Cvrx, Inc. Earnings Call: Revenue Growth Amid Challenges

Cvrx, Inc. ((CVRX)) has held its Q3 earnings call. Read on for the main highlights of the call.

The recent earnings call of Cvrx, Inc. painted a picture of significant progress, marked by a commendable increase in revenue, an expanded commercial footprint, and improved gross margins. Despite these positive strides, the company faces challenges, including increased R&D expenses, higher interest expenses, and a net loss. Encouragingly, the positive developments in clinical evidence and the approval of a Category I CPT code signal promising avenues for future growth.

Revenue Growth

Cvrx, Inc. reported a 10% year-over-year revenue increase, reaching $14.7 million for Q3 2025. This growth was primarily driven by the expansion of the U.S. heart failure business, underscoring the company’s successful market penetration and strategic focus on this segment.

Expansion of Active Implanting Centers

The company successfully added 10 net new implanting centers in the third quarter, bringing the total to 250 active centers in the U.S. This expansion reflects Cvrx’s commitment to broadening its reach and enhancing its service delivery capabilities across the nation.

Gross Margin Improvement

Cvrx achieved an impressive gross margin increase to 87% in Q3 2025, up from 83% in the same period last year. This improvement was driven by increased average selling prices and enhanced manufacturing efficiencies, highlighting the company’s operational effectiveness.

Category I CPT Code Approval

The transition to a Category I CPT code, effective January 1, 2026, is expected to significantly improve reimbursement processes and reduce prior authorization denials. This development is anticipated to bolster the adoption of Barostim therapy, providing a substantial boost to the company’s growth trajectory.

Positive Developments in Clinical Evidence

Cvrx continues to benefit from an increasing flow of independent peer-reviewed publications that report positive patient outcomes and reduced hospitalizations with Barostim therapy. These findings reinforce the therapy’s efficacy and support its broader acceptance in the medical community.

European Revenue Decline

Despite the overall positive revenue growth, Cvrx experienced a decline in European revenue units, which decreased to 50 in Q3 2025 from 56 in the prior year period. This decline highlights the challenges the company faces in maintaining its market position in Europe.

R&D Expenses Increase

Research and development expenses rose by 26% to $3.1 million in Q3 2025. This increase was driven by higher compensation and consulting expenses, reflecting the company’s ongoing investment in innovation and product development.

Interest Expense Increase

Interest expenses saw an uptick of $0.5 million due to higher levels of borrowings under the term loan agreement. This increase underscores the financial pressures associated with the company’s expansion and development initiatives.

Net Loss

Cvrx reported a net loss of $12.9 million or $0.49 per share for Q3 2025, a slight improvement from the net loss of $13.1 million or $0.57 per share in Q3 2024. While the loss remains a concern, the reduction in loss per share indicates a positive trend.

Forward-Looking Guidance

Looking ahead, Cvrx provided updated financial guidance, forecasting full-year revenue between $55.6 million and $56.6 million, with a gross margin expectation of 85% to 86%. Operating expenses are projected to range from $98 million to $99 million. For the fourth quarter of 2025, the company anticipates revenue between $15 million and $16 million. The transition to a Category I CPT code is expected to further support the adoption of Barostim therapy and enhance patient access.

In summary, Cvrx, Inc.’s earnings call highlighted a blend of progress and challenges. While the company enjoys revenue growth and improved margins, it continues to grapple with increased expenses and net losses. The approval of a Category I CPT code and positive clinical evidence offer promising prospects for future growth, positioning Cvrx favorably in the market.