Pulmonx (NASDAQ:LUNG) Issues Quarterly Earnings Results, Beats Estimates By $0.14 EPS

Pulmonx (NASDAQ:LUNG) released its quarterly earnings results on Wednesday. The company reported ($0.25) 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 company had revenue of $22.60 million during 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 Stock Performance

NASDAQ:LUNG traded up $0.17 during midday trading on Thursday, hitting $1.61. The company’s stock had a trading volume of 1,175,085 shares, compared to its average volume of 382,298. Pulmonx has a fifty-two week low of $1.31 and a fifty-two week high of $8.12. The firm’s 50 day moving average is $1.77 and its 200-day moving average is $1.79. The company has a debt-to-equity ratio of 0.62, a current ratio of 4.86 and a quick ratio of 4.15. The firm has a market cap of $66.21 million, a P/E ratio of -1.14 and a beta of 0.07.

Pulmonx News Summary

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

Insider Buying and Selling

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

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in LUNG. ExodusPoint Capital Management LP acquired a new position in Pulmonx in the 4th quarter worth about $4,312,000. Vestal Point Capital LP purchased a new stake in shares of Pulmonx in the third quarter valued at approximately $1,345,000. State Street Corp increased its position in shares of Pulmonx by 3.6% in the fourth quarter. State Street Corp now owns 821,217 shares of the company’s stock valued at $1,815,000 after buying an additional 28,813 shares in the last quarter. Bank of America Corp DE raised its stake in shares of Pulmonx by 556.6% during the 2nd quarter. Bank of America Corp DE now owns 481,268 shares of the company’s stock worth $1,246,000 after buying an additional 407,971 shares during the period. Finally, Barclays PLC lifted its position in shares of Pulmonx by 39.0% during the 4th quarter. Barclays PLC now owns 472,251 shares of the company’s stock valued at $1,044,000 after buying an additional 132,569 shares in the last quarter. Hedge funds and other institutional investors own 91.04% of the company’s stock.

Analyst Ratings Changes

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

About Pulmonx

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.