Stereotaxis (NYSEAMERICAN:STXS) executives used the company’s fourth-quarter and full-year 2025 earnings call to highlight a year of regulatory milestones, a shifting business model toward higher recurring revenue, and near-term execution priorities centered on manufacturing ramp-ups and early commercial adoption of new products.
Strategic context and 2025 milestones
Chairman and CEO David Fischel framed 2025 as a “milestone year” in the company’s multi-year effort to address historical limitations in its robotic electrophysiology (EP) business. He said Stereotaxis’ mission is to pioneer robotics within minimally invasive endovascular surgery, an area where tens of millions of procedures are performed annually with “essentially no robotic adoption.”
- Making its robot more widely available by eliminating the need for construction and enabling rapid installation in most labs.
- Building an ecosystem of catheters and integrations in EP to increase physician choice and expand recurring revenue.
- Expanding beyond EP so the technology becomes a broader endovascular robotics platform.
- Establishing a digital backbone for connectivity and intelligence in the operating room.
In 2025, the company achieved U.S. and European regulatory approvals for the GenesisX robot, the MAGiC ablation catheter, and the MAGiC Sweep high-density mapping catheter. Fischel described these approvals as a key foundation for the company’s initial commercial focus in complex EP procedures, including congenital heart disease, pediatrics, and ventricular tachycardia. He also cited EP as a large and growing market, stating it treats approximately 2 million patients annually and generates more than $13 billion in device revenue.
Commercial model shift and early launch dynamics
Fischel said the combination of GenesisX and the MAGiC catheter portfolio changes adoption dynamics for hospitals and alters Stereotaxis’ own revenue model. Instead of relying primarily on selling “a couple million-dollar robot” that requires construction, he said the company is shifting to a mix of sales, leases, and placements funded by disposable commitments.
He added that the company’s per-procedure disposable revenue is beginning to benefit from an expanded catheter portfolio, moving from roughly $1,000 per procedure to “over $5,000.”
Despite the regulatory progress, management characterized the 2025 commercial contribution from new products as modest. Fischel said Stereotaxis sold one GenesisX system in 2025, and MAGiC and MAGiC Sweep each contributed “hundreds of thousands of dollars” in full-year revenue. He attributed the gradual start to the timing of approvals in the second half of the year, the need to commercialize the products as a portfolio, post-approval administrative steps such as hospital contracting and regional registrations, and manufacturing ramp challenges.
Manufacturing ramps: GenesisX and MAGiC
Management provided detailed commentary on manufacturing capacity and constraints.
For GenesisX, Fischel said the system is manufactured in St. Louis, with the first commercial system completed in mid-2025. Based on initial learnings, the company refined processes and worked with suppliers on component modifications. Stereotaxis expects to manufacture approximately one GenesisX robot every two months in 2026, with the ability at its current facility to scale to “several dozen robots a year.”
MAGiC manufacturing has been more challenging. The catheter is made by contract manufacturer Osypka in Germany. Fischel said production had been in the “dozens of catheters a month” range when the company needed “hundreds of catheters a month” to meet customer interest. He said catheter shortages impacted the fourth quarter and early 2026 as Osypka implemented a production change intended to address scrap rates during final testing. That change was implemented earlier in the quarter, and Stereotaxis expects to receive more than 100 catheters in March for the first time.
Osypka’s plan projects production scaling to roughly 500 catheters per month by year-end, according to Fischel, and Stereotaxis said it is also investing in ways to expand capacity and create redundancy.
2026 priorities: GenesisX adoption, catheter conversion, new indications, and digital suite
Fischel outlined four primary company efforts for 2026.
GenesisX programs. The company aims to establish at least five active GenesisX programs. Management said it is working with influential EP physicians and has negotiated several term sheets across a mix of sales, leases, and placements that include significant disposable commitments. Fischel said orders could outpace production this year and that early deployments are expected to demonstrate rapid installation and compatibility with “non-modified X-rays from major X-ray manufacturers.”
On the legacy Genesis system, Fischel told analysts the company expects Genesis orders and sales to continue at a similar pace to recent years—“mid-single digit” systems annually—producing roughly $10 million in system revenue each year for at least the next couple of years while GenesisX ramps.
MAGiC and MAGiC Sweep commercialization. Management expects to transition existing EP customers to proprietary catheters as supply improves, and said it is working through hospital approvals and contracts in parallel. The company also described progress on regulatory work to combine MAGiC with CardioFocus’ Centauri pulsed field ablation generator in Europe, with plans to submit a dossier to its new EU notified body and an expectation to launch MAGiC with PFA in Europe by year-end.
Expanding the platform beyond EP. The company discussed its EMAGIN products intended to support broader endovascular procedures. Stereotaxis submitted EMAGIN 5F for U.S. and European regulatory approvals and expects to submit EMAGIN 014 for approvals in the summer. Fischel also said the company has two larger strategic efforts underway in interventional cardiology and neurointerventions, and expects to share a more comprehensive strategy in the coming months.
Digital surgery suite (Synchrony and SynX). Stereotaxis received CE mark for Synchrony in the fourth quarter and submitted it for U.S. FDA clearance. Fischel said the company responded to FDA questions last month and expects clearance “in the coming weeks.” He said demand is strong and the company is projecting more than $3 million in revenue from initial demand this year, primarily from capital sales, with anticipated recurring revenue over time through service contracts and premium software subscriptions as AI features are added.
Financial results and 2026 outlook
Chief Financial Officer Kim highlighted fourth-quarter 2025 revenue of $8.6 million, up 36% from $6.3 million a year earlier. System revenue in the quarter was $3.3 million versus $1.4 million in the prior-year quarter, reflecting partial revenue recognition on two Genesis systems and ancillary devices. Recurring revenue was $5.3 million compared with $9.4 million in the prior-year quarter, and she said results benefited from initial MAGiC Sweep sales in the U.S. and MAGiC catheter sales in Europe.
Full-year 2025 revenue totaled $32.4 million, up from $26.9 million in 2024. System revenue was $10.2 million compared with $8.6 million, and recurring revenue was $22.2 million compared with $18.3 million, with growth driven by increased catheter revenue.
Gross margin was approximately 50% in the fourth quarter and 53% for the full year. For 2025, recurring revenue gross margin was 67% and system gross margin was 21%. Management said recurring gross margin was impacted by acquisition-related accounting that temporarily reduced disposable margin and by lower initial margins on new devices, while system margins were affected by fixed overhead allocated over low production levels. The company said higher production over the next three years is expected to support recurring revenue margins above 75% and system margins above 50%.
Operating loss and net loss in the fourth quarter were $5.6 million and $5.5 million, improving from $7.6 million and $7.5 million a year earlier. Adjusted operating loss for the full year was $9.3 million versus $12.4 million in 2024, and adjusted net loss was $8.8 million versus $11.7 million.
Negative free cash flow for the full year was $13.8 million compared with $8.5 million in 2024, driven by $5.6 million of working capital use in 2025. The company ended 2025 with $13.4 million in cash and cash equivalents and no debt. Management also noted $4.0 million raised from the second closing of a registered direct financing announced in July and $3.1 million raised through an at-the-market offering at an average stock price of $3.17.
Looking ahead, Fischel said Stereotaxis expects “double-digit revenue growth” in 2026, with quarterly revenue below $10 million in the first half and above $10 million in the second half, and full-year revenue surpassing $40 million. He said growth is expected to come from both systems and recurring revenue, aligned with manufacturing ramps for GenesisX and MAGiC. He also said operating expenses are expected to remain fairly stable as the company reallocates spending from programs reaching milestones to near-term manufacturing and commercialization priorities, with an expectation of working-capital benefit after last year’s investment.
About Stereotaxis (NYSEAMERICAN:STXS)
Stereotaxis, Inc is a medical device company that develops and commercializes robotic magnetic navigation systems for use in electrophysiology procedures. Its core technology leverages precisely controlled magnetic fields to guide ultra-thin, magnetically enabled catheters through the vascular system, allowing physicians to perform complex cardiac ablation and diagnostic procedures with enhanced precision and stability. This platform aims to reduce procedure times and radiation exposure for both patients and clinical staff.
The company’s flagship offering, the Niobe Magnetic Navigation System, integrates with a variety of catheter types and electrophysiology mapping systems to support treatment of arrhythmias such as atrial fibrillation and ventricular tachycardia.
