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EM

Envoy Medical, Inc. (COCH)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 revenue was $78 (USD thousands), up sequentially vs Q1 2025 ($46) and up year-over-year vs Q2 2024 ($68), while EPS was -$0.32 vs -$0.29 in Q1 and -$0.29 in Q2 2024 .
  • vs Wall Street consensus: revenue modestly beat ($78 vs $66.3*) and EPS slightly missed (-$0.32 vs -$0.293*); FY 2025 consensus remains low visibility at ~$0.20M* revenue and -$1.19* EPS [S&P Global]*.
  • Clinical execution was a bright spot: all 10 first-stage Acclaim cochlear implant study participants were activated and completed one‑month follow‑ups with zero serious adverse or unanticipated device events, strengthening the de‑risking narrative .
  • AMA Category III CPT codes for totally implantable active middle ear implants became effective July 1, 2025, potentially improving Esteem device reimbursement and opening an incremental pathway; cash was $5.287M at quarter-end to support operations .

What Went Well and What Went Wrong

What Went Well

  • All 10 first-stage pivotal trial participants were successfully activated and completed one‑month follow‑ups; “no serious adverse events or unanticipated device events have been reported for any of the 10 participants” .
  • CEO emphasized strategic positioning: “we are confident that, once approved, our fully implanted Acclaim cochlear implant will enjoy substantial patient interest… a rare opportunity to disrupt an established market” .
  • AMA CPT code approvals effective July 1, 2025 may catalyze Esteem reimbursement; management sees “renewed opportunity and possibility” for Esteem under potential reimbursement changes .

What Went Wrong

  • EPS deteriorated to -$0.32 from -$0.29 in Q1; net loss attributable to common stockholders widened to $(6,942) vs $(6,236) in Q1 and $(5,312) in Q2 2024, reflecting higher G&A (including a $0.3M severance accrual) and related-party interest expense .
  • Operating loss remained heavy at $(5,070), with total costs and operating expenses up year-over-year ($5,148 vs $4,920) despite modest revenue .
  • Term loans payable (related party) rose to $27,932 from $23,106 in Q1, increasing financial leverage and ongoing interest burden .

Financial Results

MetricQ2 2024Q1 2025Q2 2025
Revenue ($USD Thousands)$68 $46 $78
Total Costs & Operating Expenses ($USD Thousands)$4,920 $5,153 $5,148
Operating Loss ($USD Thousands)$(4,852) $(5,107) $(5,070)
Net Loss Attributable to Common ($USD Thousands)$(5,312) $(6,236) $(6,942)
Diluted EPS ($)$(0.29) $(0.29) $(0.32)
Cash ($USD Thousands, period-end)n/a$5,312 $5,287

vs Consensus (S&P Global):

MetricQ1 2025 ConsensusQ1 2025 ActualQ2 2025 ConsensusQ2 2025 Actual
Revenue ($USD Thousands)65,000*46 66,250*78
EPS ($)$(0.3575)*$(0.29) $(0.2933)*$(0.32)

Values retrieved from S&P Global*.

KPIs and Operating Drivers:

KPIQ2 2024Q1 2025Q2 2025
Acclaim pivotal trial participants activated (#)n/a6 activated of 10; remaining 4 due May 10 activated (first-stage complete)
One‑month follow‑ups completed (#)n/a2 completed 10 completed; no SAEs or unanticipated device events
R&D Expense ($USD Thousands)$2,591 $2,748 $2,485
Sales & Marketing ($USD Thousands)$497 $358 $361
G&A Expense ($USD Thousands)$1,587 $1,821 $2,068

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueFY/Q2 2025Not providedNot providedMaintained (no formal guidance)
Margins/OpExFY/Q2 2025Not providedNot providedMaintained (no formal guidance)
Other (OI&E, tax rate, dividends)FY/Q2 2025Not providedNot providedMaintained (no formal guidance)

No formal quantitative guidance was disclosed in Q2 materials .

Earnings Call Themes & Trends

Note: No Q2 2025 earnings call transcript was available in the document catalog.

TopicPrevious Mentions (Q4 2024)Previous Mentions (Q1 2025)Current Period (Q2 2025)Trend
Clinical execution (Acclaim CI)FDA approval to initiate pivotal; strong patient interest; modifications to reduce electrical system noise First-stage enrolled 10; 6 activated; 2 completed 1‑month; no SAEs; mitigations addressing electrical system noise All 10 activated; all 10 completed 1‑month; no SAEs; 3‑month follow‑ups imminent Positive execution momentum
Reimbursement/CPT (Esteem)New CPT codes approved; push for Hearing Device Coverage Clarification Act Continued reimbursement efforts; patient engagement program CPT codes effective July 1; management sees renewed opportunity under potential reimbursement changes Improving structural tailwinds
IP portfolioContinued expansion of patents —Subsequent to quarter: two new US and three Australian patents issued Strengthening IP moat
Supply chain/product costsBattery replacement sales constrained by supply chain; COGS up in Q1 —R&D product costs down as development shifts to clinical phase Mixed, but manageable
Financing/liquidityYear‑end cash $5.5M Additional $10M term funding; cash ~$5.3M Cash $5.287M; term loans rose to $27.9M (related party) Liquidity steady; leverage higher

Management Commentary

  • “We continued to make significant strides with our clinical study as all 10 study participants in the Acclaim® trial were successfully activated and completed their one-month follow-up visits with zero reported serious adverse events or unanticipated device events.” — Brent Lucas, CEO .
  • “We are confident that, once approved, our fully implanted Acclaim® cochlear implant will enjoy substantial patient interest… allowing us a rare opportunity to disrupt an established market and grow into a significant market participant relatively quickly.” — Brent Lucas, CEO .
  • On Esteem: “Meaningful changes to reimbursement… would provide Envoy Medical with a viable pathway for a product that already has FDA approval… We continue to see wisdom in strategic investments around this product.” — Brent Lucas, CEO .

Q&A Highlights

  • No Q2 2025 earnings call transcript was available in the document catalog; no Q&A themes to report this quarter.

Estimates Context

  • Q2 2025: revenue beat consensus ($78 vs $66.25k*) and EPS modestly missed (-$0.32 vs -$0.293*). With minimal revenue base, EPS remains primarily driven by OpEx and related-party interest expense; estimate models may modestly lift revenue but trim EPS given higher G&A and interest [S&P Global]*.
  • Q1 2025: revenue missed ($46 vs $65k*) while EPS beat (-$0.29 vs -$0.358*), reflecting warrant liability fair value tailwinds and lower G&A vs prior year [S&P Global].
    Values retrieved from S&P Global    .

Key Takeaways for Investors

  • Clinical de‑risking continues: full activation and clean safety profile across first-stage participants is a tangible catalyst for confidence in Acclaim CI .
  • Structural reimbursement tailwind: AMA Category III CPT codes effective July 1 raise the probability of improved economics for Esteem; any payer movement could be stock‑moving .
  • Financial profile: revenue remains de minimis; EPS is sensitive to OpEx and related‑party interest; monitor G&A normalization post severance accrual and funding costs .
  • Liquidity and leverage: cash of $5.287M with rising related‑party term debt ($27.9M); financing events and cost discipline will be key near‑term .
  • Near‑term catalysts: three‑month follow‑up data from first-stage participants; continued CPT/reimbursement developments; patent additions supporting competitive moat .
  • Trading implications: modest beats/misses at micro revenue don’t drive price action; narrative likely pivots on clinical milestones and reimbursement signals rather than quarterly P&L prints .
  • Medium‑term thesis: if clinical outcomes remain positive and reimbursement improves, COCH could transition from development to commercial with differentiated, fully implanted solutions, potentially transforming revenue trajectory and valuation over time .