Stereotaxis, Inc. (STXS)·Q3 2025 Earnings Summary

Executive Summary

• Q3 2025 revenue was $7.46M, down 19% y/y and 15% q/q, with system revenue $1.86M and recurring revenue $5.60M; gross margin was 55% and diluted EPS was $(0.07) .
• The quarter missed Wall Street consensus: revenue $7.46M vs $8.38M estimate*, EPS $(0.07) vs $(0.06) estimate*, and EBITDA approximately $(4.82)M vs $(2.0)M estimate*; management cited summer seasonality in procedures and partial system revenue recognition as drivers .
• Forward outlook: Q4 revenue guided to exceed $9M (systems ≈$3M; recurring >$6M), supporting >20% full-year growth; 2026 quarterly revenue expected to average >$10M, with GenesisX and proprietary catheters scaling .
• Strategic catalysts: FDA 510(k) clearance of GenesisX (transforming install logistics), CE Mark and 510(k) submission for Synchrony/SynX digital cath lab, and CardioFocus collaboration to advance robotic PFA—positions STXS for medium-term adoption and higher-margin recurring revenue .

What Went Well and What Went Wrong

What Went Well

• Proprietary catheters showed traction: MAGiC Sweep generated over $0.30M in its first two months post-FDA clearance, with strong physician interest and new use cases, helping recurring revenue; “We are beginning to build a clinically and commercially impactful catheter portfolio.” .
• Regulatory momentum: FDA clearance for GenesisX; CE Mark and FDA submission for Synchrony; ongoing MAGiC U.S. review; PFA collaboration with CardioFocus targeting first-in-human in coming months .
• Cost discipline: adjusted operating expenses fell to $6.6M (vs $7.2M y/y); adjusted operating loss improved to $(2.5)M (vs $(3.1)M y/y) .

What Went Wrong

• Topline miss: revenue and EPS both under consensus*, with systems at the low end, and recurring impacted by summer seasonality and timing of regulatory approvals .
• Margin pressure from low production volumes: system GM 19% with fixed overhead drag; EBITDA under consensus* given gross margin mix and OpEx non-cash charges .
• Q4 recurring revenue guidance trimmed from $7M (earlier expectation) to “> $6M,” reflecting timing of MAGiC U.S./EU approvals and ramp dynamics .

Financial Results

Guidance Changes

Management clarified the recurring revenue trim reflects timing of approvals and early ramp for MAGiC/MAGiC Sweep; systems remain in the $2–$3M per quarter band with Q4 at ≈$3M .

Earnings Call Themes & Trends

Management Commentary

• “This is an exciting milestone-rich period in which we are demonstrating the tangible reality and initial commercial impact of our comprehensive innovation strategy.”
• “MAGiC Sweep has seen particularly high interest…with over three hundred thousand dollars in revenue within the first two months of launch.”
• “We were pleased yesterday to announce U.S. FDA regulatory clearance for the GenesisX robotic system.”
• “We expect revenue this quarter to exceed $9 million…result in over 20% annual revenue growth for the full year 2025…quarterly revenue to surpass an average of $10 million per quarter in 2026.”
• “Gross margins remain impacted by fixed overhead allocated over low production levels.”

Q&A Highlights

• GenesisX launch cadence and pricing: Limited launch now; full launch targeted early 2026 (spring conferences); premium price vs Genesis; expected to outpace Genesis orders post full launch .
• Mix and ramp: 2026 quarterly revenue expected >$10M, with recurring scaling relatively linearly via catheter adoption; systems lumpy but teens in annual terms; system share 30–50% of total .
• Guidance clarification: Recurring revenue in Q4 revised from ~$7M expectation to “> $6M,” due to timing of approvals (MAGiC U.S./EU) and early ramp dynamics; Sweep ramp in U.S. progressing well .
• Organization scaling: Clinical team anticipated to grow for one-to-one hospital coverage; incremental capital reps as GenesisX ramps .
• MAGiC PMA review: FDA questions covered across modules; company confident in responses; ongoing dialogue; no impact from shutdown .

Estimates Context

• Consensus vs actual: Revenue $8.38M estimate vs $7.46M actual (Miss); EPS $(0.06) estimate vs $(0.07) actual (Miss); EBITDA $(2.00)M estimate vs ~$(4.82)M actual (Miss). Coverage count: 4 estimates for EPS and revenue.
  Values retrieved from S&P Global.*

Key Takeaways for Investors

• Near-term print was below Street, driven by summer seasonality and partial system revenue recognition; recurring momentum from MAGiC Sweep and Map‑iT mitigated some topline pressure .
• Q4 setup: Guide implies rebound with systems at ≈$3M and recurring >$6M; full-year growth >20% signals improving trajectory despite trimmed recurring guidance vs earlier expectations .
• Medium-term thesis strengthened by GenesisX clearance eliminating major install barriers, driving broader adoption and potential premium ASPs .
• Proprietary catheter portfolio (MAGiC, Sweep, Map‑iT) should expand higher-margin recurring revenue; recurring GM 67% in Q3 highlights the margin leverage path .
• New digital/software pillar (Synchrony/SynX) introduces incremental revenue opportunities with SaaS potential; management targets “couple million” in first year post launch .
• PFA collaboration with CardioFocus can create a differentiated robotic ablation offering; first-in-human expected in the coming months with EU PFA use possible before end of next year .
• Watch catalysts: MAGiC U.S. approval timing, GenesisX full launch pivot, Synchrony commercialization, and additional catheter clearances; these should drive estimate revisions and sentiment inflection .