CBLL

This article first appeared on GuruFocus. Revenue: Total revenue of $28.1 million, up 33% year-over-year from $21.2 million in Q2 2025. Product Revenue: $21.2 million, up 33% from $15.9 million in the prior-year period. Subscription Revenue: $6.9 million, up 30% from $5.3 million in Q2 2025. Gross Margin: Record gross margin of 92%, including a $1.6 million tariff refund; excluding this, gross margin was 89%. Operating Expenses: Total operating expenses of $45.9 million, up 37% from $33.6 million in Q2 2025. Net Loss: Net loss of $19.3 million, or $0.51 per share, compared to a net loss of $13.6 million, or $0.38 per share, in Q2 2025. Adjusted EBITDA: Adjusted EBITDA loss of $9.8 million, compared to a $10.0 million loss in Q2 2025. Cash Position: Cash, cash equivalents, and marketable securities of $129.3 million as of June 30, 2026. Active Accounts: Ended Q2 with 712 active hospital accounts, an increase of 32 accounts in the quarter. Guidance: Full-year 2026 total revenue expected to range from $114 million to $117 million, up from prior guidance of $112 million to $116 million. Warning! GuruFocus has detected 3 Warning Signs with CBLL. Is CBLL fairly valued? Test your thesis with our free DCF calculator. Release Date: August 10, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Revenue grew 33% year-over-year to $28.1 million, accelerating from 29% growth in Q1 2026. Record gross margin of 92% in Q2, or 89% excluding tariff refunds, driven by supply chain optimization and manufacturing diversification. Received FDA 510(k) clearances for two new algorithms (artifact reduction and epileptiform abnormality detection), enhancing the platform's clinical utility. CMS granted a New Technology Add-on Payment (NTAP) for the Delirium Monitoring Solution, providing up to $2,171 in incremental reimbursement per patient, effective October 1, 2026. Launched neonate and pediatric products with early commercial traction, including purchase orders from new and existing customers, and expanded the account base to 712 active accounts. Refinanced credit facility, securing up to $60 million in committed capital with extended repayment timeline to 2031, improving strategic flexibility. Net loss widened to $19.3 million in Q2 2026, compared to $13.6 million in Q2 2025, due to increased operating expenses. Operating expenses rose 37% year-over-year, driven by headcount expansion, R&D investments, and elevated IP litigation costs of $3.9 million. Gross margin was positively impacted by a one-time tariff refund; excluding this, margin was 89%, indicating underlying margin pressure from tariffs. The company remains unprofitable with an adjusted EBITDA loss of $9.8 million, reflecting continued reinvestment in growth initiatives. Delirium and neonate/pediatric products are not expected to contribute materially to revenue until 2027, limiting near-term growth diversification. The new hardware platform launch is targeted for 2027, with no immediate revenue contribution, and the company faces uncertainty in scaling manufacturing and market adoption. Q: What is driving the acceleration in revenue growth, and what are the key growth drivers for the remainder of 2026 and into 2027?A: Jane Chao (CEO): Q2 revenue grew 33% year-over-year to $28.1 million, an acceleration from 29% in Q1, driven by strong same-store growth from our Clinical Account Management team and the addition of 32 new accounts. We see multiple tailwinds converging, including the commercial launch of our Delirium solution in Q4 2026 following a favorable NTAP ruling, the scaling of our neonate and pediatric products, and the launch of our new hardware platform in 2027. We have less than 4% penetration in our core seizure market, indicating significant runway for growth. Q: Can you provide more detail on the FDA clearances and how they will contribute to revenue growth?A: Jane Chao (CEO): The FDA clearances align with our two-pronged strategy. The algorithm clearances (artifact rejection and epileptiform abnormality detection) will not be charged separately but will increase stickiness and utilization by improving the experience for neurologists. The new hardware platform, launching in 2027, is designed to make EEG a new vital sign, expanding our addressable market to include Delirium and future LVO monitoring. This platform will provide access to new patient populations and market segments, positioning it as a direct revenue driver in 2027. Q: What is the status of the Delirium launch, and what drove the decision to launch commercially in Q4 2026?A: Jane Chao (CEO): The decision to launch in Q4 was driven by two factors: positive feedback from our commercial pilot and the favorable final rule from CMS establishing an NTAP of up to $2,171 per qualified patient, effective October 1, 2026. Pilot data showed that 40% of patients who were difficult to assess under the current standard of care (CAM-ICU) could be monitored with our solution. We will leverage our existing Clinical Account Manager team for the launch and do not anticipate needing a separate sales force. Q: How should we think about the trajectory of growth in 2027 given the multiple new product launches?A: Scott Blumberg (CFO): While we are not providing 2027 guidance at this time, we see many tailwinds coalescing, including the neonate and pediatric products gaining scale, the commercial launch of Delirium, and the new hardware platform. We have six to seven months to learn from the Delirium launch and the limited market release of the new platform before we issue guidance, and we will share our learnings at that time. Q: Can you quantify the gross margin impact from the Vietnam manufacturing shift and the tariff refund?A: Scott Blumberg (CFO): Q2 gross margin was 92%, including a $1.6 million tariff refund. Excluding this, gross margin was 89%, which we view as our steady state. This is a direct reflection of our manufacturing diversification to Vietnam and other cost reduction initiatives. We expect to maintain gross margins in the high 80% range for the remainder of 2026, even with the burden of tariffs. Q: What is the progress of the Strategic Account Management team targeting regional health systems?A: Jane Chao (CEO): The team, formed in January, is tracking pipeline at the system level for the first time. While we are not disclosing quantitative metrics, the system-level pipeline is growing even faster than our already healthy hospital-level pipeline. We are seeing early wins internally, but expect the bigger impact to come in 2027 and 2028 as the sales cycle matures. Q: How is the new hardware platform positioned relative to conventional EEG, and what is the TAM expansion opportunity?A: Jane Chao (CEO): The new hardware platform is designed to be a comprehensive brain monitor, featuring video, EKG capability, integration with other vital signs, and the ability to monitor continuously for days. We have also received clearance for a full montage wearable that works in conjunction with our existing headband, providing optionality for patients who need comprehensive EEG. This positions Ceribell to offer both the speed of point-of-care EEG and the comprehensiveness of conventional EEG with one device, expanding our market opportunity. Q: When will we start to see operating expense leverage, and what is driving the current investment levels?A: Scott Blumberg (CFO): Q2 OpEx was elevated due to a $2.3 million sequential increase in stock-based compensation from our annual equity cycle and $3.9 million in IP litigation expenses, which we expect to decline in the second half. Our strategy is to reinvest outsized gross profits back into the business, maintaining adjusted EBITDA loss around $10 million per quarter. We are investing in sales infrastructure, including the Strategic Account Management team and CAM expansion ahead of the Delirium launch, while remaining focused on achieving cash flow break-even with cash on hand. Q: Are you seeing an inflection in interest from end users, particularly with the neonate and pediatric products?A: Jane Chao (CEO): Yes, we are seeing strong interest. The neonate and pediatric products secured purchase orders from both new and existing customers in Q2, and we expect the impact to grow in the second half of 2026 and into 2027. Additionally, existing Ceribell customers in the Delirium pilot are increasing their overall utilization, reflecting the synergistic value of our platform across seizure and delirium monitoring. Q: How are new sales representatives maturing, and what is their contribution to account growth?A: Scott Blumberg (CFO): We track the productivity curve of our sales team carefully. Reps typically add their first account at the end of year one and reach maximum productivity at the end of year two. With the infrastructure build starting in late 2024, more reps are aging into the one-year bucket, and their productivity is tracking in line with historical trends. This is reflected in our Q2 account additions of 32, which were achieved with less reliance on VA accounts and more from organic maturation of the sales force. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Image source: The Motley Fool. Monday, Aug. 10, 2026 at 4:30 p.m. ET Chief Executive Officer - Xingjuan Chao Chief Financial Officer - Scott Blumberg Gilmartin Group, Investor Relations - Brian Johnston Need a quote from a Motley Fool analyst? Email [email protected] Operator: Ladies and gentlemen, thank you for standing by. My name is Dejirae and I will be your conference operator today. At this time, I would like to welcome everyone to Ceribell Q2 26 Earnings Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number 1 on your telephone keypad. If you would like to withdraw your question, I would now like to turn the call over to Brian Johnston of Gilmartin Group. You may begin. Brian Johnston: Good afternoon, and thank you all for participating in today's call. Joining me from Ceribell are Jane Chao, Co Founder and Chief Executive Officer and Scott Blumberg, Chief Financial Officer. Earlier today, Ceribell issued a press release announcing financial results for the quarter ended June 2026. A copy of the press release is available on the Investor Relations section of the company's website. Before we begin, I would like to remind you that management will make remarks during this call that include forward looking statements within the meaning of federal securities laws and that these are being made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 2 thousand. Any statements contained in this call that relate to expectations or predictions of future events, results or performance are forward looking statements. These statements involve material risks and uncertainties that could cause actual results or events to materially differ from those anticipated or implied. By these forward looking statements. Accordingly, you should not place undue reliance on these statements. For a list and description of the risks and uncertainties associated with our business, please refer to the Risk Factors section of our public filings with the Securities and Exchange Commission, including our annual report on Form 10-K filed with the SEC on 02/24/2026, and quarterly report on Form 10 Q for the quarter ended 06/30/2026. This conference call contains time sensitive information and is accurate only as of the live broadcast today, 08/10/2026. Ceribell disclaims any intention or obligation, except as required by law, to update or revise any financial projections or forward-looking statements because of new information, future events or otherwise. And with that, I will turn the call over to Jane. Xingjuan Chao: Good afternoon, and thank you for joining us for our second quarter 2026 earnings call. Q2 launched another strong quarter for Ceribell. As we delivered revenue of $28.1 million growing 33% year over year. This is an acceleration from the 29% year over year growth we reported in Q1 which reflects a particularly strong performance in same store growth driven by our clinical account management team. We also increased our account base by 32 accounts. To a total of 712 active accounts. While the increase is similar to what we delivered in recent quarters, Q2 growth relied less on VA accounts than previous quarters. Our sustained success in growing our account base is a result of the continued maturation and performance of our account acquisition team. While revenue and commercial acceleration get top billing, I do want to take a moment to focus on our gross margin. We delivered record gross margin of 92% in Q2. This number was positively impacted by a refund on previously paid tariff. Even when excluding this refund, we delivered gross margin of 89%. This does not happen by accident. It is a direct result of our proactive efforts in supply chain optimization and manufacturing diversification. And gross margin is more than just a number. It generates the outsized gross profit we are reinvesting to fund our growth initiatives and R&D. With the eye towards executing our mission. With 33 consecutive quarters of sequential revenue growth, we believe we have built a repeatable growth engine. By pointing that engine squarely at our defining objectives, establishing Ceribell as the standard of care for seizure detection in acute care setting. At the center, of our growth strategy, is our commercial infrastructure. Built with the dual purpose of acquiring new customers and drive deeper adoption within our installed base. Our account acquisition team continues to mature and is contributing in line with expectation. The efforts are being supplemented by our newly added strategic account management team. Through top-down engagement of regional health systems. We have built a robust pipeline of prospects that gives us confidence in our ability to maintain an accelerated rate of new account additions in 2026 compared to 2025. While we continue to expand our account base, our clinical account management team is driving revenue through a head-to-toe utilization expansion. Our strong performance this quarter reflects execution of our established utilization playbook. Provider engagement, department expansion, and patient population prioritization. A robust and expanding body of clinical evidence validates our platform. Our aim is to make the case for Ceribell's clinical necessity by investing in high quality evidence. Demonstrating the clinical and economic value our system delivers. Adding to our established base of over 150 publications and abstracts, In Q2, a high impact study was published in Critical Care Medicine, 1 of the leading journals in 90% or greater, Patients were 3.6x more likely to experience severe disability or death. at discharge. Further, each additional hour of Clarity-detected seizure activity was associated with nearly 2-fold increase in that risk. The premise that longer seizure duration correlates with worse outcome is not new. What is new is that a device output can quantitatively report seizure burden at the bedside in real time. And that this burden reliably correlates with patient outcomes. These findings sharpen the clinical imperative for using the Ceribell solution, particularly clarity. To reduce seizure burden for patients. As the body of evidence compounds, we are increasingly confident that Ceribell's path to becoming the standard of care is not a question of if but when. As we continue to deliver within our core seizure market, we remain encouraged by the traction in our emerging market opportunities. In Q2, we launched our Neonate and pediatric products and the commercial pilot of our delirium algorithm. We remain encouraged by the early commercial traction of our neonate and pediatric seizure line extensions. Customer interest remains high. The clinical conviction is translating into early commercial success. As we secured purchase orders from both new and existing customers. In Q2. With a robust and growing pipeline, we are well positioned to translate our commercial efforts into revenue contribution as we move into 2027. We are also excited about the momentum of our first-of-its-kind delirium monitoring solution. Which received 510(k) clearance in December. Delirium represents an estimated $1 billion U.S. opportunity for Ceribell. And a strong addition to our platform. Despite being the most common neurological complication in the ICU, before Ceribell, there has been no commercially available tool to continuously monitor delirium. We launched our commercial pilot in April, and are now live in multiple sites. The early feedback has been positive. With users citing improvements in clinical decision making. For example, based on the survey, 40% of the patients were difficult to assess under CAM-ICU, The current standard of care. That could still be monitored with the Ceribell solution. Beyond the clinical signal, we are also seeing a utilization effect. Existing Ceribell customers that have joined the Delirium pilot are increasing at band utilization. We believe this is a reflection of both the clinical value of the delirium detection algorithm and the incidence overlap between seizure and delirium. underscoring the synergistic value of our platform. We are also pleased to share that we just received a favorable final rule from CMS establishing a new technology add on payment or NTAP for our delirium monitoring solution. The NTAP, which becomes effective October 1, 2026, provides up to $2.17 thousand in incremental reimbursement per qualified patient. This is a meaningful milestone. It will support adoption by adding favorable economics to the strong clinical interest we are already seeing in the field. Our launch strategy is coming into focus. And we now have the confidence that we will launch delirium commercially this year. With the commercial and clinical updates covered, I would like to turn to our vision for the future. We believe we are well on our way to establishing the Ceribell System as the standard of care for seizure. At the same time, our longer term vision to establish EEG as a new vital sign is no longer theoretical. We have made material progress and believe we can begin translating this vision to reality in 2027. Underpinning this is a 2-pronged product strategy. We invested in algorithm and hardware enhancement to reach more patient populations while improving patient care and meeting physician needs. Our first prong is centered around developing novel algorithms to further improve clinical decision making. Delirium and LVL are excellent examples of clinical expansion to new patient populations under this strategy. Through these advancements, we are delivering continuous objective brain monitoring to assess our underserved patient populations. Also apply algorithm development to improve care for patients we already serve. We are pleased to announce today the receipt of FDA 510(k) clearances for 2 new algorithms. Targeting our core seizure market. We believe each meaningfully add to our platform clinical utility, strengthening the case for Ceribell as the standard of care. The first represents a significant enhancement to Clarity's ability to identify and reduce EEG artifact signals. Artifact recognition has long been the leading challenge to EEG interpretation in the acute care environment. it is not uncommon for even neurologists to mistake electrical signal from various medical equipment. As seizure activity. EEG is so sensitive that even the electrical signal from an IV drip's movement can create artifacts. Our new algorithm trained on a large artifact database created by Ceribell, Can differentiate between brain activity and artifact. Adding a layer of AI driven sophistication. The new algorithm significantly simplifies EEG interpretation for neurologists. And improves the point of care experience. We anticipate rolling this out in the third quarter. The second clearance is for epileptiform abnormality detection. This algorithm targets abnormal brain activity in a gray zone between clear seizure and normal signals. This activity is clinically important but has historically been difficult to consistently measure. To our knowledge, Ceribell is the first software to be FDA cleared for the detection of both seizure and epileptiform abnormality. This is a capability that neurologists have specifically asked for. And we are proud to be the first to deliver it. We expect to activate this algorithm by the end of the year. These new algorithms serve to strengthen the clinical benefit offered by our system. We believe that by widening the gap between the value offered by Ceribell system compared to conventional EEG. We create a clinical imperative to adopt our leading edge technology. The second prong of our product strategy centers on enhancing and expanding our hardware platform. Over recent months, we have received FDA 510(k) clearances for several products. That together form the foundation of our new hardware platform. This includes clearances for a recorder with video and ECG capability, compatibility to integrate with other vital sign measurements and the ability to monitor continuously while plugged in. We have also received clearances for 2 headband designs. That provide optionality for frontal touch, and multiple day continuous monitoring when needed. The features offered by our new platform serve to support our effort to make EEG a new vital sign. For example, delirium patients often require days in ICU before resolution. And the new system can be even more seamless in supporting this new use case. And when we add LBO in the future, a bigger screen will be needed to monitor multiple disease states. Within our core tissue market, we believe our current product is optimized for majority of patients in the acute care setting. It is quick, simple and reliable. In a care setting where these are the most important needs. However, with our hardware line extensions, clinicians no longer have to choose between the speed or point of care EEG and the comprehensiveness of conventional EEG for patients who need both and can offer both with 1 device. We are continuing to test our products refine the design and scale our manufacturing. With the target launch of our new hardware platform in 2027. We will share more details as we get closer to the product launch. As I step back, I am struck by how much is converging at once. Our core business continues to perform. Delivered 33% year over year growth and an acceleration compared to last quarter. We are the first and only point of care feature platform indicated for use with patients of all ages. At the same time, the work we have been building towards for years is coming to a head. New algorithms new hardware, new clearances, a delirium pilot tracking towards commercial launch, and a new NTAP. These advancements stand to meaningfully strengthen our value proposition. While reinforcing our market leadership position with significant innovation based barriers to entry. We see 2027 as a pivotal year. With Neonate gaining more scale. Delirium commercially launched, our expanded hardware platform on the market. And an increasingly mature sales force delivering even greater impact. I am more convinced than ever that we are building the right platform at the right moment. Our goal of creating a single brain monitoring solution for the acute care setting is within reach. With that, I will now turn the call over to Scott Blumberg. Our CFO to provide a review of the second quarter results and 2026 guidance. Scott Blumberg: Thank you, Jane, and good afternoon, everyone. As Jane highlighted, total revenue for the second quarter of 26 was $28.1 million which represents a 33% increase from $21.2 million in the second quarter of 25 and a 6% sequential increase quarter over quarter The increase was primarily driven by the success of our same store growth strategy in addition to increased adoption of the Ceribell system across new and existing accounts. Product revenue for the second quarter of 2020 was $21.2 million representing an increase of 33% from $15.9 million in the second quarter of 25. Subscription revenue for the second quarter of 26 was $6.9 million representing an increase of 30% from $5.3 million in the second quarter of 25. We ended Q2 with an active account base of 712 hospitals, representing an increase of 32 accounts in the quarter. We have been pleased to see our investments in driving same store growth continue to deliver. While we saw signs of typical seasonality in Q2, when warmer months tend to result in reduced ICU census, our same store growth performance exceeded expectations. Including an acceleration in year over year growth from recent quarters. We continue to believe that we have a significant untapped growth opportunity within our installed base in which our top accounts continue to use our product at roughly 3x the rate of average accounts of similar size. Gross margin for Q2 26 was 92%, compared to 88% in the prior year period. This includes the impact of $1.6 million in tariff refunds received in the quarter. Of which $1 million was recognized in cost of goods sold and $600 thousand was capitalized to inventory. Excluding this adjustment, gross margin was 89%, Our strong margin profile is a direct reflection of cost reduction efforts and the expansion of manufacturing capabilities in Vietnam. We feel confident in our ability to maintain gross margins in the high-80s range throughout 2026 based on current tariff policies and believe we have built flexibility in our manufacturing capability to manage any future policy shifts. Total operating expenses for the second quarter of 26 were $45.9 million an increase of 37% compared to $33.6 million in the second quarter of 25. Non cash stock based compensation expense was $6 million in the second quarter of 26, and $3.2 million in the prior year period. Sales and marketing expense in the second quarter grew as a result of headcount expansion, including the newly established strategic account management function and expansion of our CAM infrastructure in advance of the Delirium launch. G&A expense remains elevated in the second quarter of 26 as a result of expenses related to our ongoing ITC litigation which totaled $3.9 million. Looking ahead to the third and fourth quarters of 26, we anticipate a reduction in lawsuit related activities and associated expense. Research and development expense in the second quarter reflects investments we have made into our platform including our next generation hardware, algorithm development, clinical studies. Net loss was $19.3 million for the second quarter of 26 or a loss of $0.51 per share compared to a loss of $13.6 million or a loss of $0.38 per share in the second quarter of 25. An average weighted share count of 38 million was used to determine loss per share in Q2 26. Last quarter, we instituted the disclosure of adjusted EBITDA to represent the ongoing operating performance of our business. Adjusted EBITDA reflects our net loss before interest taxes, depreciation and amortization expense and also excludes the noncash stock based compensation expenses as well as legal expenses associated with our ongoing ITC litigation. Adjusted EBITDA loss for the second quarter of 26 was $9.8 million as compared to a $10 million loss in the second quarter of 25. This reflects our continued strategy of thoughtfully deploying gross profits from our expanding revenue base back into the business to pursue long-term growth opportunities. Our cash, cash equivalents, and marketable securities as of 06/30/2026, $129 million. We remain committed to our objective of achieving cash flow breakeven with cash on hand, and the strength of our balance sheet and strong gross margin profile, give us a high degree of confidence in our ability to do so. Finally, following close of the quarter, we successfully refinanced our existing credit facility securing access to up to $60 million in committed capital with an additional $25 million uncommitted. The structure includes a non formula revolver plus term loan that remains available to draw through year end 2028. We expect that this structure will reduce our interest expense starting in Q4 and extend our repayment time line by roughly 3 years. into 2031. We do not have plans to draw the committed but undrawn term loan in the near term, but we believe that its availability provide us with greater strategic flexibility. Turning now to our outlook for 2026. We expect full year 2026 total revenue to range from $114 million to $117 million up from our prior guidance of $112 million to $116 million This represents annual growth of 28% to 31% over 2025. This change to guidance reflects the momentum we are seeing in our core business, with success driven both by new account additions and usage within our established account base. This range does not include material contributions from our neonate, pediatric, or delirium products, which we expect will begin to translate into revenue more meaningfully in 2027. With that, I will turn the call back to Jane. Xingjuan Chao: Thank you, Scott. And thank you all for your time today. Q2 reinforced the confidence we have in our trajectory. Our core business is growing and accelerating. Our commercial execution across new accounts, utilization, and Neonate is on track. And the product and clinical evidence investments we have been making are beginning to compound in ways that will matter over the next year and beyond. We have less than 4% penetration in our core seizure market This tells you how much runway is still ahead of us. And we are advancing into new greenfield markets with urgency and purpose. Our mission to establish EEG as a new vital sign remains our North Star. And the progress we made in Q2 gives us every reason to push harder. Now I will turn the call over to the operator for Q&A. Operator? Operator: Thank you. We will now begin the question and answer session. Keypad to raise your hand and join the queue. Would like to withdraw your question, simply press star 1 again. If you are called upon to ask your question and are listening via speakerphone, please pick up your handset to ensure that your phone is not on mute when asking your question. We do request for today's session that you please limit to 1 question and requeue for any follow-up questions. Thank you. Our first comes from the line of Travis Steed with Bank of America. Your line is open. Travis Steed: Hey. Congrats on the progress. I wanted to spend a little more time on all the FDA approvals that you guys have gotten and put together. And I do not know if there is anything else you want to add to that. But I think the real question is, like, what can all these approvals and new indications and everything do for kind of the revenue growth rate and kind of the incremental revenue dollars you can add to this business? That would be kind of helpful to put into context, but anything else you want to say on all the approvals? Would be helpful just to put in context for everybody. Then I have a follow-up. Thank you, Travis Steed. Xingjuan Chao: So, I will put our recent FDA clearance into 2 groups. Aligned with our 2 pronged strategy. The first group are the algorithm clearances that include artifact rejection as well as epileptiform abnormality. As we launch both of these algorithm later this year, we do not plan to charge more, but we see this tool will be very beneficial, especially for the neurologists. And directly or indirectly, this would further increase the stickiness and potentially increase the utilization at the account. We have always seen our top accounts always have very strong neurology support. So we could see at this at the leverage to drive usage, and potentially increase the deal velocity as well. In terms of our new hardware platform, we are not launching this platform yet and similar to the previous strategies we have deployed. And we are planning on a limited market release for the new hardware platform. And potentially launch the platform in 2027. This new hardware platform really have been aiming at making EEG a new vital sign in conjunction with Delirium and the future LVO we are working on. We see this as giving us access to additional patients or even additional market segments. So we do see this can be a revenue driver in 2027 directly. As we get closer to the launch time, we will share even more details. Operator: Our next question comes from the line of Robbie Marcus with JPMorgan. Your line is open. Robbie Marcus: Great. Congrats on the quarter, and thanks for the question. Scott, I wanted to ask on OpEx. Companies your size, typically need to make a strong beeline towards leverage. And we have seen OpEx grow faster than sales the past several quarters. So maybe just speak to the investments and the spending that you are doing now. what is driving that? And when can we start to see leverage? On OpEx? Thanks a lot. Scott Blumberg: Sure thing, Robert. First of all, the 2 things I would like to point out in the Q2 OpEx that were a little bit out of the normal is stock based compensation sequentially increasing by about $2.3 million We have an annual equity cycle that happens in Q2, so you will tend to see that step function in Q2. And then carry forward until the next cycle. The other, of course, is the IP litigation, which remained elevated lower than Q1 but higher than we would expect going forward. As it relates to our investment philosophy, we maintained adjusted EBITDA loss roughly at around $10 million give or take, for the past many quarters in a row. Our strategy has been to continue to grow the top line. Line, generate outsized gross profit with our high gross margin and then reinvest that back into the business. And that investment comes in the form of sales infrastructure. In this quarter, both building the strategic account management function out as well as expanding our TAM infrastructure a bit ahead of our Delirium launch. As well as R&D, R&D And as we make those investments, we are very mindful of our objective to achieve cash flow breakeven with cash on hand. Have not guided specifically as to when we come, but we keep a very close eye on it to ensure that we control our own destiny. And make sure that we are self sufficient as far as our cash position goes. Operator: Next question comes from the line of Brandon Vazquez with William Blair. Your line is open. Brandon Vazquez: Everyone. Thanks for taking the question, and congrats on a nice quarter. I think you had mentioned that, there was kind of an inflection here or driving factor of growth in the quarter was from new account ads. there is clearly a bunch of tailwinds going on in the business with new indications and things like that. I was hoping you could just spend a minute on unpacking, you know, are you guys seeing kind of, like, an inflection in interest from end users? I think you even said that Neonate and Pediatrics was driving new account openings that you were not even in before. So just kind of give us a little bit of an update on interest in driving new accounts and, expectations on how durable that could be going forward. Thank you. Xingjuan Chao: Thank you, Brandon. Yeah. Definitely echo your statement. We do see a lot of tailwinds on the account acquisition front. we saw the new purchase order related to Neonate both in existing accounts as well as new accounts. And I would say in Q2, it is still relatively early phase. As you know, it does still takes the sales cycle and we just launched the Neonate recently. We do expect the impact from Neonate is going to be even bigger in the second half of the year and especially in 2027. And as I mentioned in my previous call last quarter that we started the strategic account management team. So we also continue seeing the pipeline and the momentum on from this team in closing accounts at the regional hospital system level, and we remain very optimistic for the impact to come later this year and into 2027. Another dimension of revenue drivers, of course, is from the utilization or the same store growth. As Scott mentioned, Q2 usually is our low seasonality quarter. But the same store growth this quarter exceeded expectation. And part of the majority of that is the continuous execution of the known playbook we have. In addition to that, we also see coming tailwind as we later launch delirium at the limited market release did show that these existing Ceribell counts when they start to use Delirium it meaningfully increased the utilization as well. So we are very excited about the different tailwinds we are having. Operator: Next question comes from the line of Joshua Jennings with TD Cowen. Your line is open. Joshua Jennings: Hi. Good afternoon. Thanks, Jane and Scott. Congratulations on another strong quarter. Wanted to you have laid out some additional layers of growth that will be kicking in, in 2027. Right now, the street's projecting similar kind of revenue growth rate prior to today as the lower end of 2026 guidance that you just revised up. I know you are not going to provide explicit guidance for 2027. But with pediatric neonate kicking in next year, delirium the new hardware, Ceribell headband platform. How should we be thinking about kind of the trajectory of growth? It seems like there could be an acceleration even in 2027 versus 2026. Scott Blumberg: Yeah, Joshua. You know, we are not yet going to comment on, 2027 guide. But as you pointed out, there is a lot of tailwinds that are all coalescing around at the same time. We feel really good about what we know. We feel good about what we have learned on the neonate early launch, the delirium pilot. There are still things we need to learn. We need to learn how the delirium launch later plan for later this year goes and as well as the limited market release on the new product platform. But we have got about, 6 or 7 months here before we are guiding for 2027. We are learning and I am very happy to share our learnings with you when we issue our guide. Operator: Our next question comes from the line of Bill Plovanic with Canaccord Genuity. Your line is open. Zachary Day: Hi. it is Zachary on for Bill. Thank you for taking the question and congrats on the quarter. Can you talk more about the magnitude of the gross margin impact from the Vietnam manufacturing shift I thought that was going to be more impactful later in the year. It sounds like you are starting to get some benefit now. Can you try to quantify that, please? Thank you. Scott Blumberg: Sure. I view the 89%, which effectively is if there had not been any sort of refund as effectively the steady state for where we are. And as we have mentioned, we plan to be in the expect to be in the high-80s% range for the remainder of the year. That 89%, which would have included the burden of tariffs, is essentially back to where we were, even a little better, before all the tariff noise, and that is a direct reflection of both the manufacturing move to Vietnam, but also some general cost reduction initiatives that we put into place over the course of the last year and a half that should continue to generate dividends going forward. Operator: Next question comes from the line of Jeffrey Cohen with Ladenburg Thalmann. Your line is open. Destiny Hance: Hi. This is Destiny on for Jeffrey. Thank you for taking our question. Jane, I know you mentioned that like 45 percent of the patients in the delirium pilot were difficult to evaluate. But still could be monitored using Ceribell, the Ceribell system. So I am wondering, as the pilot has matured, are you seeing the initial commercial use case converge around a particular patient population or workflow? And if you could just kind of expand on that a little bit. Thank you. Xingjuan Chao: Yeah. Thank you. This is a part of the reason we do a limited market release so we can really fine tune the value proposition and workflow and patient population. So the short answer to your question is, yes, we start to see emerging populations that hospitals and physicians particularly interesting related to delirium. The examples include sepsis patient with altered mental status, or elderly patients, especially with post-cardiac surgery or other procedures, and these patients are more likely to have delirium. And it is more than 40 percent of these patient with a conventional standard of care would not have been able to assess delirium is 1 of the value proposition. In the same pilot and survey, we also show other results. For example, physicians and nurses show that about, you know, another 30% to 40% that they were able to reduce sedation or even intubation. Based on the algorithm. And about 20 percent of the time, they were able to improve care. So these give us even stronger confidence as well as the initial preliminary evidence to support the delirium launch. We are planning later this year as well. Operator: Next question comes from the line of Marie Thibault with BTIG. Your line is open. Marie Thibault: Hi. I wanted to hear a little bit more about the regional health system team. I know that is a small strategic team, targeting some of the regional health systems and I heard you say it is going well so far. But I wonder if we could get any more details on some of the early pipeline metrics, things like the number of systems under engagement or in conversation, number of hospitals in these kinds of discussions. Your best estimate for when this starts to really accelerate account adds further. Thanks for taking the questions. Xingjuan Chao: Yeah. Thank you, Marie. So I mentioned probably about 2 quarters ago as we start forming this team, we also optimize our internal, you know, operation and tracking. So this year is the first time we start to track pipeline not just at hospital level, but also at the system level. We are not ready and probably will not share the pipeline of system level quantitatively. But what I can share is we have seen very, very strong momentum growth on this hospital system level pipeline. In many ways, they are growing even faster than the already very health hospital level pipeline we are seeing. As I have also mentioned earlier, this team only started in January. We are just building up this team in January. And take a few months to build up the team and to learn So we are only 6 months in the process. And with the sales cycle, we expect to see early win. We already seeing an early win internally this year. But the bigger impact would come in 2027 and 2028. Operator: Next question comes from the line of Jayson Bedford with Raymond James. Your line is open. Jayson Bedford: Good afternoon, and congrats on the progress here. I guess, on Delirium, the decision to launch in late 26 versus what I think was your prior commentary of fourth quarter, early 2027. Is the decision due to what you are seeing in pilot? Is it the establishment of the NTAP? Is there any commentary on reasoning for what I assume is a fourth quarter launch? As a related question, you hinted at it earlier, but is there a need for additional sales infrastructure to launch Delirium? Thanks. Xingjuan Chao: Yeah. Thank you, Jason. The answer is both. We saw both very positive feedback clinically and operationally, as I mentioned earlier, from the limited market release on delirium. Across the sites we have launched as well as the final rule from CMS on NTAP, effective October 2026. The combination of that give us the confidence that we are going to fully officially launch delirium in Q4 this year. In terms of sales oh, sorry. Q4. In Q4 this year. In terms of Salesforce, the short answer is no. We do not expect we need additional, you know, specific sales team for this. As we did with the limited market release, we leveraged the local monthly clinical account manager team. And we expect we can continue to leverage our clinical account manager team. And, of course, if delirium really we can see it gaining even more momentum, we could consider, you know, opportunistically expand this team even further, but we definitely do not see a need to establish a different Salesforce. Operator: Next question comes from the line of Joshua Jennings with TD Cowen. Your line is open. Joshua Jennings: Hi. Thanks. Just had 1 follow-up to the, I guess, next generation or Ceribell headband hardware that you talked about introducing in 2027. I just wanted to get a better sense. I mean, is that you are adding? Is it gonna be a full montage EEG? Can you just talk about moving into conventional EEG territory and the TAM expansion opportunity there? Can you leverage all of the AI algorithms clarity that have been developed for reduced electrode montage on this next Ceribell headband hardware. Thanks for taking the questions. Xingjuan Chao: Yeah. Thank you, Joshua. The new hardware platform really focused on providing the hardware solution to become the brain monitor. So the key features I would emphasize is when you think about brain monitor, sometimes it is video, a bigger screen. and continuous monitoring for days or even weeks. So the recorder need to plug in. And also the capability to integrate other signals. So the new recorder can add EKG or other vital sign into the recording. And it would be the platform that will run, you know, the seizure algorithm, the delirium algorithm, all the algorithm we already have. And also the future algorithm. And the wearable that 1 of the variables get FDA clearance is even more comfortable, and that is where a patient can wear it for days. So the vision is really to become a brain monitor. And with that, we also have a wearable that has the parasagittal cap coverage. So that is the full montage. It only works in conjunction with our existing headband. So it is the add on variable plus our headband. Band together, plug it into the same recorder. We will provide the full montage. And that is because we believe that our existing system can support the majority of the patients. But occasionally, doctor preference or patient needs do need a full montage. So we want to provide the optionality and you are right. With this entire new hardware, we are not just a brain monitor anymore. Also provide almost all of the functionality of the conventional EEG. So we look forward to sharing more our bigger picture and value proposition of our hardware as we are getting closer to the market release later this year. Operator: And our last question comes from the line of Bill Plovanic with Canaccord Genuity. Your line is open. Zachary Day: Hi. it is Zachary again for Bill. Thank you for taking the follow-up questions. Last quarter you provided that 85% of the new reps that at least 12 months of tenure contributed to the active account base and had a 100% purchase orders. What is that looking like now? Can you quantify how these newer reps are maturing as it is considered a bigger part of your revenue ramp for this year? Thank you. Scott Blumberg: Zach, I do not have a precise soundbite for you, but we track very carefully the progression of the team across we know to be the productivity curve. And as we mentioned in the past, typically, we do not see reps add their first account until they hit the end of year 1, and then they continually get more productive throughout year 2 and then reach their kind of max rate of new ads at the end of year 2. With the infrastructure build we did starting in late 24, we are having more folks age into that 1-year bucket. Still, the majority of those are not at the 2-year bucket. And the productivity is aligned with what we have seen historically, and I think that is a reflection of the ads you have seen on the account base, in which we delivered a pretty similar result in terms of new ads this quarter to the prior 2 quarters, but with much less reliance on VA to juice the number up and, really more of a reflection of the, organic maturation of the sales force. Operator: That concludes the question and answer session. I would now like to turn the call back over to Jane Chao for closing remarks. Xingjuan Chao: Thank you, everyone, for joining the call. We are very proud of what we have accomplished this quarter and really excited about what is ahead of us. And in 2027. Thank you all. Operator: Ladies and gentlemen, that concludes today's call. Thank you all for joining. You may now disconnect. Before you buy stock in CeriBell, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and CeriBell wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $399,832!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,374,595!* Now, it’s worth noting Stock Advisor’s total average return is 968% — a market-crushing outperformance compared to 215% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 10, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. CeriBell (CBLL) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved 33% year-over-year revenue growth, marking an acceleration from Q1 driven by a repeatable growth engine and strong same-store utilization. Delivered record adjusted gross margins of 89% through proactive supply chain optimization and manufacturing diversification in Vietnam, providing capital for R&D reinvestment. Transitioned account acquisition strategy to rely less on VA accounts, reflecting the maturation of the account acquisition team and organic commercial performance. Established a new strategic account management team to drive top-down engagement with regional health systems, building a robust pipeline for 2026 and beyond. Strengthened the clinical imperative for the platform through high-impact studies linking Clarity-detected seizure burden directly to patient outcomes and disability risk. Advanced the 'EEG as a vital sign' vision by securing FDA clearances for artifact rejection and epileptiform abnormality detection algorithms to simplify neurologist interpretation. Successfully piloted a first-of-its-kind delirium monitoring solution, addressing a $1 billion market opportunity where no continuous monitoring standard previously existed. Raised full-year 2026 revenue guidance to $114M-$117M, reflecting core business momentum while excluding material contributions from new product lines. Anticipate 2027 as a pivotal year as Neonate/Pediatric lines scale and the new hardware platform enters the market with full montage capabilities. Planned Q4 2026 commercial launch for Delirium monitoring, supported by a newly established CMS New Technology Add-on Payment (NTAP) of up to $2.17 thousand per patient. Targeting cash flow breakeven using existing cash on hand, supported by a recently refinanced credit facility providing up to $85M in total capital. Expect to roll out new AI algorithms in Q3 and Q4 2026 to increase platform stickiness and utilization among neurologists without increasing base pricing. Recognized a $1.6 million tariff refund in Q2, which contributed to a headline gross margin of 92%. Incurred $3.9 million in legal expenses related to ongoing ITC litigation, though management expects a reduction in lawsuit-related activities in the second half of 2026. Received FDA 510(k) clearances for a next-generation hardware platform featuring video, ECG integration, and continuous plug-in monitoring capabilities. Successfully refinanced debt to extend the repayment timeline by three years to 2031 while reducing interest expense starting in Q4 2026. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management clarified that new algorithms (artifact rejection) are designed to increase 'stickiness' and deal velocity rather than direct price increases. The new hardware platform launching in 2027 is expected to be a direct revenue driver by accessing new patient populations and market segments. Management noted Q2 OpEx was elevated by a $2.3 million step-function in stock-based compensation and litigation costs. The strategy remains to reinvest high gross profits into sales infrastructure and R&D while maintaining a stable adjusted EBITDA loss of approximately $10 million. Pilot data showed 40% of patients were difficult to assess under current standards but could be monitored via Ceribell. Physicians reported the ability to reduce sedation or intubation in 30-40% of cases based on the algorithm's findings. Reps typically add their first account at the 12-month mark and reach maximum productivity at the end of year two. Q2 growth was driven by the organic maturation of the 2024 hiring cohort rather than non-recurring factors like VA account surges.

SUNNYVALE, Calif., Aug. 10, 2026 (GLOBE NEWSWIRE) -- CeriBell, Inc. (Nasdaq: CBLL) (“Ceribell”), a medical technology company focused on transforming the diagnosis and management of patients with serious neurological conditions, today reported financial results for the second quarter ended June 30, 2026. Second Quarter 2026 & Recent Highlights Reported total revenue of $28.1 million in the second quarter of 2026, a 33% increase compared to the same period in 2025 Ended the quarter with 712 total active accounts Achieved gross margin of 92%, which includes impact of refunds from previously paid tariffs Received U.S. Food and Drug Administration 510(k) clearances for Epileptiform Abnormality Detection algorithm and Artifact Reduction algorithm Received multiple U.S. Food and Drug Administration 510(k) clearances for new recorder and headband designs that will form the foundation of Ceribell’s next-generation hardware platform Announced publication of study in Critical Care Medicine reinforcing the link between Clarity-measured seizure burden and neurological outcomes Secured new credit facility to refinance existing debt, providing access to up to $60 million of committed capital Received New Technology Add-On Payment (NTAP) for delirium monitoring solution from Centers for Medicare & Medicaid Services, effective October 1, 2026 Strengthened Board of Directors with the appointment of Tom West and Sharon O’Keefe "Our second quarter results reflect adoption accelerating across both new and existing accounts," said co-founder and CEO Jane Chao, Ph.D. "Combined with the early progress of our delirium pilot and multiple new FDA 510(k) clearances, we are highly confident in the strength of our business and our mission to establish EEG as a new vital sign." Second Quarter 2026 Financial Results Total revenue in the second quarter of 2026 was $28.1 million, a 33% increase from $21.2 million in the second quarter of 2025. The increase was primarily driven by continued growth in new account additions and increased utilization within the Company's existing account base, which grew despite the seasonal moderation in ICU census typically experienced during the summer months. Product revenue for the second quarter of 2026 was $21.2 million, representing an increase of 33% from $15.9 million in the second quarter of 2025. Subscription revenue for the second quarter of 2026 was $6.9 million, representing an increase of 30% from $5.3 million in the second quarter of 2025, reflecting continued growth in the Company’s installed base of Clarity subscriptions. Gross profit in the second quarter of 2026 was $25.9 million, compared to $18.7 million for the second quarter of 2025. Gross margin for the second quarter of 2026 was 92%, compared to 88% for the same period in 2025. Gross margins improved due to manufacturing cost reduction initiatives and the impact of the Company's introduction of a fully operational manufacturing line in Vietnam. The Company also recognized a one-time benefit of tariff refunds previously paid under the International Emergency Economic Powers Act (“IEEPA”). Operating expenses in the second quarter of 2026 were $45.9 million, compared to $33.6 million for the second quarter of 2025, representing an increase of 37%. The increase in operating expenses was primarily attributable to continued investments in the Company’s commercial organization, increased headcount and related payroll and stock-based compensation expenses to support the growth of the business and expansion of its product pipeline, and legal costs associated with intellectual property enforcement activities, including the patent infringement suit initiated against Natus Medical Incorporated in July 2025. Net loss in the second quarter of 2026 was $19.3 million, or $0.51 net loss per share, compared to a net loss of $13.6 million, or $0.38 net loss per share, for the same period in 2025. Adjusted EBITDA loss (a non-GAAP measure) for the second quarter of 2026 was $9.8 million, compared to $10.0 million in the second quarter of 2025. Reconciliations of EBITDA and Adjusted EBITDA for the three months ended June 30, 2026 and 2025 are in the financial schedules that are included with this press release. Cash, cash equivalents, and marketable securities totaled $129.3 million as of June 30, 2026. In August 2026, the Company further strengthened its balance sheet by entering into a new credit facility providing access to up to $60 million in committed capital, comprising a $30 million term loan and a $30 million revolving credit facility, with an additional $25 million of uncommitted capital available at the lender's discretion. 2026 Financial Outlook Ceribell is raising its revenue guidance for the full year 2026 to a range of $114 million to $117 million, representing growth of approximately 28% to 31% over the Company’s prior year revenue. This update reflects the Company’s continued momentum in its core business, driven by both new account additions and increased utilization within its established account base. Webcast and Conference Call Details Ceribell will host a conference call today, August 10, 2026, at 1:30 p.m. PT / 4:30 p.m. ET to discuss its second quarter 2026 financial results. Investors interested in listening to the conference call may do so by dialing (800) 715-9871 for domestic callers or (646) 307-1963 for international callers and providing access code 1880547. A live and archived webcast of the event will be available on the “Investor Relations” section of the Ceribell website at https://investors.ceribell.com/. Forward-Looking Statements Except where otherwise noted, the information contained in this earnings release and the related attachments is as of August 10, 2026. We assume no obligation to update any forward-looking statements contained in this earnings release and the related attachments as a result of new information or future events or developments. This earnings release and the related attachments contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about, among other topics, our anticipated operating and financial performance, including financial guidance and projections; business plans, strategy, goals and prospects; and expectations for our products. Given their forward-looking nature, these statements involve substantial risks, uncertainties, and assumptions, and we cannot ensure that any outcome expressed in these forward-looking statements will be realized in whole or in part. You can identify these statements by the fact that they use future dates or use words such as “will,” “may,” “could,” “likely,” “ongoing,” “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” “assume,” “target,” “forecast,” “guidance,” “goal,” “objective,” “aim,” “seek,” “potential,” “hope,” and other words and terms of similar meaning. Our financial guidance is based on estimates and assumptions that are subject to significant uncertainties. Among the factors that could cause actual results to differ materially from past results and future plans and projected future results are the following: risks related to our limited operating history and history of net losses; our ability to successfully achieve substantial market acceptance and adoption of our products; competitive pressures; our manufacturing operations, including our reliance on third-party manufacturers and suppliers in China and Vietnam and our ability to adapt to evolving demand; product defects or complaints and related liability; the complexity, timing, expense, and outcomes of clinical studies, legal matters and regulatory compliance; our ability to obtain and maintain adequate coverage and reimbursement levels for our products; our ability to comply with changing laws and regulatory requirements and resulting costs; our dependence on a limited number of suppliers; geopolitical conflicts and related supply chain disruptions; and other risks and uncertainties, including those described under the heading “Risk Factors” in our most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q, as well as in other reports filed with the U.S. Securities and Exchange Commission (“SEC”). These filings, when made, are available on the Investor Relations section of our website at https://investors.ceribell.com/ and on the SEC’s website at https://sec.gov/. Non-GAAP Financial MeasuresEBITDA and Adjusted EBITDA are non-GAAP financial measures. Ceribell defines EBITDA as GAAP net loss adjusted to exclude (i) provision for income taxes (ii) depreciation and amortization expense, and (iii) interest income and interest expense, net. EBITDA is then adjusted 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 in July 2025, as further described in Part II, Item 1 — Legal Proceedings of Ceribell's Quarterly Report on Form 10-Q, to arrive at Adjusted EBITDA. Management uses EBITDA and Adjusted EBITDA to evaluate ongoing operations and for internal planning and forecasting purposes. Ceribell believes EBITDA and Adjusted EBITDA provide investors with meaningful supplemental information regarding its performance by excluding certain items that may not be indicative of its business, results of operations, or outlook. EBITDA and Adjusted EBITDA should not be considered in isolation, as a substitute for, or superior to GAAP net loss, and may not be comparable to similarly titled measures used by other companies. Reconciliations between U.S. GAAP and non-GAAP results are presented in the accompanying tables of this release. About CeriBell, Inc. Ceribell is a medical technology company focused on transforming the diagnosis and management of patients with serious neurological conditions. Ceribell has developed the Ceribell System, a novel, point-of-care electroencephalography (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-powered algorithms, the Ceribell System enables rapid diagnosis and continuous monitoring of patients with neurological conditions. The Ceribell System is FDA-cleared for use in detecting seizure and delirium in intensive care units and emergency rooms across the U.S. Ceribell is headquartered in Sunnyvale, California. For more information, please visit www.ceribell.com or follow the company on LinkedIn. Investor Contacts Brian JohnstonGilmartin Group [email protected] Media Contact Brian [email protected]

Interested in CeriBell, Inc.? Here are five stocks we like better. Second-quarter revenue rose 33% year over year to $28.1 million, driven by higher utilization at existing hospitals and 32 new accounts, bringing the total to 712 active hospital accounts. CeriBell raised its 2026 revenue outlook to $114 million–$117 million. Gross margin reached a record 92%, helped by a $1.6 million tariff refund, while the net loss widened to $19.3 million as operating expenses increased. The company ended the quarter with $129.3 million in cash and refinanced its credit facility to improve liquidity and extend repayment to approximately 2031. CeriBell plans to commercially launch its FDA-cleared delirium-monitoring solution in the fourth quarter, supported by a CMS payment of up to $2,171 per qualified patient. Management expects delirium, pediatric and neonate products to make more meaningful revenue contributions in 2027. CeriBell (NASDAQ:CBLL) reported second-quarter 2026 revenue growth of 33% as increased utilization at existing hospital accounts and continued customer additions supported results. The company also raised its full-year revenue outlook and outlined plans to commercially launch its delirium-monitoring solution later this year. Revenue for the quarter ended June 30 rose to $28.1 million from $21.2 million a year earlier, including a 6% sequential increase. Product revenue increased 33% to $21.2 million, while subscription revenue rose 30% to $6.9 million. → MarketBeat Week in Review – 08/03 - 08/07 Chief Executive Officer Jane Chao said the company added 32 accounts during the quarter, ending with 712 active hospital accounts. The account-addition result was comparable with recent periods but relied less on Veterans Affairs accounts, she said. Management attributed the growth in part to the maturation of its account-acquisition team and to same-store growth efforts led by its clinical account management organization. “Q2 marked another strong quarter,” Chao said, pointing to an acceleration from the company’s 29% year-over-year growth reported in the first quarter. She said CeriBell has recorded 33 consecutive quarters of sequential revenue growth. → Quantum Earnings Week: Winners and Losers Are Finally Emerging Gross margin reached a record 92% in the second quarter, compared with 88% a year earlier. The result included $1.6 million in tariff refunds received during the period, with $1 million recognized in cost of goods sold and $600,000 capitalized into inventory. Excluding the tariff-refund impact, gross margin was 89%. Chief Financial Officer Scott Blumberg said the company expects gross margins in the high-80% range for the remainder of 2026, based on current tariff policies. → Take-Two’s Q1 Results Leave GTA 6 Bulls Stuck in the Fog of War Blumberg said margins have benefited from manufacturing expansion in Vietnam and broader cost-reduction initiatives. He characterized the 89% adjusted gross-margin result as a steady-state level that includes the burden of tariffs. Operating expenses increased 37% to $45.9 million. The company cited higher sales and marketing costs from headcount additions, including a new strategic account management function and expanded clinical account management infrastructure ahead of the delirium launch. Research and development spending reflected investment in next-generation hardware, algorithm development and clinical studies. Net loss widened to $19.3 million, or 51 cents per share, from $13.6 million, or 38 cents per share, a year earlier. Adjusted EBITDA loss was $9.8 million, compared with a $10 million loss in the prior-year quarter. CeriBell ended June with $129.3 million in cash, cash equivalents and marketable securities. Following the quarter’s close, the company refinanced its credit facility, obtaining access to up to $60 million in committed capital and an additional $25 million in uncommitted capacity. Blumberg said the new structure is expected to reduce interest expense beginning in the fourth quarter and extend the repayment timeline to approximately 2031. CeriBell launched its neonate and pediatric products during the second quarter and began a commercial pilot for its delirium-monitoring algorithm, which received FDA 510(k) clearance in December. Chao said the company has received purchase orders for the neonate and pediatric line extensions from both existing and new customers, though management expects more meaningful revenue contributions from those products in 2027. The company’s delirium solution is now live at multiple pilot sites. Chao said users have reported improvements in clinical decision-making, and that 40% of patients in a survey were difficult to assess under CAM-ICU, the current standard of care, but could still be monitored using the CeriBell system. During the question-and-answer session, Chao said emerging use cases in the pilot include sepsis patients with altered mental status and elderly patients after cardiac surgery or other surgical procedures. She also said clinicians reported being able to reduce sedation or intubation in roughly 30% to 40% of patients based on the delirium algorithm, while care was improved about 20% of the time. CMS issued a final rule establishing a new technology add-on payment for the delirium-monitoring solution, effective Oct. 1, 2026. The payment provides up to $2,171 in incremental reimbursement per qualified patient. CeriBell now plans to fully launch the product commercially in the fourth quarter, Chao said. The company does not expect to need a separate sales force for the rollout, planning instead to leverage its clinical account managers. It could expand that team opportunistically if delirium adoption gains further momentum, Chao said. CeriBell also disclosed FDA 510(k) clearances for two algorithms targeting its core seizure market. One is designed to recognize and reduce EEG artifact signals, while the other is intended to detect epileptiform abnormalities, or abnormal brain activity that falls between clear seizures and normal signals. The artifact-recognition algorithm is expected to roll out in the third quarter, while the epileptiform-abnormality algorithm is expected to be activated by year-end. Chao said the company does not plan to charge more for the algorithms, but believes they can support neurologist engagement, account utilization and sales velocity. Separately, CeriBell is developing a new hardware platform targeted for launch in 2027. The platform has received clearances for a recorder with video and ECG capability, compatibility with other vital-sign measurements, and continuous monitoring while plugged in. It will also support headband options for formal EEG coverage and multi-day monitoring. Chao said an add-on wearable used with the company’s existing headband can provide full-montage EEG coverage. The new platform is intended to run the company’s existing seizure and delirium algorithms as well as future algorithms. CeriBell raised its 2026 revenue guidance to a range of $114 million to $117 million, from prior guidance of $112 million to $116 million. The updated forecast represents growth of 28% to 31% over 2025. Management said the guidance does not assume material revenue contributions from neonate, pediatric or delirium products, which it expects to contribute more meaningfully in 2027. While executives did not provide 2027 guidance, Blumberg said the company sees several potential growth drivers converging next year, including the newer product lines, delirium commercialization and the planned hardware platform release. CeriBell Corp (NASDAQ: CBLL) is a healthcare technology company specializing in the design, manufacture and sale of automated newborn hearing screening devices. The company offers a suite of medical diagnostic tools based on otoacoustic emissions (OAE) and auditory brainstem response (ABR) technologies, enabling early detection of auditory impairments in infants. CeriBell's solutions are used in hospitals, birthing centers and audiology clinics to support universal newborn hearing screening programs aimed at improving language development outcomes through prompt intervention. The company's product portfolio includes handheld and desktop screening units, proprietary software for data management, and accessories designed to streamline testing workflows. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "CeriBell Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

QuidelOrtho (QDEL) came out with quarterly earnings of $0.13 per share, beating the Zacks Consensus Estimate of a loss of $0.04 per share. This compares to earnings of $0.12 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +425.00%. A quarter ago, it was expected that this medical diagnostics company would post earnings of $0.37 per share when it actually produced a loss of $0.04, delivering a surprise of -110.81%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. QuidelOrtho, which belongs to the Zacks Medical - Products industry, posted revenues of $630.9 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 2.65%. This compares to year-ago revenues of $613.9 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. QuidelOrtho shares have lost about 38.7% since the beginning of the year versus the S&P 500's gain of 12.8%. While QuidelOrtho has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for QuidelOrtho was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.82 on $708.97 million in revenues for the coming quarter and $1.87 on $2.68 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical - Products is currently in the bottom 37% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, CeriBell, Inc. (CBLL), is yet to report results for the quarter ended June 2026. The results are expected to be released on August 10. This company is expected to post quarterly loss of $0.45 per share in its upcoming report, which represents a year-over-year change of -18.4%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. CeriBell, Inc.'s revenues are expected to be $27.22 million, up 28.4% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report QuidelOrtho Corporation (QDEL) : Free Stock Analysis Report CeriBell, Inc. (CBLL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Monday, May 11, 2026 at 4:30 p.m. ET Co‑Founder and Chief Executive Officer — Xingjuan Chao Chief Financial Officer — Scott Blumberg Xingjuan Chao, Co‑Founder and Chief Executive Officer, and Scott Blumberg, Chief Financial Officer. Earlier today, CeriBell, Inc. issued a press release announcing financial results for the quarter ended 03/31/2026. A copy of the press release is available on the Investor Relations section of the company’s website. Before we begin, I would like to remind you that management will make remarks during this call that include forward‑looking statements within the meaning of federal securities laws, and that these are being made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Any statements contained in this call that relate to expectations or predictions of future events, results, or performance are forward‑looking statements. These statements involve material risks and uncertainties that could cause actual results or events to materially differ from those anticipated or implied by these forward‑looking statements. Accordingly, you should not place undue reliance on these statements. For a list and description of the risks and uncertainties associated with our business, please refer to the Risk Factors section of our public filings with the Securities and Exchange Commission, including our Annual Report on Form 10‑K filed with the SEC on 02/24/2026. This conference call contains time‑sensitive information and is accurate only as of the live broadcast today, 05/11/2026. CeriBell, Inc. disclaims any intention or obligation, except as required by law, to update or revise any financial projections or forward‑looking statements, whether because of new information, future events, or otherwise. With that, I will turn the call over to Xingjuan. Xingjuan Chao: Good afternoon, and thank you all for joining us for our first quarter 2026 earnings call. Q1 was a strong quarter. We delivered revenue of $26.5 million, growing 29% year over year and 7% sequentially. Growth was driven by record headband utilization and our largest quarter of net new account additions. We also delivered 87% gross margin and expect to maintain gross margin in the high‑80% range throughout 2026. Beyond continued progress in penetrating our core seizure market, we delivered two major milestones that mark inflection points in the evolution of our platform. First, following a successful pilot, we have initiated the full commercial launch of our neonate and pediatric products. We are privileged to now offer our seizure monitoring solution to some of the most vulnerable patients. Second, we activated the first sites in our delirium pilot in April, signifying our entry into the $1 billion market where we offer the only FDA‑cleared diagnostic tool. I will discuss both milestones in detail shortly. Let me start with our performance in our core market. Our goal is to become the standard of care for seizure management across 6,000 U.S. hospitals that offer acute care services. We are pursuing this through two paths: adding new accounts and deepening utilization within our existing installed base. On account acquisition, we ended Q1 with 680 hospitals actively using the CeriBell, Inc. system. With 33 net additions, this marks our strongest single quarter of account growth since becoming a public company. We remain confident in our ability to increase the number of new adds in 2026 above the level seen in 2025. Our confidence is reinforced by three strengths in this part of the business: the continued maturation of our recently expanded sales organization, deepening penetration within the VA and other health systems, and our strong account backlog. The account acquisition team expansion we launched in Q4 2024 is delivering. Among the new hires with at least 12 months of tenure, over 85% have contributed to the active account base, and 100% have generated purchase orders. Given the timing of our sales cycle and the time required to launch new accounts, this level of productivity is encouraging. As more of our new hires mature throughout 2026, we expect a further step‑up in productivity, with additional acceleration in 2027. Beyond growing the territory manager team, we are also gaining momentum in two initiatives focused on accelerating hospital system acquisition. First, we expect continued momentum within the VA system, where we remain in the early stages of penetrating the 170 hospitals unlocked by our FedRAMP High authorization last year. Separately, leveraging our success from the VA, we launched a pilot at select U.S. military hospitals. The opportunity is incremental in scale, but it is nonetheless a compelling validation of our product and our position as category leader. Second, we have successfully hired a small team focused on top‑down engagement of regional hospital systems. This complements the bottom‑up activity of our TM organization and opens additional pathways to system‑level adoption. Overall, we are encouraged by the growing market receptivity to our technology and are pleased with our team’s momentum in adding new accounts. Meanwhile, same‑store growth trends remain strong. Q1 marks our strongest quarter ever in terms of headband usage per account. Our growing TAM team continues to drive utilization through departmental expansion, provider engagement across all shifts, and support of protocol development. We believe we have a significant opportunity to increase utilization even further. In accounts that have adopted our best practices, the results speak for themselves. Our top accounts routinely monitor approximately three times as many patients as average comparable accounts. We are also increasingly encouraged by what we are hearing from our users in the real world. As our user base expands and real‑world data accumulates, recognition of the clinical imperative of quantifiable brain monitoring at the bedside continues to grow. In March, I had the opportunity to experience this firsthand at the annual meeting of the Society of Critical Care Medicine. There was strong excitement for our technology far beyond what we have experienced at past industry events. It is clear that we are moving closer to achieving our goal of helping to redefine the standard of care for seizure management. Turning now to our neonate and pediatric seizure programs, we have initiated the commercial launch of both products. Neonates are a population where improvement in seizure management can change the entire course of an individual’s life. Our pilot was conducted at five sites, including both new and existing customers. All five of these hospitals are now moving forward from pilot to full implementation. This momentum reinforces both the clinical case for use of our technology in younger patients and the commercial opportunities ahead. We are still early in our pediatric launch, but the feedback we are hearing from parents and physicians has already been profoundly meaningful. I would like to share a recent case involving a pediatric patient in the emergency department. A two‑year‑old boy was brought to the ER unresponsive by his mother. It was his second ER visit of the day. The bedside provider initially struggled to identify the root cause until the neurologist requested the CeriBell, Inc. system. Clarity immediately identified seizure activity, which the neurologist confirmed. This avoided the need for a lumbar puncture and a potential ICU admission while waiting for a conventional EEG. The team was able to initiate treatment promptly, and the little boy gained full alertness later that day. He was discharged the next morning. This case reflects what the CeriBell, Inc. system is designed to do: quickly identify seizure activity, guide treatment decisions in real time, and help patients get the care they need faster. Moving now to delirium, in April we activated the first sites of our delirium pilot. This marks the beginning of a new chapter for CeriBell, Inc. as we continue moving towards our goal of establishing EEG as a new vital sign. As a reminder, following FDA 510(k) clearance in December, CeriBell, Inc. is the first and only company with an FDA‑cleared delirium monitoring solution. Delirium is the most common neurological complication in the ICU, yet the standard of care for assessment remains subjective, labor‑intensive, and intermittent. Our solution offers something fundamentally different: objective, consistent, and continuous insight into a patient’s neurological state. Our pilot is designed to build real‑world experience, validating the right patient populations, optimizing clinical workflows, refining our commercial strategy, and generating clinical evidence. What we are hearing from the field is encouraging. Interest in our delirium solution has been strong. Notably, that interest is amplified when delirium monitoring is paired with seizure detection. This interest is further validated by our recently launched study with Vanderbilt Medical Center to examine the overlap between seizure and delirium across ICU patient populations. While the standalone value of the delirium algorithm is clear, we are convinced that addressing seizure and delirium together has the potential to transform ICU care. We are also pleased to share that in April, we received a supportive CMS proposed rule for a New Technology Add‑On Payment, or NTAP, for our delirium monitoring solution. The rule proposes up to $2,171 in incremental reimbursement per patient. This is a positive indicator of the potential for a favorable final rule in August 2026. If adopted, the NTAP would become effective 10/01/2026. We believe that a positive final rule would supplement the significant clinical interest in our technology, helping to pave the way for its adoption. Looking ahead, we remain on track for full commercial launch of our delirium solution in Q4 2026 or Q1 2027. Finally, turning to LVO stroke, we received Breakthrough Device designation for this indication in January 2026. We are continuing to push our clinical programs forward and look forward to sharing more in the coming quarters. Stepping back, I could not be prouder of what our team accomplished in the first quarter of the year. Q1 reinforced confidence in our trajectory, and I am energized by the momentum we are carrying into the rest of 2026. Execution across the business is on track, with several key initiatives running ahead of schedule. We estimate our total addressable market at approximately $3.5 billion in the U.S. alone, nearly double what it was just a year ago. We believe CeriBell, Inc. is best positioned to lead this market with an integrated platform, established trust from physicians and administrators, and a growing body of clinical evidence. Our goal is a single brain monitoring platform that sets a new standard for neurological care, and we are executing against that vision. We remain committed to making EEG a new vital sign, and the early progress in 2026 only strengthens our conviction in the transformational nature of what we are building. With that, I will now turn the call over to Scott Blumberg, our CFO, to provide a review of the first quarter results and 2026 guidance. Scott Blumberg: Thank you, Xingjuan, and good afternoon, everyone. As Xingjuan highlighted, total revenue for Q1 2026 was $26.5 million, which is a 29% increase from $20.5 million in Q1 2025. The increase was primarily driven by increased adoption of the CeriBell, Inc. system across new and existing accounts. Product revenue for Q1 2026 was $20.2 million, representing an increase of 29% from $15.6 million in Q1 2025. Subscription revenue for Q1 2026 was $6.3 million, representing an increase of 29% from $4.9 million in Q1 2025. We ended Q1 with an account base of 680 hospitals, representing an increase of 33 accounts in the quarter. This includes a number of accounts that are part of our ongoing expansion within the VA system. We continue to anticipate incremental addition of VA accounts over the course of the year. We are pleased with the continued sequential momentum in headband trends in the first quarter, which we believe reflects the success of our same‑store growth initiatives as well as our focus on high‑quality new account launches. While we expect to continue to drive deeper within our accounts, I will remind you that we typically see a sequential moderation in Q2 and Q3 volumes driven by a reduction in ICU census during the warmer months. Gross margin for Q1 2026 was 87%, compared to 88% in the prior‑year period. This was achieved despite relying on inventory acquired from China at an elevated tariff rate. We were able to nearly fully offset this expense through a variety of cost‑reduction initiatives undertaken in 2025. As we move into 2026, we will begin shipping inventory sourced from our fully operational line in Vietnam, which is subject to lower tariff rates. Consequently, we feel confident in our ability to maintain gross margins in the high‑80% range throughout 2026. Total operating expenses for Q1 2026 were $43.9 million, an increase of 36% compared to $32.2 million in Q1 2025. Non‑cash stock‑based compensation expense was $3.7 million in Q1 2026. The increase in sales and marketing expense in the first quarter was attributable to investments we made in our commercial organization, as previously detailed. Further, we typically hold our national sales meeting in Q1, resulting in elevated non‑headcount sales and marketing expense during the quarter. G&A expense increased in Q1 as a result of expenses related to our ongoing IP litigation, which totaled $5.6 million. This is considerably higher than what we have seen in prior quarters, which is a reflection of the nonlinear nature of litigation‑related activities. Research and development expense in Q1 increased as a result of headcount expansion to support enhancements to our product platform, including developing and improving our new product pipeline. Net loss was $19.7 million for Q1 2026, or a loss of $0.52 per share, compared to a loss of $12.8 million, or a loss of $0.36 per share, in Q1 2025. An average weighted share count of 37.7 million shares was used to determine loss per share in Q1 2026. Going forward, we will begin reporting adjusted EBITDA, which we believe is representative of the ongoing operating performance of our business. Adjusted EBITDA reflects our net loss before interest, taxes, depreciation, and amortization expense, and also excludes non‑cash stock‑based compensation expense as well as legal expenses associated with our ongoing IP litigation. Adjusted EBITDA loss for Q1 2026 was $11.2 million as compared to $10.9 million in Q1 2025. Our cash, cash equivalents, and marketable securities as of 03/31/2026 were $141.2 million. We remain committed to our objective to achieve cash‑flow breakeven with cash on hand, and the strength of our balance sheet and strong gross margin profile give us a high degree of confidence in our ability to do so. Turning now to our outlook for 2026, we expect full‑year 2026 total revenue to range from $112 million to $116 million, up from our prior guidance of $111 million to $115 million. This represents annual growth of 26% to 30% over 2025. With that, I will turn the call back to Xingjuan. Xingjuan Chao: Thank you, Scott, and thank you all for your time today. We are pleased with our first quarter performance and the trajectory of our business. We continue to make tangible progress towards establishing the use of our system as the standard of care for seizure detection in the acute care setting. With less than 4% penetration in our core seizure market, we have a sizable runway ahead of us. At the same time, we are advancing our platform into new indications with urgency and purpose, building towards a comprehensive brain monitoring system. Our mission to establish EEG as a new vital sign remains our North Star. I will now turn the call over to the operator for Q&A. Operator? Operator: We will now open the call for questions. As a reminder, to ask a question, you will need to press star then the number one on your telephone keypad. If you would like to withdraw your question, press star 1 again. We do request for today’s session that you please limit to one question and one follow‑up. Your first question comes from the line of Stephanie Algazi with Bank of America. Your line is open. Analyst: Hi, thanks for taking the question. I just wanted to ask about Q1 and the guidance. Q1 came in a little better than the Street and you raised the guide by $1 million, a little bit more than the beat. So can you just talk about the decision to raise the guide and your confidence in the outlook for the year? Scott Blumberg: Sure. Hi, Stephanie. It comes down to 2026—there are really two core drivers of our business: account acquisition and same‑store growth. We are doing quite well on both. We just had our largest quarter of net new adds since we have been a public company and record usage per account. That really forms the foundation of our confidence in the business and gives us the ability to raise guidance coming out of Q1. Analyst: Got it. And then just to follow up, I wanted to ask about OpEx. It was a little higher than expected. Was that mostly from higher litigation, or was there increased commercial investment versus what you expected as well? And does Q1 change how you are thinking about the full year, or is it more a change in timing of expenses? Thank you. Scott Blumberg: We do not provide OpEx guidance, but we saw a little bit of elevation in sales and marketing and R&D, and I would bucket those more as investments in the business. We continually look at the facts in front of us and make investments to drive future growth, and that includes expansion of the sales team. As Xingjuan outlined, a portion of that was related to our regional health systems function. We continue to invest in R&D on the basis of our new product enhancements as well as improving our current product. G&A is really where the IP expense came in. That was $5.6 million, considerably higher than what we have seen in prior quarters. That is a result of the cadence of the lawsuit. Right now, in Q2, we are really at the heaviest expense as we prepare for and go to trial, so we would expect that to moderate as we get towards the back of the year. Operator: Your next question comes from the line of Robert Marcus with JPMorgan. Analyst: Hi. This is Lily on for Robbie. Thanks so much for taking the question. I was hoping you could talk a bit more about what you are seeing so far in pediatric and neonate. I know it is still early, but could you share a bit on the early feedback and utilization trends you are seeing so far, and how meaningful of a contributor it is assumed to be in guidance for this year? Xingjuan Chao: Overall, as I mentioned on the call, we see very positive momentum. The initial neonate pilot sites have committed to move to full execution. We are also seeing both existing accounts and new accounts showing strong interest in neonate expansion as well. That could potentially drive both utilization and new account adds. On the pediatric ER front, the case I shared during the call is not an outlier. This is a very vulnerable patient population. When they go to the ER, physicians often cannot get EEG, so providers see an opportunity for improvement. The clinical validation has been very strong. In terms of how this implies to revenue, it is consistent with what we have been guiding. Even getting to a new department or adding a patient population can take months for new accounts and similar effort and timeline. So we will see some impact in 2026, with a much more meaningful impact in 2027 and beyond. Analyst: Perfect. And then just to follow up on gross margin, that came in really strong—above what we were thinking and above the range that you were guiding previously for the full year. So can you talk a bit more about what drove the strength in the quarter and in the guidance? And how much of that, if any, is driven by tariff refunds? Thanks so much. Scott Blumberg: None of it is driven by tariff refunds. We have not reflected that in our financial statements and will, if and when, we get the refund. The strength is really driven by investments we made in mitigating costs last year. Those were things we did both in the ordinary course of business and also invested more in as tariffs came down the pipe. We were able to almost fully offset the cost of the increased tariffs from China. We also, as I mentioned, are now manufacturing in Vietnam. We have that inventory in house, but based on our first‑in, first‑out accounting, that has not flowed through our income statement yet. As we move towards that, toward the back of 2026, we have some opportunity for upside as well. Operator: Your next question comes from the line of Brandon Vazquez with William Blair. Brandon Vazquez: First, I just wanted to stick on neonate for a second and try to get more details on how things are going there. Xingjuan, you mentioned that the first five accounts went from a pilot to a full launch. Talk to us a little bit about what those accounts saw that made them comfortable moving to a full launch. What do you see in the early days once this goes into a full launch? And once you go into that broader commercial stage, is there any pull‑through on the seizure side as well? Xingjuan Chao: For the pilot‑account conversions, a couple of things stood out. First, neonatologists and NICU nurses are very protective of their patients, so they are cautious with new technology. Over the past couple of months, they validated very strong safety, especially related to skin integrity in this population. They also validated ease of use, and some validated the accuracy of Clarity. That translated into strong clinical buy‑in. On the health‑economic front, some sites are level‑three NICUs and used to transfer patients out because they could not get EEG. They were able to show that our solution could potentially reduce those transfers, which is a strong health‑economics driver in addition to the clinical driver—not to mention avoiding moving fragile patients. We are now focused on implementing and rolling out our playbook. Lastly, pediatric epileptologists have been very supportive because our montage is consistent with ACNS guidelines for full montage, and they are encouraged to see the full picture and are happy with the Clarity Assistant. Overall, we remain optimistic about the full launch. Brandon Vazquez: Great. Maybe switching gears to the account‑add side—you had a record quarter. You mentioned a couple of different buckets, and you have also talked about investing in corporate‑focused teams that push demand from the top down. What are the one or two most incremental drivers supporting that level of account adds, and how durable is that going forward? Xingjuan Chao: This model builds on the success we saw last year. We noticed some of our top TMs could close a larger number of accounts by focusing on regional hospital systems, so we expanded that proven model. This team focuses more on system‑level executives—administrators, CMOs, VPs of patient transfer, CFOs—where TMs typically do not engage. Second, they coordinate across our TM and CAM organizations, since multi‑hospital systems may be split across territories and include existing accounts. Centralized coordination is a significant driver. Third, we are managing regional systems in a more sophisticated way—monitoring pipeline movement and ensuring TM and CAM collaboration to develop and close system‑level opportunities. It is early given longer system sales cycles, but early indicators are very encouraging. Operator: Your next question comes from the line of Joshua Thomas Jennings with TD Cowen. Your line is open. Joshua Thomas Jennings: Thank you, and good afternoon. Congratulations on a nice start to the year. On utilization, trends are continuing to get stronger. You put forward the systematic department expansion initiative last year and it seems there has been more improvement. Any additional quantitative or qualitative color on how this effort is impacting utilization in same‑store accounts? Xingjuan Chao: Our strategy remains consistent: departmental expansion, physician and provider engagement across all shifts, and protocolization across different patient populations. Q1 benefits partially from seasonality, as Scott mentioned, but a significant portion reflects execution. Last year, we invested in building a strong regional leader and director layer, expanded the CAM team, and strengthened our execution playbook. We are seeing those efforts pay off, and I am very proud of the team’s performance. Joshua Thomas Jennings: Thanks. I was also hoping to better understand the synergistic interaction between the delirium and seizure indications. With the Vanderbilt study getting underway, how do you expect results—and even the current body of evidence—to drive deeper penetration for the seizure indication? Xingjuan Chao: Clinically, delirium and seizure are heavily intertwined. For example, in sepsis patients with altered mental status, about 20% to 30% will have non‑convulsive seizures if you monitor them with EEG, and 40% to 50% will have delirium. Without EEG, these patients look the same at the bedside—altered mental status. To complicate things, roughly 40% of those seizure patients will later develop delirium, and a portion of delirium patients later develop seizures if monitored with EEG. Treatment highlights the need for objective tools: benzodiazepines are first‑line for status epilepticus, but they are the number‑one deliriogenic agents. If a patient has delirium, you want to avoid benzos. Without objective monitoring, physicians are guessing. As we connect these clinical dots, many physicians realize they may be treating delirious patients who actually have non‑convulsive seizures. That recognition is a key driver behind our study with Vanderbilt. Operator: Next question comes from the line of Analyst with Canaccord Genuity. Your line is open. Analyst: Yes, thanks. With the launch of delirium as you go into the pilot, do you think you will be able to charge separately for delirium, or will it be part of the offering—measuring two metrics—and help build your install base and your defensive moat? Is this going to be incremental revenue, or will it primarily help you land and expand? Xingjuan Chao: You are pointing to two potential drivers. One is pricing—charging more or separately for delirium—which could be a revenue driver. The other is increased patient usage within existing accounts by offering the delirium solution. Both are potential drivers. We know we have both options, but we are not ready to discuss pricing yet. The pilot is designed to study price elasticity and sensitivity as well as the impact of delirium on total patient expansion. We look forward to sharing more as we approach full commercial launch. Analyst: Thank you. On guidance, it is rare to see a company beat by $600,000 to $700,000 and then raise guidance by $1 million after the first quarter. You have given reasons around the salesforce gaining traction, but the commentary on seasonality in Q2 and Q3 has me a little confused. For cadence, consensus is $27.2 million for the second quarter. Are you comfortable with that number? Any thoughts would be appreciated. Scott Blumberg: The comment on seasonality is nothing new—it is a reminder. Most of the Street models Q4 and Q1 higher than Q2 and Q3. I will not comment on a specific quarterly consensus figure, other than to say people understand the seasonality. Our guidance is full‑year guidance, and we have high confidence in the full year. We just want to make sure people are appropriately thinking about the transition from Q1 to Q2, which has always been, and we expect will continue to be, sequentially down in terms of usage per account. Of course, that is offset by growth initiatives in new adds and the impact of CAMs. Operator: Thank you. Your next question comes from the line of Marie Yoko Thibault with BTIG. Your line is open. Marie Yoko Thibault: Good evening. Thanks for taking the questions. I wanted to circle back on salesforce productivity. You gave encouraging stats—of your folks with 12 months or more of tenure, over 85% have contributed to the account base and 100% have generated purchase orders. Since this is the first quarter we are getting these stats, is this largely new once they hit 12 months because of the length of the cycle? How long does it take for a rep to hit peak productivity? Any details on where this could go from here? Scott Blumberg: Sure, Marie. First, we do not intend to introduce a new reporting metric. We wanted to quantify something we have talked about qualitatively because the reps from the expansion we started in late 2024 are now reaching the point where they should be productive. We generally expect reps to generate their first new add at about one year. That has been consistent, including our last broad sales‑org expansion in 2021. The math is roughly two to three months to train the rep, six or so months to acquire a purchase order, and three to four months to launch—about a year. Over the past year and a half, we have been tracking precursor activities in CRM that correlate with purchase orders, and now we can translate that into tangible outcomes. It is a relatively small cohort reaching that 12‑month mark first, but the rest are tracking well. This gives us confidence we can drive more growth this year than last, with a number of folks aging into productivity throughout the year. Marie Yoko Thibault: Great detail. One quick follow‑up on seasonality. Utilization per account might be impacted by ICU census, but would we expect any impact to account adds? Scott Blumberg: There is no specific seasonality we see in account adds. There can be some quarter‑to‑quarter lumpiness, which may increase with the new regional health system function since accounts could close in bigger chunks. There is no consistent quarterly trend, but the direction is up and to the right. We saw that last year with Q2 lower than Q1 and Q3 much higher than Q1. It can move up or down quarter to quarter, but the trend is higher adds over time. Operator: Your next question comes from the line of Jeffrey Scott Cohen with Ladenburg Thalmann. Your line is open. Jeffrey Scott Cohen: Hi, Xingjuan and Scott. Thank you for taking our questions. Firstly, could you talk about military hospitals and the opportunity in TAM, perhaps as it relates to the size and scope of the VA network? Xingjuan Chao: Military hospitals are approximately 30 facilities, significantly fewer than the 170 VA hospitals, but still a meaningful opportunity. Their cybersecurity requirements differ somewhat from the VA, but there is overlap, which allowed us to leverage our FedRAMP High authorization and VA success to begin this pilot with support from physicians and administrators. Clinically, they face challenges similar to the VA, including limited neurologist and EEG technician availability. For now, we are focused on the military hospitals and are excited about the potential upside this can bring. Jeffrey Scott Cohen: That is helpful. Could you talk a little further about your comments regarding CT scans—specifically, pathways and triage monitoring as stroke and LVO patients are being evaluated with CTs and MRIs? Xingjuan Chao: We are early to detail specific workflows, but our value proposition is complementary to CT and MRI, not a replacement for those gold standards. In the inpatient setting, our value is continuous monitoring to help triage potential LVOs faster. You cannot constantly send patients to CT or MRI. A continuous monitor can flag patients with a very high likelihood of large vessel occlusion, triggering a workflow to send the patient for CTA or MRI to confirm LVO. This could significantly shorten time to detection. Operator: Your next question comes from the line of Analyst with Raymond James. Your line is open. Analyst: Hi, good afternoon. Thanks for taking the questions. A couple here. I realize this may depend on hospital size, but utilization in VA hospitals versus non‑VA hospitals—how would you expect that to trend, if at all? Xingjuan Chao: We do not disclose hospital‑system‑level utilization. While the VA is a notable opportunity enabled by FedRAMP High, we do not break out utilization by system externally. Analyst: Understood. And on the $5.6 million in litigation expense in the quarter, Scott, is this peak spend? And is this relative to about $1 million per quarter over the last few quarters? Scott Blumberg: We were running at about $1 million to $2 million per quarter before. Q1 was outsized. Q2 will also likely be higher—we are in the peak phase with depositions and an upcoming trial. I would expect it to moderate as we move later into 2026. Analyst: Thank you. Operator: There are no further questions at this time. I will now turn the call back over to Xingjuan Chao, Co‑Founder and Chief Executive Officer, for any closing remarks. Xingjuan Chao: Thank you, everyone, for joining our call. I am very proud of what we have accomplished as a team and very excited about what is on the horizon. We look forward to sharing more milestones in the coming quarters. Operator: Ladies and gentlemen, that concludes today’s call. Thank you for joining, and you may now disconnect. Before you buy stock in CeriBell, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and CeriBell wasn’t one of them. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. CeriBell (CBLL) Q1 2026 Earnings Transcript was originally published by The Motley Fool