Mobia Medical (MOBI) Q2 FY26 earnings call: guidance and Q&A

Given strong Q2 revenues and a beat, how does the company view its guidance and market scaling?

Management expressed high confidence in the initiated full-year revenue guidance range, citing a disciplined and thoughtful approach to growth and a stable, predictable commercial model.

“And we have high confidence in this range. We have a disciplined and thoughtful approach to how we do it. And we want to make sure that our growth is significant moving forward using the stable, predictable commercial model that we have.”

asked by Travis Steed · answered by Richard Foust

Clarification on the Level 6 APC code and the P&L movements, specifically the net loss figure.

Richard Foust clarified that the New Technology APC 1580 is currently a proposal for 2027, with the final rule expected in November. Bunker Kearns explained that the Q2 net loss included a $4 million non-cash charge related to marking convertible notes to fair market value prior to conversion.

“In terms of Level 6, and I would just say New Technology APC 1580, today it's a proposal by CMS. I mean, I think we're confident in that process, but it is a proposal. It's not done until it's done. We'll all find out in November when the final rule comes. [...] That included a $4 million charge related to marking the convertible notes to fair market value immediately prior to the conversion. So this is a non-cash item related to a one-time conversion of those notes.”

asked by Travis Steed · answered by Richard Foust

Update on reimbursement and commercial coverage, including any significant wins or upcoming developments.

Management stated that coding (Category I CPT, New Technology APC) and payment are in a good position, but coverage development will take "a period of years" as real-world evidence is built. Some insurance providers are currently paying claims.

“So I would say today, you know, have a number of insurance providers across the United States that are paying claims. And then we also have, you know, development of real-world evidence and extension of our VNS-REHAB studies. And those will play an important role for coverage development over time. And I see that happening over a period of years, not necessarily, you know, from one quarter to the next.”

asked by Robbie Marcus · answered by Richard Foust

How are the IPO proceeds being invested and what programs are being initiated with the added funds?

The majority of IPO proceeds are being deployed to build and develop the commercial model, including hiring territory managers and therapy development specialists, and increasing awareness. A portion is also allocated to clinical development to build further evidence.

“And it really is, this is an execution story and most of our proceeds are going towards building and developing our commercial model. And that's hiring TMs, TDSs, and building awareness, you know, across the United States.”

asked by Robbie Marcus · answered by Richard Foust

How does the company balance territory growth and units per territory productivity, and when might they accelerate capital deployment?

Management emphasized a measured approach to capital deployment, focusing on both active territory growth and high productivity per territory. They noted that future inflection points like guidelines and coverage decisions will unlock more growth, but for now, they are executing the plan laid out during the IPO.

“For now, we're taking a measured approach and just executing the plan in front of us that we laid out during our IPO.”

asked by Ryan Zimmerman · answered by Bunker Kearns

What is the sequential expectation for active territory adds in the back half, and has being public impacted the hiring pipeline?

Bunker Kearns indicated that adding 4-5 active territories per quarter for the back half of the year would be a "comfortable number." Richard Foust stated that being a public company has positively impacted hiring by providing a larger platform to showcase patient outcomes and the company's mission.

“And that's the approximate range, you know, kind of the 4 or 5 for the back half of the year would be a comfortable number for us. [...] I would say the IPO has just given us a bigger platform to talk about all the great things that we're doing and really showcase patient outcomes at a different level.”

asked by Michael Polark · answered by Bunker Kearns

How do physicians screen patients 45 years post-stroke for Vivistim, given it's outside the pivotal trial's studied timeframe?

Richard Foust explained that the VNS-REHAB trial showed no mechanistic reason for patients to stop responding between 9 months and 10 years post-stroke, and the labeling does not include time since stroke. Screening focuses on patient function, goals, and ability to undergo the procedure, with patient testimonials also playing a role.

“And I think it's really important to note that patients can also hear from other patients. And so when you have patients that have this 20 years or 30 years post-stroke, they are usually in a position to speak and give their insights in terms of how their meaningful outcomes...”

asked by Michael Polark · answered by Richard Foust