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    LUNG
    Earnings call· Jun 2026(Q2 FY26)

    Pulmonx Q2 FY26 earnings call LUNG

    Jul 29, 2026 Source

    Executive summary

    Pulmonx Q2 FY26 — Re-accelerating Sales Growth and Operating Leverage

    Pulmonx is executing on its strategy to re-accelerate sales growth and drive operating leverage, with Q2 FY26 results showing significant progress in reducing losses and strengthening the balance sheet. The company is rebuilding its U.S. sales force and has secured China registration renewal, positioning for global sales growth later in the year and into next year. Clinical initiatives like the Convert-2 trial continue to advance, aiming for market expansion.

    Highlights

    5

    • Adjusted EBITDA loss reduced by nearly 40% to $5.1 million in Q2 FY26.

    • Net loss reduced by 34% to $10.1 million in Q2 FY26.

    • International markets (excluding China) grew 9% year-over-year on a constant currency basis.

    • U.S. revenue increased 7% sequentially from Q1 FY26.

    • China registration certificate renewed, enabling resumption of shipments by early next year.

    Concerns

    4

    • Total worldwide revenue decreased 5% year-over-year to $22.8 million.

    • U.S. revenue decreased 4% year-over-year to $14.2 million.

    • International revenue decreased 6% year-over-year to $8.6 million, primarily due to lack of sales to China.

    • Cash and cash equivalents decreased by $5.8 million from March 31, 2026.

    Guidance & targets

    7
    CategoryTargetConfidence
    Full-year 2026 revenue
    $90 million to $92 million
    high materiality
    High
    Full-year 2026 gross margin
    approximately 76%
    medium materiality
    Medium
    Full-year 2026 operating expenses
    $109 million to $111 million
    medium materiality
    Medium
    Full-year 2026 cash burn
    roughly $23 million
    medium materiality
    High
    Global sales growth
    at or close to double digits
    high materiality
    High
    Convert-2 pivotal trial enrollment completion
    2027
    medium materiality
    High
    China distributor shipments resumption
    early next year
    medium materiality
    High

    Segment performance

    3
    SegmentRevenueYoYQoQMargin
    Worldwide
    Total worldwide revenue in Q2 FY26, compared to $23.9 million in Q2 FY25.
    Constant currency growth: -6%
    		$22.8 million-5%——
    U.S.
    U.S. revenue in Q2 FY26, compared to $14.7 million in Q2 FY25. Sequential increase from Q1 FY26.
    New treating centers added: 12
    		$14.2 million-4%+7%—
    International
    International revenue in Q2 FY26, compared to $9.1 million in Q2 FY25. The decline was fully attributable to the lack of sales to the China distributor.
    Constant currency growth: -9%Excluding China growth: +12% YoYExcluding China constant currency growth: +9% YoY
    		$8.6 million-6%——

    Operational metrics

    13
    Adjusted EBITDA loss
    $5.1 millionnearly 40% reduction vs Q2 FY25
    Q2 FY26

    Significant progress in realizing near-term operating leverage.

    Net loss
    $10.1 million34% reduction vs Q2 FY25
    Q2 FY26

    Result of cost alignment initiatives.

    Net loss per share
    $0.24down from $0.38 per share in Q2 FY25
    Q2 FY26

    Reflects reduced net loss.

    Cash and cash equivalents
    $55 milliondecrease of $5.8 million from March 31, 2026
    as of June 30, 2026

    Strengthened balance sheet with credit facility restructuring.

    Undrawn capital access
    $20 million
    current

    Provided by recent restructuring of credit facility.

    Total operating expenses
    $26.8 million16% decrease from Q2 FY25
    Q2 FY26

    Reflects cost reduction efforts initiated at the start of the year.

    Non-cash stock-based compensation expense
    $3.7 million
    Q2 FY26

    Included in total operating expenses.

    Operating expenses excluding stock-based compensation
    11%decrease YoY
    Q2 FY26

    Reflects cost reduction efforts.

    R&D expenses
    $5 millionvs $5.3 million in Q2 FY25
    Q2 FY26

    Maintained investments in key growth initiatives.

    SG&A expenses
    $21.8 millionvs $26.7 million in Q2 FY25
    Q2 FY26

    Reflects cost reduction efforts.

    International business contribution (ex-China)
    80-90%
    current

    Represents the proportion of international business coming from Europe.

    Sales force average tenure
    1 yearvs 2.5 years a couple of years ago
    current

    Reflects recent turnover and rebuilding efforts.

    Gross margin
    78%vs 72% in Q2 FY25
    Q2 FY26

    Year-over-year increase driven by operational improvements.

    Industry KPIs

    6
    MetricValueDetails
    FCF conversion leverage guidanceDebt maturity extended to 2031; access to $20M undrawn capital
    Installed base system placements12centers
    Segment franchise organic growth+9%%
    Sales force commercial capacity buildAll sales leadership positions filled
    Indicated addressable patient population20%%
    Pivotal trial clinical evidence milestonesEnrollment completion in 2027

    Deals & partnerships

    1
    Credit facility providerRestructuring of credit facilityextended to 2031

    The restructuring extends the maturity of the company's debt to 2031 and provides additional capital access, strengthening the balance sheet.

    Risks & headwinds

    3
    Sales force ramp-up timeongoing

    6 to 9 months for new reps to become productive

    Mitigation: Constructive changes to sales training process, leveraging field sales trainers, and utilizing a 'bench' of junior reps.

    Seasonality impact on Q3 salesQ3 FY26

    Typical sequential decrease in sales from Q2 to Q3 (flat to down a few percent in US)

    Mitigation: Acknowledged and factored into guidance; expectation to return to year-over-year growth later in the year.

    China revenue delayH2 FY26

    No material revenues expected until early next year (CY27)

    Mitigation: Focus on restarting commercial activity and reigniting accounts in H2 FY26 after registration renewal.

    What to watch in Q3 FY26

    5

    Global sales growth trajectory

    H2 FY26
    Current5% decrease YoY in Q2 FY26
    TargetReturn to year-over-year growth, exit FY26 at or close to double digits

    Why it matters

    Verifying the re-acceleration of sales growth is central to the investment thesis and management's key priority.

    We remain confident in our ability to achieve our previously communicated revenue guidance of $90 to $92 million for the full year 2026 and remain on track to return to global sales growth later in the year.

    Q&A highlights

    7

    Clarification on sales force hiring completion and the expected timeline for new reps to become productive and visibly impact sales.

    Management stated that all sales leadership positions are filled, and sales turnover has normalized. While the average tenure is currently lower, they expect increased productivity from new reps and anticipate visible impact, noting improvements in sales training and the presence of a 'bench' of junior reps to accelerate ramp-up.

    “The six to nine 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 six to nine months.”

    asked by Frederick Wise · answered by Glendon French

    2 min read5 chapters

    Detailed Narrative

    01

    Operating Leverage and Financial Strength

    Pulmonx demonstrated significant progress in driving operating leverage, reducing net loss by 34% to $10.1 million and adjusted EBITDA loss by nearly 40% to $5.1 million in Q2 FY26. These improvements stem from cost alignment initiatives implemented at the start of the year, which reduced recurring operating expenses by over 10%. The company also strengthened its balance sheet by restructuring its credit facility, extending debt maturity to 2031 and securing access to an additional $20 million in undrawn capital, subject to certain revenue milestones. Cash burn is expected to decrease by nearly 30% in FY26 compared to FY25, to roughly $23 million.

    02

    U.S. Commercial Strategy and Sales Force Rebuilding

    The company is making strides in re-accelerating U.S. sales growth by focusing on its commercial team. All sales leadership positions have been filled, and sales turnover has normalized to industry standards. The emphasis is on disciplined execution of high-impact selling activities, including setting up efficient valve programs, engaging COPD physicians aligned with Zephyr valve hospitals, concentrating direct-to-patient efforts in geographies with established treating centers, and educating service line administrators for appropriate program resourcing. This focused approach is expected to build U.S. sales growth through the back half of the year.

    03

    International Market Performance and China Re-entry

    International markets showed strength and stability, with 9% year-over-year constant currency revenue growth excluding China. The overall international revenue decline of 6% (9% constant currency) was fully attributed to the lack of sales to the China distributor. Pulmonx successfully renewed its Chinese registration certificate in mid-June, a critical step towards resuming commercial activity and distributor shipments by early next year. The company anticipates reigniting accounts and seeing material revenues from China in early 2027.

    04

    Market Expansion through AeroSeal

    Expanding the addressable market through AeroSeal remains a central focus. Enrollment in the Convert-2 pivotal trial is progressing, with completion expected in 2027. AeroSeal is believed to represent a significant TAM expansion tool for Zephyr valves, with the potential to increase the global addressable market by approximately 20%. The company has CE Mark approval for AeroSeal and plans to launch it in European markets sooner than in the U.S., following the publication of ConvertOne data and completion of Convert-2 enrollment in those specific markets.

    05

    Seasonality and Outlook for Growth

    Pulmonx reiterated its full-year 2026 revenue guidance of $90 million to $92 million. The company acknowledges typical Q3 seasonality, which usually results in a sequential decrease in sales. Despite this, management expects to return to year-over-year global sales growth later in the year, driven by the anniversarying of China shipment suspension impacts and improvements in the U.S. business from the refocused commercial strategy and ramping sales force. The company aims to exit FY26 growing at or close to double digits, building strong momentum for FY27.

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