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Stereotaxis, Inc. (STXS)·Q1 2025 Earnings Summary

Executive Summary

  • Revenue $7.47M (+9% y/y) with recurring revenue $5.50M (+29% y/y) and system revenue $1.96M; gross margin 54% .
  • Revenue beat Wall Street consensus ($7.47M vs $6.88M*) and EPS was in line (-$0.07 vs -$0.0725*) as reported estimates involved 4 covering analysts*; revenue beat and EPS inline .
  • Guidance reiterated: double-digit FY25 growth, system revenue $2–$3M per quarter, recurring revenue scaling to ~$7M in Q4; assumptions include modest GenesisX contribution in Europe and no system revenue from China .
  • Catalysts: MAGiC EU commercialization (active at ~20% of customers), first GenesisX order, first commercial GenesisX installation targeted for summer, with multiple US/EU regulatory reviews progressing (MAGiC US 2H25; GenesisX US summer; MAGiC Sweep and EMAGIN 3Q approval expected) .

What Went Well and What Went Wrong

What Went Well

  • Map-iT catheter adoption: “Map-iT sales in the first quarter were over $1 million… growing 30% sequentially in the first quarter from the fourth quarter” .
  • MAGiC EU launch traction: “At approximately 20% of our hospital customers, we’ve got through… and begun commercial sales… reiterate… MAGiC revenue in Europe will reach approximately $1 million per quarter by the end of this year” .
  • GenesisX momentum: “Successful demonstrations… EHRA and HRS… first GenesisX purchase order… preparing for the first commercial installation… this summer” .

What Went Wrong

  • Profitability/margins: System gross margin 15% and recurring margin impacted by acquisition-related accounting; operating loss widened y/y ($5.9M vs $4.7M) .
  • US capital environment: “Tougher capital environment… until we get GenesisX on the market and… catheters… approved” .
  • China uncertainty: Despite Genesis approval in China, macro/tariff dynamics make timing of orders uncertain; guidance excludes China system revenue .

Financial Results

Summary vs Prior Quarters

MetricQ3 2024Q4 2024Q1 2025
Revenue ($USD Millions)$9.196 $6.340 $7.472
Gross Margin (%)45% 51% 54%
Diluted EPS ($)-$0.08 -$0.09 -$0.07
Operating Loss ($USD Millions)$6.345 $7.627 $5.929
Net Loss ($USD Millions)$6.190 $7.515 $5.823

Segment Revenue Breakdown

SegmentQ3 2024Q4 2024Q1 2025
System Revenue ($USD Millions)$4.391 $1.389 $1.964
Recurring Revenue ($USD Millions)$4.805 $4.951 $5.508

Segment Gross Margins

SegmentQ3 2024Q4 2024Q1 2025
Recurring Gross Margin (%)70% —68%
System Gross Margin (%)16% —15%

KPIs and Cash Metrics

KPIQ3 2024Q4 2024Q1 2025
Cash & Equivalents ($USD Millions)$11.0 (incl. restricted) $12.4 (incl. restricted) $10.7
Free Cash Flow ($USD Millions)-$4.2 +$1.3 -$1.8
Adjusted Operating Expenses ($USD Millions)$7.2 $7.2 $6.8
Adjusted Operating Loss ($USD Millions)$3.1 $4.0 $2.7
Adjusted Net Loss ($USD Millions)$3.0 $3.8 $2.6

Guidance Changes

MetricPeriodPrevious Guidance (Q4 2024)Current Guidance (Q1 2025)Change
Revenue GrowthFY 2025Double-digit growth Double-digit growth reiterated Maintained
System Revenue per Quarter2025$2–$3M $2–$3M Maintained
Recurring Revenue Run-RateQ4 2025~$7M ~$7M Maintained
GenesisX Contribution (Europe)2025Modest Modest Maintained
China System Revenue Assumption2025Modest contribution contemplated No system revenue assumed Lowered
Cash Use vs 20242025Reduced cash use expected Reduced cash use reiterated Maintained
Tariffs Expense Impact2025—<1% increase in expenses New disclosure

Earnings Call Themes & Trends

TopicPrevious Mentions (Q3 2024, Q4 2024)Current Period (Q1 2025)Trend
AI/digital labSynchrony/SynX regulatory path; unveil at HRS, modest 2025 revenue, larger in 2026 Continued progress; focus on connectivity/AI in cath lab alongside robotics Building, near-term modest, medium-term growing
Product performance (MAGiC)CE Mark near-term; US PMA review collaborative; EU launch expected; US approval reasonable in 2H25 EU commercial sales active at ~20% of hospitals; run-rate ~$1M/quarter by YE25; US approval expected 2H25 Accelerating EU adoption; US on track
Mapping catheter (MAGiC Sweep)Submissions planned Q1 2025; increases per-procedure disposable revenue Submitted; expect US/EU approvals in Q3 Advancing to approvals
GenesisX platformCE Mark; US 510(k) questions; initial soft launch tied to MAGiC availability First order; conference demos; first commercial install targeted for summer; US approval realistic in summer Moving from demos to install
Regional trendsEurope strongest ecosystem; US/China lag due to approvals US capital challenged pre-approvals; EU pipeline robust; China viewed as upside given macro EU strength; US challenged; China uncertain
Supply chain/costsSystem margins pressured by fixed overhead; acquisition accounting depresses recurring margins temporarily Recurring margins to normalize by Q3; tariffs <1% expense impact Improving recurring margins; limited tariff impact
Regulatory/legalMultiple submissions (MAGiC Sweep, EMAGIN 5F); China approvals for Genesis ecosystem Six active reviews; MAGiC US 2H25; GenesisX US summer; EMAGIN & Sweep expected Q3 High cadence maintained

Management Commentary

  • “We’ve started the year with solid execution on key commercial and innovation efforts… beginning to demonstrate the tangible reality and commercial impact of our comprehensive innovation strategy.” — David Fischel .
  • “At approximately 20% of our hospital customers, we’ve… begun commercial sales [of MAGiC]… conservatively generate a couple of hundred thousand dollars of revenue this quarter… scale to ~$1 million per quarter by the end of this year.” — David Fischel .
  • “Gross margin for the first quarter was 54%… recurring revenue gross margin 68% and system gross margin 15%… expect recurring revenue margins to get back to a normal level by this year’s third quarter.” — Kimberly Peery .
  • “We expect double-digit revenue growth… system revenue… ~$2–$3M… recurring revenue… reaching ~$7M in the fourth quarter… assume only modest contributions from GenesisX in Europe and no system revenue from China.” — David Fischel .

Q&A Highlights

  • Capital/backlog and regional dynamics: US interest exists but purchases likely post-approvals; Europe shows consistent Genesis orders; China upside contingent on macro/tariffs .
  • MAGiC adoption patterns: First orders of 5–10 catheters, positive feedback, repeat orders emerging; 2-year conversion to full MAGiC penetration in EU; US adoption expected to be quicker post-approval .
  • Regulatory timelines: MAGiC US PMA progressing with detailed FDA review; remaining tests underway; GenesisX US approval viewed as realistic in summer .
  • Financing models for GenesisX: Considering purchase, leasing, and placement models with catheter commitments to accelerate installed base growth .
  • Case mix outlook: Robotic platform’s strongest value in complex VT/PVC/congenital cases first, with potential to expand into SVTs/AF as adoption deepens .

Estimates Context

  • Q1 2025 vs consensus: Revenue $7.47M vs $6.88M* (beat); EPS -$0.07 vs -$0.0725* (inline). Estimates based on 4 analysts for both revenue and EPS* .
  • FY 2025 consensus: Revenue $32.85M*, EPS -$0.255*, Target Price $4.25* (4 estimates*) — management reiterated double-digit growth and recurring ramp to $7M by Q4, implying potential upward bias to recurring estimates if MAGiC EU scales as planned and US approvals arrive on schedule .

Values retrieved from S&P Global.*

Q1 2025 Actuals vs Estimates

MetricQ1 2025 ConsensusQ1 2025 Actual
Revenue ($USD)$6,875,000*$7,472,000
Primary EPS ($)-$0.0725*-$0.07
# of Estimates (Revenue)4*—
# of Estimates (EPS)4*—

Key Takeaways for Investors

  • Revenue mix is pivoting toward higher-margin recurring with strong Map-iT adoption and MAGiC EU commercialization, supporting the path to reduced cash burn in 2025 .
  • Near-term system revenue variability persists, but GenesisX and continued Genesis orders in Europe underpin the $2–$3M quarterly system revenue framework; GenesisX installation this summer is a proof-point catalyst .
  • Regulatory cadence remains robust (six active reviews), with pivotal approvals expected (MAGiC US 2H25; GenesisX US summer; MAGiC Sweep/EMAGIN Q3), expanding TAM into mapping and vascular indications .
  • Recurring gross margins should normalize as acquisition accounting rolls off by Q3, providing margin tailwinds while tariffs are expected to be immaterial (<1% expense impact) .
  • Guidance conservatism (no China system revenue; modest GenesisX EU contribution) sets a base case with upside optionality from China normalization and US approvals .
  • Balance sheet ($10.7M cash, no debt) and modest Q1 cash use (-$1.8M FCF) support execution through key 2025 milestones without dependence on near-term external financing .
  • Trading lens: watch for validation events — first GenesisX clinical install, MAGiC EU ramp, and US approvals — as narrative shifts from product demos to real-world clinical utility and scaling .