 31, 2025. The decrease in selling, general and administrative expenses was primarily due to a decrease of $1.4 million in advertising and marketing related expenses, a decrease of $0.4 million in travel and conference related expenses, and a decrease of $0.2 million in payroll and personnel-related expenses for our sales, marketing and administrative personnel.
Previous wording
Interest expense decreased by $0.1 million to $0.8 million for the three months ended September 30, 2025 compared to $0.9 million for the three months ended September 30, 2024, primarily due to lower interest rates. Interest income decreased by $0.7 million to $0.6 million for the three months ended September 30, 2025 compared to $1.3 million for the three months ended September 30, 2024. The decrease was primarily due to a lower balance of cash, cash equivalents, and marketable securities, which resulted in reduced returns on these assets.
Current wording
Interest expense increased by $0.2 million to $1.0 million for the three months ended March 31, 2026 compared to $0.8 million for the three months ended March 31, 2025, primarily due to higher interest rates under our Perceptive Loan compared to our CIBC Loan which was fully repaid in March 2026. Interest income decreased by $0.5 million to $0.4 million for the three months ended March 31, 2026 compared to $0.9 million for the three months ended March 31, 2025. The decrease was primarily due to a lower balance of cash, cash equivalents and marketable securities, which resulted in reduced returns on these assets.
Previous wording
Other income (expense), net was $0.8 million during the three months ended September 30, 2025 and $(0.2) million during the three months ended September 30, 2024, primarily due to foreign currency exchange gains and losses.
Current wording
Other income, net was $0.1 million for the three months ended March 31, 2026 and $0.2 million for the three months ended March 31, 2025, primarily due to foreign currency exchange gains.
Previous wording
To date, we have financed our operations primarily through our initial public offering, private placements of equity securities, debt financing arrangements and sales of our products. As of September 30, 2025, we had cash and cash equivalents of $76.5 million, an accumulated deficit of $511.1 million, and $37.1 million outstanding under the CIBC Loan and Credit Agreement, net of debt discount and debt issuance costs.
Current wording
To date, we have financed our operations primarily through our initial public offering, private placements of equity securities, debt financing arrangements and sales of our products. As of March 31, 2026, we had cash and cash equivalents of $61.6 million, an accumulated deficit of $535.2 million, and $37.3 million outstanding under the Perceptive Agreement and Swiss COVID-19 Credit Agreement, net of debt discount and debt issuance costs.
Previous wording
Net cash used in operating activities was $24.8 million for the nine months ended September 30, 2024. Cash used in operating activities was primarily a result of the net loss of $43.2 million, a decrease in accrued liabilities of $3.5 million primarily due to payment of incentive compensation expense associated with the achievement of performance objectives, a decrease in lease liabilities of $1.9 million due to lease payments, amortization of premiums and discounts on marketable securities of $1.3 million, and an increase in prepaid expenses and other current assets of $0.3 million. This is partially offset by stock-based compensation expense of $17.4 million, an increase in accounts payable of $3.0 million due to timing of payments to our vendors, a non-cash impairment charge of $1.7 million related to certain previously capitalized software development costs recorded in the second quarter of 2024, non-cash lease expense of $1.5 million, depreciation and amortization expense of $1.2 million, and a decrease in accounts receivable of $0.4 million due to the timing of payments from our customers.
Current wording
Net cash used in operating activities was $10.1 million for the three months ended March 31, 2026. Cash used in operating activities was primarily a result of the net loss of $13.7 million, a decrease in accrued liabilities of $1.2 million primarily due to payment of incentive compensation expense associated with the achievement of performance objectives, an increase in inventory of $1.0 million mainly due to an increase in finished goods, a decrease in accounts payable of $0.4 million due to timing of payments to our vendors, and a decrease in lease liabilities of $0.3 million due to lease payments. This is partially offset by stock-based compensation expense of $4.1 million, a decrease in accounts receivable of $1.2 million due to the timing of payments from our customers, non-cash lease expense of $0.4 million, and depreciation and amortization expense of $0.2 million.
Previous wording
Net cash used in operating activities was $25.3 million for the nine months ended September 30, 2025. Cash used in operating activities was primarily a result of the net loss of $43.6 million, a decrease in accrued liabilities of $1.8 million primarily due to payment of incentive compensation in the first quarter of fiscal year 2025, associated with the achievement of performance objectives under the fiscal year 2024 incentive plan, a decrease in lease liabilities of $0.7 million due to lease payments, an increase in accounts receivable of $0.5 million primarily due to the timing of payments from our customers, amortization of premiums and discounts on marketable securities of $0.4 million, and an increase in other assets of $0.2 million primarily due to capitalized implementation costs of a hosting arrangement. This is partially offset by stock-based compensation expense of $17.0 million, an increase in accounts payable of $2.8 million due to timing of payments to our vendors, non-cash lease expense of $1.1 million, depreciation and amortization expense of $0.8 million, and a decrease in prepaid expenses and other current assets of $0.2 million primarily due to the timing of payments to our vendors.
Current wording
Net cash used in operating activities was $13.2 million for the three months ended March 31, 2025. Cash used in operating activities was primarily a result of the net loss of $14.4 million, a decrease in accrued liabilities of $4.9 million primarily due to payment of incentive compensation expense associated with the achievement of performance objectives, an increase in accounts receivable of $0.7 million due to the timing of payments from our customers, an increase in other assets of $0.4 million primarily due to capitalized implementation costs of a hosting arrangement, and amortization of premiums and discounts on marketable securities of $0.2 million. This is partially offset by stock-based compensation expense of $5.6 million, an increase in accounts payable of $0.5 million due to timing of payments to our vendors, a decrease in inventory of $0.4 million due to shipment of products, non-cash lease expense of $0.4 million, a decrease in prepaid expenses and other current assets of $0.3 million primarily due to the timing of payments to our vendors, and depreciation and amortization expense of $0.3 million.
Previous wording
Net cash provided by investing activities in the nine months ended September 30, 2025 was $30.5 million, consisting of proceeds from maturities of marketable securities of $36.6 million, offset by purchases of marketable securities of $5.7 million and purchases of property and equipment of $0.4 million.
Current wording
Net cash provided by investing activities in the three months ended March 31, 2025 was $16.3 million, consisting of proceeds from maturities of marketable securities of $20.5 million, offset by purchases of marketable securities of $3.9 million and purchases of property and equipment of $0.3 million.
Previous wording
Net cash provided by financing activities in the nine months ended September 30, 2025 was $0.8 million, consisting of proceeds from the issuance of common stock under the employee stock purchase plan of $0.8 million and proceeds from the exercise of common stock options of $0.1 million, offset by repayment of debt under the Credit Agreement of less than $0.1 million and payment of debt issuance cost of $0.1 million.
Current wording
Net cash provided by financing activities in the three months ended March 31, 2026 was $2.0 million, consisting of proceeds from our Perceptive Loan of $38.8 million, and proceeds from the issuance of common stock under the employee stock purchase plan of $0.2 million, partially offset by repayment of our CIBC Loan of $37.0 million.
Previous wording
Net cash provided by financing activities in the nine months ended September 30, 2024 was $1.3 million, consisting of proceeds from the issuance of common stock under the employee stock purchase plan of $1.2 million and proceeds from the exercise of common stock options of $0.1 million, offset by repayment of debt under the Credit Agreement of less than $0.1 million.
Current wording
Net cash provided by financing activities in the three months ended March 31, 2025 was $0.7 million, consisting of proceeds from the issuance of common stock under the employee stock purchase plan of $0.6 million and proceeds from the exercise of common stock options of $0.1 million.
Previous wording
Our net cash operating expenditures were $25.3 million in the nine months ended September 30, 2025 and $24.8 million in the nine months ended September 30, 2024. We intend to continue to make investments in the development of our products, including ongoing research and development programs. Our cash outflows for capital expenditures were $0.4 million and $1.3 million in the nine months ended September 30, 2025 and September 30, 2024, respectively, and we expect to maintain the level of expenditures in the future to support our commercial infrastructure, sales force and other commercialization efforts. Recent and expected working and other capital requirements include amounts related to future lease payments for operating lease obligations, which totaled $30.3 million as of September 30, 2025, with $2.9 million expected to be paid within the next 12 months, and amounts related to future short-term and long-term debt which totaled $37.1 million, with $3.2 million due within the next 12 months. Lastly, we may undertake additional expenses to further expand our commercial organization and efforts, enhance our research and development efforts and pursue product expansion opportunities.
Current wording
Our net cash operating expenditures were $10.1 million in the three months ended March 31, 2026 and $13.2 million in the three months ended March 31, 2025. We intend to continue to make investments in the development of our products, including ongoing research and development programs. Our cash outflows for capital expenditures were less than $0.1 million and $0.3 million in the three months ended March 31, 2026 and March 31, 2025, respectively, and we expect to maintain the level of expenditures in the future to support our commercial infrastructure, sales force and other commercialization efforts. Recent and expected working and other capital requirements include amounts related to future lease payments for operating lease obligations, which totaled $28.9 million as of March 31, 2026, with $3.0 million expected to be paid within the next 12 months, and amounts related to future short-term and long-term debt which totaled $63.3 million, with $3.7 million expected to be paid within the next 12 months. Lastly, we may undertake additional expenses to further expand our commercial organization and efforts, enhance our research and development efforts and pursue product expansion opportunities.
Previous wording
As of September 30, 2025, we had cash and cash equivalents of $76.5 million. Based on our current planned operations, we expect that our cash and cash equivalents will enable us to fund our operating expenses for at least 12 months from the issuance of our condensed consolidated financial statements as of and for the nine months ended September 30, 2025. We believe we will meet longer-term expected future cash requirements and obligations through a combination of available cash and cash equivalents, sales of our products, debt financings, and access to other public or private equity offerings. We have based these estimates on assumptions that may prove to be wrong, and we could utilize our available capital resources sooner than we expect.
Current wording
As of March 31, 2026, we had cash and cash equivalents of $61.6 million. Based on our current planned operations, we expect that our cash and cash equivalents will enable us to fund our operating expenses for at least 12 months from the issuance of our condensed consolidated financial statements as of and for the three months ended March 31, 2026. We believe we will meet longer-term expected future cash requirements and obligations through a combination of available cash and cash equivalents, sales of our products, debt financings, and access to other public or private equity offerings. We have based these estimates on assumptions that may prove to be wrong, and we could utilize our available capital resources sooner than we expect.
Previous wording
Our critical accounting policies are described under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Estimates” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, filed with the SEC on February 25, 2025, and the notes to the unaudited condensed consolidated financial statements included in “Part I, Item 1 — Financial Statements” of this Quarterly Report on Form 10-Q. During the nine months ended September 30, 2025, except as described in Note 2 to the unaudited interim condensed financial statements appearing elsewhere in this Quarterly Report on Form 10-Q, there were no material changes to our critical accounting estimates from those discussed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, filed with the SEC on February 25, 2025.
Current wording
Our critical accounting policies are described under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Estimates” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025, filed with the SEC on March 10, 2026, and the notes to the unaudited condensed consolidated financial statements included in “Part I, Item 1 — Financial Statements” of this Quarterly Report on Form 10-Q. During the three months ended March 31, 2026, except as described in Note 2 to the unaudited interim condensed financial statements appearing elsewhere in this Quarterly Report on Form 10-Q, there were no material changes to our critical accounting estimates from those discussed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025, filed with the SEC on March 10, 2026.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
The following table summarizes our results of operations for the period indicated:
Previous report — wording carried elsewhere
Net cash provided by investing activities in the nine months ended September 30, 2024 was $3.4 million, consisting of proceeds from maturities of marketable securities of $31.2 million, offset by purchases of marketable securities of $26.4 million and purchases of property and equipment of $1.3 million.