Ceribell Raises Revenue Outlook as Growth Accelerates
Gross margin widened five percentage points to 92%, helped by lower manufacturing costs and a tariff refund.
Ceribell (CBLL), a maker of rapid neurological-diagnostic systems, reported a 33% increase in second-quarter revenue as growth accelerated from the previous quarter.
Revenue reached $28.1 million, up from $21.2 million a year earlier and 6% from the first quarter. The year-over-year pace increased from 29% in the first quarter, while remaining below the 38% recorded a year earlier.
Product revenue rose 33% to $21.2 million, with growth accelerating from 29% in the first quarter. Subscription revenue increased 30% to $6.9 million, extending a slowdown from growth rates of 37% in the fourth quarter and 44% in the third quarter of 2024.
Active accounts climbed to 712, an increase of 32 during the quarter and 128 over the past year. Quarterly additions held broadly steady across the past four periods, supporting the company's expansion after it introduced neonatal and pediatric products in the first quarter.
Operating expenses rose 37% to $45.9 million, outpacing revenue growth as Ceribell spent more on commercial operations and headcount. Stock-based compensation increased to $6.0 million from $3.2 million, and Natus patent-litigation costs rose to $3.9 million from $1.4 million.
The higher costs widened Ceribell's net loss 41% to $19.3 million, or $0.51 a share, from $13.6 million, or $0.38 a share. Its adjusted EBITDA loss narrowed to $9.8 million from $10.0 million a year earlier.
Ceribell raised its full-year revenue forecast to between $114 million and $117 million. The company also secured access to as much as $60 million through a new term loan and revolving credit facility, with another $25 million available at the lender's discretion, after cash and marketable securities declined to $129.3 million from $159.3 million at year-end.
The company entered the second half with new Food and Drug Administration clearances for detection software, artifact reduction and redesigned hardware. A Medicare add-on payment for its delirium-monitoring technology takes effect Oct. 1, advancing a reimbursement initiative that received support in a proposed federal rule during the first quarter.