Pulmonx (NASDAQ:LUNG) Releases Quarterly Earnings Results, Beats Estimates By $0.14 EPS

Pulmonx (NASDAQ:LUNG) posted its quarterly earnings results on Wednesday. The company reported ($0.25) EPS for the quarter, topping analysts’ consensus estimates of ($0.39) by $0.14, reports. The company had revenue of $22.60 million during the quarter, compared to analysts’ expectations of $21.73 million. Pulmonx had a negative return on equity of 77.58% and a negative net margin of 61.91%.

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 Pulmonx stock traded up $0.17 during trading on Thursday, hitting $1.61. The company’s stock had a trading volume of 1,409,070 shares, compared to its average volume of 389,849. The stock has a market cap of $66.41 million, a price-to-earnings ratio of -1.14 and a beta of 0.07. Pulmonx has a 52 week low of $1.31 and a 52 week high of $8.12. The stock has a 50-day moving average price of $1.77 and a two-hundred day moving average price of $1.79. The company has a debt-to-equity ratio of 0.62, a current ratio of 4.86 and a quick ratio of 4.15.

Key Stories Impacting Pulmonx

Here are the key news stories impacting Pulmonx this week:

• Positive Sentiment: Closed a up-to-$60 million, five-year credit facility with Perceptive Advisors that includes an initial $40M draw to refinance existing debt, extends maturity to 2031 and provides an undrawn $20M option tied to milestones — improves liquidity runway and capital structure. Credit Facility Announcement
• Positive Sentiment: Q4 results beat expectations: EPS -$0.25 vs. consensus -$0.39 and revenue $22.6M vs. ~$21.7M — loss narrowed vs prior year and adjusted EBITDA improved, which supports the company’s operational progress. Earnings Report
• Positive Sentiment: D. Boral Capital reiterated a “Buy” rating with a $14 price target (large upside vs current levels) — analyst support can attract buyers and improve sentiment. Analyst Reaffirmation
• Neutral Sentiment: Q4 gross margin improved to ~78% and operating expenses fell ~11% year-over-year in the quarter — margin recovery and cost cuts are constructive but need revenue re-acceleration to translate into sustained profitability. Quarterly Results Release
• Negative Sentiment: 2026 revenue guidance of $90M–$92M comes in below consensus (~$94.1M), signaling slower near-term top-line growth and limiting upside despite cost cuts. Guidance Disclosure
• Negative Sentiment: Multiple insiders (including the CEO and general counsel) sold shares on March 2 — notable insider selling can be viewed negatively by the market. SEC filing links show the transactions. CEO Form 4
• Negative Sentiment: The new financing carries a high effective cost (one-month SOFR + 7.0% with a 3.75% floor, and 2% PIK option) and includes milestone-linked access to the additional $20M — helpful for liquidity but raises interest expense and conditionality/dilution concerns. Facility Analysis
• Negative Sentiment: Reports that the company issued warrants as part of recent financing (term loan/warrants) raise potential dilution risk if exercised. Loan & Warrants Report

Wall Street Analysts Forecast Growth

LUNG has been the subject of several research reports. D. Boral Capital reissued a “buy” rating and issued a $14.00 price objective on shares of Pulmonx in a research note on Thursday. Wall Street Zen upgraded Pulmonx from a “sell” rating to a “hold” rating in a research note on Sunday, November 16th. Finally, Weiss Ratings reissued a “sell (e+)” rating on shares of Pulmonx in a report on Thursday, January 22nd. Five equities research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, the stock has an average rating of “Hold” and an average target price of $6.81.

Insider Buying and Selling

In other Pulmonx news, CEO Glendon E. French III sold 67,813 shares of the stock in a transaction that occurred on 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 approximately $2,015,600.73. This represents a 4.59% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Over the last 90 days, insiders sold 98,265 shares of company stock worth $140,519. 6.80% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Susquehanna Portfolio Strategies LLC bought a new stake in shares of Pulmonx during the fourth quarter worth about $133,000. Engineers Gate Manager LP acquired a new position in Pulmonx during the 4th quarter valued at about $106,000. ADAR1 Capital Management LLC boosted its stake in Pulmonx by 65.7% during the 4th quarter. ADAR1 Capital Management LLC now owns 355,410 shares of the company’s stock valued at $785,000 after purchasing an additional 140,913 shares during the last quarter. AQR Capital Management LLC increased its holdings in Pulmonx by 144.6% during the 4th quarter. AQR Capital Management LLC now owns 58,919 shares of the company’s stock worth $130,000 after purchasing an additional 34,828 shares in the last quarter. Finally, Lazard Asset Management LLC purchased a new stake in shares of Pulmonx in the fourth quarter worth approximately $31,000. Institutional investors and hedge funds own 91.04% of the company’s stock.

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.