Pulmonx (NASDAQ:LUNG) Announces Earnings Results

Pulmonx (NASDAQ:LUNG) announced its quarterly earnings data on Wednesday. The company reported ($0.25) EPS for the quarter, beating the consensus estimate of ($0.39) by $0.14, reports. The business had revenue of $22.60 million during the quarter, compared to analysts’ expectations of $21.73 million. Pulmonx had a negative net margin of 59.67% and a negative return on equity of 78.35%.

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 Trading Up 11.8%

Shares of LUNG stock opened at $1.61 on Friday. Pulmonx has a 1-year low of $1.31 and a 1-year high of $8.12. The company has a market cap of $66.41 million, a price-to-earnings ratio of -1.21 and a beta of 0.07. 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 stock has a 50 day simple moving average of $1.76 and a 200-day simple moving average of $1.78.

Analyst Ratings Changes

LUNG has been the subject of several recent research reports. Canaccord Genuity Group decreased their target price on shares of Pulmonx from $6.00 to $5.00 and set a “buy” rating for the company in a research report on Thursday. Weiss Ratings reaffirmed a “sell (e+)” rating on shares of Pulmonx in a research report on Thursday, January 22nd. D. Boral Capital reissued a “buy” rating and issued a $14.00 price objective on shares of Pulmonx in a report on Thursday. Finally, Wall Street Zen upgraded Pulmonx from a “sell” rating to a “hold” rating in a research note on Sunday, November 16th. Five equities research 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, Pulmonx presently has an average rating of “Hold” and an average target price of $5.38.

Pulmonx News Roundup

Here are the key news stories impacting Pulmonx this week:

• Positive Sentiment: Q4 beat — Pulmonx reported EPS of -$0.25 (vs. consensus -$0.39) and revenue of $22.6M (vs. ~ $21.7M), with narrower net loss and improved adjusted EBITDA, signaling operational improvement. Earnings Release / Call
• Positive Sentiment: Liquidity boost — Pulmonx closed a five‑year credit facility for up to $60M (initial $40M draw used to refinance debt, $20M undrawn subject to revenue milestones), extending debt maturities to 2031 and reducing near‑term refinancing risk. Credit Facility Release
• Positive Sentiment: Cost discipline and margins — Management executed a restructuring that cut operating expenses ~11% in Q4 and reported a Q4 gross margin of ~78%, supporting a clearer path toward profitability if sales reaccelerate. Earnings Call Highlights
• Neutral Sentiment: Analyst activity is mixed — D. Boral reaffirmed a Buy with a high $14 PT while Canaccord lowered its target to $5 but kept a Buy — divergent targets can attract trading interest but don’t change fundamentals. Analyst Notes
• Negative Sentiment: Guidance disappointment — 2026 revenue guidance of $90M–$92M came in below street consensus (~$94.1M), indicating a growth pause that limits near‑term upside until commercial momentum returns. Guidance / Results
• Negative Sentiment: Insider selling — multiple Form 4 filings show significant sales by the CEO, general counsel and other officers on March 2, which can amplify downside sentiment and supply pressure. SEC Form 4 (CEO) SEC Form 4 (Other)
• Negative Sentiment: Cost of capital and dilution risk — the new term loan carries a high spread (SOFR + 7% with a floor and PIK option) and includes warrants, improving liquidity but increasing interest expense and potential dilution. Loan / Warrants Coverage

Insider Activity

In other news, CEO Glendon E. French III sold 67,813 shares of the business’s stock in a transaction dated Monday, March 2nd. The shares were sold at an average price of $1.43, for a total transaction of $96,972.59. Following the completion of the sale, the chief executive officer owned 1,409,511 shares of the company’s stock, valued at $2,015,600.73. The trade was a 4.59% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Insiders have sold a total of 98,265 shares of company stock valued at $140,519 in the last quarter. 6.80% of the stock is owned by company insiders.

Institutional Investors Weigh In On Pulmonx

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

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.