CG MEDTECH, DIAGNOSTICS AND DIGITAL HEALTH & SERVICES FORUM - CERIBELL INC

Explicit Guidance:

• Q4 Purchasing Patterns: Assumed to normalize to historical levels, with no anticipated "recorrection" to account for the Q3 purchasing lag (7% unit growth vs. double-digit usage growth).
• New Account Adds (NAA): No specific quantitative guidance provided, but management expresses belief that NAA in 2027 will accelerate beyond 2026 levels. This is driven by sales reps hitting maximum productivity in Year 2 of their lifecycle and the ramp-up of the new Strategic Account Management (SAM) team.
• Cash Flow Break-Even: Committed to achieving cash flow break-even using existing cash on hand (~$117-118M) without leverage. No specific timeline provided for this milestone; internal budget modeling is ongoing.
• 2027 Delirium Impact: Management committed to quantifying the revenue contribution of the Delirium indication in 2027, stating current quantification is premature due to limited pilot scale.

Business-Segment Outlook:

• Seizure & Utilization: Continuing double-digit year-over-year same-store utilization growth, driven by department expansion (more departments added in H1 2026 than all of 2025) and provider engagement. Average headbands per active account expected to normalize to ~51-52.
• Delirium Launch: Commercial rollout beginning immediately post-transcript; offered as a free software add-on in exchange for program commitments (training/workflow) to accelerate adoption. Expected to drive material, sustained usage increases in early adopters.
• Omni (Multimodal) Launch: Innovation pilot launching this quarter; broad market reveal planned at the AES conference in December. Designed to capture conventional EEG and comprehensive monitoring markets, bridging the gap with neurologists via video and extended duration capabilities.
• Sepsis Opportunity: Identified as a key high-risk patient population for both seizure and delirium; prioritized in customer education and programmatic commitments to capture patients often misidentified as non-neurological.
• VA Expansion: Federal fiscal year 2027 expected to mirror 2026 performance, following a September purchase order with a rollout concentrated in Q1.

Market and Competitive Outlook:

• Market Penetration: Currently estimated at ~4% of the total addressable market (747 of ~6,000 ICU/ED hospitals, with ~33% penetration within those installed bases).
• Competitive Landscape: No direct competitors for current seizure/delirium monitoring or novel multimodal monitoring; replacing "old standard of care" (conventional EEG, CAM-ICU survey) rather than displacing similar technology.
• Market Creation: Strategy focuses on creating new demand (point-of-care utilization) rather than solely switching patients from conventional EEG.
• Pricing/NRTP: NTAP (negative charge Medicare patient) status for Delirium is viewed as an "insurance policy" to facilitate adoption rather than a direct revenue driver tied to volume; minimal reported friction following its October 1 implementation.

Macro / Industry Outlook:

• Regulatory/Reimbursement: Management views the expiration of specific NTAP status as a non-event for adoption, citing the core value proposition (reduced length of stay, medication reduction, seizure identification) as the primary driver. No major regulatory headwinds anticipated regarding the Delirium launch.

Strategic Initiatives:

• Strategic Account Management (SAM): Launched in Q1 of the current year to replicate the success of top-tier reps, aiming to convert single-hospital wins into system-wide adoptions across multi-hospital health systems.
• Sales Force Maturation: Sales reps are now entering Year 2 of their lifecycle (peak productivity), expected to drive increased NAA in 2027.
• Infrastructure Scaling: CAM (Customer Account Management) teams have narrowed span of control to accommodate growth; no significant headcount additions anticipated specifically for the Delirium launch in 2027, relying on existing infrastructure with capacity buffers.
• Omni Positioning: New hardware add-on designed to expand from point-of-care to conventional/infinite-duration monitoring, expected to carry higher COGS but maintain current gross margin profile due to the embedded recorder subscription model.

Risks and Headwinds to Outlook:

• SAM Conversion Friction: Potential for slower close cycles if moving from "one-to-one" hospital deals to "one-to-many" system-wide deals, though management believes parallel paths (local reps + SAM) mitigate broad-scale slowdowns.
• Program Compliance: Delirium free software model relies on customer adherence to training/workflow commitments; management will monitor if scaled rollout by field reps dilutes the usage lift seen in centrally controlled pilots.
• COGS Management: Omni is expected to have higher COGS at scale; final gross margin impact depends on final pricing model and production scale efficiencies not yet determined.
• Leverage Timing: Litigation and P&L leverage timing remain a point of scrutiny for investors; while management is confident, no specific timeline is disclosed.

Management Tone on the Future:

• Confidence Level: High. Management expresses strong confidence in the "land grab" phase, the durability of utilization growth, and the ability to achieve cash flow break-even with existing liquidity.
• Trend: Accelerating. Emphasis on "acceleration" in department expansion, sales force productivity, and the belief that 2027 NAA will exceed 2026 levels.
• Strategic Shift: Moving from pure "IPO story" (seizure detection) to a broader "brain monitoring platform" (Seizure + Delirium + Omni), with a deliberate pivot to system-wide sales via SAM.

Miscellaneous:

• Pricing/Units: Additional recorders deployed beyond the standard two per department incur a cost of ~$500/month; however, the business model prioritizes unit placement to drive headband revenue (75% of total revenue).
• Delirium Pilot Results: Pilot data showed "material durable increase" in headband utilization; management is waiting for field-scale data before providing quantitative impact models.