CeriBell raises 2025 revenue guidance to $89M while targeting deeper hospital penetration and expanding pediatric market

Earnings Call Insights: CeriBell, Inc. (CBLL) Q3 2025

MANAGEMENT VIEW

* CEO Xingjuan Chao reported continued execution on growth initiatives and described CeriBell as the “category leader in the point-of-care EEG.” Chao highlighted a 31% year-over-year revenue growth and 30 consecutive quarters of sequential revenue growth, attributing this to recurring business and commercial expansion. Chao stated, "Given these trends and momentum we built exiting the quarter, we remain confident in our core commercial strategy, and we are raising our full year 2025 revenue guidance. We now expect to deliver $87 million to $89 million in revenue for the full year 2025, which represents 34% year-over-year growth at the midpoint."
* As of September 30, CeriBell had 615 active accounts, marking an increase of 31 accounts over the prior quarter—its largest sequential rise since becoming a public company. Chao emphasized expansion within the VA system and pediatric/neonatal markets, noting, “Earlier this year, we received 510(k) clearance for Clarity in pediatric population, make it the only seizure detection algorithm cleared for patients 1 year and older.”
* CeriBell estimates its core market opportunity at $2 billion, with the pediatric and neonatal segment potentially expanding this by approximately $400 million. Chao described ongoing investment in product development, clinical evidence generation, and training as pivotal to sustaining growth.
* CFO Scott Blumberg stated, "Total revenue for the third quarter of 2025 was $22.6 million, a 31% increase from $17.2 million in the third quarter of 2024.“ Blumberg also noted, "Gross margin for the third quarter of 2025 was 88% compared to 87% in the prior year period. As we enter Q4, I'll remind you that we will begin to transition to utilizing inventory acquired after the implementation of increased tariffs on products originating in China. Despite this, we expect to maintain gross margins in the mid-80% range in Q4."

OUTLOOK

* CeriBell raised its full year 2025 revenue guidance to $87 million to $89 million, up from $85 million to $88 million previously, which represents annual growth of 33% to 36% over 2024. Management reiterated a strategy of deferring new account launches in the latter half of December to maximize post-launch utilization. No explicit changes to gross margin guidance were reported, with Blumberg reaffirming expectations of maintaining mid-80% gross margins into 2026.

FINANCIAL RESULTS

* Total Q3 2025 revenue was $22.6 million. Product revenue reached $17 million, and subscription revenue was $5.6 million. Operating expenses for Q3 2025 were $34.6 million, primarily reflecting commercial investments and public-company costs. Net loss for the quarter was ($13.5 million), or ($0.37) per share. Cash, cash equivalents, and marketable securities stood at $168.5 million as of September 30, 2025. CeriBell filed a shelf registration statement but clarified, "we do not have any intention to pursue a financing transaction at this time."

Q&A

* Travis Steed, BofA Securities: Asked about 2026 outlook and neonatal launch. CFO Blumberg declined 2026 guidance, emphasizing consistent growth drivers and stable pricing. Chao explained neonatal launch will involve both new account acquisition and deeper penetration in existing accounts, particularly among 200 NICUs already using CeriBell.
* Robert Marcus, JPMorgan: Inquired about progress in account penetration. Chao described successful initiatives including protocol development and training, driving departmental expansion and increased utilization. Marcus also questioned expense trends; Blumberg said sales investments precede revenue impact, and expects growth in account acquisition to moderate in the coming year.
* Brandon Vazquez, William Blair: Sought details on utilization growth in long-tenured accounts. Chao cited ongoing protocol rollouts and departmental expansion as growth drivers. Vazquez also asked about departmental expansion friction and the significance of a new 510(k) headcap clearance, which Chao described as enabling full commercialization in neonatal markets.
* Joshua Jennings, TD Cowen: Asked about the new account pipeline and positioning with IDNs. Blumberg and Chao noted a growing funnel and evolving strategy to engage hospital systems at the headquarters level.
* William Plovanic, Canaccord Genuity: Questioned guidance range, commercial staffing, and competition. Blumberg said guidance reflects risk calibration. Chao reported stable commercial infrastructure and that competition has not materially affected performance. On manufacturing, Blumberg clarified Vietnam operations will impact gross margin in 2026.
* Jeffrey Cohen, Ladenburg Thalmann: Inquired about VA channel growth and neonatal hardware usage. Chao reported strong VA pilot results and upcoming top-down rollout, while neonatal pilots are focused on validating signal quality and use case.
* Unknown Analyst (for Jayson Bedford, Raymond James): Asked about utilization growth versus stocking and departmental drivers. Blumberg said Q3 year-over-year comparisons were affected by prior stocking, and seasonality trends were consistent. Chao noted broad departmental growth, with ED expansion outpacing ICU.

SENTIMENT ANALYSIS

* Analysts maintained a positive to neutral tone, congratulating management on account growth and revenue performance but probing for details on expense leverage, pipeline execution, and market penetration.
* Management’s prepared remarks were confident and growth-focused. During Q&A, responses were disciplined and occasionally cautious about providing forward-looking information, but overall tone remained optimistic about market expansion and operational execution. Chao stated, "The more EEG you perform, the more seizures you find," reflecting confidence in growth drivers.
* Compared to the previous quarter, both analyst and management sentiment remained steady. Analysts continued to press on operational leverage and long-term growth, while management consistently emphasized confidence in strategy and resilience against competition.

QUARTER-OVER-QUARTER COMPARISON

* Guidance was raised from $85-88 million previously to $87-89 million for 2025 full-year revenue. The number of active accounts grew by 31, up from a 26-account increase in Q2. Gross margin guidance remained unchanged, but the company flagged a transition to Vietnam manufacturing as a future margin stabilizer. The Q3 net loss remained similar to the prior quarter. Strategic focus expanded with more emphasis on pediatric and neonatal launches, and the VA system rollout was highlighted as a new growth engine. Analysts’ questions shifted slightly towards deeper penetration and departmental expansion, while management maintained its growth-oriented tone.

RISKS AND CONCERNS

* Management noted that increased tariffs on China-originating products could pressure margins, but cited a new Vietnam manufacturing line as a mitigation strategy. Chao referenced ongoing legal proceedings related to intellectual property, with a decision timeline potentially delayed by government shutdowns. Barriers to departmental expansion include resource limitations within hospitals and competing priorities like IT system updates. Competition was described as active but not materially impacting results. Management underscored strong cash balances and no current need for additional financing.

FINAL TAKEAWAY

CeriBell’s third quarter results demonstrated strong commercial momentum, highlighted by increased account penetration, a record sequential rise in active accounts, and raised revenue guidance for 2025. Management emphasized continued investments in expanding pediatric and neonatal offerings, broader VA system adoption, and product innovation, all backed by a solid cash position and robust supply chain strategies. The company remains focused on deepening market penetration and leveraging its platform for future growth opportunities in acute care EEG and related indications.

Read the full Earnings Call Transcript [https://seekingalpha.com/symbol/cbll/earnings/transcripts]

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* CeriBell, Inc. (CBLL) Q3 2025 Earnings Call Transcript [https://seekingalpha.com/article/4837917-ceribell-inc-cbll-q3-2025-earnings-call-transcript]
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