Executive Summary

Strong top-line execution: revenue grew 95% Y/Y to $8.80M and 18% Q/Q, driven by partial recognition on two systems (incl. first commercial GenesisX) and ramping disposables from Map‑iT and initial MAGiC/MAGiC Sweep, with gross margin at 52% .
Estimates: Revenue beat and EPS beat; EBITDA missed. Actual revenue $8.80M vs $8.13M consensus; GAAP EPS −$0.05 vs −$0.065; EBITDA −$3.58M vs −$1.45M consensus. Bold beats on revenue and EPS; EBITDA a notable miss. Values retrieved from S&P Global.*
Guidance maintained: reiterated double‑digit FY25 revenue growth; system revenue of $2–$3M per quarter; recurring revenue scaling to $7M in Q4; modest GenesisX EU contribution and no China systems revenue .
Catalysts: FDA 510(k) clearance of MAGiC Sweep (first FDA interventional catheter clearance in ~20 years), initial GenesisX commercialization, and continued regulatory timelines (“GenesisX U.S. approval likely still this summer”; MAGIC U.S. approval expected later this year) position STXS for outsized 2026 growth narrative .

What Went Well and What Went Wrong

What Went Well

Commercial traction across both systems and recurring revenue: “Sequential and year‑over‑year growth in both recurring and system revenue reflects the early positive impact of our innovations on commercial adoption.”
Regulatory milestone: “Recent FDA clearance of MAGiC Sweep was a significant milestone as Stereotaxis’ first FDA clearance for an interventional catheter in nearly 20 years.”
Liquidity strengthened: Pro forma cash of $18.8M following July financing; no debt, supporting execution of the innovation strategy .

What Went Wrong

Profitability still pressured: Operating loss improved but remained at $(4.0)M; net loss $(3.8)M; negative FCF widened to $(3.7)M (vs $(3.1)M prior year) .
Margin headwinds: System GM only 22% and overall GM 52% due to acquisition‑related accounting on disposables and fixed overhead over low system production .
EBITDA underperformed consensus: Street expected a much smaller EBITDA loss than realized, implying higher opex/margin drag than modeled. Values retrieved from S&P Global.*

Financial Results

Core P&L vs Prior Periods

Metric	Q4 2024	Q1 2025	Q2 2025
Revenue ($M)	$6.34	$7.47	$8.80
GAAP EPS ($)	$(0.09)	$(0.07)	$(0.05)
Gross Margin (%)	51%	54%	52%
Operating Loss ($M)	$(7.63)	$(5.93)	$(3.98)

Actual vs S&P Global Consensus (Q2 2025)

Metric	Consensus	Actual	Surprise
Revenue ($M)	$8.13*	$8.80	+$0.67M, bold beat*
GAAP EPS ($)	−$0.065*	−$0.05	+$0.015, bold beat*
EBITDA ($M)	−$1.45*	−$3.58*	−$2.13, miss*
Values retrieved from S&P Global.*

Segment/Revenue Mix

Revenue ($M)	Q4 2024	Q1 2025	Q2 2025
Systems	$1.39	$1.96	$3.04
Disposables, Service & Accessories	$4.95	$5.51	$5.76
Total Revenue	$6.34	$7.47	$8.80

KPIs and Cash

KPI	Q4 2024	Q1 2025	Q2 2025
Recurring GM (%)	—	68%	68%
System GM (%)	—	15%	22%
Free Cash Flow ($M)	$1.30	$(1.80)	$(3.70)
Cash & Equivalents ($M, period-end)	$12.22	$10.60	$6.97
Pro Forma Cash ($M, post July financing)	—	—	$18.8

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue Growth	FY 2025	Double‑digit growth	Double‑digit growth	Maintained
System Revenue	FY 2025	$2–$3M per quarter	$2–$3M per quarter	Maintained
Recurring Revenue	Q4 2025	~$7M in Q4	~$7M in Q4	Maintained
Geographic/Reg. Assumptions	FY 2025	Modest GenesisX EU; no China systems	Modest GenesisX EU; no China systems	Maintained
Cash Usage	FY 2025	Expect reduced cash use vs 2024	Not updated in Q2 PR	—

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4’24, Q1’25)	Current Period (Q2’25)	Trend
AI / Digital Surgery Platform	Strategic transformation foundation; focus on platform and ecosystem	“Digital surgery platform that enables operating room connectivity and smart AI capabilities” highlighted by CEO on call	Building visibility
Product Performance (GenesisX, MAGiC)	First GenesisX sale; EU approval of MAGiC; growing backlog	Partial revenue on first commercial GenesisX; MAGiC initial EU commercialization; MAGiC Sweep FDA clearance	Positive momentum
Regulatory Timelines	Multiple 2025 submissions in flight	GENESIS X U.S. approval “likely still this summer”; MAGIC U.S. approval expected “later this year”	Nearing milestones
Margins & Cost Structure	FY24 GM ~54%; system GM pressured by low production; opex elevated with APT integration	GM 52%; system GM 22%; opex includes $2.6M non‑cash; negative FCF $(3.7)M	Mixed; improving scale needed
Regional Trends	Expect modest EU GenesisX; China approvals but no revenue modeled	Maintains modest EU GenesisX and no China systems in 2025 outlook	Unchanged
R&D Execution	6 active regulatory reviews; advancing magnet/catheter portfolio	Continued catheter pipeline; MAGiC Sweep clearance reflects APT integration benefits	On plan

Management Commentary

“This is an exciting milestone rich year with broad-based progress across the late stages of our comprehensive innovation strategy.” – David Fischel, CEO
“Recent FDA clearance of MAGiC Sweep was a significant milestone as Stereotaxis’ first FDA clearance for an interventional catheter in nearly 20 years.” – David Fischel, CEO
“Incorporating the net proceeds from [the July financing], Stereotaxis’ proforma cash balance would be $18.8 million in cash and no debt.” – Company release
“We view regulatory approval of GENESIS X as likely still this summer… We continue to expect U.S. regulatory approval of MAGIC later this year.” – CEO on earnings call

Q&A Highlights

Regulatory timing clarifications: Management reiterated near‑term expectations for GENESIS X U.S. clearance (“likely still this summer”) and MAGIC U.S. approval later this year, reducing timeline uncertainty .
Disposable revenue uplift: Management expects the combination of MAGiC and MAGiC Sweep to “increase our disposable revenue per procedure significantly and expand our user base,” supporting recurring revenue scale-up into Q4 .
Platform strategy: The digital surgery platform (OR connectivity and smart AI) was emphasized as a key pillar for long‑term adoption and TAM expansion .
Margin/opex drivers: Fixed overhead over low system production and acquisition accounting continue to weigh on margins; adjusted opex fell Y/Y to $6.0M (from $6.8M), aided by a favorable earnout adjustment and $0.5M ERTC .

Estimates Context

Q2 2025 vs S&P Global consensus: Revenue $8.80M vs $8.13M (beat); GAAP EPS −$0.05 vs −$0.065 (beat); EBITDA −$3.58M vs −$1.45M (miss). Values retrieved from S&P Global.*
Implications: Street likely raises near‑term revenue run‑rate on disposables and initial GenesisX, but may trim near‑term EBITDA/GM trajectories pending clearer system production leverage and disposable accounting normalization.*

Key Takeaways for Investors

Execution is improving: Two consecutive quarters of sequential growth culminating in 95% Y/Y revenue growth and better operating loss trajectory; revenue and EPS beats reinforce commercial traction .
2H setup: Maintained FY25 outlook with recurring revenue targeted at ~$7M in Q4; regulatory catalysts (GENESIS X U.S., MAGIC U.S.) can de‑risk revenue inflection into 2026 .
Watch margin bridge: System GM (22%) and acquisition accounting on disposables cap near‑term margin; scaling system production and normalizing accounting should unlock GM expansion .
Liquidity improved: Pro forma $18.8M cash and no debt provide runway to execute commercialization and regulatory milestones without near‑term financing overhang .
Trading lens: Near‑term stock drivers include additional regulatory clearances, early MAGiC/MAGiC Sweep/GenesisX adoption updates, and any upside to recurring revenue cadence; EBITDA miss vs Street is a balancing factor until margin traction emerges.*
Medium‑term thesis: Transition from single‑application robot to platform endovascular ecosystem expands TAM and supports a higher‑quality recurring mix; 2026 outlook strengthens with broader launches if regulatory timelines hold .

Additional Source Documents (Q2‑related)

8‑K and Exhibit 99.1 (Earnings Press Release, Q2 2025)
Press Release: Stereotaxis Reports 2025 Second Quarter Financial Results
Press Release: FDA 510(k) Clearance for MAGiC Sweep (July 28, 2025)
Press Release: $12.5M Registered Direct Offering (July 17, 2025)
Prior quarters for trend: Q1 2025 results (May 12, 2025) ; Q4/FY 2024 results (Mar 3, 2025)
Earnings call transcript (external): Yahoo/Quartr and other transcript portals

Notes: All company operational and financial figures are cited from company filings and press releases as referenced. Consensus figures and variances marked with an asterisk (*) are Values retrieved from S&P Global.

Stereotaxis, Inc. (STXS)·Q2 2025 Earnings Summary