Key Highlights

  • LUNG reported third-quarter revenue of $22.8 million, up 6.2% from $21.5 million.
  • Net loss was $8.4 million, or $0.19 per share, against $14.0 million, or $0.34, a year earlier.
  • Gross margin was 76%, up from 75%, and operating expenses fell 18% to $24.9 million.
  • Adjusted EBITDA loss narrowed 57% to $3.5 million from $8.2 million.
  • Full-year revenue guidance was held at $90 million to $92 million, with gross margin now about 77%.

Pulmonx Earnings: Did Revenue Return to Growth, and Did Guidance Change?

Pulmonx (NASDAQ:LUNG) reported third-quarter results on Tuesday, October 27, with revenue of $22.8 million, up 6.2% from $21.5 million (6.5% in constant currency). Net loss was $8.4 million, or $0.19 per share, compared with $14.0 million, or $0.34, a year earlier. As screened, the estimate was a loss of $0.26 per share.

Management left 2026 revenue guidance unchanged at $90 million to $92 million and updated its gross margin expectation to about 77%. Operating expense guidance is $108 million to $109 million, including about $14 million of non-cash stock-based compensation.

Pulmonx sells the Zephyr Endobronchial Valve, an FDA-approved device sold in more than 25 countries for severe emphysema, alongside the Chartis Pulmonary Assessment System.

LUNG Revenue Mix: How Did the U.S., International and China Perform?

U.S. revenue was $14.9 million, up 6.8%, after a 4% U.S. decline in the second quarter. International revenue was $7.9 million, up 5.2% (5.9% in constant currency).

China was the main drag. The distributor sold nothing in the quarter while commercial activity restarts following renewal of its Chinese registration certificate, compared with $0.2 million of China revenue a year earlier. Excluding China, international revenue rose about 8.5% as reported and 9.3% in constant currency.

Nine-month revenue was $66.2 million, down 2.5%.

Margins and Operating Leverage: How Much Did the Cost Realignment Matter?

Gross profit rose to $17.4 million from $16.1 million, with gross margin of 76% versus 75%. Cost of goods sold was flat at $5.4 million.

Operating expenses fell 18% to $24.9 million from $30.4 million. Adjusted EBITDA was a loss of $3.5 million, a 57% reduction from $8.2 million. For nine months, the net loss was $32.1 million, or $0.76 per share, versus $43.6 million, or $1.08.

The chief executive said the company returned to year-over-year revenue growth, pointing to a fully staffed U.S. sales leadership team, a more focused global commercial team and a realigned cost structure.

Cash Runway: What Does the $22 Million Cash Draw Imply?

Cash and cash equivalents were $52.7 million at September 30, down from $69.8 million at December 31, 2025. Long-term debt was $37.7 million.

Management expects cash, equivalents and marketable securities to decline by about $22 million in 2026, assuming no additional drawdowns on its credit facility. The release gave no full-year adjusted EBITDA guidance. Nine-month adjusted EBITDA loss was $17.2 million, versus $25.1 million a year earlier.

What to Watch Next for LUNG Shares?

The key markers are the pace of China's restart, since the distributor contributed nothing in the quarter, and whether U.S. growth of 6.8% can persist. Fourth-quarter revenue needs to reach roughly $23.8 million to $25.8 million to land within the full-year range, by calculation from nine-month revenue of $66.2 million. Further operating expense discipline and any credit facility drawdown will shape the cash balance heading into 2027.