The analyst asked for more granular assumptions behind the H1 2027 cash flow profitability target, specifically regarding revenue levels and operating line improvements.

David Fischel explained that the target relies on modest assumptions for catheter adoption (based on manufacturing and existing demand) and capital sales (Synchrony at $1M/quarter and historical system sales). He emphasized maintaining a lean operating budget while continuing to invest in R&D and commercial work. “It requires relatively modest assumptions to get to break even. We are obviously staying lean on our operating expenses given that, but that doesn't mean that we don't continue to invest in the things that are impactful.”

The analyst inquired if the previously mentioned revenue per procedure of $5,000-$8,000 for MAGIC catheters was continuing in early accounts and other trends.

David Fischel confirmed that the baseline for MAGIC adoption includes the Quick Cast device plus a MAGIC catheter, potentially with robotic high-density mapping or diagnostic catheters. He stated that in the U.S., pricing is consistent, and the $5,000-$8,000+ range is a very consistent ASP per procedure for disposables. Pricing varies in other geographies, typically lower in Europe. “And in the US, our pricing is extremely consistent across sites. And so that number of, you know, in the five to eight plus thousand dollar range is a very consistent ASP we're receiving per procedure for the disposables used in a procedure.”

The analyst asked about the path to compatibility with other major X-ray OEMs after the first U.S. Genesis X install, and if the target of at least five active programs for the year was still expected.

David Fischel explained that formal compatibility testing in a clinical environment is the final stage. Once achieved with one X-ray model, it applies to all similar X-rays. The initial effort focuses on the biggest X-ray manufacturers. He confirmed that they expect a few installs by year-end, definitely two (one in Europe, one in US), and hope to get towards five, including an ASC setting, with other X-ray manufacturers. “Once we do that with, you know, X-ray manufacturer, A's, and model A X-ray, then that becomes a compatibility statement that lasts for any of those X-rays, right?”

STXS

Stereotaxis (STXS) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Health Care· Aug 11, 2026

Source: earnings call transcript

Executive summary

Stereotaxis Q2 FY26 — Commercial Inflection Point with New Product Ecosystem

Stereotaxis reached a commercial inflection point in Q2 FY26, driven by accelerating adoption of its expanded product offering, including the new MAGIC catheter and Synchrony digital surgery system. While supply constraints and the need to prove Genesis X compatibility with various X-rays remain challenges, the company is seeing strong early feedback and is focused on ramping manufacturing and aggressive commercialization. Management anticipates continued revenue momentum and aims for cash flow profitability by H1 2027.

Highlights

Recurring revenue reached a multi-year high of $6.2 million in Q2 FY26, up 450% year-over-year.
Robotic catheter revenue surpassed $1 million in Q2 FY26, with nearly 300% sequential growth.
FDA clearance for Synchrony system received in Q2 FY26, with initial orders and shipments contributing to system revenue.
First Genesis X purchase in the U.S. from an academic medical center announced, expected to be installed this fall.
Company is internally modeling to reach cash flow profitability in H1 2027.

Concerns

Revenue declined year-over-year due to lack of robotic system delivery in Q2 FY26.
Sales remain supply constrained for robotic catheters, with a backlog of orders.
Gross margins for both recurring revenue (66%) and systems (29%) are impacted by low manufacturing volumes.
Operating loss increased to $4.6 million in Q2 FY26 from $4.0 million in the prior year.
Negative free cash flow of $3.7 million in Q2 FY26, consistent with the previous year.

Guidance & targets

Category	Target	Timeline	Confidence
Robotic Catheter Revenue	approximate $1 million incremental step up high materiality	Q3 FY26 and Q4 FY26	High
Recurring Revenue	approximately $7 million high materiality	Q3 · FY26	High
Recurring Revenue	approximately $8 million high materiality	Q4 · FY26	High
System Revenue	approximately $3 million high materiality	Q3 · FY26	High
System Revenue	approximately $3 million high materiality	Q4 · FY26	High
Synchrony System Revenue	over $1 million each quarter medium materiality	next few quarters · FY26-FY27	Medium
Cash Flow Profitability	cash flow profitability high materiality	H1 2027 · FY27	High
Full Year FY26 Revenue	about $35 million high materiality	FY26	High

Product announcements

Product	Type	Timeline	Details
MAGIC	launch	Q2 FY26 (US)
Synchrony System	launch	Q2 FY26

Deals & partnerships

RoboCath Acquisition of a fully complementary and separate robotic system for endovascular device navigation.

Acquisition closed in July. Energetically advancing their system with a vision of offering a full ecosystem for remote, automated, and fully robotic treatment of stroke and cardiovascular disease.

Risks & headwinds

Robotic catheter supply constraints Next few quarters

Backlog of catheter orders from customers

Mitigation:Ramping manufacturing, establishing supply redundancy, methodical progress in increasing supply.

Transition away from Johnson & Johnson catheters Ongoing, next year

General pressure on procedures

Mitigation:Methodically working through hospital approvals and initial launches of proprietary robotic catheters; expect vast majority to shift within the next year.

Low manufacturing volumes impacting gross margins Next few quarters

Recurring revenue gross margin 66%, System gross margin 29%

Mitigation:Expect margins to remain at approximate levels, with significant opportunity for expansion in 2027 and 2028 as manufacturing volumes increase.

Proving Genesis X real-world reliability and X-ray compatibility Next few months

Customers' minds have 'more of a question mark' until proven

Mitigation:Initial U.S. and European installations with non-modified X-rays to demonstrate compatibility and reliability; formal compatibility statements with main X-ray manufacturers.

Overall market share in electrophysiology and other fields Long-term

Just a fraction of a percent market share in EP, no presence yet in interventional cardiology and neurointerventional fields

Mitigation:Scaling robotic adoption with Genesis X, expanding product ecosystem, robust innovation pipeline for multi-specialty applications.

What to watch in Q3 FY26

Robotic Catheter Revenue Growth

Q3 FY26

Current over $1 million in Q2 FY26, nearly 300% sequential growth

Target approximate $1 million incremental step up

Why it matters

This metric is a key driver of recurring revenue growth and reflects the success of the new MAGIC catheter launch and manufacturing ramp-up.

We're guiding for an approximate $1 million incremental step up in catheter revenue in each of the next couple quarters, with significantly more opportunities beyond that in 2027.

Find out whether STXS delivers this. Inve re-checks your case every morning.

Q&A highlights

The analyst noted the full-year revenue guidance implies about $35 million and asked about visibility, confidence, and assumptions regarding catheter manufacturing improvements and capital adoption/installation timing.

David Fischel confirmed the guidance was a helpful way to share expectations. He stated that recurring revenue growth is primarily driven by MAGIC catheter adoption and is currently supply-constrained. System revenue guidance is a mix of Synchrony ($1M+ per quarter) and robotic systems, with one GenesisX revenue recognition expected in Q3 and Q4 each, plus additional Genesis orders.

“We thought that would be kind of a helpful way to share our expectations. The growth in recurring revenue is essentially all driven by adoption of our proprietary catheters, of kind of our robotically steered catheters.”

asked by Unknown Speaker · answered by David Fischel

2 min read 6 chapters

Detailed narrative

Commercial Inflection and Product Adoption

Stereotaxis has reached a commercial inflection point in Q2 FY26, driven by accelerating adoption of its expanded product offering. The launch of MAGIC in the U.S. following FDA approval has led to a multi-year high in recurring revenue and significant growth in robotic catheter revenue.

Early feedback from physicians on MAGIC is highly encouraging, noting improved targeting, ablation effectiveness, and efficiency. The company is methodically working through hospital approvals and initial launches of robotic catheters across its U.S. and European installed base.

Supply Chain and Manufacturing Ramp-up

Robotic catheter sales remain supply constrained, with a backlog of orders exceeding current supply from contract manufacturer Asipka. The company is putting significant effort into ramping manufacturing and establishing supply redundancy. This progress supports expectations of sustained growth in catheter revenue, with an anticipated $1 million incremental step up in catheter revenue in each of the next two quarters, and further opportunities in 2027.

Synchrony System Launch and Market Opportunity

The Synchrony system received FDA clearance in Q2 FY26, with initial orders and shipments contributing to system revenue. Synchrony modernizes the interventional surgical suite with enhanced workflow, remote connectivity, and AI capabilities. While current contribution is modest, the market opportunity is large, extending to non-robotic operating rooms.

The company expects over $1 million in Synchrony system revenue each quarter for the next few quarters and plans to increase sales efforts as the pipeline builds and manufacturing matures.

Genesis X Commercialization and X-ray Compatibility

Genesis X is critical for scaling robotic adoption by removing the historical requirement for specific modified X-rays. The company announced its first U.S. Genesis X purchase from an academic medical center, expected to be installed this fall with a non-modified X-ray.

This installation will enable formal compatibility declaration with a major X-ray manufacturer. The European Genesis X installation is also back on track for year-end. Proving Genesis X's reliability and compatibility with various X-rays is key to a more aggressive commercial launch.

Robust Innovation Pipeline

Stereotaxis continues to advance a robust innovation pipeline across several categories. This includes a future generation of fully wireless, battery-operated, and mobile Genesis X robots, and an expanded portfolio of EP catheter innovations, with first human procedures for MAGIC and pulse field ablation expected by year-end.

The company is also developing robotic systems and interventional devices for broader cardiology and neurointerventional fields, including the Imagine family of magnetic guide catheters and guide wires, and the recently acquired RoboCath system for endovascular device navigation.

Financial Outlook and Profitability Path

The company maintains a lean operating budget while managing multiple product launches and R&D efforts. Management is confident in advancing its strategy without significant investor dilution. They are internally modeling to reach cash flow profitability in the first half of 2027, driven by the ramp-up in recurring revenue, where the majority of incremental revenue flows to operating profit.

Profits will be reinvested into the commercial organization to support accelerated growth.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.