Stereotaxis (STXS) Q1 2025 earnings summary

Executive summary

• Achieved 9% year-over-year revenue growth in Q1 2025, reaching $7.5 million, driven by recurring revenue from proprietary catheters, initial MAGIC catheter sales in Europe, and contributions from the APT acquisition.

• Focused on expanding recurring revenue, commercializing MAGIC in Europe, launching Genesys-X, and integrating APT to broaden robotic adoption and in-house catheter capabilities.

• Strategic transformation underway, with a robust innovation pipeline, six active regulatory reviews, and multiple submissions expected to drive future growth.

• Net loss attributable to common stockholders widened to $6.1 million from $4.8 million in Q1 2024, reflecting higher operating expenses and acquisition-related costs.

• Regulatory milestones achieved: CE Mark for GenesisX RMN System and MAGIC catheter in Europe; ongoing FDA clearance efforts in the US.

Financial highlights

• Q1 2025 revenue was $7.5 million, up from $6.9 million in Q1 2024; recurring revenue grew 29% to $5.5 million, while system revenue declined to $2.0 million.

• Gross margin was 54%; recurring revenue gross margin 68%, system gross margin 15%, both impacted by acquisition-related accounting and product mix.

• Operating loss was $5.9 million; net loss was $5.8 million; adjusted operating loss was $2.7 million.

• Cash and cash equivalents at quarter-end were $10.7 million, with no debt.

• Negative free cash flow improved to $1.8 million from $2.3 million in Q1 2024.

Outlook and guidance

• Reiterated double-digit revenue growth guidance for full-year 2025, with system revenue expected at $2–$3 million per quarter and recurring revenue to reach $7 million in Q4.

• Guidance assumes modest Genesys-X contribution in Europe, none in the U.S., and excludes China system revenue due to macro uncertainty.

• Expects reduced cash use in 2025, supported by recurring revenue growth and stable expenses.

• Sufficient cash to fund operations for the next twelve months, but additional funding may be needed if macroeconomic conditions worsen.

• Focus on advancing regulatory approvals and clinical adoption in new and existing markets.