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CVRx, Inc. (CVRX)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 revenue of $13.59M grew 15% YoY and modestly beat S&P Global consensus; EPS of -$0.57 missed consensus as SG&A remained elevated during the sales force transition .
  • Guidance narrowed: FY 2025 revenue to $55–$57M (from $55–$58M), OpEx to $96–$98M (from $95–$98M); gross margin maintained at 83–84% .
  • Reimbursement momentum continued: CMS proposed maintaining Barostim in New Technology APC 1580 for 2026 (~$45,000 outpatient payment) and favorable physician fee RVUs ahead of Category I CPT transition in 2026—key adoption catalysts .
  • Commercial progress: active U.S. implanting centers rose to 240 (from 227 in Q1), U.S. HF revenue units increased to 387; near-term focus is onboarding and productivity ramp of newly hired reps .

What Went Well and What Went Wrong

What Went Well

  • Reimbursement tailwinds: CMS proposed keeping Barostim in APC 1580 (~$45,000 outpatient) and set 11 RVUs for the implant procedure ahead of 2026 Category I codes, improving payment predictability and reducing automatic denials .
  • Commercial footprint expanded: active U.S. implanting centers reached 240 (+13 QoQ), U.S. HF revenue units rose to 387, supported by targeted center segmentation and program-building playbooks .
  • Management confidence: “Our sales force transformation is gaining traction, and we're building sustainable Barostim programs with high potential centers... fundamentals remain strong” — Kevin Hykes, CEO .

What Went Wrong

  • EPS miss: Net loss widened to $14.74M and EPS was -$0.57 as SG&A rose to $23.36M (+11% YoY), driven by compensation, travel, and stock-based comp during sales force transition .
  • Interest expense climbed: +$0.5M YoY on higher borrowings under the term loan, pressuring bottom line despite revenue growth .
  • Q1 seasonality and turnover hangover: Q1 softness created a lower baseline; Q2 still carried onboarding-related inefficiencies, with management highlighting variable rep ramp timelines (6–12 months) .

Financial Results

Quarterly Actuals

MetricQ2 2024Q4 2024Q1 2025Q2 2025
Revenue ($USD Millions)$11.81 $15.34 $12.35 $13.59
Diluted EPS ($USD)-$0.65 -$0.43 -$0.53 -$0.57
Gross Margin %84% 83% 84% 84%
Total Operating Expenses ($USD Millions)$23.88 $23.05 $23.75 $25.83
Net Loss ($USD Millions)-$14.03 -$10.65 -$13.77 -$14.74

Actual vs S&P Global Consensus (Q2 2025)

MetricActualConsensusSurprise
Revenue ($USD)$13.59M $13.22M*+2.8% — bolded beat
Primary EPS ($USD)-$0.57 -$0.520*-9.6% — bolded miss

Values marked with * retrieved from S&P Global.

Geographic and HF Segment Details

MetricQ2 2024Q1 2025Q2 2025
U.S. Revenue ($USD Millions)$10.60 $11.20 $12.20
U.S. HF Revenue ($USD Millions)$10.50 $11.10 $12.10
U.S. HF Units (count)339 353 387
Europe Revenue ($USD Millions)$1.10 $1.10 $1.30
Europe Units (count)63 59 61

KPIs and Operating Metrics

KPIQ4 2024Q1 2025Q2 2025
Active U.S. Implanting Centers (count)223 227 240
U.S. Sales Territories (count)48 45 47
Cash & Cash Equivalents ($USD Millions)$105.93 $102.67 $95.03
Net Cash Used in Op + Investing ($USD Millions)—-$12.9 -$8.0

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Total RevenueFY 2025$55–$58M $55–$57M Narrowed (lowered top-end)
Gross Margin %FY 202583–84% 83–84% Maintained
Operating ExpensesFY 2025$95–$98M $96–$98M Raised at low end
Total RevenueQ3 2025—$13.7–$14.7M New quarterly guide

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4 2024, Q1 2025)Current Period (Q2 2025)Trend
Sales force transformation & productivityBuilding world-class sales org highlighted; Q1 saw deeper-than-expected turnover and seasonality impact; rep ramp 6–12 months Hiring largely complete; turnover normalizing; focus shifting to onboarding/training; early contributions emerging Improving, productivity ramp underway
Reimbursement (APC 1580, Category I CPT)Request for Level 6 APC; expectation of ~$45k outpatient via New Tech APC; Category I CPT transition planned CMS proposed keeping APC 1580 ($45k); 11 RVUs ($550) proposed; Category I effective Jan 1, 2026; denial rates expected to improve Structural tailwind strengthening
Clinical evidence & RCTPublished real-world data: 85% HF hospitalization reduction; planning pragmatic RCT (EF ≤50%, NT-proBNP ≤5,000), 1,000–2,000 pts Ongoing FDA discussions; CMS coverage prerequisite; continuing investigator-led and multicenter studies Building evidence base
Account strategy (tiering, dabbler cleanup)Emphasis on high-potential centers; sunsetting relationship-driven dabblers; target 8–13 net adds/quarter More Tier 1/2 adds; selective Tier 3/4 “satellite” plays to access flagship centers; Q2 net adds above expectation Mix optimized for sustainability
Gross margin & cost structureGM 83–84% maintained; SG&A elevated in Q1 from stock comp and headcount GM ~84%; slight Q2 beat attributed to price; SG&A seasonally high in Q2, expected to decline H2 Stable GM, OpEx normalization expected

Management Commentary

  • “Our sales force transformation is gaining traction, and we're building sustainable Barostim programs with high potential centers... fundamentals remain strong” — Kevin Hykes, CEO .
  • “We narrowed our revenue and OpEx guidance... Q3 revenue expected $13.7–$14.7M” — Jared Oasheim, CFO .
  • On reimbursement: “Category III denials are 100%; Category I will force human review, improving approval predictability and speed” — Kevin Hykes .
  • On account strategy: “Higher utilization and revenue in Tier 1/2 accounts; selective Tier 3/4 additions serving as satellites to flagship centers” — Management .

Q&A Highlights

  • Guidance mechanics: H2 performance hinges on the productivity ramp of newly hired reps; Q3 guide contemplates activating more territories and improving account utilization .
  • Gross margin: Slight Q2 beat to ~84.3% due more to price; full-year GM guide kept at 83–84% .
  • Reimbursement trajectory: Category I CPT codes in 2026 expected to reduce automatic denials and formalize physician payment (11 RVUs); OPPS APC 1580 maintained with slim chance of Level 6 this cycle but acceptable status quo .
  • Center additions: Expect 8–13 net adds per quarter; Q2 over-delivered due to higher gross adds and fewer sunsets; volatility quarter-to-quarter remains .
  • Sales org cadence: Turnover returning to industry norms; earliest 2025 hires are beginning to contribute; onboarding and training intensified to accelerate ramp .

Estimates Context

  • Q2 2025: Revenue beat consensus; EPS missed consensus as SG&A remained high during the transition.
  • FY 2025: Company narrowed revenue and OpEx ranges, implying modestly more conservative top-line midpoint while maintaining GM; consensus may fine-tune EPS lower and revenue slightly higher given Q3 guide alignment.
  • S&P Global consensus snapshot:
    MetricQ4 2024Q1 2025Q2 2025Q3 2025FY 2025
    Revenue Consensus Mean ($USD)$15.23M*$12.30M*$13.22M*$14.16M*$56.13M*
    Primary EPS Consensus Mean ($USD)-$0.375*-$0.570*-$0.520*-$0.501*-$2.034*

Values marked with * retrieved from S&P Global.

Key Takeaways for Investors

  • Revenue beat and EPS miss frame Q2’s trade-off: commercialization momentum vs near-term expense intensity; watch SG&A normalization into H2 .
  • Reimbursement catalysts are material for adoption: APC 1580 maintained, Category I CPT in 2026, and favorable RVUs—expect improved prior auth predictability and physician payment consistency .
  • Execution hinges on rep productivity ramp over the next 2–3 quarters; center adds likely in the 8–13 range per quarter, with focus on Tier 1/2 sustainability .
  • Guidance narrowing is prudent; Q3 revenue guide brackets consensus, reducing downside risk if onboarding proceeds as planned .
  • Evidence pipeline (RCT discussions, real-world data) supports medium-term thesis of broader adoption; potential TAM expansion if RCT proceeds .
  • Cash of ~$95M and reduced quarterly cash burn vs prior year provide runway to execute the sales and clinical strategy .
  • Near-term trading: stock likely sensitive to updates on APC Level 6 discussion, Category I CPT implementation, and monthly center/program additions; monitor cadence from field updates and Q3 execution .