Ceribell, Inc.
For the period ended Sep 30, 2026. Filed Nov 3, 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.
Sep 30, 2026 · Filed Nov 3, 2026
CBLL$26.59+2.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-08-10.
0001193125-26-342574
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-03.
0001193125-26-445555
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 125 previous paragraphs and 126 current paragraphs.
82 unchanged; 33 reworded; 8 added; 8 removed; 2 previous and 3 current paragraphs rearranged.
Tables are not compared: 6 previous and 6 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 (8)
Current report
Research and development expenses increased $2.4 million, or 49%, for the three months ended September 30, 2026, compared to the same period of fiscal year 2025. The increase was primarily due to an increase of $1.4 million in personnel and related expenses directly associated with an increase in headcount as well as an increase of $0.7 million for consultants and materials driven by increased research activity.
Current report
Research and development expenses increased $6.2 million, or 44%, for the nine months ended September 30, 2026, compared to the same period of fiscal year 2025. The increase was primarily due to an increase of $4.6 million in personnel and related expenses directly associated with an increase in headcount as well as an increase of $1.3 million for consultants and materials driven by increased research activity.
Current report
Sales and marketing expenses increased $6.5 million, or 35%, for the three months ended September 30, 2026, compared to the same period of fiscal year 2025. The increase was primarily due to an increase in personnel and related expenses directly associated with an increase in headcount.
Current report
Sales and marketing expenses increased $17.8 million, or 33%, for the nine months ended September 30, 2026, compared to the same period of fiscal year 2025. The increase was primarily due to an increase in personnel and related expenses directly associated with an increase in headcount.
Current report
The $20.0 million revolving credit facility operates on a non-formula basis through December 31, 2027, after which time, availability under the facility will be subject to a borrowing base based on eligible accounts receivable and inventory. After that date (or earlier upon an event of default), availability will be determined by the calculated borrowing base, 85% of eligible accounts receivable, plus 40% of eligible inventory (with availability capped at 25% of the revolving loan limit), less reserves the agent may establish, and could be less than the $20.0 million commitment depending on the level and aging of our receivables at the time.
Current report
The term loan may be drawn at the Company’s request at any time before December 31, 2028. Term Loan Tranche 1 may be drawn only in minimum increments of $5.0 million and only through December 31, 2028, after which any undrawn commitment expires; amounts repaid may not be reborrowed. In addition, because our financial covenants are tested only while outstanding term loans plus the revolving commitment exceed $35.0 million, any term loan draw that takes us above that threshold would require us to first demonstrate either pro forma compliance with the $70.0 million minimum trailing net revenue covenant or unrestricted cash at least $65.0 million before the draw is funded, and commences quarterly covenant testing thereafter. At closing, the Company borrowed $20.0 million under the revolving facility and has no balance drawn under the term loan. The proceeds of borrowings under the Credit Agreement were used to repay in full the Company’s outstanding obligations under the VLSA described in Note 9. The VLSA was terminated on August 5, 2026. Future borrowings will be used for working capital and general corporate purposes.
Current report
We believe the refinancing meaningfully increases our committed access to capital while deferring any contractual principal repayment until 2031. The refinancing resulted in a one-time loss on extinguishment of debt of $1.5 million in the three months ended September 30, 2026, of which $1.4 million was paid in cash. The terms of the Credit Agreement, our covenant compliance, and the components of the extinguishment loss are described in Note 9 to our condensed financial statements. We manage borrowings under the MidCap Revolving Facility to minimize interest expense while maintaining continuous access to committed capital. Because the MidCap Revolving Facility permits repayment and reborrowing of revolving loans at any time without a prepayment fee (with two business days’ notice for each draw), our practice is to draw on the facility shortly before the end of each fiscal quarter, hold the borrowings through the beginning of the following quarter, and repay them early in that quarter from cash on hand. Exit fees apply only if we terminate or permanently reduce the revolving commitment, as described in Note 9. Interest accrues only while borrowings are outstanding, so this practice limits contractual interest largely to the days surrounding each quarter end; during the remainder of the quarter, our recurring costs of the facility are limited to the 0.50% per annum facility fee on the committed amount and any quarterly minimum balance fee, which together are substantially less than the cost of keeping the facility fully drawn.
Current report
As a result of this practice, our balance sheet at each quarter end reflects both the $20.0 million of revolving borrowings and a corresponding amount of cash. During the three months ended September 30, 2026, the maximum amount outstanding at any time was $20.0 million. On October 7, 2026, we repaid the $20.0 million outstanding at September 30, 2026 from cash on hand.
Removed paragraphs (8)
Previous report
Research and development expenses increased $1.9 million, or 39%, for the three months ended June 30, 2026, compared to the same period of fiscal year 2025. The increase was primarily due to an increase of $1.5 million in personnel and related expenses directly associated with an increase in headcount.
Previous report
Research and development expenses increased $3.8 million, or 42%, for the six months ended June 30, 2026, compared to the same period of fiscal year 2025. The increase was primarily due to an increase of $3.2 million in personnel and related expenses directly associated with an increase in headcount.
Previous report
Sales and marketing expenses increased $7.0 million, or 40%, for the three months ended June 30, 2026, compared to the same period of fiscal year 2025. The increase was primarily due to an increase in personnel and related expenses directly associated with an increase in headcount.
Previous report
Sales and marketing expenses increased $11.4 million, or 32%, for the six months ended June 30, 2026, compared to the same period of fiscal year 2025. The increase was primarily due to an increase in personnel and related expenses directly associated with an increase in headcount.
Previous report
Interest and Other Income, net
Previous report
On February 6, 2024, we entered into the VLSA with SVB and Horizon. The VLSA provides a term loan commitment of $50.0 million. We drew $20.0 million of the $50.0 million term loan commitment at closing (consisting of $6.0 million from SVB and $14.0 million from Horizon), which was used to retire our existing debt with Horizon, pay transaction fees, and for general corporate purposes. The remaining $30.0 million term loan commitment consists of three tranches of $10.0 million commitments. The first $10.0 million tranche expired on June 30, 2026 and no amount was drawn. The maturity date of VLSA is March 1, 2029.
Previous report
Concurrent with the VLSA, we also entered into the Revolving Facility for a line of credit of up to $10.0 million. The Revolving Facility matured on February 6, 2026 and no amounts were drawn.
Previous report
For additional information, see Note 14, “Subsequent Events,” to our financial statements included elsewhere in this Quarterly Report on Form 10-Q.
Reworded paragraphs (33)
Previous wording
The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our unaudited financial statements and related notes included elsewhere in this Quarterly Report on Form 10-Q and our audited financial statements and the related notes and the discussion under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations” for the year ended December 31, 2025 included in our Annual Report on Form 10-K. In addition to historical financial information, the following discussion contains forward-looking statements that reflect our plans, estimates, and beliefs that involve significant risks and uncertainties. Our actual results could differ materially from those discussed in the forward-looking statements. Factors that could cause or contribute to those differences include those discussed below and elsewhere in this Quarterly Report on Form 10-Q, particularly in “Risk Factors” and “Special Note Regarding Forward-Looking Statements.”
Current wording
The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our unaudited financial statements and related notes included elsewhere in this Quarterly Report and our audited financial statements and the related notes and the discussion under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations” for the year ended December 31, 2025 included in our Annual Report on Form 10-K. In addition to historical financial information, the following discussion contains forward-looking statements that reflect our plans, estimates, and beliefs that involve significant risks and uncertainties. Our actual results could differ materially from those discussed in the forward-looking statements. Factors that could cause or contribute to those differences include those discussed below and elsewhere in this Quarterly Report, particularly in “Risk Factors” and “Special Note Regarding Forward-Looking Statements.”
Previous wording
We are a medical technology company focused on transforming the diagnosis and management of patients with serious neurological conditions. We have developed the Ceribell System, a novel, point-of-care EEG platform specifically designed to address the unmet needs of patients in the acute care setting. By combining proprietary, highly portable, and rapidly deployable hardware with sophisticated artificial intelligence (“AI”)-powered algorithms, the Ceribell System enables rapid diagnosis and continuous monitoring of patients with neurological conditions. We initially focused on becoming the standard of care for the detection and management of seizures in the acute care setting, where the technological and operational limitations of conventional EEG systems have contributed to significant delays in seizure and delirium diagnosis and suboptimal patient care and clinical outcomes, as well as a high economic burden for hospitals and the healthcare system. By making EEG more accessible and enabling continuous monitoring through the power of AI, the Ceribell System enables clinicians to more rapidly and accurately diagnose and manage patients at risk of seizure and delirium in the acute care setting, resulting in improved patient outcomes and hospital and payer economics. As of June 30, 2026, the Ceribell System has been adopted by more than 700 hospitals, ranging from top academic centers to small community hospitals. For information regarding how patient care and clinical outcomes are measured, see “Business—Market Overview—Challenges of Managing Seizures in the Acute Care Setting” included in our Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on February 24, 2026.
Current wording
We are a medical technology company focused on transforming the diagnosis and management of patients with serious neurological conditions. We have developed the Ceribell System, a novel, point-of-care EEG platform specifically designed to address the unmet needs of patients in the acute care setting. By combining proprietary, highly portable, and rapidly deployable hardware with sophisticated artificial intelligence (“AI”)-powered algorithms, the Ceribell System enables rapid diagnosis and continuous monitoring of patients with neurological conditions. We initially focused on becoming the standard of care for the detection and management of seizures in the acute care setting, where the technological and operational limitations of conventional EEG systems have contributed to significant delays in seizure and delirium diagnosis and suboptimal patient care and clinical outcomes, as well as a high economic burden for hospitals and the healthcare system. By making EEG more accessible and enabling continuous monitoring through the power of AI, the Ceribell System enables clinicians to more rapidly and accurately diagnose and manage patients at risk of seizure and delirium in the acute care setting, resulting in improved patient outcomes and hospital and payer economics. As of September 30, 2026, the Ceribell System has been adopted by more than 700 hospitals, ranging from top academic centers to small community hospitals. For information regarding how patient care and clinical outcomes are measured, see “Business—Market Overview—Challenges of Managing Seizures in the Acute Care Setting” included in our Annual Report on Form 10-K filed with the SEC on February 24, 2026.
Previous wording
We are currently focused on becoming the standard of care for the detection and management of seizures in the acute care setting. In May 2023, Clarity® became the first device to receive 510(k) clearance from the U.S. Food and Drug Administration (“FDA”) for diagnosing electrographic status epilepticus. In December 2025, the FDA granted 510(k) clearance for Ceribell’s proprietary Delirium Monitor System, the first and only FDA cleared delirium screening and monitoring device. In June 2026, we received a new FDA 510(k) clearance that encompasses two separate neurology focused algorithms, EEG Artifact Reduction and Epileptiform Abnormality Detection. We also received FDA clearance on the full next-generation hardware platform that we anticipate will support our expansion into new indications and new application areas.
Current wording
We are currently focused on becoming the standard of care for the detection and management of seizures in the acute care setting. In May 2023, Clarity® became the first device to receive 510(k) clearance from the U.S. Food and Drug Administration (“FDA”) for diagnosing electrographic status epilepticus. In December 2025, the FDA granted 510(k) clearance for Ceribell’s proprietary Delirium Monitor System, the first and only FDA-cleared delirium screening and monitoring device. In June 2026, we received FDA 510(k) clearance that encompasses two separate neurology focused algorithms, EEG Artifact Reduction and Epileptiform Abnormality Detection. We also received FDA clearance on the full next-generation hardware platform that we anticipate will support our expansion into new indications and new application areas. In September 2026, we received FDA 510(k) clearance for Quantitative EEG Trending and Amplitude-Integrated EEG Analysis software that is designed to make it easier and faster for clinicians to interpret longitudinal brain activity and make appropriate clinical decisions.
Previous wording
As of June 30, 2026, we had an accumulated deficit of $259.4 million. To date, we have funded our operations primarily through proceeds from the sale of shares of our stock, including common stock and redeemable convertible preferred stock, term loan proceeds, and cash generated from the sale of Wearables and subscriptions. As of June 30, 2026, we had $129.3 million in cash, cash equivalents, and marketable securities. Based on our current operating plan, we believe that the net proceeds from our IPO, together with the expected cash generated from revenue transactions with customers and our existing cash and cash equivalents and marketable securities, will be sufficient to fund our planned operating expenses and capital expenditure requirements for at least the next 12 months. We have based this estimate on assumptions that may prove to be wrong, and we could deplete our capital resources sooner than we expect. We may experience lower than expected cash generated from operating activities or greater than expected capital expenditures, cost of revenue, or operating expenses, and may need to raise additional capital to fund operations, further research and development activities, or acquire, invest in, or in-license other businesses, assets, or technologies.
Current wording
As of September 30, 2026, we had an accumulated deficit of $280.7 million. To date, we have funded our operations primarily through proceeds from the sale of shares of our stock, including common stock and redeemable convertible preferred stock, term loan and revolver proceeds, and cash generated from the sale of Wearables and subscriptions. As of September 30, 2026, we had $117.5 million in cash, cash equivalents, and marketable securities. Based on our current operating plan, we believe that our existing cash and cash equivalents and marketable securities, together with the expected cash generated from revenue transactions with customers, will be sufficient to fund our planned operating expenses and capital expenditure requirements for at least the next 12 months. We have based this estimate on assumptions that may prove to be wrong, and we could deplete our capital resources sooner than we expect. We may experience lower than expected cash generated from operating activities or greater than expected capital expenditures, cost of revenue, or operating expenses, and may need to raise additional capital to fund operations, further research and development activities, or acquire, invest in, or in-license other businesses, assets, or technologies.
Previous wording
Gross profit, or revenue less cost of revenue, and gross margin, or gross profit as a percentage of revenue, have been and will continue to be affected by various factors that may cause gross margins to fluctuate. These include the product mix between product and subscription revenues, potential changes to sales prices, the timing of our acquisition of new customers, renewals of and follow-on sales to existing customers, costs associated with third-party hosting fees, costs associated with third party manufacturing and supply chain purchases of inventory, and other direct costs such as tariffs and shipping. Our gross margin may fluctuate from period to period, based upon the factors described above and in the section titled “Risk Factors” included elsewhere in this Quarterly Report on Form 10-Q.
Current wording
Gross profit, or revenue less cost of revenue, and gross margin, or gross profit as a percentage of revenue, have been and will continue to be affected by various factors that may cause gross margins to fluctuate. These include the product mix between product and subscription revenues, potential changes to sales prices, the timing of our acquisition of new customers, renewals of and follow-on sales to existing customers, costs associated with third-party hosting fees, costs associated with third-party manufacturing and supply chain purchases of inventory, and other direct costs such as tariffs and shipping. Our gross margin may fluctuate from period to period, based upon the factors described above and in the section titled “Risk Factors” included elsewhere in this Quarterly Report.
Previous wording
Interest and other income (expense), net is primarily interest income on our cash, cash equivalents, and marketable securities. Interest expense primarily consists of interest on our term loans and a non-cash interest charge related to amortization of debt issuance costs.
Current wording
Interest and other income (expense), net is primarily interest income on our cash, cash equivalents, and marketable securities. Interest expense primarily consists of interest on our term loans and revolver and a non-cash interest charge related to amortization of debt issuance costs.
Previous wording
Results of Operations for the three and six months ended June 30, 2026 and 2025
Current wording
Results of Operations for the three and nine months ended September 30, 2026 and 2025
Previous wording
The following tables set forth our results of operations for the periods presented (in thousands) and as a percentage of our revenue for those periods. The period-to-period comparison of financial results is not necessarily indicative of financial results to be achieved in future periods.
Current wording
The following tables set forth our results of operations for the periods presented (in thousands). The period-to-period comparison of financial results is not necessarily indicative of financial results to be achieved in future periods.
Previous wording
Comparison of the three and six months ended June 30, 2026 and 2025
Current wording
Comparison of the three and nine months ended September 30, 2026 and 2025
Previous wording
Product revenue for the three and six months ended June 30, 2026, increased $5.3 million and $9.9 million, or 33% and 31%, respectively, compared to the same period of fiscal year 2025. Product revenue growth was primarily driven by the addition of new customers and an increase in utilization of Wearables and resulting sales of Wearables, driven by continued customer education that resulted in increased awareness and adoption of our products.
Current wording
Product revenue for the three and nine months ended September 30, 2026, increased $5.2 million and $15.1 million, or 31% and 31%, respectively, compared to the same period of fiscal year 2025. Product revenue growth was primarily driven by the addition of new customers and an increase in utilization of Wearables and resulting sales of Wearables, driven by continued customer education that resulted in increased awareness and adoption of our products.
Previous wording
Subscription revenue for the three and six months ended June 30, 2026, increased $1.6 million and $3.0 million, respectively, or 30%, compared to the same period of fiscal year 2025. Subscription revenue growth was primarily driven by the addition of new customers.
Current wording
Subscription revenue for the three and nine months ended September 30, 2026, increased $1.5 million and $4.5 million, respectively, or 28% and 29%, respectively, compared to the same period of fiscal year 2025. Subscription revenue growth was primarily driven by the addition of new customers.
Previous wording
Product cost of revenue for the three months ended June 30, 2026, decreased $0.5 million, or 22% compared to the same period of fiscal year 2025. Product cost of revenue for the six months ended June 30, 2026 increased $0.2 million, or 4%, compared to the same period of fiscal year 2025. The decrease in cost of goods sold for products for the three months ended June 30, 2026 was primarily due to tariff refund of $1.0 million, offset by an increase in Wearables sales to new and existing active accounts. The increase in cost of goods sold for products for the six months ended June 30, 2026 was primarily due to an increase in Wearables sales to new and existing active accounts, partially offset by the tariff refund.
Current wording
Product cost of revenue for the three months ended September 30, 2026, increased $0.2 million, or 8% compared to the same period of fiscal year 2025. Product cost of revenue for the nine months ended September 30, 2026 increased $0.4 million, or 5%, compared to the same period of fiscal year 2025. The increase in cost of goods sold for products for the three and nine months ended September 30, 2026 was primarily due to an increase in Wearables sales to new and existing active accounts. The increase in cost of goods sold for products was partially offset by tariff refunds for the nine months ended September 30, 2026.
Previous wording
Subscription cost of revenue for three and six months ended June 30, 2026, increased $0.2 million and $0.3 million, or 98% and 118%, respectively, compared to the same period of fiscal year 2025. The increase in subscription cost of revenue was primarily due to increased hosting costs for new and existing active accounts for subscriptions and incremental recorder depreciation associated with new subscriptions.
Current wording
Subscription cost of revenue for three and nine months ended September 30, 2026, increased $0.2 million and $0.5 million, or 84% and 105%, respectively, compared to the same period of fiscal year 2025. The increase in subscription cost of revenue was primarily due to increased hosting costs for new and existing active accounts for subscriptions and incremental recorder depreciation associated with new subscriptions.
Previous wording
Gross profit for the three and six months ended June 30, 2026 increased $7.3 million and $12.4 million, or 39% and 34%, respectively, compared to the same period of fiscal year 2025. The increase is primarily due to increased revenue and decreased cost of goods sold due to cost reduction strategies and tariff refunds.
Current wording
Gross profit for the three and nine months ended September 30, 2026 increased $6.4 million and $18.8 million, or 32% and 33%, respectively, compared to the same period of fiscal year 2025. The increase is primarily due to increased revenue and decreased cost of sales per unit due to cost reduction strategies.
Previous wording
General and administrative expenses increased $3.4 million, or 30%, for the three months ended June 30, 2026, compared to the same period of fiscal year 2025. The increase was primarily due to an increase of $1.4 million in personnel and related expenses directly associated with an increase in headcount, as well as an increase in professional services of $2.0 million driven by legal costs associated with intellectual property enforcement activities, including a patent infringement suit initiated in July 2025.
Current wording
General and administrative expenses increased $12.2 million, or 38%, for the nine months ended September 30, 2026, compared to the same period of fiscal year 2025. The increase was primarily due to an increase of $5.6 million in personnel and related expenses directly associated with an increase in headcount and stock modification, as well as an increase in professional services of $6.7 million driven by legal costs associated with intellectual property enforcement activities, including a patent infringement suit initiated in July 2025.
Previous wording
Interest and other income, net decreased $1.0 million, or 37% for the six months ended June 30, 2026, compared to the same period for fiscal year 2025. The decrease in interest income was primarily due to lower balances of cash equivalents and marketable securities, compared to the same period of the prior year.
Current wording
Interest and other income (expense), net decreased $2.0 million, or 168% for the three months ended September 30, 2026, compared to the same period for fiscal year 2025. The decrease in interest and other income, net was primarily due to a $1.5 million loss on debt extinguishment and lower balances of cash equivalents and marketable securities, compared to the same period of the prior year. This was partially offset by lower interest expense compared to the prior year, as interest on the MidCap Revolving Facility is less than that of the VLSA, which terminated on August 5, 2026.
Previous wording
Interest and other income, net decreased $0.6 million, or 46% for the three months ended June 30, 2026, compared to the same period for fiscal year 2025. The decrease in interest income was primarily due to lower balances of cash equivalents and marketable securities, compared to the same period of the prior year.
Current wording
Interest and other income, net decreased $3.0 million, or 77% for the nine months ended September 30, 2026, compared to the same period for fiscal year 2025. The decrease in interest and other income, net was primarily due to lower balances of cash equivalents and marketable securities, compared to the same period of the prior year, as well as a $1.5 million loss on debt extinguishment.
Previous wording
Net cash used in operating activities during the six months ended June 30, 2026, consisted primarily of our net loss of $39.0 million and net amortization premiums on marketable securities of $1.3 million, offset by non-cash charges of stock-based compensation of $9.7 million and depreciation and amortization of $0.5 million. Additionally we had a net increase in operating assets of $0.5 million and a net decrease in operating liabilities of $1.8 million. Net operating assets increased and net operating liabilities decreased primarily due to timing of payments.
Current wording
Net cash used in operating activities during the nine months ended September 30, 2026, consisted primarily of our net loss of $60.4 million and net amortization premiums on marketable securities of $1.7 million, offset by non-cash charges of stock-based compensation of $16.8 million and depreciation and amortization of $0.7 million. Additionally, we had a $1.5 million loss on debt extinguishment and a net increase in operating assets of $1.9 million and a net decrease in operating liabilities of $0.8 million. Net operating assets increased and net operating liabilities decreased primarily due to timing of payments.
Previous wording
Net cash used in operating activities during the six months ended June 30, 2025, consisted primarily of our net loss of $26.4 million, offset by non-cash charges of stock-based compensation of $5.5 million, and depreciation and amortization of $0.7 million. Additionally we had a net decrease in operating assets of $0.2 million and a net increase in operating liabilities of $1.4 million. Net operating assets decreased due to decreases in prepaid expenses and inventory due to lower inventory purchases in the six months ended June 30, 2025. Net operating liabilities increased primarily due to timing of payments.
Current wording
Net cash used in operating activities during the nine months ended September 30, 2025, consisted primarily of our net loss of $39.9 million, offset by non-cash charges of stock-based compensation of $8.9 million, and depreciation and amortization of $1.1 million. Additionally, we had a net increase in operating assets of $0.9 million and a net increase in operating liabilities of $1.9 million.
Previous wording
Net cash provided by investing activities during the six months ended June 30, 2026 was $21.8 million, and consisted of maturities of marketable securities, offset by purchases of marketable securities, equipment, and recorders provided to customers.
Current wording
Net cash provided by investing activities during the nine months ended September 30, 2026 was $42.7 million, and consisted of maturities and sales of marketable securities, offset by purchases of marketable securities, equipment, and recorders provided to customers.
Previous wording
Net cash used in investing activities during the six months ended June 30, 2025 was $137.3 million, and consisted of purchases of marketable securities, equipment, and recorders provided to customers.
Current wording
Net cash used in investing activities during the nine months ended September 30, 2025 was $144.2 million, and consisted of purchases of marketable securities and equipment and recorders provided to customers.
Previous wording
Net cash provided by financing activities during the six months ended June 30, 2026, consisted of proceeds from the exercise of options and purchase of shares in accordance with our ESPP.
Current wording
Net cash provided by financing activities during the nine months ended September 30, 2026, consisted of proceeds from the exercise of options and purchase of shares in accordance with our ESPP and proceeds from the MidCap Revolving Facility, offset by payments made for the debt extinguishment, payments made on the VLSA, and payments made on the MidCap Revolving Facility.
Previous wording
Net cash provided in financing activities during the six months ended June 30, 2025, consisted of proceeds from the exercise of options, and offset by debt issuance costs.
Current wording
Net cash provided by financing activities during the nine months ended September 30, 2025, consisted of proceeds from the exercise of options, offset by debt issuance costs.
Previous wording
In April 2025, the U.S. government announced new tariffs on goods imported into the U.S. from dozens of countries, including China and the European Union member states. In response, governments have threatened or imposed reciprocal tariffs or taken other measures, and the United States is in the process of negotiating trade agreements with certain governments. In February 2026, the U.S. Supreme Court ruled to invalidate the U.S. administration’s tariff program implemented under IEEPA.
Current wording
In April 2025, the U.S. government announced new tariffs on goods imported into the U.S. from dozens of countries, including China and the European Union member states. In response, governments have threatened or imposed reciprocal tariffs or taken other measures, and the United States is in the process of negotiating trade agreements with certain governments. In February 2026, the U.S. Supreme Court ruled to invalidate the U.S. administration’s tariff program implemented under IEEPA. In the three months ended June 30, 2026, we recognized refunds of $1.6 million. Of this refund amount, $1.0 million was recognized as a reduction of cost of goods sold for product that had been sold and the remaining $0.6 million related to inventory on hand and remains capitalized in inventory as of June 30, 2026.
Previous wording
We calculate EBITDA as net loss adjusted to exclude (i) provision for income taxes (zero for each of the periods presented) (ii) depreciation and amortization expense, and (iii) interest income and interest expense, net (which consists primarily of interest income on our cash equivalents and marketable securities and interest expense on our term loans and non-cash interest charges related to amortization of debt issuance costs). We then adjust EBITDA to exclude (iv) stock-based compensation expense and (v) legal fees and related professional services costs incurred in connection with the patent infringement action we filed against Natus Medical Incorporated and certain of its subsidiaries ("Natus") in July 2025, as further described in Part II, Item 1 — Legal Proceedings of this Quarterly Report on Form 10-Q (the "Natus IP Matter"), to arrive at Adjusted EBITDA.
Current wording
We calculate EBITDA as net loss adjusted to exclude (i) provision for income taxes (zero for each of the periods presented), (ii) depreciation and amortization expense, and (iii) interest income and interest expense, net (which consists primarily of interest income on our cash equivalents and marketable securities and interest expense on our term loans and revolver and non-cash interest charges related to amortization of debt issuance costs). We then adjust EBITDA to exclude (iv) stock-based compensation expense, (v) legal fees and related professional services costs incurred in connection with the patent infringement action we filed against Natus in July 2025, as further described in Part II, Item 1 — Legal Proceedings of this Quarterly Report (the “Natus IP Matter”), and (vi) the loss on debt extinguishment, to arrive at Adjusted EBITDA.
Previous wording
other companies, including companies in our industry, may calculate EBITDA and Adjusted EBITDA measures differently, which reduces its usefulness as a comparative measure.
Current wording
other companies, including companies in our industry, may calculate EBITDA and Adjusted EBITDA measures differently, which reduces their usefulness as a comparative measure.
Previous wording
Since inception, we have financed operations primarily through the net proceeds we have received from the sales of our preferred stock and common stock as well as net proceeds from our term loans and cash generated from the sale of Wearables and Clarity subscriptions. On October 15, 2024, we completed our IPO and received net proceeds of $187.8 million after deducting underwriting discounts, commissions and offering expenses.
Current wording
Since inception, we have financed operations primarily through the net proceeds we have received from the sales of our preferred stock and common stock as well as net proceeds from our term loans and revolver and cash generated from the sale of Wearables and Clarity subscriptions. On October 15, 2024, we completed our IPO and received net proceeds of $187.8 million after deducting underwriting discounts, commissions and offering expenses.
Previous wording
As of June 30, 2026, our principal sources of liquidity consisted of $129.3 million of cash, cash equivalents, and marketable securities and $20.0 million of term loans.
Current wording
As of September 30, 2026, our principal sources of liquidity consisted of $117.5 million of cash, cash equivalents, and marketable securities.
Previous wording
On August 5, 2026, subsequent to June 30, 2026, we entered into a Credit, Security and Guaranty Agreement (the “Credit Agreement”) with MidCap Funding IV Trust, as agent, MidCap Financial Trust, as term loan servicer, and the lenders party thereto, providing for (i) a term loan facility, consisting of a $30.0 million commitment and an additional $25.0 million of uncommitted capital that may be available at the Lender's discretion, and (ii) a revolving loan facility in an aggregate principal amount of up to $20.0 million, which may be increased to up to $30.0 million at the Company's discretion upon satisfaction of certain conditions set forth therein. The $20.0 million revolving credit facility operates on a non-formula basis through December 31, 2027, after which time, availability under the facility will be subject to a borrowing base based on eligible accounts receivable and inventory. The term loan is callable at the Company's request at any time before December 31, 2028. At closing, the Company borrowed $20.0 million under the revolving facility and has no balance drawn under the term loan. The proceeds of borrowings under the Credit Agreement were used to repay in full the Company's outstanding obligations under the VLSA described in Note 9. Future borrowings will be used for working capital and general corporate purposes. The VLSA was terminated on August 5, 2026.
Current wording
On August 5, 2026, we entered into a Credit, Security and Guaranty Agreement (the “Credit Agreement”) with MidCap Funding IV Trust, as agent, MidCap Financial Trust, as term loan servicer, and the lenders party thereto, providing for (i) a term loan facility, consisting of a $30.0 million commitment and an additional $25.0 million of uncommitted capital that may be available at the Lender’s discretion, and (ii) a revolving loan facility in an aggregate principal amount of up to $20.0 million, which may be increased to up to $30.0 million in up to two tranches of at least $5.0 million each at the Company’s discretion upon satisfaction of certain conditions set forth therein. This extended our debt maturity from March 2029 to August 2031.
Previous wording
Debt— Principal payments required on long-term debt outstanding at June 30, 2026, was $20.0 million. Subsequent to June 30, 2026, we entered into the Credit Agreement, which provides for (i) a term loan facility, consisting of a $30.0 million commitment and an additional $25.0 million of uncommitted capital that may be available at the Lender's discretion, and (ii) a revolving loan facility in an aggregate principal amount of up to $20.0 million, which may be increased to up to $30.0 million at the Company's discretion upon satisfaction of certain conditions set forth therein, and materially increased our borrowing capacity and secured indebtedness; see Note 14, “Subsequent Events.”
Current wording
Debt— Principal payments required on long-term debt outstanding at September 30, 2026, was $20.0 million. On August 5, 2026, we entered into the Credit Agreement, which provides for (i) a term loan facility, consisting of a $30.0 million commitment and an additional $25.0 million of uncommitted capital that may be available at the Lender’s discretion, and (ii) a revolving loan facility in an aggregate principal amount of up to $20.0 million, which may be increased to up to $30.0 million at the Company's discretion upon satisfaction of certain conditions set forth therein, and materially increased our borrowing capacity and secured indebtedness; see Note 9.
Previous wording
Operating leases — As of June 30, 2026, estimated contractual obligations for operating lease payments were $2.0 million due within 19 months.
Current wording
Operating leases — As of September 30, 2026, estimated contractual obligations for operating lease payments were $1.7 million due within 16 months.
Previous wording
Information about our significant accounting policies and how estimates are involved in the preparation of our financial statements are described in our Annual Report on Form 10-K filed with the SEC on February 24, 2026. There have been no material changes to our significant accounting policies and estimates during the six months ended June 30, 2026.
Current wording
Information about our significant accounting policies and how estimates are involved in the preparation of our financial statements are described in our Annual Report on Form 10-K filed with the SEC on February 24, 2026. There have been no material changes to our significant accounting policies and estimates during the nine months ended September 30, 2026.
Previous wording
See Note 2 to our financial statements included elsewhere in this Quarterly Report on Form 10-Q for a description of recent accounting pronouncements applicable to our financial statements.
Current wording
See Note 2 to our financial statements included elsewhere in this Quarterly Report for a description of recent accounting pronouncements applicable to our financial statements.
Rearranged current paragraphs (3)
Current report — wording carried from elsewhere
General and administrative expenses increased $3.4 million, or 31%, for the three months ended September 30, 2026, compared to the same period of fiscal year 2025. The increase was primarily due to an increase in personnel and related expenses directly associated with an increase in headcount and stock modification.
Current report — wording carried from elsewhere
Interest and Other Income (Expense), net
Current report — wording carried from elsewhere
Net operating assets increased due to increases in accounts receivable and inventory due to higher inventory purchases in the nine months ended September 30, 2025. Net operating liabilities increased primarily due to timing of payments.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
General and administrative expenses increased $8.8 million, or 41%, for the six months ended June 30, 2026, compared to the same period of fiscal year 2025. The increase was primarily due to an increase of $2.0 million in personnel and related expenses directly associated with an increase in headcount, as well as an increase in professional services of $6.8 million driven by legal costs associated with intellectual property enforcement activities, including a patent infringement suit initiated in July 2025.
Previous report — wording carried elsewhere
During the three months ended June 30, 2026, the Company has recognized refunds of $1.6 million. Of this refund amount, $1.0 million was recognized as a reduction of cost of goods sold for product that had been sold and the remaining $0.6 million relates to inventory on hand and remains capitalized in inventory as of June 30, 2026. $1.0 million of this refund is recorded in other current assets as of June 30, 2026, and was received in cash on July 1, 2026.