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    CBLL
    Earnings call· Jun 2026(Q2 FY26)

    Ceribell Q2 FY26 earnings call CBLL

    Aug 10, 2026 Source

    Executive summary

    CeriBell Q2 FY26 — Accelerating Revenue Growth and Delirium Commercialization

    CeriBell reported strong Q2 FY26 results with accelerating revenue growth and record gross margins, fueled by robust same-store performance and account expansion. The company secured FDA clearances for new algorithms and a next-gen hardware platform, while its Delirium Monitoring Solution received favorable NTAP and is slated for commercial launch this year. Management is focused on achieving cash flow break-even and leveraging its expanding product portfolio for sustained long-term growth.

    Highlights

    5

    • Total revenue of $28.1 million, growing 33% year-over-year, accelerating from 29% in Q1.

    • Record gross margin of 92% (89% excluding tariff refund) driven by supply chain optimization.

    • Active account base increased by 32 accounts to a total of 712 hospitals.

    • FDA 510K clearances for two new algorithms (artifact rejection and epileptiform abnormality detection) enhancing clinical utility.

    • Favorable New Technology Add-on Payment (NTAP) for Delirium Monitoring Solution, effective October 1, 2026, providing up to $2,171 in incremental reimbursement per patient.

    Concerns

    3

    • Total operating expenses increased 37% year-over-year to $45.9 million, outpacing revenue growth.

    • Net loss was $19.3 million, or $0.51 per share, compared to a loss of $13.6 million ($0.38 per share) in Q2 FY25.

    • Elevated G&A expenses included $3.9 million related to ongoing IP litigation.

    Guidance & targets

    6
    CategoryTargetConfidence
    Full-year 2026 Total Revenue
    $114 million to $117 million
    high materiality
    High
    Gross Margin
    high 80% range
    medium materiality
    High
    Delirium Monitoring Solution Commercial Launch
    Commercially launched this year
    high materiality
    High
    New Hardware Platform Launch
    Target launch in 2027
    high materiality
    Medium
    Artifact Rejection Algorithm Rollout
    Rolling out in the third quarter
    medium materiality
    High
    Epileptiform Abnormality Detection Algorithm Activation
    Activate this algorithm by the end of the year
    medium materiality
    High

    Operational metrics

    15
    Total Revenue
    $28.1 million33% year-over-year increase
    Q2 FY26

    Primarily driven by same-store growth and increased adoption.

    Product Revenue
    $21.2 million33% increase from $15.9 million in Q2 FY25
    Q2 FY26
    Subscription Revenue
    $6.9 million30% increase from $5.3 million in Q2 FY25
    Q2 FY26
    Active Accounts
    712Increase of 32 accounts in the quarter
    End of Q2 FY26

    Q2 growth relied less on VA accounts than previous quarters.

    Gross Margin (reported)
    92%Compared to 88% in prior year period
    Q2 FY26

    Includes the impact of $1.6 million in tariff refunds.

    Gross Margin (ex-tariff refund)
    89%
    Q2 FY26

    Direct reflection of cost reduction efforts and manufacturing expansion in Vietnam.

    Tariff Refund Impact
    $1.6 million
    Q2 FY26

    Positively impacted gross margin.

    Total Operating Expenses
    $45.9 million37% increase compared to $33.6 million in Q2 FY25
    Q2 FY26

    Increased due to headcount expansion and IP litigation expenses.

    Non-Cash Stock-Based Compensation Expense
    $6.0 millionCompared to $3.2 million in Q2 FY25
    Q2 FY26

    Sequentially increased by about $2.3 million due to an annual equity cycle.

    IP Litigation Expenses
    $3.9 million
    Q2 FY26

    Contributed to elevated G&A expenses.

    Adjusted EBITDA Loss
    $9.8 millionCompared to a $10.0 million loss in Q2 FY25
    Q2 FY26

    Reflects strategy of deploying gross profits back into the business for long-term growth.

    Cash, Cash Equivalents, and Marketable Securities
    $129.3 million
    As of June 30, 2026

    Company remains committed to achieving cash flow break-even with cash on hand.

    NTAP Incremental Reimbursement
    $2,171
    Per qualified patient

    For the Delirium Monitoring Solution, supporting adoption by adding favorable economics.

    Delirium Addressable Market
    $1 billion
    U.S. market

    Delirium represents a strong addition to the platform.

    Core Seizure Market Penetration
    Less than 4%
    Current

    Indicates significant runway for growth.

    Industry KPIs

    11
    MetricValueDetails
    Tariff impact$1.6 millionUSD
    System utilization3x
    New product launch ramp—
    Procedure volume growth—
    FCF conversion leverage guidance28% to 31%%
    Installed base system placements712hospitals
    Segment franchise organic growth33%%
    Consumables recurring revenue mix—
    Sales force commercial capacity build—
    Indicated addressable patient population$1 billionUSD
    Pivotal trial clinical evidence milestones3.6x

    Product announcements

    4
    ProductTypeDetails
    Artifact Rejection Algorithmlaunch
    Epileptiform Abnormality Detection Algorithmlaunch
    New Hardware Platform (Recorder with video/ECG, vital sign integration, continuous monitoring)launch
    New Headband Designslaunch

    Deals & partnerships

    1
    Credit Facility LendersRefinancing of existing credit facilityUp to $60 million committed capital, additional $25 million uncommittedRepayment extended into 2031

    Structure includes a non-formular revolver plus term loan available to draw through year-end 2028. No plans to draw the committed but undrawn term loan in the near term.

    Risks & headwinds

    3
    IP Litigation ExpensesQ2 FY26

    $3.9 million in Q2 FY26

    Mitigation: Anticipate a reduction in lawsuit-related activities and associated expense in Q3 and Q4 2026.

    Seasonality in ICU CensusQ2 FY26

    Typical seasonality in Q2, with warmer months tending to result in reduced ICU census.

    Mitigation: Same-store growth performance exceeded expectations despite this, indicating strong underlying demand.

    Operating Expense Growth Outpacing RevenueQ2 FY26

    Total operating expenses increased 37% YoY to $45.9 million, while revenue grew 33% YoY.

    Mitigation: Management's strategy is to thoughtfully deploy gross profits from expanding revenue back into the business for long-term growth, while maintaining adjusted EBITDA loss around $10 million and aiming for cash flow break-even with cash on hand.

    What to watch in Q3 FY26

    5

    Delirium Commercial Launch

    Q4 2026
    CurrentCommercial pilot live in multiple sites, NTAP effective Oct 1, 2026.
    TargetSuccessful commercial launch, initial revenue contribution.

    Why it matters

    Delirium represents an estimated $1 billion U.S. market and is expected to be a significant revenue driver in 2027.

    Our launch strategy is coming into focus. And we now have the confidence that we will launch Gilerion commercially this year.

    Q&A highlights

    7

    What is the revenue impact of the recent FDA approvals for algorithms and the new hardware platform?

    New algorithm clearances (artifact rejection, epileptiform abnormality) will not be charged extra but are expected to increase stickiness and utilization, especially with neurologist support. The new hardware platform, launching in 2027, is aimed at making EEG a new vital sign for delirium and future LVO, and is expected to be a direct revenue driver.

    “This new hardware platform really has been aiming at making EEG a new vital sign in junction to delirium and the future LVO we're working on. So we see this as giving us access to additional patients or even additional market segments. So we do see this can be a revenue driver in 2027 directly.”

    asked by Travis Steed · answered by Unknown Speaker

    2 min read6 chapters

    Detailed Narrative

    01

    Commercial Momentum and Account Growth

    CeriBell achieved 33% year-over-year revenue growth in Q2 FY26, accelerating from 29% in Q1, driven by strong same-store performance and an increase of 32 active accounts, reaching a total of 712 hospitals. The account acquisition team is maturing, and a newly established strategic account management team is building a robust pipeline, expected to accelerate new account additions in 2026 compared to 2025. Early commercial traction from neonate and pediatric product lines is also contributing to new account openings and increased utilization within existing customer accounts.

    02

    Gross Margin Expansion and Supply Chain Optimization

    The company reported a record gross margin of 92% in Q2, which included a $1.6 million tariff refund. Excluding this refund, the gross margin was 89%, reflecting proactive supply chain optimization and manufacturing diversification, particularly the shift to Vietnam. This strong margin profile is expected to be maintained in the high 80% range throughout 2026, providing capital for reinvestment into growth initiatives and R&D.

    03

    Delirium Monitoring Solution Progress

    CeriBell's Delirium Monitoring Solution, which received 510K clearance in December, secured a favorable New Technology Add-on Payment (NTAP) from CMS, effective October 1, 2026. This NTAP provides up to $2,171 in incremental reimbursement per qualified patient. The commercial pilot has yielded positive feedback, with users reporting improved clinical decision-making and increased utilization among existing Cerebell customers. The commercial launch of the solution is planned for Q4 2026.

    04

    Advanced Algorithm Development

    The company received FDA 510K clearances for two new algorithms targeting its core seizure market. The first significantly enhances the Clarity algorithm's ability to identify and reduce EEG artifact signals, simplifying interpretation for neurologists. The second clearance is for epileptiform abnormality detection, making Cerebell the first software FDA cleared for both seizure and epileptiform abnormality detection. These algorithms are anticipated to roll out in Q3 and by year-end 2026, respectively.

    05

    Next-Generation Hardware Platform

    CeriBell has received FDA 510K clearances for several products that form the foundation of its new hardware platform. This includes a recorder with video and ECG capability, vital sign integration, and continuous monitoring. Two new headband designs offer optionality for full montage and multi-day continuous monitoring. This platform aims to support the vision of making EEG a new vital sign, with a target launch in 2027, expanding access to additional patient populations and market segments.

    06

    Financial Position and Capital Management

    CeriBell ended Q2 with $129.3 million in cash, cash equivalents, and marketable securities. The company successfully refinanced its existing credit facility, securing access to up to $60 million in committed capital with an additional $25 million uncommitted, extending repayment to 2031 and expected to reduce interest expense from Q4. Management reiterated its commitment to achieving cash flow break-even with existing cash on hand.

    AI-generated summary of the company’s earnings call. Not investment advice.