ClearPoint Neuro | 10-Q: FY2025 Q3 Revenue Misses Estimate at USD 8.861 M

Revenue: As of FY2025 Q3, the actual value is USD 8.861 M, missing the estimate of USD 9.6 M.

EPS: As of FY2025 Q3, the actual value is USD -0.21, missing the estimate of USD -0.2.

EBIT: As of FY2025 Q3, the actual value is USD -4.733 M.

Biologics and Drug Delivery: Revenue for the three months ended September 30, 2025, was $4.4 million, consistent with the same period in 2024. For the nine months ended September 30, 2025, revenue increased by 6% to $13.8 million from $13.1 million in 2024, driven by higher product revenue due to increased demand for disposables.
Neurosurgery Navigation and Therapy: Revenue for the three months ended September 30, 2025, increased by 20% to $3.4 million from $2.9 million in 2024. For the nine months ended September 30, 2025, revenue increased by 37% to $10.1 million from $7.4 million in 2024, attributed to an increased customer base and new product offerings.
Capital Equipment and Software: Revenue for the three months ended September 30, 2025, increased by 25% to $1.0 million from $0.8 million in 2024. However, for the nine months ended September 30, 2025, revenue decreased by 18% to $2.6 million from $3.2 million in 2024, due to a decrease in placements of ClearPoint navigation capital and software and Prism laser units.

Gross Profit: For the three months ended September 30, 2025, gross profit was $5.6 million, with a gross margin of 63%, compared to $4.8 million and a gross margin of 60% in 2024. For the nine months ended September 30, 2025, gross profit was $16.3 million, with a gross margin of 61%, consistent with the same period in 2024.
Net Loss: For the three months ended September 30, 2025, net loss was $5.9 million, an increase of 18% from $5.0 million in 2024. For the nine months ended September 30, 2025, net loss was $17.8 million, an increase of 31% from $13.5 million in 2024.

Operating Cash Flow: Net cash used in operating activities for the nine months ended September 30, 2025, was $11.8 million, an increase from $7.7 million in 2024.
Free Cash Flow: Not explicitly stated, but net cash flows from financing activities for the nine months ended September 30, 2025, were $30.6 million, primarily from the issuance of notes and stock offerings.

Core Business Focus: The company plans to continue expanding its ClearPoint system platform and consulting services to pharmaceutical and medical technology customers. It aims to leverage its partnerships in the biologics and drug delivery space to drive growth, with over 60 partners currently evaluating or using its products and services.
Non-Core Business: The company is acquiring IRRAS Holdings, Inc., which is expected to close in the fourth quarter of 2025. This acquisition is anticipated to enhance revenues and strengthen market position.
Priority: The company is focused on achieving broader market acceptance and adoption of its products, expanding its sales and marketing capabilities, and pursuing additional applications for its technology platforms.