Pulmonx Corporation — Third Quarter 2026 Earnings Summary

Financial Performance:

• Worldwide revenue reached $22.8 million in Q3 2026, a 6% year-over-year increase from $21.5 million in Q3 2025 on both GAAP and constant currency basis.
• U.S. revenue was $14.9 million, up 7% year-over-year from Q3 2025.
• International revenue was $7.9 million, up 5% year-over-year; excluding China, international revenue grew 9% year-over-year on both GAAP and constant currency basis.
• Gross profit was $17.4 million in Q3 2026 compared to $16.1 million in Q3 2025, resulting in a gross margin of 76% versus 75% in the prior year period.
• Total operating expenses were $24.9 million in Q3 2026, an 18% decrease from $30.4 million in Q3 2025.
• Net loss was $8.4 million ($0.19 per share) in Q3 2026, a 40% reduction from the $14.0 million ($0.34 per share) net loss in Q3 2025.
• Adjusted EBITDA loss was $3.5 million in Q3 2026, a 57% reduction from the $8.2 million loss in Q3 2025.
• Cash and cash equivalents totaled $52.7 million as of September 30, 2026.
• Total assets were $110.2 million as of September 30, 2026, down from $129.3 million as of December 31, 2025.
• Total liabilities were $76.0 million as of September 30, 2026, compared to $75.2 million as of December 31, 2025.
• Long-term debt increased to $37.7 million as of September 30, 2026, from $37.0 million as of December 31, 2025.

Guidance and Future Outlook:

• Full-year 2026 revenue is expected to be in the range of $90 million to $92 million.
• Full-year 2026 gross margin is now expected to be approximately 77%.
• Full-year 2026 total operating expenses are expected to fall within the range of $108 million to $109 million, inclusive of approximately $14 million of non-cash stock-based compensation.
• The Company expects cash, cash equivalents, and marketable securities to decrease by approximately $22 million for the full year 2026, assuming no additional drawdowns under the credit facility.

Business Segments and Product Lines:

• Commercial activity in China is restarting following the renewal of the Chinese registration certificate, resulting in an absence of sales to the distributor in China for the quarter.
• The U.S. sales leadership team is now fully staffed.
• The global commercial team has been restructured to be more focused.

Market and Competitive Landscape:

• The Zephyr Endobronchial Valve is commercially available in more than 25 countries and is included in global treatment guidelines.
• The Zephyr Valve is widely considered a standard of care treatment option for improving breathing, activity, and quality of life in patients with severe emphysema.

Risks and Challenges:

• International revenue growth was tempered by the absence of sales to the Company's distributor in China while commercial activity is restarted.
• Forward-looking statements are subject to risks and uncertainties, including factors that could cause actual results to differ materially from projections regarding revenue growth, execution of strategy, and financial performance.

Management Commentary and Tone:

• CEO Glen French expressed pleasure at returning to year-over-year revenue growth and confidence in the ability to build momentum and deliver growth while advancing strategic priorities.
• Management highlighted continued operating leverage from cost realignment efforts, noting a significant reduction in net loss and Adjusted EBITDA loss compared to the prior year.

Other Key Points:

• A conference call and live webcast were scheduled for October 27, 2026, at 1:30 p.m. PT / 4:30 p.m. ET to discuss the results.
• The company provided reconciliations for non-GAAP financial measures, including Adjusted EBITDA and constant currency revenue calculations.
• The Zephyr Valve received FDA Premarket Approval (PMA) following its designation as a "breakthrough device."