Pulmonx Corporation reported first‑quarter 2026 results that showed total revenue of $20.6 million, a 9% decline from the $22.5 million earned in the same period a year earlier. The company posted a net loss of $13.7 million, or $0.33 per share, slightly better than the $0.36 loss reported a year ago. Gross profit reached $16.0 million, giving a gross margin of 78%, up from 73% in Q1 2025. Operating expenses fell 6% to $29.0 million, reflecting a cost‑reduction program that cut ongoing expenses by more than 10%. Pulmonx’s adjusted EBITDA loss was $8.5 million, indicating continued cash burn as the firm works to stabilize its U.S. sales organization. Cash and cash equivalents stood at $61.6 million as of March 31, 2026, and the company confirmed a $60 million credit facility with a five‑year interest‑only structure, extending debt maturity to 2031 and providing access to an additional $20 million in undrawn capital subject to revenue milestones.
U.S. sales declined 7% to $13.3 million, while international revenue dropped 12% to $7.3 million. The international decline was largely due to a pause in sales to a distributor in China pending registration renewal, which is expected to resume in the second half of 2026. Excluding China, other international markets grew 22% year over year, and on a constant‑currency basis, international revenue increased 9%. The mix shift toward higher‑margin distributor sales contributed to the improved gross margin.
The gross margin expansion to 78% from 73% was driven by a favorable mix shift toward higher‑margin distributor sales and the company’s cost‑reduction program. Operating expenses were reduced by 6% to $29.0 million, a result of the program’s over 10% cut in ongoing costs. The company’s adjusted EBITDA loss of $8.5 million reflects the continued cash burn as Pulmonx focuses on stabilizing its U.S. sales organization.
Management emphasized the company’s progress in several areas. President and CEO Glendon French said, "Pulmonx delivered total worldwide revenue of $20.6 million in the first quarter of 2026. Since our last update, we are increasingly encouraged by continued operational momentum, we remain confident in our ability to achieve our previously communicated revenue guidance of $90 million–$92 million for the full year 2026, with a return to global growth in the back half of this year." Chief Operating Officer and CFO Derrick Sung noted, "International revenue in the first quarter of 2026 was $7.3 million, a 12% decrease from $8.3 million during the same period last year… The decline in revenue was fully attributable to the absence of sales to our distributor in China." He added, "Excluding China, we continued to see solid performance across all our other international markets, which grew 22% as compared to the same period last year and 9% on a constant currency basis." French also said, "During the first quarter we initiated our refreshed U.S. commercial strategies and continued to execute in our direct international markets." Sung further explained, "We ended March 31, 2026 with $61.6 million in cash equivalents, a decrease of $8.2 million from December 31, 2025. Second, we closed on a $60 million credit facility with a five‑year interest‑only structure, extending the maturity of our existing debt out to 2031 and providing us with access to an additional $20 million in undrawn capital subject to certain revenue milestones."
Pulmonx reaffirmed its full‑year 2026 guidance, projecting revenue of $90 million to $92 million, a gross margin of approximately 75%, and operating expenses of $113 million to $115 million. The guidance remains unchanged from the prior quarter, indicating management’s confidence that the company will rebound in the second half of the year. The company’s cash position and credit facility provide a two‑year runway, supporting the planned cost‑reduction program and the stabilization of its U.S. sales organization.
Investors reacted negatively to the earnings release, with the primary driver being the revenue miss. The company’s revenue of $20.6 million fell short of the consensus estimate range of $20.43 million to $22.65 million, while the EPS loss of $0.33 per share beat the consensus estimate of $-0.33 to $-0.34 by a small margin. The negative market reaction reflects investor focus on the revenue shortfall, despite the company’s margin expansion and cost‑control progress.
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