CeriBell (CBLL) Q2 FY26 earnings call: guidance and Q&A

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

Why are OpEx growing faster than sales, and when can the company achieve OpEx leverage?

Q2 OpEx included a $2.3 million sequential increase in stock-based compensation (annual cycle) and elevated IP litigation costs ($3.9 million). The strategy is to reinvest gross profits from growing revenue into sales infrastructure (strategic account management, CAM for Delirium) and R&D, while maintaining adjusted EBITDA loss around $10 million, with a focus on achieving cash flow break-even with cash on hand.

“Our strategy has been to continue to grow the top line, generate outsized gross profits with our high gross margin and then reinvest that back into the business.”

asked by Robert Marcus · answered by Scott Blumberg

Is there an inflection in end-user interest driving new account openings, particularly from neonate/pediatrics, and how durable is this trend?

Confirmed tailwinds, citing new Neonate purchase orders from existing and new accounts, with bigger impact expected in H2 2026 and 2027. The strategic account management team, started in January, is showing strong pipeline momentum at the regional hospital system level, with early wins expected this year and bigger impact in 2027-2028. Delirium launch is also expected to increase utilization in existing accounts.

“We do expect the impact from Neonate is going to be even bigger second half of the year and especially in 2027.”

asked by Brandon Vazquez · answered by Unknown Speaker

With multiple new growth drivers (pediatric/neonate, delirium, new hardware) kicking in, should investors expect an acceleration in revenue growth in 2027?

Management declined to provide explicit 2027 guidance but acknowledged the many coalescing tailwinds. They emphasized ongoing learning from the Delirium pilot and new product platform limited market release, promising to share more when 2027 guidance is issued.

“Yes, Josh, you know, we're not yet going to comment on 2027 guide, but as you pointed out, there's a lot of tailwinds that are all coalescing around the same time.”

asked by Joshua Jennings · answered by Scott Blumberg

Can you quantify the magnitude of the gross margin impact from the Vietnam manufacturing shift, especially given the tariff refund?

The 89% gross margin (excluding the tariff refund) represents the 'steady state' and is expected to be maintained in the high 80% range for the rest of 2026. This reflects the Vietnam manufacturing shift and general cost reduction initiatives, bringing margins back to or better than pre-tariff levels.

“I view the 89%, which effectively is if there had not been any sort of refund as effectively the steady state for where we are.”

asked by Zachary (for Bill Povanek) · answered by Scott Blumberg

What is the reasoning for the Q4 2026 Delirium launch, and will it require additional sales infrastructure?

The Q4 2026 Delirium launch is due to both positive pilot feedback and the NTAP effective October 1. No additional specific sales team is needed, as the company will leverage its existing Clinical Account Manager (CAM) team, with potential opportunistic expansion if momentum is strong.

“the answer is both we saw both very positive feedback coming... as well as the final rule from CMS on NTAP effective October, 2026. So the combination of that give us the confidence that WellGone fully officially launched Delirium in Q2 this year. In terms of sales, sorry, Q4 this year.”

asked by Jayson Bedford · answered by Unknown Speaker

Can you provide more details on the next-generation hardware, its capabilities (e.g., full montage EEG), and its impact on TAM expansion?

The new hardware platform aims to be a comprehensive 'brain monitor' with video, ECG, vital sign integration, and continuous multi-day monitoring, running all existing and future algorithms. New headband designs offer comfort for multi-day use and a 'parasitical coverage' variable for full montage EEG, providing optionality and effectively covering conventional EEG functionality, thus expanding TAM.

“And you're right, with this entire new hardware, we're not just the brain monitor anymore. We also provide almost all the functionality of the conventional EEG. So we look forward to sharing more our bigger picture and value proposition of our hardware as we're getting closer to the market release later this year.”

asked by Joshua Jennings · answered by Unknown Speaker