Pulmonx (LUNG) Q1 2025 earnings summary

Executive summary

• Achieved worldwide revenue of $22.5 million in Q1 2025, up 20% year-over-year and 21% on a constant currency basis, driven by strong international demand and U.S. growth.

• International revenue grew 39% year-over-year to $8.3 million, with China as a key driver; U.S. revenue increased 11% to $14.2 million.

• Gross margin was 73% in Q1 2025, down from 75% in Q1 2024, reflecting a higher international revenue mix.

• Net loss was $14.4 million ($0.36 per share), compared to $13.7 million ($0.36 per share) in Q1 2024.

• DOJ declined to intervene in the False Claims Act investigation, removing a significant legal overhang.

Financial highlights

• Gross profit increased to $16.3 million from $14.1 million year-over-year.

• Operating expenses were $30.9 million, up 8% year-over-year, mainly from higher R&D and SG&A spending.

• Adjusted EBITDA loss was $8.5 million, slightly higher than $8 million in Q1 2024.

• Cash, cash equivalents, and marketable securities totaled $88.7 million as of March 31, 2025.

• Cost of goods sold rose 29.7% to $6.2 million, reflecting higher sales volume and manufacturing costs.

Outlook and guidance

• Reaffirmed full-year 2025 revenue guidance of $96–$98 million, with 16–18% constant currency growth expected.

• Gross margin expected to be approximately 74% for the year, with improvement in the second half.

• Operating expenses projected at $133–$135 million, including ~$22 million in non-cash stock-based compensation.

• U.S. growth expected to accelerate in H2 2025 as commercial initiatives gain traction.

• Guidance does not reflect potential impacts from future tariffs, trade policy changes, or currency fluctuations.