Stereotaxis — Q3 2026 Earnings Summary

Financial Performance:

• Total revenue for the quarter ended September 30, 2026, was $8.9 million, a 20% increase year-over-year from $7.5 million and a 16% increase sequentially from $7.7 million in Q2 2026.
• System revenue was $3.0 million, up 60% year-over-year from $1.9 million, driven by partial revenue recognition from the first GenesisX system in the US, the first Genesis system in China, and full quarter sales of Synchrony systems.
• Recurring revenue was $5.9 million, a 6% increase year-over-year but a 4% decrease sequentially, reflecting growth in robotically-navigated catheters offset by procedural pressure from supply shortages.
• Gross margin was 45% of revenue; recurring revenue gross margin was 59%, while system gross margin was 15%. Both margins remain impacted by fixed overhead allocated over low production volume.
• Operating expenses were $10.4 million, including $1.3 million in non-cash charges for stock compensation, mark-to-market adjustments for acquisition contingent earnout consideration, and amortization of intangible assets. Adjusted operating expenses were $9.1 million, up from $6.6 million in the prior year period.
• Operating loss was $6.5 million compared to $6.6 million in the prior year; adjusted operating loss was $5.1 million compared to $2.5 million in the prior year.
• Net loss was $6.5 million compared to $6.5 million in the prior year; adjusted net loss was $5.2 million compared to $2.4 million in the prior year.
• Negative cash flow was $6.5 million, comprising $2.6 million from the core business and $3.9 million associated with the Robocath acquisition.
• Cash and cash equivalents at September 30, 2026, were $4.0 million.
• Long-term debt increased to $1.9 million, with a current portion of $548,000, compared to zero in the prior year.
• Deferred revenue decreased to $5.8 million total ($5.4 million current, $406,000 long-term) from $6.2 million total ($5.7 million current, $555,000 long-term) at December 31, 2025.

Guidance and Future Outlook:

• Stereotaxis expects growing recurring revenue and more consistent capital sales in coming quarters.
• Near-term milestones include installing the first commercial GenesisX systems and resolving supply constraints with MAGiC.
• Adjusted operating expenses, excluding non-cash and one-time items, are expected to approximate $8 million per quarter going forward.
• Management projects a pathway to cash-flow profitability within the next year driven by revenue growth combined with stable operating expenses.

Business Segments and Product Lines:

• The company is shifting its business model from capital systems with long sales cycles to a portfolio of accessible and scalable systems.
• A new portfolio of disposable interventional catheters is being commercialized to enhance robot value and provide recurring revenue.
• The company closed the acquisition of Robocath and announced a collaboration with Canon.
• The company entered the fourth quarter with a backlog of approximately $1.9 million in disposable orders not converted to revenue due to supply constraints.

Market and Competitive Landscape:

• The company faces general pressure on procedures due to limited catheter supply.
• The company continues to invest in a pipeline of innovations to expand technology into a platform across endovascular surgery and enhance competitiveness in electrophysiology.
• Innovations aim to deliver digital connectivity, automation, and intelligence to the operating room.

Risks and Challenges:

• Gross margins for both recurring and system revenue remain impacted by fixed overhead allocated over low production volume.
• Increased operating expenses are driven by one-time acquisition transaction costs and the absorption of Robocath operating expenses.
• Forward-looking statements note risks including the ability to manage expenses, product acceptance, global economic conditions, tariffs, competitive factors, healthcare policy changes, dependence on third-party vendors, and timing of regulatory approvals.

Management Commentary and Tone:

• CEO David Fischel stated the near-term priority is driving two major business model transformations: shifting to accessible/scalable systems and commercializing a portfolio of disposable catheters for recurring revenue.
• Management expressed pleasure in closing the Robocath acquisition and announcing the Canon collaboration.
• The tone indicates a strategic pivot toward recurring revenue and scalability while acknowledging current supply chain headwinds.

Other Key Points:

• Stereotaxis announced a convertible note financing of up to $24 million, with an initial upfront closing of $12 million and an additional $12 million draw available at the company's option following certain regulatory milestones.
• Incorporating the financing proceeds, the pro forma cash balance would be $16 million, with total availability of $28 million.
• The acquisition of Robocath resulted in a significant increase in Goodwill from $3.8 million to $29.3 million and an increase in Intangible assets from $6.4 million to $7.0 million.
• The company reported an investment in affiliate of $1.7 million as of September 30, 2026.
• A conference call and webcast were scheduled for November 10, 2026, at 4:30 p.m. Eastern Time.