Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Management attributed the flat quarter-over-quarter revenue of $1.8 million to the long sales cycles inherent in hospital contracting, while emphasizing that the commercial pipeline has doubled over the last five to six months.
The company secured a national group purchasing agreement with a third major U.S. GPO, which management views as a critical strategic component for accessing a substantial portion of U.S. hospitals. Strategic focus has shifted toward international distribution, with partnerships covering more than 40 countries now better supported by a strengthened balance sheet following recent financing.
Operational efforts are currently concentrated on the PMA supplement for the second-generation LungFit PH system, which management describes as the most important near-term catalyst for the company. The company maintains a disciplined capital allocation strategy, predominantly dedicating resources to the LungFit PH platform while transitioning its fiscal year-end to December 31 to align with calendar-year reporting. Management noted that the subscription-based revenue model allows for full revenue recognition upon closing deals, providing confidence in meeting back-half targets despite the timing of contract wins.
Reaffirmed calendar year 2026 revenue guidance of $8 million, which assumes approximately 15% growth over 2025 and explicitly excludes any revenue contribution from the Gen II system. Projected 2027 revenue of $16 million to $18 million, representing over 110% growth at the midpoint, contingent upon the successful commercial launch of the Gen II LungFit PH system. Management expects a potential FDA approval for the Gen II system in the second half of the calendar year, likely falling in the fourth quarter based on current audit and review progress.
Future growth is expected to be driven by a combination of U.S. hospital tender wins and immediate revenue recognition from international equipment purchases. The company anticipates utilizing proceeds from the $30 million financing to fund the build-out of Gen II devices and support operations through the current cash burn phase. Strengthened the balance sheet with a financing agreement for up to $30 million, providing $10 million in upfront gross proceeds to support the Gen II launch.
Regained compliance with Nasdaq's listing requirements, stabilizing the company's position in the public markets. Reported a third consecutive quarter of positive gross profit, with gross margin improving to 13% from 9% in the prior year period. Transitioned the corporate fiscal year-end from March 31 to December 31, with formal SEC reporting alignment scheduled to occur after the December 2026 filing.
Extract — continue reading at the source.
