LUNG

Image source: The Motley Fool. Wednesday, July 29, 2026 at 4:30 p.m. ET Investor Relations - Webb Campbell President and Chief Executive Officer - Glendon French Chief Operating Officer and Chief Financial Officer - Derrick Sung Operator: Ladies and gentlemen, thank you for standing by. Welcome to Pulmonx' Second Quarter 2026 Earnings Conference Call. Please be advised that today's conference is being recorded. I would like now to turn the call over to Webb Campbell, Investor Relations. Please go ahead. Webb Campbell: Good afternoon, and thank you for joining today's call. Joining me from Pulmonx are Glen French, President and Chief Executive Officer; and Derrick Sung, Chief Operating Officer and Chief Financial Officer. Earlier today, Pulmonx issued a press release announcing its financial results for the quarter-ended June 30, 2026. A copy of the press release is available on the Pulmonx website. Before we begin, I'd like to remind you that management will make statements during this call that include forward-looking statements within the meaning of federal securities laws, which are 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. All forward-looking statements, including, without limitations, those related to our operating trends, commercial strategies and future financial performance including long-term outlook and full year 2026 guidance, the timing and results of clinical trials, physician engagement, expense management, market opportunity, guidance for revenue, gross margin, operating expense, cash usage, commercial expansion and product demand, adoption and pipeline development are based upon our current estimates and various assumptions. 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 filings with the Securities and Exchange Commission, including our quarterly report on Form 10-Q filed with the SEC on May 4, 2026. Also, during this call, we will discuss certain non-GAAP financial measures. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are provided in the press release, which is posted on our Investor Relations website. These non-GAAP measures are not intended to be a substitute for our GAAP results. This conference call contains time-sensitive information and is accurate only as of the live broadcast today, July 29, 2026. Pulmonx 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. And with that I will turn the call over to Glen. Glendon French: Thank you, Webb. Good afternoon, everyone, and welcome to our second quarter 2026 earnings call. Here with me is Derrick Sung, our Chief Operating Officer and Chief Financial Officer. Overall, we are very pleased with the progress we are making against our 3 key priorities of reaccelerating sales growth, driving near-term operating leverage and advancing our market expanding clinical initiatives. Pulmonx delivered total worldwide revenue of $22.8 million in the second quarter of 2026, consistent with our expectations as our efforts to regain commercial traction play out as anticipated. We remain confident in our ability to achieve our previously communicated revenue guidance of $90 million to $92 million for the full year 2026 and remain on track to return to global sales growth later in the year. We made a commitment at the start of this year to deliver meaningful operating leverage through our cost alignment initiatives, and I am pleased that the impact of our actions is now clearly evident in our results this quarter. We have effectively reduced our year-over-year adjusted EBITDA loss by nearly 40% to $5.1 million in the second quarter of 2026, and Derrick will provide further details later in the call. Today, I'm pleased to report progress across our remaining 2 priorities, reaccelerating sales growth and advancing our market-expanding clinical initiatives. I will address each of these in turn, starting with our progress on driving U.S. sales growth. Our organization has made great strides in building and maintaining the right people and the right culture in the U.S., which we consider to be a foundational element of reaccelerating revenue growth in the region. I remain encouraged by our progress in this respect. We have now filled all of our sales leadership positions, and those leaders are making rapid progress and rounding out our U.S. field sales team with top talent. We've also seen marked improvement in our commercial team culture as priorities have become clear and incentives are better aligned with our corporate objectives. Sales turnover has normalized, consistent with industry standards, and we are thrilled with the team that we have in place. As the newer members of our team continue to ramp, we expect U.S. sales growth to build through the back half of the year. Our emphasis remains on disciplined execution of the highest impact selling activities consistent with the near-to-far framework we've outlined previously. To reiterate, this means: one, setting up high quality and efficient valve programs; two, engaging with and educating physicians who treat COPD and who are aligned with hospital systems offering Zephyr Valves; three, concentrating on direct-to-patient efforts specifically on geographies with established treating centers that have the capacity to accommodate interested patients; and finally, four, continuing to work together with our champions to educate service line administrators to ensure appropriate resourcing of their programs. In my interactions with our sales managers and members of our field team, I see a reenergized unit intensely focused on impacting the lives of patients. During meetings with treating physicians and administrators, I hear about hospitals focused on driving value for patients and their systems by aligning resources and processes to scale and expand referral networks. These meetings have validated my conviction that sharper focus on fewer initiatives is helping accelerate growth by focusing on what matters most. With respect to our international business, we continue to see strength and stability across international markets, which delivered 9% year-over-year constant currency revenue growth, excluding China. Related to China, we are pleased to share that in mid-June, we secured the renewal of our Chinese registration certificate. With this hurdle behind us, we look forward to resuming shipments to our Chinese distributor by early next year. For the balance of this year, we will be focused on restarting commercial activity in this region. Turning to our second priority. Expanding our addressable market through AeriSeal remains a central focus. Enrollment in our CONVERT II pivotal trial is progressing, and we continue to expect to complete enrollment in 2027. We believe that AeriSeal represents a TAM expansion tool for our Zephyr Valves and a future revenue contributor with the ability to expand our addressable market by roughly 20% globally. In closing, while 2026 is a year of execution and transition, we're very pleased with our pace of progress, and we have strong conviction in our strategy to refine execution and further penetrate the substantial remaining market opportunity for our products. The organization remains aligned and focused on the priorities that matter most. We're confident in our underlying strength of this business and the opportunity in front of us and in our ability to deliver sustainable, profitable growth as our year-over-year trends continue to strengthen. With that, I will turn the call over to Derrick to provide more detailed review of our second quarter results. Derrick Sung: Thank you, Glen, and good afternoon, everyone. I'd like to start by highlighting the significant progress that we've achieved in driving operating leverage through our P&L. This was a commitment that we had made at the start of the year when we implemented our cost alignment initiative to reduce recurring operating expenses by over 10% while still maintaining investments in our key growth initiatives. As a result of these initiatives, I'm pleased to report that net loss for the second quarter of 2026 was $10.1 million, a reduction of 34% as compared to a net loss of $15.2 million in the same period of the prior year. Net loss per share was $0.24, down from a loss of $0.38 per share in the prior year period. And most importantly, adjusted EBITDA loss, which excludes non-cash stock-based compensation expense, for the second quarter of 2026 was $5.1 million compared to $8.4 million in the same period of the prior year. This nearly 40% reduction in adjusted EBITDA loss clearly demonstrates the progress we've made in realizing near-term operating leverage as we work to reaccelerate sales growth. This operating leverage, combined with the recent restructuring of our credit facility, which extends the maturity of our debt to 2031 and provides us with access to an additional $20 million in undrawn capital subject to certain revenue milestones, has meaningfully strengthened our balance sheet. We ended June 30, 2026, with $55.8 million in cash and cash equivalents, a decrease of $5.8 million from March 31, 2026. We continue to expect to burn roughly $23 million of cash for the full year 2026, which would be nearly a 30% reduction from our cash burn in 2025. Turning back to the top line. Total worldwide revenue in the second quarter of 2026 was $22.8 million, a 5% decrease from $23.9 million in the same period last year and a decrease of 6% on a constant currency basis. U.S. revenue in the second quarter was $14.2 million, a 4% decrease from $14.7 million during the same period of the prior year and a 7% sequential increase from the first quarter of 2026. We added 12 new U.S. treating centers during the quarter. International revenue in the second quarter of 2026 was $8.6 million, a 6% decrease from $9.1 million during the same period last year and a decrease of 9% on a constant currency basis. The decline in international revenue was fully attributable to the lack of sales to our distributor in China. Excluding China, we continue to see solid performance across our other international markets, which grew 12% as compared to the same period last year and 9% on a constant currency basis. As Glen mentioned, we are pleased to have now received renewal of our Chinese registration certificate and look forward to ramping our commercial activities in the region and resuming distributor shipments by early next year. Gross margin for the second quarter of 2026 was 78% compared to 72% in the prior year period. The year-over-year increase was driven by a lower mix of distributor sales in our international markets as well as greater overhead absorption and cost efficiencies across our supply chain. Looking forward, we now expect gross margin for the full year of 2026 to be approximately 76% as we expect to continue to realize some of these benefits throughout the remainder of the year. Total operating expenses for the second quarter of 2026 were $26.8 million, a 16% decrease from $32 million in the same period last year. Non-cash stock-based compensation expense was $3.7 million in the second quarter of 2026. Excluding stock-based compensation expense, operating expenses in the second quarter of 2026 decreased 11% from the same period of the prior year. The decrease in operating expenses reflects the cost reduction efforts that we initiated at the start of the year, and we remain on track to meaningfully reduce our expense trajectory in 2026 while maintaining investments in our key growth initiatives. To that end, we now expect full year 2026 operating expenses to fall between $109 million and $111 million, inclusive of approximately $15 million of non-cash stock-based compensation expense. The reduction in our operating expense guidance primarily reflects a reduction in stock-based compensation expense due to the fair value of our shares. R&D expenses for the second quarter of 2026 were $5 million compared to $5.3 million in the second quarter of 2025. Selling, general, and administrative expenses for the second quarter of 2026 were $21.8 million compared to $26.7 million in the second quarter of 2025. Finally, turning to our revenue outlook for 2026. We are reiterating our expectation of full year 2026 revenue in the range of $90 million to $92 million. As a reminder, our business typically experiences seasonality that results in a sequential decrease in sales in the third quarter of the year as compared to the second quarter. Despite this seasonality, we continue to expect to return to year-over-year growth later this year as we anniversary the impact of the suspension of China shipments in our international business and as we see improvements to our U.S. business from our recently filled sales positions and our refocused commercial strategy. To conclude, we entered 2026 with a clear plan to improve the trajectory of our business, and we are pleased with the progress that we have made as reflected in our second quarter results. We will remain focused on the work ahead, ramping our sales organization, advancing our clinical programs and delivering the financial leverage we've committed to. We are confident in the strength of our business and in our team's ability to execute. With that, I'd like to thank you all for your attention, and we will now open the call for questions. Operator? Frederick Wise: Good to see the progress here. Maybe just to start off, maybe you could dig a little deeper into the sales force's positive evolution here, all the leadership positions filled. I just wanted to be sure I'm understanding, have you filled all the sales positions you want or that's still something in progress? And just how much more to go on that front? Glendon French: Rick, this is Glen. So we are filling the sales positions. We have a normal sort of amount of turnover that happens in medical device companies. I think the average is nontrivial. That happens as a backdrop. What we faced last year was a doubling or a tripling of what would be considered normal. So we're back on a normal trajectory. We are in the process of -- the positions that were open when we got here have -- were filled. And in the normal course of things either due to departures based on the rep's decision or based on our decision, there's a normal process that happens, and we're back to normal again as it relates to that. Frederick Wise: Great. And Glen, I know you've talked in the past about it takes 6 to 9 months if I'm remembering correctly. Please correct me if I'm wrong. It takes 6 to 9 months for sort of the average sales guy to sort of get up and running and start to contribute to [ you ]. Where are you -- I don't know how to ask it. On average now with the folks you've hired since you and Derrick returned to Pulmonx, do you get to that sort of more optimal 9-month range this year on average for the group, the new group? Or maybe just give us a little more color when we should really start to expect to see much more visible impact from the team. Glendon French: Well, I think we're starting to see visible impact from the team. Let me just start there. Whether it be the step-up from the first quarter, the second quarter on a sequential basis or whether perhaps more importantly, the step-up we see in some of the other indicators that we look at across the board, frankly, we see folks coming up to speed. The 6 to 9 months is what is correct in terms of what we've seen historically. We've made some very, I think, constructive changes to our sales training process, which I think will -- that may modify that 6 to 9 months. I'm not going to claim that it'll happen, but I'm very excited about the combination of leveraging some of the field sales trainers, bringing in new resources to kind of take our sales training to another level and as a result perhaps bring people up more quickly. The other thing that we have in place today that we didn't frankly have in place in the same way when I was last here roughly 2 years ago is a bench. The -- we have territory account managers who -- you can think of as sort of junior reps who are able to come up to speed quite quickly because they're working under a territory manager. And those folks, in some cases -- actually, in a lot of cases over the last couple of years, have been able to step into some of these openings along the way, into these territory manager openings and do a really great job. Anyway, there's a lot of things that are happening that may tighten that up, but I think you know me well enough. I'm not going to claim a win on that front until we have some amount of history in the rear view. Frederick Wise: No, I appreciate that. And Glen, on China, the registration is accepted. That's sound encouraging. Maybe just talk to us a little about the steps you're taking. Just help us better understand the cadence of activities that'll happen now and when -- just when we're going to start to see that revenue more visible. I think you said first quarter. But what has to happen between now and then? Glendon French: So we had a situation -- and let me first say that I'm going to -- I'll talk a little bit here. Derrick's been very much involved in this process, so I will invite him to share his views if I miss anything here. But the registration was a big step. It was a binary proposition, and so getting on the other side of that is wonderful news. We're very excited about that. We saw this coming and I think we've talked about this in the past and when -- we saw that we were -- that this registration was going to sunset and that we were going to have some downtime in China as a result of it. And so we obviously stocked up some inventory, tried to keep accounts going as long as we could. And some number of accounts have a process at this point to restart them. In particular, some of our larger accounts in China have a process to restart them and get underway. So as we look at the back half of the year, we're reigniting those accounts, get those engines up and running, and we're anticipating that we probably won't see material revenues until next year, early next year. Frederick Wise: And one last question and I'll wait to see whether there's room for more questions as a follow-up but -- and Glen, I apologize to you. I even apologize to Derrick. I hate to bring up '27 but we have numbers we got to print. And maybe just at a high level, you could help us think about it and reflect on current consensus still has you sort of in the mid-90s, but I think to myself China coming back, a repurposed, rebuilt, reconfigured sales force, stronger leadership, more accounts open. I mean, current consensus numbers, my number is in the mid-90s, seems to be very conservative. I realize there's a lot that you've got to do before you get there, and you're not going to give guidance today, I suspect, but help us think about that potential. It seems like there's room, if all goes well and as planned, to be actually a very strong year. Derrick Sung: Yes, Rick, thanks for the question. This is Derrick. I'll refocus your attention to our guidance this year and what we expect this year. I don't want to get out in front of our skis and comment on 2027 guidance right now. We'll certainly do that in due course, probably our Q4 call, but this quarter we have said even within -- or this year, we have said that we are really focused on returning our company back to global sales growth, both in the U.S. and internationally this year. And we do expect that contemplated in our guidance as we exit the year, that we'll exit the year growing at or close to double digits by the end of even this year. So I think we're going to have some very good and strong momentum going into next year. And we are really focused right now on reinvigorating our sales force, putting the places -- putting the pieces in place to get ourselves back to sales growth this year, and we feel really good about where we are. We're really right where we expect to be in terms of reaccelerating our growth and flipping from negative to positive growth this year. Frederick Wise: It's great to see the progress and congratulations and all. I know it's a lot of hard work involved. Nelson Cox: This is Nelson Cox on for Frank. Congrats on the progress. Maybe just first to start, as we think about the path to double-digit growth exiting the year that you've talked about, maybe just can you help us with the relative contribution you expect from newer reps ramping versus kind of new centers versus deeper utilization at your established programs? Glendon French: We anticipate that we're going to get some positive contribution across the board there. We've already talked -- I mean, we've talked about each of these elements. I mean, if you want, we could start with the sales reps. We know that the territories that have reps in them do better than territories that don't, and we know that there is a ramp-up time for the reps when they're new in the territory. Our average tenure in the company and in the sales organization a couple of years ago was something like 2.5 years, and today it's about a year. And I'm sure you could have done that math given what you know the turnover was over across last year. But in any case, we've got to get those folks up and running. We expect them to be more productive. That will show itself. Greater rep productivity shows itself in an increase in same-store sales, I would expect. So we should see that, and we should continue to see new centers come on and so forth. So there's a number of things that will need to come together that will contribute to the growth that we envision on the horizon. Nelson Cox: Fair enough. And then just for my last one, you had gross margin running at 78% the last couple of quarters here, and you cited a couple of drivers, absorption, supply chain efficiencies. And with China shipments now resuming early next year, you have 76% now and the full year guide implies some second half moderation. Anything specific we should be modeling there? Is that just conservatism? And maybe how do you think about the long-term kind of gross margin steady state? Derrick Sung: Yes, that's a great question. So China or the absence of sales into China clearly help our gross margin. China does come at a lower gross margin but still a very attractive operating margin, I'll point out. So I do -- we would expect to see our gross margin come in a little lower once we do resume shipments into China. I think there is some variability around timing of that resumption of shipments into China, so I think we've left a little bit of room for ourselves in terms of our guidance to accommodate that timing. But I do think that over -- that we have over time, excluding China, made some real progress in terms of taking cost out of our supply chain, driving production efficiency. So I feel very comfortable that even when China comes back online, that as a company, we will be comfortably at or above 75% in terms of gross margin. And we'll continue to push hard to, over time, move that number higher as we continue to drive overall efficiencies. Andrea Irawan: This is Andrea on for Jason. Congrats on the EBITDA progress. I know a lot of us over the years focus on StratX scans as a leading indicator for future Zephyr volumes. Can you just take us through what you're seeing in the U.S. and international markets on StratX? Are you like seeing the numbers of scans improve sequentially? And would that match with your revenue guidance? Glendon French: Yes. StratX scans, we do keep a close eye on that as a good indicator of what we might expect in the future. We don't tend to get too specific about it, but internally, we look at it. And you would expect that as we project strengthening of revenue in the back part of this year and frankly into next year that we would see an increase in StratX. William Plovanic: So my first question is on seasonality. If you look at the U.S., last year, it was down 5% Q2 to Q3, and the year before, it was flat. Given the ramping sales force, how should we think about that? Is it the typical 5% down? Or should it be flatter just because these new reps are becoming productive? And then also same question, kind of as we think about international with China in and out of the picture, how do we think about that? You have easy comps really going into the back half of this year without China, so it should be a solidly -- year-over-year but also should be probably flat is my guess. Can you help us out with that? Derrick Sung: Yes, absolutely. Thanks for bringing that up. Thanks for bringing that up, Bill. Appreciate the question. We do typically see seasonality between Q2 and Q3. Typically, we are sequentially down for sure outside the U.S., and even within the U.S., we are typically flat to down by a few percent. I would expect to see that same level of seasonality this year as well. While we do have folks coming up to speed, I do think that our folks that we have are still new, and at this point, I don't expect to see anything different than we have in the past from a seasonality perspective. I do think that's something that isn't yet modeled when I look into the consensus numbers into the consensus model, so I think there's probably a shifting from Q3 into Q4 in terms of revenue models to reflect that seasonality. William Plovanic: Okay. Great. And then on the CONVERT -- on new accounts, you added 12. I think the original guidance was about 10 a quarter. You did a little better than that in the first quarter. Should we still think about 10 a quarter as we move forward? Glendon French: Yes, that's the way we think about it. Sometimes we're going to hit above. Sometimes we'll hit below but about 40 a year. William Plovanic: Okay. And then 2 more for me. Just on the CONVERT II, you mentioned that enrollment's progressing and will complete next year. Any updates on where AeriSeal will be commercially available or launched in the CE Mark nations? Glendon French: We haven't provided an update as you, as I think, but we have talked about our bigger markets. I mean, Germany is -- Germany, the U.K. and France are our biggest markets. And then Spain and Benelux and Italy and Switzerland, these are all larger European markets. And as just for anybody who's not as familiar with our distribution, about 2/3 of our businesses in the U.S. 1/3 is international and probably 80% of our international business -- maybe more than that, actually, probably 90% of our international business comes from Europe. So those bigger markets are the ones that -- some number of those would be the first ones to come online first with AeriSeal. And the reason why you asked the question, Bill, is that we have the CE Mark on AeriSeal, so we don't have the same regulatory path to market in those countries that we do in the United States. William Plovanic: Yes, are you going to be launching it in those countries anytime soon? Is that -- that's the real question. Glendon French: I know and the answer is that we will be launching sooner than we will be in the U.S. We will -- we need to get on the other -- those -- so this -- the CONVERT II trial is an international trial, and we have centers in most of the countries that I just mentioned. It's a global trial, so it's in the United States. It's across Europe and in Australia, and so we will not be launching AeriSeal into -- 2 things are going to happen. One, the CONVERT I publication has been submitted for publication, so we're going to get that out before we're going to launch because we need to have some documentation of what people can expect when they use it. And then the second thing is that we need -- we will not be launching into any markets until we are done enrolling CONVERT II patients in those markets. So those are the -- those are sort of the rate limiters. So I'm not going to answer the follow-on question, which is when specifically do we expect to enroll the last patients into CONVERT II in Europe, but that would give you a sense of the rough timeline when we would be considering commercializing in some number of European markets. William Plovanic: Okay. But if you complete enrollment in a given country next year, you could commercialize in that country if the trial's enrollment has been completed, even though it's not completed in other CE Marked countries. Is that fair to assume? Glendon French: Yes, but we don't have a specific target. The specific targets we have in the trial is we're trying to establish a ratio of the distribution between the U.S. and OUS. We do not have a specific target in France or a specific target in the U.K. So it's really a question of when are we done enrolling OUS patients in CONVERT, at which point we'll move down the path the commercialization questions. And it's not going to be a switch that will be thrown. There will be training that will happen, at least normal launch activities, which would typically take 90 to 180 days or something before you'd start seeing folks up and running and adopting and buying. William Plovanic: Okay. All right. I'll stop on that. And last question for me, I'll give you an easy one. You got the debt facility in place with milestones. You'll be able to access that. How are you thinking about the path to cash flow breakeven with your current cash and that debt facility access? Derrick Sung: Yes, thanks, Bill. Yes, no, we feel good about our path to cash flow breakeven. We believe that we have a clear path with the cash that we have on hand and an additional buffer with the access from the debt facility. So with the capital that we have access to today, we feel like we can clearly get the cash flow break even over the next few years. Glendon French: Thank you, operator. In closing, I'd just like to say that we're focused and executing on the priorities that matter most. I'm pleased with the team we have, the path we are on to improve the trajectory of our business and the progress we are making. We remain focused on the well-defined work ahead strengthening in our sales organization, advancing our clinical programs and continuing to improve our financial leverage. We are both confident in the strength of the business and in our team's ability to continue to effectively execute. Thank you all for your time and interest in Pulmonx and to all Pulmonx employees around the world who work every day to improve the lives of patients with severe emphysema. Thank you. Operator: This concludes today's conference call. Thank you for participating, and you may now disconnect. 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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. Performance in Q2 was driven by a deliberate focus on cost alignment, resulting in a nearly 40% reduction in adjusted EBITDA loss year-over-year. U.S. sales stabilization is being achieved through the normalization of sales force turnover and the successful filling of all leadership positions with top talent. Management is pivoting to a 'near-to-far' commercial framework, prioritizing high-quality valve programs and direct-to-patient efforts in established geographies. International growth of 9% (excluding China) reflects underlying market stability and consistent demand for Zephyr Valves across core European territories. The renewal of the Chinese registration certificate in mid-June removes a significant regulatory hurdle, allowing for the resumption of commercial activities in the region. Strategic positioning is shifting toward fewer, higher-impact initiatives to ensure hospital resources and referral networks are aligned for scale. Full-year 2026 revenue guidance of $90 million to $92 million assumes a return to year-over-year global sales growth in the latter half of the year. Management expects to return to year-over-year growth later in 2026 as new sales reps reach productivity and the company anniversaries the impact of the China shipment suspension, with shipments to China expected to resume in early 2027. The AeriSeal CONVERT II pivotal trial is on track to complete enrollment in 2027, targeting a 20% expansion of the global addressable market. Q3 outlook incorporates typical seasonality, with expectations for sequential revenue to be flat to down by a few percent in the U.S. and internationally. Cash burn for 2026 is projected to be approximately $23 million, representing a nearly 30% reduction from 2025 levels. A restructured credit facility extends debt maturity to 2031 and provides access to $20 million in additional capital based on revenue milestones. Gross margin guidance was raised to approximately 76% for the full year, benefiting from supply chain efficiencies and a temporary lack of lower-margin China sales. Operating expense guidance was lowered to $109 million to $111 million, primarily due to reduced non-cash stock-based compensation linked to share fair value. The suspension of China shipments significantly impacted year-over-year international comparisons, a headwind expected to lap by early 2027. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management noted that while the historical ramp-up is 6 to 9 months, new training processes and a 'bench' of territory account managers may accelerate this timeline. Current sales force tenure averages about one year, compared to 2.5 years historically, indicating a significant portion of the team is still moving toward peak productivity. Following the registration renewal, the company is focused on reigniting large accounts that were paused during the downtime. Material revenue from China is not expected until early next year as the distributor shipment cycle restarts. Commercial launch in CE Mark countries is contingent on completing OUS enrollment for the CONVERT II trial to avoid interfering with study data. The company will also wait for the formal publication of CONVERT I data to provide clinical documentation for adopting physicians. Management expressed confidence that current cash on hand, supplemented by the new debt facility, provides a clear path to breakeven over the next few years. The strategy relies on maintaining the current reduced expense trajectory while reaccelerating top-line growth.

Interested in Pulmonx Corporation? Here are five stocks we like better. Pulmonx reported $22.8 million in Q2 revenue, down 5% year over year, but U.S. revenue rose 7% sequentially as the company rebuilt its sales force and added 12 treating centers. Management reiterated 2026 revenue guidance of $90 million to $92 million. Profitability trends improved as the net loss narrowed to $10.1 million from $15.2 million, adjusted EBITDA loss fell nearly 40%, and gross margin rose to 78%. Operating expenses declined 16%, while the company expects to use about $23 million in cash during 2026. Pulmonx renewed its Chinese registration and expects distributor shipments to resume by early 2027, although significant revenue is not expected until next year. Enrollment in the pivotal AeriSeal CONVERT II trial is progressing, with completion still expected in 2027. Pulmonx (NASDAQ:LUNG) reported second-quarter revenue of $22.8 million and reiterated its full-year 2026 revenue outlook, while executives highlighted progress in rebuilding the U.S. sales organization, reducing operating expenses and preparing to resume shipments to China. Revenue for the quarter ended June 30 declined 5% from a year earlier and 6% on a constant-currency basis. However, U.S. revenue increased 7% sequentially from the first quarter as the company continued to staff its commercial organization and add treating centers. → This Tiny AI Supplier Could Be More Important Than the Chipmakers President and Chief Executive Officer Glen French said the company is pursuing three priorities: re-accelerating sales growth, generating near-term operating leverage and advancing clinical initiatives intended to broaden its addressable market. U.S. revenue was $14.2 million, down 4% from $14.7 million in the prior-year quarter. Pulmonx added 12 U.S. treating centers during the quarter. French said all sales leadership positions have been filled, while the company continues to fill open field positions as part of normal turnover. → Refiner Stocks Are Near Record Highs—Can Iran-Driven Margins Keep Them There? French said turnover in the sales organization has returned to industry-normal levels after running at roughly two to three times normal levels last year. The company has also revised sales training and is using territory account managers as a bench for future territory manager roles. “We’re starting to see visible impact from the team,” French said, citing the sequential increase in U.S. revenue and internal operating indicators. He said new sales representatives have historically required six to nine months to become fully productive, though the company’s updated training approach could potentially shorten that ramp period. → Innovative ETF Strategies That Are Paying Off This Summer The company’s commercial efforts are centered on establishing efficient valve programs, educating physicians who treat COPD, directing patient outreach toward areas with treating-center capacity, and working with physician champions and hospital administrators to ensure programs have adequate resources. French said Pulmonx expects contributions from improving sales-representative productivity, new treating centers and deeper utilization at established programs as it works toward stronger growth. Management said it expects to return to year-over-year global sales growth later in 2026 and to exit the year growing at or near double-digit rates. International revenue was $8.6 million, down 6% year over year and down 9% on a constant-currency basis. Chief Operating Officer and Chief Financial Officer Derrick Sung said the entire international decline was attributable to the absence of sales to Pulmonx’s Chinese distributor. Excluding China, international revenue increased 12% from the prior-year quarter, or 9% on a constant-currency basis. French said the company secured renewal of its Chinese registration certificate in mid-June, removing a key hurdle to restarting the business in the country. Pulmonx plans to focus during the rest of 2026 on restarting commercial activity and re-engaging accounts in China. Management expects distributor shipments to resume by early 2027, though French said material revenue from the market is not anticipated until next year. Sung said China sales carry a lower gross margin than other business, though they remain attractive from an operating-margin perspective. He said the company expects to remain “comfortably at or above 75%” gross margin over time, even after shipments to China resume. Pulmonx reported a net loss of $10.1 million, or $0.24 per share, compared with a net loss of $15.2 million, or $0.38 per share, in the year-earlier period. Adjusted EBITDA loss narrowed nearly 40% to $5.1 million from $8.4 million. Total operating expenses declined 16% to $26.8 million. Excluding stock-based compensation, operating expenses fell 11% year over year. Research and development expense was $5 million, down from $5.3 million, while selling, general and administrative expense decreased to $21.8 million from $26.7 million. Gross margin improved to 78% from 72%, which Sung attributed to a lower mix of international distributor sales, increased overhead absorption and supply-chain cost efficiencies. The company now expects approximately 76% gross margin for the full year. Cash and cash equivalents totaled $55.8 million at June 30, down $5.8 million from March 31. Sung said Pulmonx expects to use roughly $23 million of cash in 2026, nearly 30% less than its 2025 cash burn. The company recently restructured its credit facility, extending debt maturity to 2031 and providing potential access to an additional $20 million subject to certain revenue milestones. Management expects its existing cash and available debt-facility capacity to support its path to cash-flow breakeven over the next several years. Pulmonx said enrollment is progressing in its CONVERT II pivotal trial evaluating AeriSeal and continues to expect completion of enrollment in 2027. French said AeriSeal could expand the company’s global addressable market by roughly 20% and serve as a future revenue contributor alongside its Zephyr valve business. AeriSeal has CE mark authorization in Europe, but French said the company does not plan to commercialize the product in markets until enrollment of CONVERT II patients outside the U.S. is complete and the submitted CONVERT I publication is available. He said any launch would also require customary training and commercial preparations. Pulmonx reiterated full-year revenue guidance of $90 million to $92 million and projected full-year operating expenses of $109 million to $111 million, including about $15 million of non-cash stock-based compensation. The company also noted that its business typically experiences a sequential sales decline in the third quarter compared with the second quarter. Pulmonx Corporation is a commercial-stage medical device company focused on bronchoscopic lung volume reduction for patients suffering from severe emphysema. The company's flagship therapy, the Zephyr® Endobronchial Valve System, employs one-way valves delivered via a minimally invasive bronchoscopic procedure to collapse diseased portions of the lung, reducing hyperinflation and improving respiratory function. Complementing this treatment, Pulmonx offers the Chartis® Pulmonary Assessment System, which provides clinicians with quantitative measurements of collateral ventilation to aid in patient selection and optimize clinical outcomes. The Zephyr Valve received the CE mark in Europe in 2008 and FDA approval in the United States in 2018, and it has since been adopted by leading respiratory and thoracic centers across North America and Europe. 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 "Pulmonx Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

REDWOOD CITY, Calif., July 29, 2026 (GLOBE NEWSWIRE) -- Pulmonx Corporation (Nasdaq: LUNG) (“Pulmonx” or the “Company”), a global leader in minimally invasive treatments for lung disease, today reported financial results for the second quarter of 2026 ended June 30, 2026. Recent Highlights Achieved worldwide revenue of $22.8 million in the second quarter of 2026, a 5% decrease over the same period last year and a decrease of 6% on a constant currency basis Delivered $14.2 million in U.S. revenue in the second quarter of 2026, representing a 4% year-over-year decrease Delivered $8.6 million in international revenue in the second quarter of 2026, representing a 6% year-over-year decrease and a decrease of 9% on a constant currency basis; excluding China, year-over-year international revenue increased 12% and 9% on a constant currency basis Achieved record gross margin of 78% in the second quarter of 2026 Demonstrated operating leverage from cost realignment efforts, reducing net loss by 34% and adjusted EBITDA loss by 39% in the second quarter of 2026 as compared to the same period last year “We are pleased with the progress we made in the second quarter executing our commercial strategy, advancing our clinical initiatives, and beginning to deliver the significant operating leverage we expected,” said Glen French, President and Chief Executive Officer of Pulmonx. “With a fully staffed US sales leadership team, a more focused global commercial team, and a realigned cost structure, we are confident in our ability to return to year-over-year revenue growth and drive meaningful operating leverage while advancing our longer-term strategic priorities.” Second Quarter 2026 Financial ResultsTotal worldwide revenue in the second quarter of 2026 was $22.8 million, a 5% decrease from $23.9 million in the second quarter of 2025 and a decrease of 6% on a constant currency basis. U.S. revenue was $14.2 million, a 4% decrease from the second quarter of 2025. International revenue was $8.6 million, a 6% decrease compared to the second quarter of 2025, and a 9% decrease on a constant currency basis. The decrease in international revenue was attributable to a lack of sales into China as we awaited the renewal of our registration certificate. Excluding China, international revenue grew 12% year-over-year and 9% on a constant currency basis. Gross profit in the second quarter of 2026 was $17.7 million, compared to $17.2 million for the second quarter of 2025. Gross margin for the second quarter of 2026 was 78%, compared to 72% for the same period in 2025. Operating expenses in the second quarter of 2026 were $26.8 million, compared to $32.0 million for the second quarter of 2025, representing a decrease of 16%. Net loss in the second quarter of 2026 was $10.1 million, or $0.24 per share, compared to a net loss of $15.2 million, or $0.38 per share, for the same period in 2025. Adjusted EBITDA loss in the second quarter of 2026 was $5.1 million, a reduction of 39% as compared to adjusted EBITDA loss of $8.4 million for the same period in 2025. Cash and cash equivalents totaled $55.8 million as of June 30, 2026. 2026 Financial OutlookPulmonx continues to expect revenue for the full year 2026 to be in the range of $90 million to $92 million. The Company now expects gross margin for the full year 2026 to be approximately 76%. Pulmonx now expects total operating expenses for the full year 2026 to fall within the range of $109 million to $111 million, inclusive of approximately $15 million of non-cash stock-based compensation. The Company continues to expect cash, cash equivalents, and marketable securities to decrease by approximately $23 million for the full year 2026 assuming no additional drawdowns under the Company’s credit facility. Webcast and Conference Call DetailsPulmonx will host a conference call today, July 29, 2026, at 1:30 p.m. PT / 4:30 p.m. ET to discuss its second quarter financial results. A live webcast of the conference call will be available on the Investor Relations section of the Company’s website at https://investors.pulmonx.com/. The webcast will be archived on the website following the completion of the call. Use of Non-GAAP Financial MeasuresTo supplement Pulmonx’s condensed consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America, or GAAP, Pulmonx provides certain non-GAAP financial measures in this release as supplemental financial metrics. Non-GAAP financial measures reflect an additional way of viewing aspects of the Company’s operations that, when viewed with GAAP results, may provide a more complete understanding of factors and trends affecting Pulmonx’s business. Constant currency calculations show reported current period revenues as if the foreign exchange rates remain the same as those in effect in the comparable prior year period. Pulmonx uses results on a constant currency basis as one measure to evaluate its performance. Pulmonx calculates constant currency by calculating current-year results using foreign currency exchange rates from the applicable comparable period in the prior year. Pulmonx generally refers to such amounts calculated on a constant currency basis as excluding the impact of foreign exchange or being on a constant currency basis. Pulmonx believes the presentation of results on a constant currency basis in addition to reported results helps improve investors’ ability to understand its operating results and evaluate its performance in comparison to prior periods. Pulmonx generally uses constant currency to facilitate management’s financial and operational decision-making, including evaluation of Pulmonx’s historical operating results. The Company defines Adjusted EBITDA as earnings before interest income or expense, taxes, depreciation and amortization and stock-based compensation and may also exclude certain non-recurring, irregular or one-time items not reflective of our ongoing core business operations, such as impairment charges. Management believes in order to properly understand short-term and long-term financial trends, investors may wish to consider the impact of these excluded items in addition to GAAP measures. Further, management uses adjusted EBITDA for strategic and annual operating planning. We believe these non-GAAP financial measures are useful as a supplement in evaluating our ongoing operational performance and enhancing an overall understanding of our past financial performance. Reconciliation of these non-GAAP financial measures to the most comparable GAAP measures is set forth in the tables below. The non-GAAP financial measures used by Pulmonx should be considered supplemental to, and not a substitute for, financial information prepared in accordance with GAAP. Because non-GAAP financial measures exclude the effect of items that increase or decrease the Company’s reported results of operations, management strongly encourages investors to review, when they become available, the Company’s consolidated financial statements and publicly filed reports in their entirety. The Company’s definition of non-GAAP measures may differ from similarly titled measures used by others. Forward-Looking StatementsThis press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are based on management’s current assumptions and expectations of future events and trends, which affect or may affect our strategy, operations or financial performance, and actual results may differ materially from those expressed or implied in such statements due to numerous risks and uncertainties. These forward-looking statements include, but are not limited to, statements regarding our ability to drive improvements in revenue growth, execute against our strategic priorities, and deliver meaningful operating leverage, our possible or assumed future results of operations, including long-term outlook, descriptions of our revenues, total operating expenses, gross margin, balances of cash, cash equivalents, and marketable securities, profitability, guidance for full year 2026, and overall business strategy. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Factors that could cause actual results to differ materially from those contemplated in this press release can be found in the Risk Factors section of Pulmonx’s public filings with the Securities and Exchange Commission (“SEC”), including the Quarterly Report on Form 10-Q filed with the SEC on May 4, 2026, available at www.sec.gov. Because forward-looking statements are inherently subject to risks and uncertainties, you should not rely on these forward-looking statements as predictions of future events. All statements other than statements of historical fact are forward-looking statements. Except to the extent required by law, we undertake no obligation to update or review any estimate, projection, or forward-looking statement. Actual results may differ from those set forth in this press release due to the risks and uncertainties inherent in our business. About Pulmonx CorporationPulmonx Corporation (Nasdaq: LUNG) is a global leader in minimally invasive treatments for chronic obstructive pulmonary disease (COPD). Pulmonx’s Zephyr® Endobronchial Valve, Chartis® Pulmonary Assessment System, LungTraX® Platform, and StratX® Lung Analysis Reports are designed to assess and treat patients with severe emphysema/COPD who despite medical management are still profoundly symptomatic. Pulmonx received U.S. Food and Drug Administration (FDA) Premarket Approval (PMA) to commercialize the Zephyr® Endobronchial Valve following its designation as a “breakthrough device.” The Zephyr Valve is commercially available in more than 25 countries, is included in global treatment guidelines and is widely considered a standard of care treatment option for improving breathing, activity and quality of life in patients with severe emphysema. For more information on the Zephyr Valves and the company, please visit www.Pulmonx.com. Pulmonx®, AeriSeal®, Chartis®, LungTraX®, StratX®, and Zephyr® are registered trademarks of Pulmonx Corporation. Investor ContactBrian Johnston or Webb CampbellGilmartin [email protected]

Image source: The Motley Fool. Wednesday, April 29, 2026 at 4:30 p.m. ET President and Chief Executive Officer — Glendon French Chief Operating Officer and Chief Financial Officer — Derrick Sung Need a quote from a Motley Fool analyst? Email [email protected] Glen French, President and Chief Executive Officer; and Derrick Sung, Chief Operating Officer and Chief Financial Officer. Earlier today, Pulmonx issued a press release announcing its financial results for the quarter ended March 31, 2026. A copy of the press release is available on the Pulmonx website. Before we begin, I'd like to remind you that management will make statements during this call that include forward-looking statements within the meaning of federal securities laws, which are 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. All forward-looking statements, including, without limitation, those relating to our operating trends, commercial strategies and future financial performance, including long-term outlook and full year 2026 guidance, the timing and results of clinical trials, physician engagement, expense management, market opportunity, guidance for revenue, gross margin, operating expenses, cash usage, commercial expansion and product demand, adoption and pipeline development are based upon our current estimates and various assumptions. 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 filings with the Securities and Exchange Commission, including our annual report on Form 10-K filed with the SEC on March 10, 2026. Also, during this call, we will discuss certain non-GAAP financial measures. Reconciliations to these non-GAAP financial measures to the most directly comparable GAAP financial measures are provided in the press release, which is posted on our Investor Relations website. These non-GAAP measures are not intended to be a substitute for our GAAP results. This conference call contains time-sensitive information and is accurate only as of the live broadcast today, April 29, 2026. Pulmonx 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. And with that, I will turn the call over to Glen. Glendon French: Thank you, Brian. Good afternoon, everyone, and welcome to our first quarter 2026 earnings call. Here with me is Derrick Sung, our Chief Operating Officer and Chief Financial Officer. Pulmonx delivered total worldwide revenue of $20.6 million in the first quarter of 2026. Since our last update, we are increasingly encouraged by continued operational momentum, and we remain confident in our ability to achieve our previously communicated revenue guidance of $90 million to $92 million for the full year 2026 with a return to global growth in the back half of this year. We are making good progress in our efforts to address internal operational and executional challenges that have led to recent underperformance, and we remain highly focused on 3 key priorities: First, reaccelerating U.S. sales growth; second, advancing our market-expanding clinical initiatives; and third, aligning our cost structure to drive profitability. Let me take each of these in turn, starting with our progress on driving U.S. sales growth. A foundational element of reaccelerating U.S. revenue growth is having the right people and the right culture in place, and I'm encouraged by our progress. We have filled with top talent all our sales leadership positions and substantially all our U.S. field sales roles. We are also seeing clear improvements in our commercial team culture. Further, sales turnover has stabilized over the last 6 months, a marked improvement from earlier in 2025. We expect turnover from here to be in line with industry standards. We believe this stabilization is a direct result of our efforts to increase leadership transparency and streamline selling priorities to focus on our highest impact activities. These priorities are grounded in our previously discussed near-to-far approach, specifically, one, setting up high-quality and efficient valve programs; two, engaging with COPD-oriented clinicians aligned with hospital systems offering Zephyr Valves; three, working together with our champions to educate service line administrators to ensure appropriate resourcing of their programs; and four, concentrating our direct-to-patient efforts on geographies with established treating centers that have the capacity to accommodate interested patients. We are encouraged by early feedback from the field force and from our customers on this approach, which reflects greater focus, stronger engagement and a more consistent execution model overall. As the newer members of our team become increasingly productive, we expect U.S. sales performance to improve over the course of the year with growth reacceleration in the back half of 2026. Turning to our second priority, growing our addressable market with our AeriSeal program remains a key focus. Our CONVERT II pivotal trial is progressing well, and we are especially encouraged by our pace of enrollment since bringing on new leadership within our clinical affairs organization. Today, we are highly confident in our ability to complete enrollment of this trial in 2027, bringing us one step closer to expanding our total addressable market by approximately 20% globally. We see meaningful potential for AeriSeal to serve as both a revenue driver and a market expander for Zephyr Valves over the medium to long term and look forward to providing updates on enrollment progress in the quarters ahead. On our third priority, we have made substantial progress in aligning our spending with our strategic priorities. As previously discussed, we executed a broad cost reduction initiative in the first quarter. With these actions, our underlying expense trajectory has significantly improved, and we remain on track to deliver meaningful operating leverage and lower cash burn while maintaining investments in our key growth drivers. In closing, we have greater conviction in our strategy to refine execution to further penetrate the substantial remaining market opportunity for our products. While 2026 is a year of execution and transition, we are confident in the progress we are making. We have a better understanding of what drove prior underperformance. We have taken meaningful steps to address those issues. And we have aligned the organization around initiatives that matter most. We remain confident in the underlying strength of the business, the size of the opportunity ahead of us and our ability to deliver sustainable, profitable growth over time. With that, I will turn the call over to Derrick to provide a more detailed review of our first quarter results. Derrick Sung: Thank you, Glen, and good afternoon, everyone. Total worldwide revenue in the first quarter of 2026 was $20.6 million, a 9% decrease from $22.5 million in the same period last year and a decrease of 12% on a constant currency basis. U.S. revenue in the first quarter was $13.3 million, a 7% decrease from $14.2 million during the same period of the prior year. We added 15 new U.S. treating centers during the quarter. International revenue in the first quarter of 2026 was $7.3 million, a 12% decrease from $8.3 million during the same period last year and a decrease of 21% on a constant currency basis. The decline in revenue was fully attributable to the absence of sales to our distributor in China. As a reminder, we are currently awaiting the renewal of our Chinese registration certificate, which we expect to come in the second half of 2026. Excluding China, we continue to see solid performance across all our other international markets, which grew 22% as compared to the same period last year and 9% on a constant currency basis. Gross margin for the first quarter of 2026 was 78% compared to 73% in the prior year period. The year-over-year increase was driven primarily by the lower mix of distributor sales in our international markets. Looking forward, we continue to expect gross margin to be approximately 75% for the full year of 2026, trending higher in the first half of the year and lower towards the second half of the year based on the mix of distributor sales. Total operating expenses for the first quarter of 2026 were $29 million, a 6% decrease from the same period last year. Noncash stock-based compensation expense was $3.8 million in the first quarter of 2026. Operating expenses in the first quarter included approximately $1.4 million of onetime costs related to the restructuring initiative that we executed at the start of the year. Excluding stock-based compensation expense and the restructuring costs, operating expenses in the first quarter of 2026 decreased 8% from the same period of the prior year. We remain committed to decreasing spend in 2026 through our cost alignment efforts while maintaining investments in our key growth initiatives. To that end, we continue to expect full year 2026 operating expenses to fall between $113 million and $115 million, inclusive of approximately $19 million of noncash stock-based compensation expense. R&D expenses for the first quarter of 2026 were $4.9 million compared to $4.8 million in the first quarter of 2025. Sales, general and administrative expenses for the first quarter of 2026 were $24.1 million compared to $26.1 million in the first quarter of 2025. Net loss for the first quarter of 2026 was $13.7 million or a loss of $0.33 per share as compared to a net loss of $14.4 million or a loss of $0.36 per share for the same period of the prior year. An average weighted share count of 41.9 million shares was used to determine loss per share for the first quarter of 2026. Adjusted EBITDA loss for the first quarter of 2026 was $8.5 million, consistent with the first quarter of 2025. Excluding onetime restructuring charges, adjusted EBITDA loss was $7 million and 18% favorable to the same period of the prior year. We ended March 31, 2026, with $61.6 million in cash, cash equivalents and marketable securities, a decrease of $8.2 million from December 31, 2025. In the first quarter of 2026, we took meaningful steps to strengthen our balance sheet and extend our cash runway. First, we executed a cost restructuring initiative that reduced our ongoing operating expenses by over 10%. Second, we closed on a $60 million credit facility with a 5-year interest-only structure, extending the maturity of our existing debt out to 2031 and providing us with access to an additional $20 million in undrawn capital subject to certain revenue milestones. With these measures in place, we expect to burn roughly $23 million of cash for the full year 2026, which would be a substantial decrease from the $32 million of cash that we burned in 2025. Finally, turning to our revenue outlook for 2026. We are reiterating our full year 2026 revenue guidance of $90 million to $92 million. Our guidance contemplates sequential quarterly improvement in our year-over-year revenue trend with a return to year-over-year growth in both our U.S. and international businesses in the back half of the year. In the U.S., we expect our recently filled sales positions and our refocused commercial strategy to gradually drive improving sales productivity as the year progresses. Internationally, revenue growth through the first half of 2026 will continue to be negatively impacted by the lack of sales to our distributor in China. That said, we expect continued strength throughout the year from our remaining international markets with year-over-year sales growth in our international business resuming in the second half of the year. To conclude, we entered 2026 with a clear plan, and our first quarter reflects early progress. We remain focused on the work ahead, ramping our sales organization, advancing our clinical programs and delivering the financial leverage we've committed to. We are confident in the strength of our business and our team's ability to execute. With that, I'd like to thank you for your attention, and we will now open the call up for questions. Operator: [Operator Instructions] Our first question comes from Rick Wise with Stifel. Frederick Wise: Let me start off, if I could. I mean, obviously, getting the sales team in place, it sounds like it's largely in place critical. And it seems like you're seeing some good, encouraging, early progress here. Maybe talk to us about in more detail some of the points you made about going deeper in the accounts and some of the specific strategies you're using to see sales growth accelerate. And maybe just as part of that, help us -- maybe it's a question for Derrick, but help us understand what's dialed into the guidance in terms of productivity with these new people and today and what you're hoping for and what we might see? Glendon French: Rick, so we are -- well, first and foremost, we have been focused on narrowing the items that we're asking our U.S. sales force to do. I think one of the key things that we realized coming into this period was that last year, there were just too many balls in the air. So we've narrowed that focus, and it's in the areas that we commented on in the comments that just preceded. And we have, as you had mentioned, substantially filled all of our open positions. Our average tenure, as you might imagine, is not what it was a year ago, but we are bringing people up to speed quite quickly. We are focusing our activity on setting up high-quality and efficient valve programs, and we're doing that by engaging COPD physicians around these centers to be driving patients into those centers. We are looking to gain administrative service line level, administrative support to ensure that we have the resources to execute on that plan. And we're seeing positive impact from those efforts even in these early stages. But I think that one of the bigger issues for us is just getting our sales force up and running and trained and moving forward. And we are right where we expected to be at this point. So we feel good about the fact that we're full and that people are coming up the learning curve, and we certainly have some very bright spots with regard to the execution of the strategy that we've outlined. Frederick Wise: That's great to hear. Derrick, for you, maybe just help us just think through with the first quarter in hand, the 2026 growth cadence and thinking about the reaffirmed '26 guidance range you laid out, it implies 60 basis points for the year. This is sort of a transition. Are you -- do you feel like consensus has got it right in terms of the current sequencing? Should we be more back weighting it? I think consensus for the second quarter is like $22-ish million. And if that's the case, what gives you the confidence that the company can have the step-up needed from 2Q to 3Q, et cetera, to get to the numbers you've laid out? Derrick Sung: Sure, Rick, and thanks for the question. As it relates to guidance, we do expect to demonstrate a sequential quarterly year-over-year improvement in growth as the year goes on. And as Glen said, we feel very good about the performance in Q1. We're already demonstrating that, particularly in the U.S. Our year-over-year growth rate, while down 7% in Q1, is a meaningful improvement from our growth rate of -- our decline of 11% in Q4. And so we already feel like we've bottomed in Q4 in terms of year-over-year growth rates. And both in the U.S. and internationally, we expect to see -- and I think this is reflected to your question currently in consensus, but we expect to see that sequential improvement every quarter flipping to positive year-over-year growth in the back half of the year and even exiting the year with double-digit growth, both U.S. and international. In the U.S., what gives us confidence and the driver for that sequential improvement in year-over-year growth is, in fact, the addition of the new folks that we have brought in and the time that it takes to -- for the new reps to get up to speed and get up to productivity. So that does take some time, typically 6 to 9 months or so is what we've seen on average for new hires to get up to speed. And so as the year progresses and also as our focused strategies take hold in the U.S., we do expect to see that improvement sequentially across the year. On the international side, it's really a question of comps, frankly. So the decline that you're seeing in our international sales in Q1 is primarily all attributable to timing of sales into China. We are currently awaiting registration of our -- or renewal of our registration certificate in China. So there's a lack of absence of sales into China in the first -- this year, and we expect -- and in the first half of this year, certainly in last year, in the first half of 2025, there are a number of large orders that were placed into China. To put it into context, China is still a relatively small portion of our total sales, less than 5% of our total sales. But the timing of those sales drove tough comps in the first half of this year. So that's what's driving the optical declining growth rate and will drive that optical declining growth rate for the first half of this year. Our underlying business, as we talked about, is still strong. We grew 22% year-over-year reported in Q1. We've seen double-digit growth in our underlying direct international businesses for the past couple of years. We expect that trend to continue. And so in the back half of this year, that underlying strength of our OUS business, continued strength, will be more representative in our growth rates, and that's what we expect to drive the step-up in growth in our international business. Operator: Our next question is from the line of John Young with Canaccord. John Young: Appreciate the progress update provided today. I want to go to the U.S. accounts, 15 added in Q1. I think that was higher than any number that was added last year according to our model. I would love to know, is this due to the refocused sales team ramping quickly? And maybe how should we think about just the pace of account additions for the remainder of the U.S. for the year? And if I could ask my second question, too, related to the sales force, just what metrics are you guys focused on in monitoring the success of the revamped sales force? Glendon French: So 15 is, as you noted, a strong number relative to what we saw on a quarterly basis across last year. It's difficult to say whether that's anywhere close to the new normal. I think we're going to stand with the 10 per quarter expectation, which we laid out. But I'll let Derrick talk about that guidance if he wishes to. But that feels like the right sort of number. Some of these new accounts, I think, were lining up, perhaps, to happen late last year, maybe fell into this quarter. I think time will tell as to whether the mean is above 10, but I would keep that. With regard to metrics, at this point, we feel really good about the plan. We are focused on moving things in a fairly simplified basic way. And we're just trying to bring our people up to speed as quickly as we possibly can. We have some territories that are -- that did very, very well last year. They continue to be doing well this year, continuing to take advantage of the momentum that they established. And we see that in an array of different indicators. We've talked before about the importance of StratX and seeing that sort of coming through as the leading indicator for our performance, and we feel good about where we sit at this point. Operator: [Operator Instructions] It comes from Frank Takkinen with Lake Street Capital Markets. Frank Takkinen: I know this has come up on, I think it was the previous call as well, but wondering if you can speak to kind of bigger picture growth aspirations. I know you're only a few quarters into this. And I think last time, the context provided was substantially better, which obviously aligns with the cadence of revenue growth throughout 2026. But now that you've had a little bit more time with the organization, are you comfortable providing any type of -- we expect to be a double-digit grower commentary or something similar in nature to that as you think about a longer-term business? Glendon French: Yes, Frank, you want to take that, Derrick? I mean, I'll go ahead. I'll start. You can add to it, Derrick, if you wish. We fully expect -- I fully -- I will speak for myself. I certainly expect us to be a double-digit grower. I think everybody on the team expects us to be a double-digit grower. I think we're trying to figure out when you look about -- you look across the period where we weren't meeting that expectation or we are moving sort of rapidly in the direction of not meeting that expectation was particularly in the United States, we're trying to get to the bottom of that. We think we were doing too many things, and we think we lost too many sales reps, and we think we can get back into a double-digit range. Where exactly in that range is still to be determined. I believe, obviously, outside the United States, we've thrown up a couple of 20% in a row roughly in terms of our growth in 2025 over 2024 and 2024 over 2023. And absent the matters that Derrick outlined, we're in that same sort of neighborhood in the first quarter as well in some of our key markets. All of our major European markets are double-digit growers in the first quarter. We don't report that, but that's the case. So we feel good about that. They're executing on a plan that looks very much like the U.S. plan, which is no coincidence. And we've got TAM expanders on the horizon that we're working very, very hard to push forward. We are excited about AeriSeal and look forward to talking more about that as we move deeper into the year. Derrick, did you want to add something to that? Derrick Sung: Yes, I would simply add that also contemplated in our guidance even for 2025, as I just mentioned, is that we will exit the year growing double digits in both our international and U.S. markets. So I don't want to get ahead of ourselves and provide any more guidance than that beyond '25, but -- or '26, I'm sorry, in 2026, I meant to say, our guidance contemplates double-digit growth as we exit the year. And I don't want to provide any more guidance beyond '26, but I just did want to add that additional commentary. Thanks, Frank. Frank Takkinen: Perfect. Maybe just for my follow-up on the Chinese registration renewal. Is there a reliance on that to hit the second half expectations for OUS growth? And then related to that, what needs to happen for that renewal? Is this more administrative in nature? Is there some risk to this renewal maybe not occurring on time with your guided time lines? Derrick Sung: Yes. Thanks, Frank, for that question. I'll take that. This is Derrick. So we do continue to expect the renewal of our registration certificate to come in the back half of this year. It is, I believe, an administrative process that we're simply working through. So it will simply take some time. But at this point, we don't have any reason to believe that we won't get that registration certificate renewed in the back half of the year. Now when we do get that -- when that renewal comes, I would say that our expectation is that the resumption of sales into China will be very gradual. There'll be -- accounts will need to be restarted, et cetera. So we're not expecting a bolus of sales to come in. It will take some time. And to that end, our current guidance doesn't contemplate a significant contribution from China even in our back half. However, as I mentioned, we will be anniversarying those tough comps from our China sales in the first half of 2025. And so I think that will -- we'll expect to flip back to positive international growth. And as Glen and I just mentioned, you'll see our international growth rates just really be much more reflective of the strong underlying growth in our direct international businesses that we're currently experiencing. Operator: [Operator Instructions] And it comes from Joseph Downing with PSC. Joseph Downing: I guess as you kind of reprioritize the existing base of treating physicians, can you just help to quantify same-store productivity, say, in your top quartile accounts versus, say, the bottom couple of quartiles? And in this, I guess, how much of the 2026 U.S. revenue plan depends on what's in the bottom 2 quartiles versus this top 25%? Glendon French: Yes. We -- I would say that we are focused on -- to the extent that we have some -- we've got a mix of things going on here, Joe. We've got uncovered territories that are now covered. So we need to reestablish those connections and get those moving. We tend to have a bias toward the accounts that are performing best and trying to move them along and take full advantage of the near-to-far strategy in relation to them, make sure that they're leveraging all the best practices that we've talked about in prior calls. And so I would say the top quartile would be more of the area of focus as opposed to the lowest quartile. We are, however, bringing in some number of new accounts that -- and where our standards for bringing our accounts online have changed quite a bit. We really raised the bar and expect those accounts to invest pretty heavily in terms of their time and efforts to get up and running and have patients that are ready to go. So there's far fewer people who are recently trained who are not doing procedures. So we actually are quite optimistic about the newer accounts that are coming online and are doing procedures right out of the blocks. So those probably -- those would be what I would consider outside the first -- or the first quartile or the top quartile or lower quartile, but rather just new accounts on top of that. But first and foremost, we're getting our team up and running -- back up and running and just trying to support the strongest of our accounts most predominantly and some of our newer accounts will also make some good contributions. Joseph Downing: And then just for my follow-up, I want to touch on LungTraX real quick. I know it's kind of being refocused or deemphasized a little bit, whichever way you prefer to frame it. But I'm just curious like what percent of U.S. accounts right now, I think it's the larger ones you said are still -- it's more effectively used in those kind of accounts. What percent of the accounts are using it? And then kind of what, like, ROI threshold would lead you to kind of selectively expand it again versus keeping it kind of at this narrow scope? Glendon French: So we pulled back our -- we were spending what in retrospect looked like a disproportionate amount of our time pursuing Detect, what we call LungTraX Detect. And so we -- I think we brought that to a level of time and attention that it deserves. We learned a great deal during the period of time where we were heavily promoting Detect in that it really fits into a specific subset of our accounts. We did some pilots across the last year or so, and we -- and it revealed that the technology works well in certain types of accounts. And so we're tending to target Detect. I wouldn't call it a deemphasis at all. We're just -- I think it's just a more focused approach to Detect in situations where we have determined that there could be sort of a great return for the hospital that invests in Detect in terms of patient flow and so forth. So as far as what percent of accounts, I don't think we report that. But everything you've heard before, which is in certain accounts, it can be great. We definitely have data that suggests that. It takes longer to get set up than we, I think, anticipated last year that it would. And those that are up and running, it took a little time to get them up and running, but there seems to be -- all indications are that when that technology is up and running and being used, it's a pretty solid contributor to our efforts in that account. Operator: Thank you. And this will conclude the Q&A session, and I will pass it back to Glen French for closing remarks. Glendon French: Thank you very much, operator. In summary, we have a clear plan, and our first quarter reflects early progress executing this plan. We remain focused on the work ahead, specifically ramping U.S. sales, advancing our clinical programs and delivering the financial leverage to which we have committed. We are right where we expected to be at this point. We are confident in our business and in our team's ability to continue to execute. I want to thank you very much to -- I'd like to express a thank you to our employees for your focused and considerable efforts and thank everyone on this call today for your time and your ongoing interest in Pulmonx. Have a good afternoon. Operator: And this concludes our conference. Thank you for participating, and you may now disconnect. Before you buy stock in Pulmonx, 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 Pulmonx wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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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. Pulmonx (LUNG) Q1 2026 Earnings Transcript was originally published by The Motley Fool

This article first appeared on GuruFocus. Release Date: April 29, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Pulmonx Corp (NASDAQ:LUNG) reported total worldwide revenue of $20.6 million for Q1 2026, showing operational momentum. The company is confident in achieving its full-year 2026 revenue guidance of $90 million to $92 million. Pulmonx Corp (NASDAQ:LUNG) has made substantial progress in aligning its cost structure, reducing operating expenses by over 10%. The gross margin for Q1 2026 increased to 78% from 73% in the prior-year period. The company added 15 new U.S. treating centers during the quarter, indicating expansion in its domestic market. Total worldwide revenue decreased by 9% compared to the same period last year. U.S. revenue in Q1 2026 decreased by 7% compared to the prior year. International revenue decreased by 12% due to the absence of sales to the distributor in China. The company is awaiting the renewal of its Chinese registration certificate, impacting sales in China. Net loss for Q1 2026 was $13.7 million, slightly improved from a net loss of $14.4 million in the prior year. Warning! GuruFocus has detected 4 Warning Signs with LUNG. Is LUNG fairly valued? Test your thesis with our free DCF calculator. Q: Can you elaborate on the strategies being used to accelerate sales growth and the productivity expectations for the new sales team members? A: Glenn French, CEO, explained that the focus has been on narrowing the tasks for the U.S. sales force to improve efficiency. The company has filled all open positions and is working on bringing new hires up to speed quickly. The strategy includes setting up high-quality valve programs and engaging COPD physicians to drive patient referrals. The company is seeing positive impacts from these efforts and expects continued improvement as the year progresses. Q: With the first quarter results in hand, how does the company view the growth trajectory for 2026, and what gives confidence in achieving the guidance? A: Derek Sung, CFO, stated that the company expects sequential quarterly improvement in growth throughout the year. The U.S. market is expected to benefit from the new sales hires and focused strategies, while international growth will be impacted by the timing of sales in China. The company is confident in achieving positive year-over-year growth in the back half of the year, driven by the strength of the underlying business. Q: What is the outlook for U.S. account additions, and what metrics are being used to monitor the success of the revamped sales force? A: Glenn French, CEO, noted that 15 new U.S. accounts were added in Q1, which is a strong number compared to last year. The company maintains an expectation of adding 10 accounts per quarter. Metrics for success include bringing new hires up to speed quickly and leveraging best practices to support high-performing accounts. Q: Can you provide insight into the company's long-term growth aspirations, particularly regarding double-digit growth expectations? A: Glenn French, CEO, expressed confidence in achieving double-digit growth, especially as the company addresses past challenges such as sales rep turnover and strategic focus. The international markets have shown strong growth, and the company is optimistic about future prospects with initiatives like AeroSeal. Q: What is the status of the Chinese registration renewal, and how does it impact the company's growth expectations? A: Derek Sung, CFO, explained that the renewal is expected in the back half of the year and is primarily an administrative process. The company does not anticipate a significant immediate impact on sales from China, and the guidance does not rely heavily on contributions from China in the second half of the year. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Pulmonx reported Q1 revenue of $20.6 million (down 9% YoY) but reiterated full‑year 2026 revenue guidance of $90–$92 million and expects to return to year‑over‑year growth in the back half as U.S. sales hiring finishes and treating‑center additions continue. International revenue declined primarily because of the pause in sales to its China distributor while Pulmonx awaits renewal of the Chinese registration certificate (expected H2 2026); excluding China, international markets grew 22% YoY. Management cut costs, closed a new $60 million five‑year credit facility, and finished Q1 with $61.6 million in cash, saying 2026 cash burn should be about $23 million (down from $32 million in 2025) to extend the company’s runway. Interested in Pulmonx Corporation? Here are five stocks we like better. Pulmonx (NASDAQ:LUNG) reported first-quarter 2026 worldwide revenue of $20.6 million, as management emphasized early progress on commercial execution, continued advancement of its AeriSeal clinical program, and actions to reduce spending and extend its cash runway. Executives reiterated full-year 2026 revenue guidance of $90 million to $92 million and said they expect a return to year-over-year growth in the back half of the year. Chief Operating Officer and Chief Financial Officer Derrick Sung said total revenue of $20.6 million was down 9% from $22.5 million in the prior-year quarter, and down 12% on a constant-currency basis. → Homebuilder Earnings: D.R. Horton Sticks Out as Pulte & NVR Sales Tank U.S. revenue was $13.3 million, a 7% decrease from $14.2 million a year earlier. Sung noted the company added 15 new U.S. treating centers during the quarter. International revenue was $7.3 million, down 12% from $8.3 million in the prior-year period and down 21% on a constant-currency basis. Sung said the international decline was “fully attributable” to the absence of sales to Pulmonx’s distributor in China as the company awaits renewal of its Chinese registration certificate, which it expects in the second half of 2026. → Meta Platforms Earnings Preview: What to Watch in Q1 2026 Report Excluding China, Sung said international markets “grew 22%” year over year (and 9% on a constant-currency basis), adding that performance was solid across the rest of the international footprint. President and CEO Glendon French said the company remains focused on three priorities: “re-accelerating U.S. sales growth,” advancing market-expanding clinical initiatives, and aligning the cost structure “to drive profitability.” He said Pulmonx has “filled with top talent all our sales leadership positions and substantially all our U.S. field sales roles,” and described improvements in commercial culture and retention. → Palantir Is Down 30%: Noise? Or a Signal to Accumulate? French said sales turnover has stabilized over the last six months, which he attributed to increased leadership transparency and streamlined selling priorities. He outlined a “near-to-far approach” that includes: Setting up “high quality and efficient” valve programs Engaging COPD-oriented clinicians aligned with hospital systems that offer Zephyr valves Working with physician champions to educate service line administrators and secure appropriate resourcing Concentrating direct-to-patient efforts on geographies with established treating centers that can accommodate demand In response to a question from Stifel’s Rick Wise on the sales ramp and guidance assumptions, Sung said Pulmonx has narrowed what it asks the U.S. sales force to do, after concluding there were “too many balls in the air” last year. Sung said the company is “right where we expected to be at this point,” with sales hiring largely complete and new reps moving up the learning curve. On the expected cadence for 2026, Sung said Pulmonx expects “sequential quarterly year-over-year improvement in growth” through the year, with growth turning positive in the back half and “exiting the year with double-digit growth, both U.S. and international.” He pointed to improving U.S. comparisons—U.S. revenue was down 7% in Q1 versus a decline of 11% in Q4—as an indication the company “bottomed in Q4” on a year-over-year growth-rate basis. Asked by Canaccord’s John Young about the pace of U.S. treating-center additions after 15 were added in Q1, French said the company is maintaining its previously communicated expectation of about 10 new centers per quarter, while noting some Q1 additions may have shifted from late 2025. French said expanding the addressable market through Pulmonx’s AeriSeal program remains a key focus. He said the company’s CONVERT II pivotal trial is “progressing well,” and that enrollment has accelerated after bringing in new leadership within clinical affairs. French added that Pulmonx is “highly confident” it can complete enrollment in 2027, which he said would move the company closer to expanding its total addressable market by approximately 20% globally. He described AeriSeal as having potential to be “both a revenue driver and a market expander” for Zephyr valves over the medium to long term. Gross margin was 78% in the first quarter, up from 73% a year earlier. Sung attributed the year-over-year improvement primarily to a lower mix of distributor sales in international markets. For full-year 2026, he said Pulmonx continues to expect gross margin of about 75%, “trending higher in the first half” and “lower toward the second half” based on distributor-sales mix. Total operating expenses were $29.0 million, down 6% from the prior-year quarter. Sung said operating expenses included $3.8 million in non-cash stock-based compensation and about $1.4 million in one-time restructuring costs. Excluding stock-based compensation and restructuring costs, operating expenses declined 8% year over year. The company reiterated expected 2026 operating expenses of $113 million to $115 million, inclusive of about $19 million of non-cash stock-based compensation. R&D expense was $4.9 million, compared with $4.8 million a year earlier. Sales, general and administrative expense was $24.1 million, down from $26.1 million in the prior-year quarter. Net loss was $13.7 million, or $0.33 per share, compared with a net loss of $14.4 million, or $0.36 per share, in the prior-year period. Adjusted EBITDA loss was $8.5 million, consistent with Q1 2025; excluding one-time restructuring charges, adjusted EBITDA loss was $7.0 million, which Sung said was 18% favorable to the prior year. Pulmonx ended March 31, 2026 with $61.6 million in cash, cash equivalents, and marketable securities, down $8.2 million from the end of 2025. Sung said the company executed a cost restructuring initiative that reduced ongoing operating expenses by “over 10%,” and closed a $60 million credit facility with a five-year interest-only structure, extending debt maturity to 2031 and providing access to an additional $20 million in undrawn capital subject to certain revenue milestones. With those measures, he said Pulmonx expects to burn roughly $23 million of cash in 2026, down from $32 million in 2025. On China, Sung said the renewal of the Chinese registration certificate is “an administrative process” and that the company has no reason to believe it will not be renewed in the back half of 2026. He added that Pulmonx is not expecting a sudden surge in China sales after renewal; instead, he expects a “very gradual” resumption, and said the company’s guidance does not assume a significant contribution from China even in the second half. During Q&A, French addressed LungTraX Detect, saying the company had previously spent a “disproportionate amount” of time promoting it and has since refined its approach based on learnings from pilots. He said the technology works well in a subset of accounts and that the company is targeting those situations where there can be a strong return for hospitals. French said Pulmonx does not report what percentage of accounts are using it, while adding that accounts running the technology appear to see it contribute to the company’s efforts. Asked about longer-term growth aspirations, French said he expects Pulmonx to return to double-digit growth, citing prior disruptions such as doing too many initiatives at once and losing too many sales reps, particularly in the U.S. Sung added that the company’s 2026 guidance contemplates exiting the year with double-digit growth, but he did not provide guidance beyond 2026. Management closed the call by reiterating that the company is “right where we expected to be at this point,” with priorities centered on ramping U.S. sales, advancing clinical programs, and delivering financial leverage. Pulmonx Corporation is a commercial-stage medical device company focused on bronchoscopic lung volume reduction for patients suffering from severe emphysema. The company's flagship therapy, the Zephyr® Endobronchial Valve System, employs one-way valves delivered via a minimally invasive bronchoscopic procedure to collapse diseased portions of the lung, reducing hyperinflation and improving respiratory function. Complementing this treatment, Pulmonx offers the Chartis® Pulmonary Assessment System, which provides clinicians with quantitative measurements of collateral ventilation to aid in patient selection and optimize clinical outcomes. The Zephyr Valve received the CE mark in Europe in 2008 and FDA approval in the United States in 2018, and it has since been adopted by leading respiratory and thoracic centers across North America and Europe. The article "Pulmonx Q1 Earnings Call Highlights" was originally published by MarketBeat.

Management attributed recent underperformance to internal execution challenges and excessive operational complexity, leading to a narrowed focus on high-impact commercial activities. U.S. sales leadership and field roles are now substantially filled with top talent, following a period of high turnover that has since stabilized to industry standards. The commercial strategy has pivoted to a 'near-to-far' approach, prioritizing the optimization of existing valve programs and engagement with COPD-oriented clinicians over broader, less efficient outreach. International revenue declines were entirely driven by the absence of sales to a Chinese distributor pending a registration certificate renewal, masking 22% growth in other international markets. Operational efficiency improved following a Q1 restructuring initiative that reduced ongoing operating expenses by over 10% while preserving core growth investments. Management is raising the bar for new treating centers, requiring higher upfront investment and patient readiness to ensure immediate procedural volume upon activation. Full-year 2026 revenue guidance of $90 million to $92 million is reiterated, assuming a return to year-over-year growth in both U.S. and international segments by the second half. U.S. sales productivity is expected to improve gradually as new hires reach full capacity, a process management notes typically requires 6 to 9 months. The company expects to exit 2026 with double-digit growth in both domestic and international markets as commercial strategies take hold and tough year-over-year comparisons ease. Completion of the CONVERT II pivotal trial enrollment for the AeriSeal program is targeted for 2027, which is expected to expand the total addressable market by approximately 20%. Cash burn is projected to decrease to roughly $23 million for the full year 2026, supported by a new $60 million credit facility and improved operating leverage. A $1.4 million one-time restructuring charge was incurred in Q1 2026 as part of the broader cost alignment initiative. Renewal of the Chinese registration certificate is expected in the second half of 2026, though management anticipates a gradual resumption of sales rather than an immediate bolus. Gross margins are expected to normalize to approximately 75% for the full year, trending lower in the second half as the mix of lower-margin international distributor sales increases. 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. Management confirmed that Q4 2025 represented the bottom for year-over-year growth rates, with sequential improvements already visible in Q1 2026. Confidence in the back-half step-up is driven by the 6-to-9 month maturation cycle of the newly filled sales positions. All major European markets achieved double-digit growth in Q1, reinforcing management's belief that the core business model remains strong despite regional headwinds. Management explicitly stated their expectation for the company to return to being a sustainable double-digit grower over the long term. The company has shifted from broad promotion to a targeted approach for LungTraX Detect, focusing only on accounts where it significantly improves patient flow. While it takes longer to implement than initially anticipated, management noted it remains a solid contributor once fully operational in high-volume centers. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here.

REDWOOD CITY, Calif., April 29, 2026 (GLOBE NEWSWIRE) -- Pulmonx Corporation (Nasdaq: LUNG) (“Pulmonx” or the "Company"), a global leader in minimally invasive treatments for lung disease, today reported financial results for the first quarter of 2026 ended March 31, 2026. Recent Highlights Achieved worldwide revenue of $20.6 million in the first quarter of 2026, a 9% decrease over the same period last year and a decrease of 12% on a constant currency basis Delivered $13.3 million in U.S. revenue in the first quarter of 2025, representing a 7% year-over-year decrease Delivered $7.3 million in international revenue in the first quarter of 2026, representing a 12% year-over-year decrease and a decrease of 21% on a constant currency basis; excluding China, year-over-year international revenue increased 22% and 9% on a constant currency basis Realized gross margin of 78% in the first quarter of 2026 As previously reported, refinanced prior debt under a new 5-year interest-only credit facility that extends maturity out to 2031 “During the first quarter we initiated our refreshed U.S. commercial strategies and continued to execute in our direct international markets. We are encouraged by early signs of progress from the actions we have taken to refocus our U.S. sales organization and advance our clinical programs,” said Glen French, President and Chief Executive Officer of Pulmonx. “With a fully staffed global sales organization, we remain confident in our ability to drive sequential improvement in revenue growth, execute against our strategic priorities, and deliver meaningful operating leverage in 2026.” First Quarter 2026 Financial Results Total worldwide revenue in the first quarter of 2026 was $20.6 million, a 9% decrease from $22.5 million in the first quarter of 2025 and a decrease of 12% on a constant currency basis. U.S. revenue was $13.3 million, a 7% decrease from the first quarter of 2025. International revenue was $7.3 million, a 12% decrease compared to the first quarter of 2025, and a 21% decrease on a constant currency basis. The decrease in international revenue was attributable to a lack of sales into China as we await the renewal of our registration certificate. Excluding China, international revenue grew 22% and 9% on a constant currency basis. Gross profit in the first quarter of 2026 was $16.0 million, compared to $16.3 million for the first quarter of 2025. Gross margin for the first quarter of 2026 was 78%, compared to 73% for the same period in 2025. Operating expenses in the first quarter of 2026 were $29.0 million, compared to $30.9 million for the first quarter of 2025, representing a decrease of 6%. Net loss in the first quarter of 2026 was $13.7 million, or $0.33 per share, compared to a net loss of $14.4 million, or $0.36 per share, for the same period in 2025. Adjusted EBITDA loss in the first quarter of 2026 was $8.5 million. Cash and cash equivalents totaled $61.6 million as of March 31, 2026. 2026 Financial Outlook Pulmonx continues to expect revenue for the full year 2026 to be in the range of $90 million to $92 million. The Company continues to expect gross margin for the full year 2026 to be approximately 75%. Pulmonx continues to expect total operating expenses for the full year 2026 to fall within the range of $113 million to $115 million, inclusive of approximately $19 million of non-cash stock-based compensation. The Company continues to expect cash, cash equivalents, and marketable securities to decrease by approximately $23 million for the full year 2026 assuming no additional drawdowns under the Company’s credit facility. Webcast and Conference Call Details Pulmonx will host a conference call today, April 29, 2026, at 1:30 p.m. PT / 4:30 p.m. ET to discuss its first quarter financial results. A live webcast of the conference call will be available on the Investor Relations section of the Company's website at https://investors.pulmonx.com/. The webcast will be archived on the website following the completion of the call. Use of Non-GAAP Financial Measures To supplement Pulmonx’s condensed consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America, or GAAP, Pulmonx provides certain non-GAAP financial measures in this release as supplemental financial metrics. Non-GAAP financial measures reflect an additional way of viewing aspects of the Company's operations that, when viewed with GAAP results, may provide a more complete understanding of factors and trends affecting Pulmonx’s business. Constant currency calculations show reported current period revenues as if the foreign exchange rates remain the same as those in effect in the comparable prior year period. Pulmonx uses results on a constant currency basis as one measure to evaluate its performance. Pulmonx calculates constant currency by calculating current-year results using foreign currency exchange rates from the applicable comparable period in the prior year. Pulmonx generally refers to such amounts calculated on a constant currency basis as excluding the impact of foreign exchange or being on a constant currency basis. Pulmonx believes the presentation of results on a constant currency basis in addition to reported results helps improve investors’ ability to understand its operating results and evaluate its performance in comparison to prior periods. Pulmonx generally uses constant currency to facilitate management's financial and operational decision-making, including evaluation of Pulmonx’s historical operating results. The Company defines Adjusted EBITDA as earnings before interest income or expense, taxes, depreciation and amortization and stock-based compensation and may also exclude certain non-recurring, irregular or one-time items not reflective of our ongoing core business operations, such as impairment charges. Management believes in order to properly understand short-term and long-term financial trends, investors may wish to consider the impact of these excluded items in addition to GAAP measures. Further, management uses adjusted EBITDA for strategic and annual operating planning. We believe these non-GAAP financial measures are useful as a supplement in evaluating our ongoing operational performance and enhancing an overall understanding of our past financial performance. Reconciliation of these non-GAAP financial measures to the most comparable GAAP measures is set forth in the tables below. The non-GAAP financial measures used by Pulmonx should be considered supplemental to, and not a substitute for, financial information prepared in accordance with GAAP. Because non-GAAP financial measures exclude the effect of items that increase or decrease the company's reported results of operations, management strongly encourages investors to review, when they become available, the Company's consolidated financial statements and publicly filed reports in their entirety. The Company's definition of non-GAAP measures may differ from similarly titled measures used by others. Forward-Looking Statements This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are based on management’s current assumptions and expectations of future events and trends, which affect or may affect our strategy, operations or financial performance, and actual results may differ materially from those expressed or implied in such statements due to numerous risks and uncertainties. These forward-looking statements include, but are not limited to, statements regarding our commercial strategy to grow the adoption of our Zephyr Valve treatment and expand our global treatable market, our expectations regarding our ability to drive sequential improvements in U.S. revenue growth, executive against our strategic priorities, deliver meaningful operating leverage, our possible or assumed future results of operations, including long-term outlook, descriptions of our revenues, total operating expenses, gross margin, balances of cash, cash equivalents, and marketable securities, profitability, guidance for full year 2026, commercial momentum, and overall business strategy. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Factors that could cause actual results to differ materially from those contemplated in this press release can be found in the Risk Factors section of Pulmonx’s public filings with the Securities and Exchange Commission (“SEC”), including the Annual Report on Form 10-K filed with the SEC on March 10, 2026, available at www.sec.gov. Because forward-looking statements are inherently subject to risks and uncertainties, you should not rely on these forward-looking statements as predictions of future events. All statements other than statements of historical fact are forward-looking statements. Except to the extent required by law, we undertake no obligation to update or review any estimate, projection, or forward-looking statement. Actual results may differ from those set forth in this press release due to the risks and uncertainties inherent in our business. About Pulmonx Corporation Pulmonx Corporation (Nasdaq: LUNG) is a global leader in minimally invasive treatments for chronic obstructive pulmonary disease (COPD). Pulmonx’s Zephyr® Endobronchial Valve, Chartis® Pulmonary Assessment System, LungTraXTM Platform, and StratX® Lung Analysis Reports are designed to assess and treat patients with severe emphysema/COPD who despite medical management are still profoundly symptomatic. Pulmonx received FDA pre-market approval to commercialize the Zephyr Valve following its designation as a “breakthrough device.” The Zephyr Valve is commercially available in more than 25 countries, is included in global treatment guidelines and is widely considered a standard of care treatment option for improving breathing, activity and quality of life in patients with severe emphysema. For more information on the Zephyr Valves and the company, please visit www.Pulmonx.com. Pulmonx®, AeriSeal®, Chartis®, StratX®, and Zephyr® are registered trademarks and LungTraXTM is a trademark of Pulmonx Corporation. Investor Contact Brian Johnston Gilmartin Group [email protected]