Pulmonx (NASDAQ:LUNG) Posts Earnings Results, Beats Expectations By $0.14 EPS

by · The Markets Daily

Pulmonx (NASDAQ:LUNG – Get Free Report) announced its quarterly earnings data on Wednesday. The company reported ($0.25) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.39) by $0.14, reports. Pulmonx had a negative return on equity of 77.58% and a negative net margin of 61.91%.The firm had revenue of $22.60 million for the quarter, compared to analysts’ expectations of $21.73 million.

Here are the key takeaways from Pulmonx’s conference call:

  • Company attributes the weaker-than-expected 2025 U.S. revenue to internal execution problems — a stretched sales organization, disruptive territory role changes, misaligned incentives and roughly half the sales force turning over across the year, which disrupted account continuity.
  • Management has realigned the commercial organization (CEO more involved, U.S. area VPs reporting to him), filled most open U.S. sales roles, and refocused reps on treating physicians and pulmonary service-line administrators; they expect U.S. sales to re-accelerate in the back half of 2026.
  • Pulmonx completed a >10% cost restructuring and closed a $60 million, 5‑year credit facility (initial $40M drawn, $20M availability tied to milestones), and expects cash burn to fall from $32M in 2025 to $23M in 2026, which management says materially strengthens the balance sheet and runway.
  • The AeriSeal CONVERT II pivotal trial is a priority with accelerating enrollment and an expected completion in 2027; management believes AeriSeal could expand the company’s global TAM by ~20% and drive medium-term growth.
  • 2026 guidance calls for $90–$92M revenue (roughly flat to 2025), ~75% gross margin and $113–$115M operating expenses, with management forecasting a return to year‑over‑year growth and operating leverage in the second half of the year.

Pulmonx Price Performance

Shares of NASDAQ:LUNG traded up $0.18 during trading on Thursday, reaching $1.62. The stock had a trading volume of 1,379,088 shares, compared to its average volume of 388,149. The company has a debt-to-equity ratio of 0.62, a quick ratio of 4.15 and a current ratio of 4.86. Pulmonx has a 1-year low of $1.31 and a 1-year high of $8.12. The stock has a market cap of $66.62 million, a PE ratio of -1.15 and a beta of 0.07. The business has a fifty day moving average price of $1.77 and a 200-day moving average price of $1.79.

More Pulmonx News

Here are the key news stories impacting Pulmonx this week:

  • Positive Sentiment: Closed a up-to-$60 million, five-year credit facility with Perceptive Advisors that includes an initial $40M draw to refinance existing debt, extends maturity to 2031 and provides an undrawn $20M option tied to milestones — improves liquidity runway and capital structure. Credit Facility Announcement
  • Positive Sentiment: Q4 results beat expectations: EPS -$0.25 vs. consensus -$0.39 and revenue $22.6M vs. ~$21.7M — loss narrowed vs prior year and adjusted EBITDA improved, which supports the company’s operational progress. Earnings Report
  • Positive Sentiment: D. Boral Capital reiterated a “Buy” rating with a $14 price target (large upside vs current levels) — analyst support can attract buyers and improve sentiment. Analyst Reaffirmation
  • Neutral Sentiment: Q4 gross margin improved to ~78% and operating expenses fell ~11% year-over-year in the quarter — margin recovery and cost cuts are constructive but need revenue re-acceleration to translate into sustained profitability. Quarterly Results Release
  • Negative Sentiment: 2026 revenue guidance of $90M–$92M comes in below consensus (~$94.1M), signaling slower near-term top-line growth and limiting upside despite cost cuts. Guidance Disclosure
  • Negative Sentiment: Multiple insiders (including the CEO and general counsel) sold shares on March 2 — notable insider selling can be viewed negatively by the market. SEC filing links show the transactions. CEO Form 4
  • Negative Sentiment: The new financing carries a high effective cost (one-month SOFR + 7.0% with a 3.75% floor, and 2% PIK option) and includes milestone-linked access to the additional $20M — helpful for liquidity but raises interest expense and conditionality/dilution concerns. Facility Analysis
  • Negative Sentiment: Reports that the company issued warrants as part of recent financing (term loan/warrants) raise potential dilution risk if exercised. Loan & Warrants Report

Insiders Place Their Bets

In other Pulmonx news, CEO Glendon E. French III sold 67,813 shares of the firm’s stock in a transaction on Monday, March 2nd. The stock was sold at an average price of $1.43, for a total value of $96,972.59. Following the completion of the sale, the chief executive officer directly owned 1,409,511 shares of the company’s stock, valued at $2,015,600.73. This trade represents a 4.59% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Insiders have sold 98,265 shares of company stock worth $140,519 in the last quarter. Insiders own 6.80% of the company’s stock.

Institutional Investors Weigh In On Pulmonx

Institutional investors and hedge funds have recently made changes to their positions in the stock. Cerity Partners LLC purchased a new stake in shares of Pulmonx during the fourth quarter worth $27,000. Opal Capital LLC purchased a new position in Pulmonx in the fourth quarter valued at $29,000. Jain Global LLC purchased a new stake in Pulmonx during the 3rd quarter worth about $30,000. Lazard Asset Management LLC acquired a new stake in Pulmonx in the 4th quarter valued at about $31,000. Finally, Two Sigma Investments LP raised its position in Pulmonx by 50.3% in the 3rd quarter. Two Sigma Investments LP now owns 46,456 shares of the company’s stock valued at $75,000 after purchasing an additional 15,557 shares in the last quarter. 91.04% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

Several research analysts recently issued reports on the stock. Wall Street Zen upgraded shares of Pulmonx from a “sell” rating to a “hold” rating in a research note on Sunday, November 16th. D. Boral Capital reissued a “buy” rating and issued a $14.00 target price on shares of Pulmonx in a research report on Thursday. Finally, Weiss Ratings reissued a “sell (e+)” rating on shares of Pulmonx in a report on Thursday, January 22nd. Five investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average price target of $6.81.

View Our Latest Report on Pulmonx

About Pulmonx

(Get Free Report)

Pulmonx Corporation is a commercial-stage medical device company focused on bronchoscopic lung volume reduction for patients suffering from severe emphysema. The company’s flagship therapy, the Zephyr® Endobronchial Valve System, employs one-way valves delivered via a minimally invasive bronchoscopic procedure to collapse diseased portions of the lung, reducing hyperinflation and improving respiratory function. Complementing this treatment, Pulmonx offers the Chartis® Pulmonary Assessment System, which provides clinicians with quantitative measurements of collateral ventilation to aid in patient selection and optimize clinical outcomes.

The Zephyr Valve received the CE mark in Europe in 2008 and FDA approval in the United States in 2018, and it has since been adopted by leading respiratory and thoracic centers across North America and Europe.

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