Executive Summary

Q3 2025 revenue was $1.19M, up 35% year over year; gross loss narrowed 81% to $0.13M, and operating loss improved to $(3.49)M from $(4.44)M in Q3 2024 .
IPO closed Sept 2, 2025, converting all convertible notes and preferred stock and lifting stockholders’ equity to $7.97M while reducing total liabilities to $5.55M; cash rose to $2.81M at quarter-end .
EPS improved to $(0.19) vs $(0.87) last year; however non‑cash derivative and interest charges tied to IPO-related conversions increased total other expense to $(6.94)M, driving net loss of $(10.43)M .
No formal financial guidance was issued; management emphasized IPO proceeds to fund operations and R&D, and continued patent portfolio expansion for the fully implantable SynCardia Total Artificial Heart platform .
Near-term stock narrative hinges on balance-sheet cleanup post-IPO vs. continued negative gross margins and going‑concern disclosures; catalysts include U.S. product sales momentum and IP wins vs. financing needs and derivative accounting noise .

What Went Well and What Went Wrong

What Went Well

“The third quarter marked a pivotal moment … with the successful completion of its initial public offering … retiring convertible debt, providing new capital to accelerate research, development, and commercial expansion” .
Revenue grew 35% YoY to $1.19M on higher U.S. product sales and increased driver rentals; cost of revenues fell 15% YoY, improving gross loss to $(0.13)M .
Operating loss narrowed to $(3.49)M vs $(4.44)M last year; SG&A decreased 14% YoY in the quarter, reflecting expense discipline .

What Went Wrong

Net loss widened to $(10.43)M, driven by $(6.94)M in total other expense (higher interest and derivative losses linked to convertible note conversions), overshadowing operational improvements .
Gross margin remained negative (Q3: −12%), reflecting high manufacturing and rental maintenance costs vs. limited revenue scale; nine-month gross loss increased vs prior year .
Management reiterated going‑concern uncertainty absent additional financing, despite IPO proceeds, given persistent negative cash flows and scale requirements to cover fixed overheads .

Financial Results

Core P&L vs prior quarters

Metric	Q1 2025	Q2 2025	Q3 2025
Revenue ($USD Millions)	$0.62*	$2.131	$1.187
Net Income ($USD Millions)	$(5.561)*	$(6.724)	$(10.426)
EPS (Basic & Diluted, $)	$(0.80)*	$(0.85)	$(0.19)
Operating Income ($USD Millions)	$(3.246)*	$(3.521)	$(3.487)
Gross Profit ($USD Millions)	$(0.358)*	$(0.127)	$(0.130)
Gross Margin (%)	−57.74%*	−5.98%*	−12%
EBITDA ($USD Millions)	$(3.204)*	$(3.481)*	$(3.487)
EBITDA Margin (%)	n/a*	−163.89%*	−313%

Values with an asterisk (*) retrieved from S&P Global.

Year-over-year quarterly comparison (Q3)

Metric	Q3 2024	Q3 2025
Revenue ($USD Millions)	$0.881	$1.187
Operating Income ($USD Millions)	$(4.444)	$(3.487)
Net Income ($USD Millions)	$(6.206)	$(10.426)
EPS (Basic & Diluted, $)	$(0.87)	$(0.19)
Gross Profit ($USD Millions)	$(0.673)	$(0.130)

Revenue mix (Q3 2025)

Category	Q3 2025 ($USD Millions)
Products	$1.115
Rentals	$0.072
Total	$1.187

Balance-sheet/operating KPIs (Quarter-end)

Metric	Sep 30, 2025
Cash & Cash Equivalents ($USD Millions)	$2.813
Accounts Receivable ($USD Millions)	$0.892
Inventory, net ($USD Millions)	$6.552
Total Liabilities ($USD Millions)	$5.553
Stockholders’ Equity ($USD Millions)	$7.968
Convertible Notes Outstanding	$0 (all converted)

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY/Quarter	Not provided	Not provided	Maintained (no formal guidance)
Gross Margin	FY/Quarter	Not provided	Not provided	Maintained (no formal guidance)
OpEx/SG&A	FY/Quarter	Not provided	Not provided	Maintained (no formal guidance)
Tax Rate	FY/Quarter	Not provided	Not provided	Maintained (no formal guidance)
Segment/Other	FY/Quarter	Not provided	Not provided	Maintained (no formal guidance)

Management reiterated funding priorities and use of proceeds but did not issue quantitative guidance ranges .

Earnings Call Themes & Trends

Note: A Q3 2025 earnings call transcript was not available from the document corpus or public sources reviewed.

Topic	Previous Mentions (Q2 2025, Q1 2025)	Current Period (Q3 2025)	Trend
Capital & Financing	Reliance on related-party loans/convertible notes; going‑concern risks	IPO completed; all notes converted; equity strengthened	Improving capital structure, financing needs persist
Product Performance	US-driven revenue; rentals small; negative gross margin pressures	US product sales up; rentals increased; quarterly gross margin still negative	Gradual revenue progress, margin still negative
R&D & IP	Ongoing R&D; patent portfolio expansion (Emperor TAH patents)	Additional US patent issued; total claims expanded; focus on fully implantable platform	Strengthening IP
Supply Chain/Costs	Higher manufacturing costs; inventory provisions	Cost of revenues down YoY in Q3; inventory allowance increased YTD	Mixed—quarterly improvement, YTD pressure
Regulatory/Legal	No material legal proceedings	No material legal proceedings	Stable
Governance	Emerging growth, smaller reporting company; internal control weaknesses	Same status; control weaknesses persist; remediation plan in place	Ongoing remediation

Management Commentary

“The third quarter marked a pivotal moment … with the successful completion of its initial public offering … retiring convertible debt, providing new capital to accelerate research, development, and commercial expansion” — Patrick NJ Schnegelsberg, CEO .
“We continued to secure additional patent protection … for our SynCardia Total Artificial Heart … the most widely used and extensively studied artificial heart in the world” .
Company focus: financing operations through equity/debt while scaling commercialization to offset fixed overhead; IPO proceeds to fund operations into 2025 based on current plan and conditions .

Q&A Highlights

Not available; no transcript or published Q&A was found.

Estimates Context

Wall Street consensus (S&P Global) for Q3 2025 EPS and Revenue was unavailable; comparison to Street estimates could not be made.
Reported results: Revenue $1.19M; EPS $(0.19); EBITDA $(3.49)M .
Values retrieved from S&P Global where applicable.

Key Takeaways for Investors

Balance-sheet reset: IPO and conversions eliminated convertible debt and preferred stock, reducing liabilities to $5.55M and lifting equity to $7.97M; cash increased to $2.81M, simplifying capital structure and reducing financial overhang .
Operations improving but still subscale: 35% YoY revenue growth and lower cost of revenues drove operating loss improvement; gross margin remains negative, highlighting need for scale and cost optimization .
Accounting noise vs fundamentals: Large non‑cash derivative and interest charges tied to conversions materially impacted net loss; investors should focus on operating trends and margin trajectory .
IP and platform durability: New patent issuance and cumulative claims support a defensible roadmap for the fully implantable SynCardia Total Artificial Heart (“Emperor”) and may underpin medium‑term commercialization .
Funding outlook: Despite IPO proceeds, management continues to flag going‑concern risks absent additional capital; monitor cash runway, financing activities, and revenue scaling .
Revenue concentration: Sales remain highly US‑centric; sustained growth in domestic centers and broader geographic diversification would improve resilience .
Near‑term stock narrative: Balance‑sheet de‑risking is a positive catalyst; sustained improvement in gross margin and evidence of scale are likely key to re-rating.

Sources

Q3 2025 Form 10‑Q (financial statements, MD&A, capital structure, cash flows) .
Q3 2025 8‑K 2.02 and Exhibit 99.1 (press release, revenue/margin, IPO highlights, patents) .
Q2 2025 Form 10‑Q (prior quarter trend, segment/geography, risks) .
GlobeNewswire press release: Picard Reports Third Quarter 2025 Financial Results .
Nasdaq summary: “Picard Medical Loss Narrows in Q3” (high‑level recaps consistent with company figures) .