Revenue

FY 2025

$81 million–$85 million "

Raised full‐year guidance by about $2 million at the midpoint " " " "

raised

Gross Margin

FY 2025

mid to high 80% range "

Expect to maintain around 80% " " " "

lowered

Stock‐Based Compensation

FY 2025

Approximately $15 million "

Approximately $50 million "

raised

Cash Flow Breakeven

FY 2025

no prior guidance

Reiterated expectation to reach breakeven with current cash on hand " "

no prior guidance

Pediatric Clarity Product

FY 2025

no prior guidance

Will not impact FY 2025 guidance; full launch expected later "

no prior guidance

Commercial Strategy and Sales Expansion

Q4 2024: Focus on driving account growth through team expansion, strategic account launches, and increased awareness. " " " " " " Q3 2024: Emphasis on team expansion via territory and clinical account managers driving utilization and new account additions. " " "

Q1 2025: Expanded active accounts to 558 with strong emphasis on departmental expansion (ICU, ER, general floors), a hub-and-spoke hospital network model, and enhanced investments in CAM strategy and sales infrastructure. " " " " "

Consistent emphasis on expansion with an added focus on increased departmental penetration and optimized sales infrastructure in Q1 2025.

Product Pipeline Expansion and Diversification

Q4 2024: Emphasized development of a delirium detection algorithm with planned FDA submission and accelerated investment in a stroke detection algorithm; long‑term pipeline goals for neurological and psychiatric conditions. " " " Q3 2024: Focus on stroke/delirium trials, ClarityPro performance, and potential R&D investments from IPO proceeds. " " " "

Q1 2025: Announced FDA 510(k) clearance for the pediatric Clarity algorithm to expand seizure detection into pediatric markets, with plans for limited commercial release and pilots; continued focus on opportunities for neonate clarity and delirium while implementing cost reduction strategies. " " "

Consistent focus on pipeline growth with progress in regulatory milestones (e.g., pediatric clearance) that signal a more refined product strategy in Q1 2025.

Market Opportunity and Addressable Market Expansion

Q4 2024: Highlighted the $2 billion U.S. acute care market potential, with expansion plans driven by R&D and indication expansion; Q3 2024: Detailed a $2 billion revenue opportunity, noting a large target patient base and the market expansion via VA approval that increased facilities to 6,000. " " " " " " "

Q1 2025: Stressed low current penetration—in terms of 3% of the U.S. population, 10% hospital penetration, and 20–30% patient engagement within accounts—while targeting expansion through improved access, including pediatric market opportunities. " " " "

Continued focus on market expansion with an evolving emphasis on unlocking significant growth within existing accounts and targeting pediatric segments.

Operating Expenses and Cash Flow Pressure

Q4 2024: Reported a 49% increase in operating expenses (with full‑year expenses up 41%) supported by the IPO cash boost; Q3 2024: Operating expenses increased by 48% as investments in commercial organizations advanced, with IPO proceeds supporting a strong cash flow outlook. " "

Q1 2025: Operating expenses increased by 55% as further investments in the commercial organization and headcount were made, while maintaining a strong position and confidence in reaching cash flow breakeven. " "

Steady rise in expenses aligned with growth investments across periods; confidence in achieving cash flow breakeven remains consistent.

Tariff Headwinds and Material Cost Pressures

Q4 2024: Discussed supply chain challenges with tariff increases from 25% to 35% on China‑sourced materials, with expectations to sustain mid‑to‑high 80% gross margins. " " Q3 2024: This topic was not mentioned.

Q1 2025: Provided a detailed discussion of significant tariff impacts (imports now subject to 145% tariffs plus a 25% rate) and outlined mitigation strategies (reshoring, vendor cost negotiations, automation), maintaining confidence in strong gross margins. " "

Emerging focus in Q1 2025 with a more detailed analysis and mitigation strategy compared to the more limited discussion in Q4 2024 and no mention in Q3 2024.

AI Platform Adoption and Utilization

Q4 2024: Highlighted extensive AI platform impact in acute care settings, noting broad application (over 200,000 patients) and expansion toward developing algorithms for delirium and stroke detection. " " " " Q3 2024: Stressed 100% adoption of Clarity or ClarityPro in new accounts and consistent utilization growth with positive clinical benefits. " " "

Q1 2025: Reported robust metrics with 558 active accounts, achieved FedRAMP High Authorization enabling government use, and strong utilization growth driven by Clinical Account Manager (CAM) initiatives and seasonal trends. " " " " "

Consistent and robust adoption across periods with enhanced regulatory milestones and growing utilization underpinning the company’s market leadership in Q1 2025.

Seasonal Utilization and Revenue Recognition Challenges

Q4 2024: Noted that Q4 and Q1 typically see higher ICU census leading to elevated utilization, with revenue recognition impacted by variable purchasing patterns. " " Q3 2024: Identified a small degree of seasonality, with timing of large orders and deferred account launches contributing to revenue timing challenges. " " "

Q1 2025: Reiterated seasonal trends with higher ICU census driving usage in winter, while forecasting a slight sequential decline in Q2; noted that rolling contract expirations introduce timing challenges in revenue recognition. " " " "

Consistent recognition of seasonal trends affecting utilization and revenue; the cyclical nature and related challenges persist across periods.

ClarityPro Adoption Uncertainty

Q3 2024: Detailed challenges in ClarityPro adoption due to additional fees and its early stage, with no significant differences in user behavior compared to Clarity. " "

Q1 2025 & Q4 2024: No mention of ClarityPro adoption uncertainty [N/A].

Topic no longer mentioned in current periods, suggesting that earlier uncertainties have either been resolved or de‑emphasized.