Executive Summary

Q1 2024 revenue was $7.46M, up 28.4% year over year; basic EPS was $0.20 and diluted EPS was $(0.02). The 8‑K press release rounded revenue to $7.5M, consistent with the 10‑Q detail .
Operations metrics remained strong: six‑day turnaround and on‑time deliveries above 99% continued in Q1, sustaining the company’s customer satisfaction narrative .
The company entered voluntary Chapter 11 on May 7, 2024; the plan contemplated ~$20M new capital, ~60% debt reduction, and a return to private status, with ongoing operations expected to continue; Nasdaq delisting occurred in April 2024 with OTC trading under “OSAP/OSAPW” .
No quantitative guidance was disclosed for Q1 2024; comparison to Wall Street consensus via S&P Global was unavailable, limiting assessment of beats/misses versus estimates. Values from S&P Global were unavailable for OSA.

What Went Well and What Went Wrong

What Went Well

“These exceptional results demonstrate ProSomnus’s value proposition…To generate top tier revenue growth…while going through a restructuring, is truly an outstanding achievement,” said CEO Len Liptak, highlighting resilience during Chapter 11 planning .
Operational execution: industry‑leading six‑day turnaround and >99% on‑time customer deliveries continued, reinforcing service reliability .
Technology/R&D progress: RPMO₂ next‑generation remote patient monitoring device scheduled for final clinical testing ahead of FDA submission in June 2024, advancing product roadmap .

What Went Wrong

Capital structure stress and going‑concern risk: the company initiated Chapter 11 to reorganize; management acknowledged substantial doubt about going concern given debt defaults and liquidity constraints, pending execution of the restructuring plan .
Equity holders at risk: filings warn existing common stock and warrants may receive no recovery under the confirmed plan; trading in securities during the process is highly speculative .
Delisting and reputational impact: Nasdaq suspended trading April 18, 2024; shares moved to OTC, complicating investor access and potentially increasing volatility .

Financial Results

Metric	Q3 2023	Q4 2023	Q1 2024
Revenue ($USD Millions)	$7.07	$7.84	$7.46
Net Income (Loss) ($USD Millions)	$(11.24)	$(6.87)	$3.44
Basic EPS ($USD)	$(0.70)	n/a	$0.20
Diluted EPS ($USD)	$(0.70)	n/a	$(0.02)
Cost of Revenue ($USD Millions)	$3.58	$4.13	$3.83
Cost of Revenue (% of Revenue)	n/a	53%	n/a

Notes: Q1 press release rounded revenue to $7.5M; 10‑Q shows $7.458M (minor rounding) .

Segment breakdown: Not applicable (single product line with precision intraoral devices; no segment reporting disclosed) .

KPIs across quarters:

KPI	Q3 2023	Q4 2023	Q1 2024
On-time deliveries	“Maintained >98%”	“Maintained >98%”	“Above 99%”
Turnaround time	n/a	n/a	Six-day turnaround
Quality/Certification	ISO 13485:2016 achieved	ISO 13485:2016 reaffirmed	Operations metrics sustained
RPM/Tech pipeline	SOS/FLOSAT studies; RPM feasibility data	Severe label 510(k) submitted; RPM feasibility	RPMO₂ final clinical testing before FDA submission June 2024

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY 2024	None disclosed in filings reviewed	None disclosed	Maintained (no guidance)
Gross Margin	FY 2024	None disclosed	None disclosed	Maintained (no guidance)
OpEx	FY 2024	Focus on reductions noted historically	No quantified guidance	Maintained qualitative stance
RPM/Regulatory	2024 milestones	510(k) severe label under review (Q4 2023)	RPMO₂ FDA submission targeted after June testing	Updated milestone timing

No quantitative ranges were provided in the Q1 2024 press release or 10‑Q; we did not find formal numerical guidance ranges in the reviewed documents .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3 2023, Q4 2023)	Current Period (Q1 2024)	Trend
Product performance / revenue growth	Record revenue; seven consecutive sequential growth quarters (Q3) ; record Q4 and FY revenue (Q4)	28% YoY revenue growth; sustained operations during restructuring	Growth persists amid restructuring
Operations / supply chain	>98% on-time delivery (Q4)	Six-day turnaround; >99% on-time deliveries	Operational reliability sustained
Regulatory / legal	Severe indication 510(k) submitted; Nasdaq listing then (Q4)	Chapter 11 initiated; Nasdaq delisting and OTC trading	Capital structure reset; public-to-private pivot
R&D / RPM initiatives	RPM feasibility; FLOSAT/SOS studies (Q3/Q4)	RPMO₂ final clinical testing before FDA submission	Pipeline execution progressing
Cost discipline	OpEx reduction initiatives (Q3/Q4)	No quantified OpEx guidance; continued focus implied	Ongoing cost focus

Management Commentary

CEO Len Liptak: “These exceptional results demonstrate ProSomnus’s value proposition, differentiation, and the quality of our people, providers, and processes… while going through a restructuring” .
Q4 commentary emphasized record results and ongoing clinical and regulatory progress including severe OSA label expansion submission and RPM feasibility, alongside OpEx reduction efforts and ISO certification .

Q&A Highlights

Q4 2023 call indicated there would be no Q&A session, limiting analyst clarification opportunities .
We found no Q1 2024 earnings call transcript in company documents; Q1 disclosure was via an 8‑K press release and the 10‑Q .

Estimates Context

S&P Global consensus estimates for Q1 2024 EPS and revenue were unavailable for OSA in our retrieval environment; therefore, we cannot assess beats/misses versus Wall Street consensus. Values from S&P Global were unavailable for OSA.
Public filings provide actuals: revenue $7.46M, basic EPS $0.20, diluted EPS $(0.02) .

Key Takeaways for Investors

Operational execution remains strong (six‑day turnaround, >99% on-time delivery), supporting the core commercial thesis even during restructuring .
Capital structure overhaul is the dominant near‑term narrative: Chapter 11 aims to deliver ~$20M of capital, ~60% debt reduction, and privatization; equity holders face high impairment risk under the plan .
Revenue trajectory is resilient with 28% YoY growth in Q1, following record Q4/FY 2023 performance; near‑term focus shifts to liquidity, restructuring progress, and pipeline execution .
RPMO₂ and severe OSA label expansion could be medium‑term product catalysts; watch FDA submission/clearance timelines and commercial ramp potential .
Lack of formal guidance and unavailable consensus estimates increase uncertainty; investors should monitor court milestones (plan confirmation), DIP financing usage, and post‑emergence operating plans .
OTC trading and delisting may constrain liquidity and institutional participation; position sizing and risk management should reflect restructuring outcomes .

Appendix: Prior Quarter References

Q4 2023 8‑K press release and detailed financial tables (revenue $7.84M; net loss $(6.87)M) .
Q3 2023 8‑K press release and tables (revenue $7.07M; gross margin consistent at ~49%; basic/diluted EPS $(0.70)) .
Q1 2024 10‑Q: revenue $7.46M, basic EPS $0.20, diluted EPS $(0.02), and extensive going‑concern and restructuring disclosures .

ProSomnus, Inc. (OSA)·Q1 2024 Earnings Summary