Ceribell, Inc. ((CBLL)) has held its Q3 earnings call. Read on for the main highlights of the call.
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Ceribell, Inc. recently held its earnings call, revealing a mixed sentiment characterized by strong revenue growth and expansion in accounts, particularly within the VA system. However, concerns were raised regarding increased operating expenses and a widening net loss. The company is actively addressing tariff impacts through supply chain adjustments.
Strong Revenue Growth
Ceribell reported a total revenue of $22.6 million for Q3 2025, marking a significant 31% increase compared to the same period last year. This impressive growth underscores the company’s robust market presence and successful strategies in expanding its revenue streams.
Record Account Growth
The company achieved a record addition of 31 new accounts this quarter, the largest sequential increase since Ceribell became a public entity. This growth reflects the company’s effective market penetration and expanding customer base.
Expansion in VA System
Ceribell’s expansion within the VA system was bolstered by receiving FedRAMP High Authorization and successful pilot results, leading to increased utilization in VA hospitals. This development highlights the company’s strategic focus on government healthcare systems.
Improved Gross Margin
The gross margin for Q3 2025 improved to 88%, up from 87% in the previous year. This improvement indicates efficient cost management and enhanced profitability.
Subscription Revenue Growth
Subscription revenue saw a 44% increase from Q3 2024, showcasing a strong recurring revenue base and customer retention.
Operating Expenses Increase
Operating expenses rose to $34.6 million, a 39% increase from the previous year, driven by investments in growth initiatives. This increase highlights the company’s commitment to expanding its operations despite the cost implications.
Tariff Impact on Margins
The transition to new inventory subject to increased tariffs on products from China is expected to affect gross margins. Ceribell is actively managing these impacts through strategic supply chain adjustments.
Net Loss Widened
Ceribell reported a net loss of $13.5 million for Q3 2025, compared to a $10.4 million loss in Q3 2024. This widening loss raises concerns about the company’s cost management and profitability.
Forward-Looking Guidance
Ceribell provided an optimistic outlook, raising its full-year revenue guidance to a range of $87 million to $89 million, representing a 34% year-over-year growth at the midpoint. The company plans to leverage its commercial strategy to drive further growth, focusing on expanding patient access and advancing its product pipeline. Ceribell also aims to establish point-of-care EEG as a standard in acute care, unlocking a $2 billion market opportunity with potential expansion into pediatric and neonatal markets.
In summary, Ceribell’s earnings call highlighted a strong revenue performance and expansion in key areas, despite challenges with operating expenses and net loss. The company’s forward-looking guidance reflects confidence in continued growth and market penetration, making it a compelling prospect for investors interested in the healthcare technology sector.