CapsoVision (NASDAQ:CV) Posts Quarterly Earnings Results, Meets Expectations

CapsoVision (NASDAQ:CV) posted its quarterly earnings data on Thursday. The company reported ($0.15) EPS for the quarter, meeting the consensus estimate of ($0.15), Zacks reports. CapsoVision had a negative net margin of 214.74% and a negative return on equity of 177.85%. The business had revenue of $3.57 million during the quarter. During the same period in the previous year, the business posted ($0.17) EPS.

Here are the key takeaways from CapsoVision’s conference call:

• AI Highlights received FDA clearance and launched in the U.S. on November 2. Management cited encouraging early physician feedback and believes the software can improve review speed and accuracy, though the U.S. launch is still too recent to assess its commercial impact.
• CapsoVision completed enrollment and data collection for the CapsoCam Colon clinical study and remains on track to submit to the FDA before year-end 2026. The company said a statistician is analyzing the data, so key results have not yet been reported.
• Third-quarter revenue increased just 1% year over year to $3.6 million, while gross margin fell to 49% from 54%, reflecting higher flash-memory costs, an inventory obsolescence charge, and stock-based compensation. Shipments rose slightly and the company added 34 accounts, but management also cited a competitive U.S. pricing environment.
• Operating expenses declined to $9.1 million from $9.9 million, and net loss narrowed to $7.3 million from $7.9 million. Management expects clinical expenses tied to the now-completed colon study to decrease, though continued pipeline investment remains a cost.
• CapsoVision ended September with $21.8 million in cash, including approximately $17.8 million in net proceeds from an $18 million offering, which management said extends its cash runway. It also raised $1.7 million through its ATM facility, which may provide flexibility but involves issuing additional shares.

CapsoVision Stock Performance

CapsoVision stock remained flat at $6.27 during trading on Thursday. 91,319 shares of the company were exchanged, compared to its average volume of 231,788. CapsoVision has a one year low of $4.50 and a one year high of $15.37. The firm has a 50-day moving average of $6.52 and a 200 day moving average of $6.35. The stock has a market capitalization of $313.81 million, a PE ratio of -13.34 and a beta of -2.34.

Insider Activity at CapsoVision

In other news, major shareholder Ching Hang Shen acquired 878,734 shares of the company’s stock in a transaction on Tuesday, September 15th. The shares were bought at an average cost of $5.69 per share, with a total value of $4,999,996.46. Following the transaction, the insider owned 2,926,655 shares in the company, valued at approximately $16,652,666.95. This trade represents a 42.91% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, major shareholder Eliyahou Et Al Harari acquired 1,757,469 shares of the company’s stock in a transaction on Friday, September 18th. The stock was purchased at an average cost of $5.69 per share, for a total transaction of $9,999,998.61. Following the completion of the transaction, the insider owned 1,396,494 shares in the company, valued at approximately $7,946,050.86. The trade was a -486.87% increase in their position. The SEC filing for this purchase provides additional information. Insiders own 2.30% of the company’s stock.

Wall Street Analyst Weigh In

CV has been the topic of several recent research reports. Zacks Research raised shares of CapsoVision to a “hold” rating in a research note on Monday, August 31st. Benchmark reiterated a “speculative buy” rating on shares of CapsoVision in a report on Friday, August 14th. Weiss Ratings reissued a “sell (d-)” rating on shares of CapsoVision in a research report on Friday, September 25th. Finally, Roth Capital initiated coverage on shares of CapsoVision in a research note on Friday, August 28th. They issued a “buy” rating and a $9.00 price target for the company. Two investment analysts have rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the company has an average rating of “Hold” and a consensus price target of $9.50.

About CapsoVision

CapsoVision develops medical technology for capsule endoscopy, a method of examining the digestive tract using a swallowable camera. Its products are designed to help clinicians visualize the small intestine as part of diagnostic evaluation. The company’s CapsoCam Plus system uses a swallowable capsule with multiple cameras to capture panoramic images as it moves through the small intestine. Images are stored in the capsule and later retrieved for review using the company’s supporting hardware and software.