Q2 2026 CeriBell Inc Earnings Call

August 10, 2026

Speaker #1: Ladies and gentlemen, thank you for standing by. My name is Desiree, and I will be your conference operator today. At this time, I would like to welcome everyone to Ceribell, Q2, 2026 earnings call.

Operator: Ladies and gentlemen, thank you for standing by. My name is Desiree, and I will be your conference operator today. At this time, I would like to welcome everyone to Ceribell Q2 2026 earnings call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press Star followed by the number 1 on your telephone keypad. If you would like to withdraw your question, press the Star 1. I would now like to turn the call over to Brian Johnston of Gilmartin Group. You may begin.

Speaker #1: All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. If you would like to ask a question during this time, simply press * followed by the number 1 on your telephone keypad.

Speaker #1: If you would like to withdraw your question, press *1. I would now like to turn the call over to Brian Johnston of Gilmartin Group.

Speaker #1: You may begin.

Speaker #2: Good afternoon, and thank you all for participating in today's call. Joining me from Ceribell are Jane Chow, co-founder and Chief Executive Officer, and Scott Blomberg, Chief Financial Officer.

Brian Johnston: Good afternoon, and thank you all for participating in today's call. Joining me from Ceribell are Xingjuan Chao, Co-founder and Chief Executive Officer, and Scott Blumberg, Chief Financial Officer. Earlier today, Ceribell issued a press release announcing financial results for the quarter ended 30 June 2026. A copy of the press release is available on the investor relations section of the company's website. Before we begin, I would like to remind you that management will make remarks during this call that include forward-looking statements within the meaning of federal securities laws, and that these are being made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Any statements contained in this call that relate to expectations or predictions of future events, results, or performance are forward-looking statements.

Speaker #2: Earlier today, Ceribell issued a press release announcing financial results for the quarter ended June 30, 2026. A copy of the press release is available on the Investor Relations section of the company's website.

Speaker #2: Before we begin, I'd like to remind you that management will make remarks during this call that include forward-looking statements within the meaning of federal securities laws and that these are being made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995.

Speaker #2: Any statements contained in this call that relate to expectations or predictions of future events, results, or performance are forward-looking statements. These statements involve material risks and uncertainties that could cause actual results or events to materially differ from those anticipated or implied by these forward-looking statements.

Brian Johnston: These statements involve material risks and uncertainties that could cause actual results or events to materially differ from those anticipated or implied by these forward-looking statements. Accordingly, you should not place undue reliance on these statements. For a list and description of the risks and uncertainties associated with our business, please refer to the risk factors section of our public filings with the Securities and Exchange Commission, including our annual report on Form 10-K filed with the SEC on 24 February 2026, and quarterly report on Form 10-Q for the quarter ended 30 June 2026. This conference call contains time-sensitive information and is accurate only as of the live broadcast today, 10 August 2026. Ceribell disclaims any intention or obligation, except as required by law, to update or revise any financial projections or forward-looking statements, whether because of new information, future events, or otherwise.

Speaker #2: Accordingly, you should not place unreliance on these statements. For a list and description of the risks and uncertainties associated with our business, please refer to the risk factors section of our public filings with the Securities and Exchange Commission, including our annual report on Form 10-K filed with the SEC on February 24, 2026, and quarterly report on Form 10-Q for the quarter ended June 30, 2026.

Speaker #2: This conference call contains time-sensitive information and is accurate only as of the live broadcast today, August 10, 2026. Ceribell disclaims any intention or obligation, except as required by law, to update or revise any financial projections or forward-looking statements, whether because of new information, future events, or otherwise.

Speaker #2: And with that, I'll turn the call over to Jane.

Brian Johnston: And with that, I will turn the call over to Jane.

Speaker #3: Good afternoon, and thank you for joining us for our second quarter 2026 earnings call. Q2 marked another strong quarter for Ceribell. As we delivered revenue of $28.1 million, growing 33% year over year.

Xingjuan Chao: Good afternoon, and thank you for joining us for our Q2 2026 earnings call. Q2 marked another strong quarter for Ceribell as we delivered revenue of $28.1 million, growing 33% year-over-year. This is an acceleration from the 29% year-over-year growth we reported in Q1, which reflects a particularly strong performance in same-store growth driven by our clinical account management team. We also increased our account base by 32 accounts to a total of 712 active accounts. While the increase is similar to what we delivered in recent quarters, Q2 growth relied less on VA accounts than previous quarters. Our sustained success in growing our account base is a result of the continued maturation and performance of our account acquisition team. While revenue and commercial acceleration get top billing, I do want to take a moment to focus on our gross margin.

Jane Chao: Good afternoon, and thank you for joining us for our Q2 2026 earnings call. Q2 marked another strong quarter for Ceribell as we delivered revenue of $28.1 million, growing 33% year-over-year. This is an acceleration from the 29% year-over-year growth we reported in Q1, which reflects a particularly strong performance in same-store growth driven by our clinical account management team. We also increased our account base by 32 accounts to a total of 712 active accounts. While the increase is similar to what we delivered in recent quarters, Q2 growth relied less on VA accounts than previous quarters. Our sustained success in growing our account base is a result of the continued maturation and performance of our account acquisition team. While revenue and commercial acceleration get top billing, I do want to take a moment to focus on our gross margin.

Speaker #3: This is an acceleration from the 29% year-over-year growth we reported in Q1, which reflects a particularly strong performance in same-store growth driven by our clinical account management team.

Speaker #3: We also increased our account base by 32 accounts, to a total of 712 active accounts. While the increase is similar to what we delivered in recent quarters, Q2 growth relied less on VA accounts than previous quarters.

Speaker #3: Our sustained success in growing our account base is the result of the continued maturation and performance of our account acquisition team. While revenue and commercial acceleration get popular, I do want to take a moment to focus on our growth margin.

Speaker #3: We delivered record growth margin of 92% in Q2. This number was positively impacted by refunds on previously paid tariffs. Even when excluding these refunds, we delivered growth margin of 89%.

Xingjuan Chao: We delivered record gross margin of 92% in Q2. This number was positively impacted by a refund on previously paid tariff. Even when excluding this refund, we delivered gross margin of 89%. This does not happen by accident. It is a direct result of our proactive efforts in supply chain optimization and manufacturing diversification. Gross margin is more than just a number. It generates the outsized gross profit we are reinvesting to fund our growth initiatives and R&D, with the eye towards executing our mission. With 33 consecutive quarters of sequential revenue growth, we believe we have built a repeatable growth engine. We are pointing that engine squarely at our defining objective, establishing Ceribell as the standard of care for seizure detection in the acute care setting.

Jane Chao: We delivered record gross margin of 92% in Q2. This number was positively impacted by a refund on previously paid tariff. Even when excluding this refund, we delivered gross margin of 89%. This does not happen by accident. It is a direct result of our proactive efforts in supply chain optimization and manufacturing diversification. Gross margin is more than just a number. It generates the outsized gross profit we are reinvesting to fund our growth initiatives and R&D, with the eye towards executing our mission. With 33 consecutive quarters of sequential revenue growth, we believe we have built a repeatable growth engine. We are pointing that engine squarely at our defining objective, establishing Ceribell as the standard of care for seizure detection in the acute care setting.

Speaker #3: This does not happen by accident. It is a direct result of our proactive efforts in supply chain optimization and manufacturing diversification. And gross margin is more than just a number.

Speaker #3: It generates the outsized growth profit where reinvesting to fund our growth initiatives and R&D with the eye towards executing our mission. With 33 consecutive quarters of sequential revenue growth, we believe we have built a repeatable growth engine.

Speaker #3: By pointing that engine squarely at our defining objectives, establishing Ceribell as the standard of care for seizure detection in the acute care setting. At the center of our growth strategy is our commercial infrastructure.

Xingjuan Chao: At the center of our growth strategy is our commercial infrastructure, built with the dual purpose to acquire new customers and drive deeper adoption within our install base. Our account acquisition team continues to mature and is contributing in line with expectation. Their efforts are being supplemented by our newly added strategic account management team through top-down engagement of regional health systems. We have built a robust pipeline of prospects that gives us confidence in our ability to maintain an accelerated rate of new account additions in 2026 compared to 2025. While we continue to expand our account base, our clinical account management team is driving revenue through headband utilization expansion. Our strong performance this quarter reflects execution of our established utilization playbook, provider engagement, department expansion, and patient population protocolization. A robust and expanding body of clinical evidence validates our platform.

Jane Chao: At the center of our growth strategy is our commercial infrastructure, built with the dual purpose to acquire new customers and drive deeper adoption within our install base. Our account acquisition team continues to mature and is contributing in line with expectation. Their efforts are being supplemented by our newly added strategic account management team through top-down engagement of regional health systems. We have built a robust pipeline of prospects that gives us confidence in our ability to maintain an accelerated rate of new account additions in 2026 compared to 2025. While we continue to expand our account base, our clinical account management team is driving revenue through headband utilization expansion. Our strong performance this quarter reflects execution of our established utilization playbook, provider engagement, department expansion, and patient population protocolization. A robust and expanding body of clinical evidence validates our platform.

Speaker #3: Built with the dual purpose to acquire new customers and drive deeper adoption within our install base, our account acquisition team continues to mature and is contributing in line with expectations.

Speaker #3: The efforts are being supplemented by our newly added strategic account management team, through top-down engagement of regional health systems. We have built a robust pipeline of prospects that gives us confidence in our ability to maintain an accelerated rate of new account additions in 2026 compared to 2025.

Speaker #3: While we continue to expand our account base, our clinical account management team is driving revenue through headband utilization expansion. Our strong performance this quarter reflects execution of our established utilization playbook.

Speaker #3: Provider engagement, department expansion, and patient population portalization. A robust and expanding body of clinical evidence validates our platform. Our aim is to make the case for Ceribell's clinical necessity by investing in high-quality evidence and demonstrating the clinical and economic value our system delivers.

Xingjuan Chao: Our aim is to make the case for Ceribell's clinical necessity by investing in high-quality evidence, demonstrating the clinical and economic value our system delivers. Adding to our established base of over 150 publications and abstracts, in Q2, a high impact study was published in "Critical Care Medicine," one of the leading journals in intensive care research. The study found that when our Clarity algorithm reported a peak seizure burden of 90% or greater, patients were 3.6 times more likely to experience severe disability or death at discharge. Further, each additional hour of Clarity-detected seizure activity was associated with nearly twofold increase in that risk. The premise that longer seizure duration correlates with worse outcome is not new. What is new is that a device output can quantitatively report seizure burden at the bedside in real time, and that this burden reliably correlates with patients' outcome.

Jane Chao: Our aim is to make the case for Ceribell's clinical necessity by investing in high-quality evidence, demonstrating the clinical and economic value our system delivers. Adding to our established base of over 150 publications and abstracts, in Q2, a high impact study was published in "Critical Care Medicine," one of the leading journals in intensive care research. The study found that when our Clarity algorithm reported a peak seizure burden of 90% or greater, patients were 3.6 times more likely to experience severe disability or death at discharge. Further, each additional hour of Clarity-detected seizure activity was associated with nearly twofold increase in that risk. The premise that longer seizure duration correlates with worse outcome is not new. What is new is that a device output can quantitatively report seizure burden at the bedside in real time, and that this burden reliably correlates with patients' outcome.

Speaker #3: Adding to our established base of over 150 publications and abstracts, in Q2 a high-impact study was published in Critical Care Medicine, one of the leading journals in intensive care research.

Speaker #3: The study found that when our Clarity algorithm reported a peak seizure burden of 90% or greater, patients were 3.6 times more likely to experience severe disability or death at discharge.

Speaker #3: Further, each additional hour of clarity detected seizure activity was associated with nearly 2-fold increase in that risk. The premise that longer seizure duration correlates with worse outcome is not new.

Speaker #3: What is new is that a device output can quantitatively report seizure burden at the bedside in real time, and that this burden reliably correlates with patients' outcomes.

Speaker #3: These findings sharpen the clinical imperative for using the Ceribell solution, particularly Clarity, to reduce seizure burden for patients. As the body of evidence compounds, we are increasingly confident that Ceribell's path to becoming the standard of care is not a question of if, but when.

Xingjuan Chao: These findings sharpen the clinical imperative for using the Ceribell solution, particularly Clarity, to reduce seizure burden for patients. As the body of evidence compounds, we are increasingly confident that Ceribell's path to becoming the standard of care is not a question of if, but when. As we continue to deliver within our core seizure market, we remain encouraged by the traction in our emerging market opportunities. In Q2, we launched our neonate and pediatric products and the commercial pilot of our delirium algorithm. We remain encouraged by the early commercial traction of our neonate and pediatric seizure line extensions. Customer interest remains high. The clinical conviction is translating into early commercial success as we secured purchase orders from both new and existing customers in Q2. With a robust and growing pipeline, we are well-positioned to translate our commercial efforts into revenue contribution as we move into 2027.

Jane Chao: These findings sharpen the clinical imperative for using the Ceribell solution, particularly Clarity, to reduce seizure burden for patients. As the body of evidence compounds, we are increasingly confident that Ceribell's path to becoming the standard of care is not a question of if, but when. As we continue to deliver within our core seizure market, we remain encouraged by the traction in our emerging market opportunities. In Q2, we launched our neonate and pediatric products and the commercial pilot of our delirium algorithm. We remain encouraged by the early commercial traction of our neonate and pediatric seizure line extensions. Customer interest remains high. The clinical conviction is translating into early commercial success as we secured purchase orders from both new and existing customers in Q2. With a robust and growing pipeline, we are well-positioned to translate our commercial efforts into revenue contribution as we move into 2027.

Speaker #3: As we continue to deliver within our core seizure market, we remain encouraged by the traction in our emerging market opportunities. In Q2, we launched our neonate and pediatric products, and the commercial pilot of our delirium algorithm.

Speaker #3: We remain encouraged by the early commercial traction of our neonate and pediatric seizure line extensions. Customer interest remains high. The clinical conviction is translating into early commercial success, as we secured purchase orders from both new and existing customers in Q2.

Speaker #3: With a robust and growing pipeline, we are well-positioned to translate our commercial efforts into revenue contribution as we move into 2027. We are also excited about the momentum of our first-of-its-kind delirium monitoring solution, which received 510(k) clearance in December.

Xingjuan Chao: We are also excited about the momentum of our first-of-its-kind delirium monitoring solution, which received 510(k) clearance in December. Delirium represents an estimated $1 billion US market for Ceribell and a strong addition to our platform. Despite being the most common neurological complication in the ICU, before Ceribell, there had been no commercially available tool to continuously monitor delirium. We launched our commercial pilot in April and are now live in multiple sites. The early feedback has been positive, with users praising improvements in clinical decision-making. For example, based on the survey, 40% of the patients were difficult to assess under CAM-ICU, the current standard of care, but could still be monitored with the Ceribell solution. Beyond the clinical signal, we are also seeing a utilization effect. Existing Ceribell customers that have joined the delirium pilot are increasing headband utilization.

Jane Chao: We are also excited about the momentum of our first-of-its-kind delirium monitoring solution, which received 510(k) clearance in December. Delirium represents an estimated $1 billion US market for Ceribell and a strong addition to our platform. Despite being the most common neurological complication in the ICU, before Ceribell, there had been no commercially available tool to continuously monitor delirium. We launched our commercial pilot in April and are now live in multiple sites. The early feedback has been positive, with users praising improvements in clinical decision-making. For example, based on the survey, 40% of the patients were difficult to assess under CAM-ICU, the current standard of care, but could still be monitored with the Ceribell solution. Beyond the clinical signal, we are also seeing a utilization effect. Existing Ceribell customers that have joined the delirium pilot are increasing headband utilization.

Speaker #3: Delirium represents an estimated $1 billion US market for Ceribell and is a strong addition to our platform. Despite being the most common neurological complication in the ICU, before Ceribell there had been no commercially available tool to continuously monitor delirium.

Speaker #3: We launched our commercial pilot in April, and are now live in multiple sites. The early feedback has been positive, with users praising improvements in clinical decision-making.

Speaker #3: For example, based on the survey, 40% of the patients were difficult to assess under CAM ICU, the current standard of care. That could still be monitored with the Ceribell solution.

Speaker #3: Beyond the clinical signal, we are also seeing a utilization effect. Existing Ceribell customers that have joined the delirium pilot are increasing headband utilization. We believe this is a reflection of both the clinical value of the delirium detection algorithm, and the incidence overlap between seizure and delirium, underscoring the synergistic value of our platform.

Xingjuan Chao: We believe this is a reflection of both the clinical value of the delirium detection algorithm and the incidence overlap between seizure and delirium, underscoring the synergistic value of our platform. We are also pleased to share that we just received a favorable final rule from CMS establishing a new technology add-on payment for NTAP for our delirium monitoring solution. The NTAP, which becomes effective 1 October 2026, provides up to $2,171 in incremental reimbursement per qualified patient. This is a meaningful milestone. It will support adoption by adding favorable economics to the strong clinical interest we are already seeing in the field. Our launch strategy is coming into focus, and we now have the confidence that we will launch Delirium commercially this year. With the commercial and clinical updates covered, I would like to turn to our vision for the future.

Jane Chao: We believe this is a reflection of both the clinical value of the delirium detection algorithm and the incidence overlap between seizure and delirium, underscoring the synergistic value of our platform. We are also pleased to share that we just received a favorable final rule from CMS establishing a new technology add-on payment for NTAP for our delirium monitoring solution. The NTAP, which becomes effective 1 October 2026, provides up to $2,171 in incremental reimbursement per qualified patient. This is a meaningful milestone. It will support adoption by adding favorable economics to the strong clinical interest we are already seeing in the field. Our launch strategy is coming into focus, and we now have the confidence that we will launch Delirium commercially this year. With the commercial and clinical updates covered, I would like to turn to our vision for the future.

Speaker #3: We are also pleased to share that we just received a favorable final rule from CMS, establishing a new technology add-on payment for NTEP for our delirium monitoring solution.

Speaker #3: The NTEP, which becomes effective October 1, 2026, provides up to $2,171 in incremental reimbursement per qualified patient. This is a meaningful milestone. It will support adoption by adding favorable economics to the strong clinical interest we are already seeing in the field.

Speaker #3: Our launch strategy is coming into focus, and we now have the confidence that we will launch Delirium commercially this year. With the commercial and clinical updates covered, I'd like to turn to our vision for the future.

Speaker #3: We believe we are well on our way to establishing the Ceribell system as the standard of care for seizure management. At the same time, our longer-term vision to establish EEG as a new vital sign is no longer theoretical.

Xingjuan Chao: We believe we are well on our way to establishing the Ceribell System as the standard of care for seizure management. At the same time, our longer-term vision to establish EEG as a new vital sign is no longer theoretical. We have made material progress and believe we can begin translating this vision to reality in 2027. Underpinning this is a two-pronged product strategy. We invested in algorithm and hardware enhancement to reach more patient populations while improving patient care and meeting physician needs. Our first prong is centered around developing novel algorithms to further improve clinical decision-making. Delirium and LVO are excellent examples of clinical expansion to new patient populations under this strategy. Through these advancements, we are delivering continuous objective brain monitoring to a set of underserved patient populations. We also apply algorithm development to improve care for patients we already serve.

Jane Chao: We believe we are well on our way to establishing the Ceribell System as the standard of care for seizure management. At the same time, our longer-term vision to establish EEG as a new vital sign is no longer theoretical. We have made material progress and believe we can begin translating this vision to reality in 2027. Underpinning this is a two-pronged product strategy. We invested in algorithm and hardware enhancement to reach more patient populations while improving patient care and meeting physician needs. Our first prong is centered around developing novel algorithms to further improve clinical decision-making. Delirium and LVO are excellent examples of clinical expansion to new patient populations under this strategy. Through these advancements, we are delivering continuous objective brain monitoring to a set of underserved patient populations. We also apply algorithm development to improve care for patients we already serve.

Speaker #3: We have made material progress and believe we can begin translating this vision to reality in 2027. Underpinning this, is a two-pronged product strategy. We invest in algorithm and hardware enhancement to reach more patient populations while improving patient care and meeting physician needs.

Speaker #3: Our first prong is centered around developing novel algorithms to further improve clinical decision-making. Delirium and LVO are excellent examples of clinical expansion to new patient populations under this strategy.

Speaker #3: Through these advancements, we are delivering continuous objective brain monitoring to assess underserved patient populations. We also apply algorithm development to improve care for patients we already serve.

Speaker #3: We are pleased to announce today that we received our FDA 510(k) clearances for two new algorithms targeting our core seizure market. We believe each meaningfully adds to our platform’s clinical utility, strengthening the case for Ceribell as the standard of care.

Xingjuan Chao: We are pleased to announce today the receipt of FDA 510(k) clearances for two new algorithms targeting our core seizure market. We believe each meaningfully add to our platform clinical utility, strengthening the case for Ceribell as the standard of care. The first represents a significant enhancement to Clarity's ability to identify and reduce EEG artifact signals. Artifact recognition has long been the leading challenge to EEG interpretation in the acute care environment. It is not uncommon for even neurologists to mistake electrical signal from various medical equipment as seizure activity. EEG is so sensitive that even the electrical signal from an IV drip's movement can create artifacts. Our new algorithm, trained on a large artifact database created by Ceribell, can differentiate between brain activity and artifact, adding a layer of AI-driven sophistication. The new algorithm significantly simplifies EEG interpretation for neurologists and improves the point-of-care experience.

Jane Chao: We are pleased to announce today the receipt of FDA 510(k) clearances for two new algorithms targeting our core seizure market. We believe each meaningfully add to our platform clinical utility, strengthening the case for Ceribell as the standard of care. The first represents a significant enhancement to Clarity's ability to identify and reduce EEG artifact signals. Artifact recognition has long been the leading challenge to EEG interpretation in the acute care environment. It is not uncommon for even neurologists to mistake electrical signal from various medical equipment as seizure activity. EEG is so sensitive that even the electrical signal from an IV drip's movement can create artifacts. Our new algorithm, trained on a large artifact database created by Ceribell, can differentiate between brain activity and artifact, adding a layer of AI-driven sophistication. The new algorithm significantly simplifies EEG interpretation for neurologists and improves the point-of-care experience.

Speaker #3: The first represents a significant enhancement to Clarity's ability to identify and reduce EEG artifact signals. Artifact recognition has long been the leading challenge to EEG interpretation in the acute care environment.

Speaker #3: It's not uncommon for even neurologists to mistake electrical signal from various medical equipment as seizure activity. EEG is so sensitive that even the electrical signal from an IV drip's movement can create artifacts.

Speaker #3: Our new algorithm, trained on a large artifact database created by Ceribell, can differentiate between brain activity and artifact, adding a layer of AI-driven sophistication.

Speaker #3: The new algorithm significantly simplifies EEG interpretation for neurologists. And improves the point-of-care experience. We anticipate rolling this out in the third quarter. The second clearance is for epileptiform abnormality detection.

Xingjuan Chao: We anticipate rolling this out in Q3. The second clearance is for epileptic form abnormality detection. This algorithm targets abnormal brain activity in a gray zone between clear seizure and normal signals. This activity is clinically important, but has historically been difficult to consistently measure. To our knowledge, Ceribell is the first software to be FDA cleared for the detection of both seizure and epileptic form abnormality. This is a capability that neurologists have specifically asked for, and we are proud to be the first one to deliver it. We expect to activate this algorithm by the end of the year. These new algorithms serve to strengthen the clinical benefit offered by our system. We believe that by widening the gap between the value offered by Ceribell System compared to conventional EEG, we create a clinical imperative to adopt our leading-edge technology.

Jane Chao: We anticipate rolling this out in Q3. The second clearance is for epileptic form abnormality detection. This algorithm targets abnormal brain activity in a gray zone between clear seizure and normal signals. This activity is clinically important, but has historically been difficult to consistently measure. To our knowledge, Ceribell is the first software to be FDA cleared for the detection of both seizure and epileptic form abnormality. This is a capability that neurologists have specifically asked for, and we are proud to be the first one to deliver it. We expect to activate this algorithm by the end of the year. These new algorithms serve to strengthen the clinical benefit offered by our system. We believe that by widening the gap between the value offered by Ceribell System compared to conventional EEG, we create a clinical imperative to adopt our leading-edge technology.

Speaker #3: This algorithm targets abnormal brain activity in a gray zone between clear seizure and normal signals. This activity is clinically important but has historically been difficult to consistently measure.

Speaker #3: To our knowledge, Ceribell is the first software to be FDA-cleared for the detection of both seizure and epileptiform abnormality. This is a capability that neurologists have specifically asked for, and we are proud to be the first one to deliver it.

Speaker #3: We expect to activate this algorithm by the end of the year. These new algorithms serve to strengthen the clinical benefit offered by our system.

Speaker #3: We believe that by widening the gap between the value offered by the Ceribell system compared to conventional EEG, we create a clinical imperative to adopt our leading-edge technology.

Speaker #3: The second prong of our product strategy centers on enhancing and expanding our hardware platform. Over recent months, we have received FDA 510(k) clearances for several products that together form the foundation of our new hardware platform.

Xingjuan Chao: The second prong of our product strategy centers on enhancing and expanding our hardware platform. Over recent months, we have received FDA 510(k) clearances for several products that together form the foundation of our new hardware platform. This includes clearances for a recorder with video and ECG capability, compatibility to integrate with other vital sign measurements, and the ability to monitor continuously while plugged in. We have also received clearances for two headband designs that provide optionality for form attach and multiple-day continuous monitoring when needed. The features offered by our new platform serve to support our effort to make EEG a new vital sign. For example, delirium patients often require days in the ICU before resolution, and the new system can be even more seamless in supporting this new use case.

Jane Chao: The second prong of our product strategy centers on enhancing and expanding our hardware platform. Over recent months, we have received FDA 510(k) clearances for several products that together form the foundation of our new hardware platform. This includes clearances for a recorder with video and ECG capability, compatibility to integrate with other vital sign measurements, and the ability to monitor continuously while plugged in. We have also received clearances for two headband designs that provide optionality for form attach and multiple-day continuous monitoring when needed. The features offered by our new platform serve to support our effort to make EEG a new vital sign. For example, delirium patients often require days in the ICU before resolution, and the new system can be even more seamless in supporting this new use case.

Speaker #3: This includes clearances for a recorder with video and ECG capability, compatibility to integrate with other vital sign measurements, and the ability to monitor continuously while clotting.

Speaker #3: We have also received clearances for two headband designs that provide optionality for formal touch and multiple-day continuous monitoring when needed. The features offered by our new platform serve to support our effort to make EEG a new vital sign.

Speaker #3: For example, delirium patients often require days in the ICU before resolution. And the new system can be even more seamless, supporting this new use case.

Speaker #3: And when we add LVO in the future, a bigger screen will be needed to monitor multiple disease states. Within our core seizure market, we believe our current product is optimized for the majority of patients in the acute care setting. It is quick, simple, and reliable in a care setting where these are the most important needs.

Xingjuan Chao: When we add LVO in the future, a bigger screen will be needed to monitor multiple disease states. Within our core seizure market, we believe our current product is optimized for the majority of patients in the acute care setting. It is quick, simple, and reliable in a care setting where these are the most important needs. However, with our hardware line extensions, clinicians no longer have to choose between the speed of point-of-care EEG and the comprehensiveness of conventional EEG for patients who need both. Ceribell can offer both with one device. We are continuing to test our products, refine the design, and scale our manufacturing with the target launch of our new hardware platform in 2027. We will share more details as we get closer to the product launch. As I step back, I am struck by how much is converging at once.

Jane Chao: When we add LVO in the future, a bigger screen will be needed to monitor multiple disease states. Within our core seizure market, we believe our current product is optimized for the majority of patients in the acute care setting. It is quick, simple, and reliable in a care setting where these are the most important needs. However, with our hardware line extensions, clinicians no longer have to choose between the speed of point-of-care EEG and the comprehensiveness of conventional EEG for patients who need both. Ceribell can offer both with one device. We are continuing to test our products, refine the design, and scale our manufacturing with the target launch of our new hardware platform in 2027. We will share more details as we get closer to the product launch. As I step back, I am struck by how much is converging at once.

Speaker #3: However, with our hardware line extensions, clinicians no longer have to choose between the speed of point-of-care EEG and the comprehensiveness of conventional EEG for patients who need both.

Speaker #3: Ceribell can offer both with one device. We are continuing to test our products, refine the design, and scale our manufacturing with a target launch of our new hardware platform in 2027.

Speaker #3: We will share more details as we get closer to the product launch. As I step back, I'm struck by how much is converging at once.

Speaker #3: Our core business continues to perform, delivering 33% year-over-year growth and an acceleration compared to last quarter. We are the first and only point-of-care seizure platform indicated for use with patients of all ages.

Xingjuan Chao: Our core business continues to perform, deliver 33% year-over-year growth, and an acceleration compared to last quarter. We are the first and only point-of-care seizure platform indicated for use with patients of all ages. At the same time, the work we have been building towards for years is coming to a head. New algorithms, new hardware appearances, a Delirium pilot tracking towards a commercial launch, and a new NTAP. These advancements stand to meaningfully strengthen our value proposition while reinforcing our market leadership position with significant innovation-based barrier switching. We see 2027 as a pivotal year, with NeuNate gaining more scale, Delirium commercially launched, our expanded hardware platform on the market, and an increasingly mature sales force delivering even greater impact. I am more convinced than ever that we are building the right platform at the right moment.

Jane Chao: Our core business continues to perform, deliver 33% year-over-year growth, and an acceleration compared to last quarter. We are the first and only point-of-care seizure platform indicated for use with patients of all ages. At the same time, the work we have been building towards for years is coming to a head. New algorithms, new hardware appearances, a Delirium pilot tracking towards a commercial launch, and a new NTAP. These advancements stand to meaningfully strengthen our value proposition while reinforcing our market leadership position with significant innovation-based barrier switching. We see 2027 as a pivotal year, with NeuNate gaining more scale, Delirium commercially launched, our expanded hardware platform on the market, and an increasingly mature sales force delivering even greater impact. I am more convinced than ever that we are building the right platform at the right moment.

Speaker #3: At the same time, the work we have been building toward for years is coming to a head: new algorithms, new hardware clearances, and a delirium pilot tracking toward commercial launch.

Speaker #3: And a new NTAP. These advancements stand to meaningfully strengthen our value proposition while reinforcing our market leadership position, with significant innovation-based barriers to entry.

Speaker #3: We see 2027 as a pivotal year. With Neonate gaining more scale, Delirium commercially launched, our expanded hardware platform on the market, and an increasingly mature Salesforce delivering even greater impact, I'm more convinced than ever that we are building the right platform at the right moment.

Speaker #3: Our goal of creating a single brain monitoring solution for the acute care setting is within reach. With that, I will now turn the call over to Scott Blomberg, our CFO, to provide a review of the second quarter results and 2026 guidance.

Xingjuan Chao: Our goal of creating a single brain monitoring solution for the acute care setting is within reach. With that, I will now turn the call over to Scott Blumberg, our CFO, to provide a review of the Q2 results and 2026 guidance.

Jane Chao: Our goal of creating a single brain monitoring solution for the acute care setting is within reach. With that, I will now turn the call over to Scott Blumberg, our CFO, to provide a review of the Q2 results and 2026 guidance.

Speaker #1: Thank you, Jane. And good afternoon, everyone. As Jane highlighted, total revenue for the second quarter of 2026 was $28.1 million, which represents a 33% increase from $21.2 million in the second quarter of 2025 and a 6% sequential increase quarter over quarter.

Scott Blumberg: Thank you, Jane, and good afternoon, everyone. As Jane highlighted, total revenue for the Q2 2026 was $28.1 million, which represents a 33% increase from $21.2 million in the Q2 2025 and a 6% sequential increase quarter-over-quarter. The increase was primarily driven by the success of our same-store growth strategy, in addition to increased adoption of the Ceribell System across new and existing accounts. Product revenue for the Q2 2026 was $21.2 million, representing an increase of 33% from $15.9 million in the Q2 2025. Subscription revenue for the Q2 2026 was $6.9 million, representing an increase of 30% from $5.3 million in the Q2 2025. We ended Q2 with an active account base of 712 hospitals, representing an increase of 32 accounts in the quarter.

Speaker #1: The increase was primarily driven by the success of our same-store growth strategy, in addition to increased adoption of the Ceribell system across new and existing accounts.

Speaker #1: Product revenue for the second quarter of 2026 was $21.2 million, representing an increase of 33% from $15.9 million in the second quarter of 2025.

Speaker #1: Subscription revenue for the second quarter of 2026 was $6.9 million, representing an increase of 30% from $5.3 million in the second quarter of 2025.

Speaker #1: We ended Q2 with an active account base of 712 hospitals, representing an increase of 32 accounts in the quarter. We have been pleased to see our investments in driving same-store growth continue to deliver.

Scott Blumberg: We have been pleased to see our investments in driving same-store growth continue to deliver. While we saw signs of typical seasonality in Q2, when warmer months tend to result in reduced ICU census, our same-store growth performance exceeded expectations, including an acceleration in year-over-year growth from recent quarters. We continue to believe that we have a significant untapped growth opportunity within our install base, in which our top accounts continue to use our product at roughly 3 times the rate of average accounts of similar size. Gross margin for Q2 2026 was 92%, compared to 88% in the prior year period. This includes the impact of $1.6 million in tariff refunds received in the quarter, of which $1 million was recognized in cost of goods sold and $0.6 million was capitalized to inventory. Excluding this adjustment, gross margin was 89%.

Speaker #1: While we saw signs of typical seasonality in Q2, when warmer months tend to result in reduced ICU census, our same-store growth performance exceeded expectations.

Speaker #1: Including an acceleration in year-over-year growth from recent quarters. We continue to believe that we have a significant untapped growth opportunity within our install base, in which our top accounts continue to use our product at roughly three times the rate of average accounts of similar size.

Speaker #1: Gross margin for Q2 2026 was 92%, compared to 88% in the prior year period. This includes the impact of $1.6 million in tariff refunds received in the quarter.

Speaker #1: Of which $1 million was recognized in cost of goods sold and $0.6 million was capitalized to inventory. Excluding this adjustment, gross margin was 89%.

Speaker #1: Our strong margin profile is a direct reflection of cost reduction efforts and the expansion of manufacturing capabilities in Vietnam. We feel confident in our ability to maintain gross margins in the high 80% range throughout 2026, based on current tariff policies, and believe we have built flexibility in our manufacturing capabilities to manage any future policy shifts.

Scott Blumberg: Our strong margin profile is a direct reflection of cost reduction efforts and the expansion of manufacturing capabilities in Vietnam. We feel confident in our ability to maintain gross margins in the high 80% range throughout 2026 based on current tariff policies and believe we have built flexibility in our manufacturing capabilities to manage any future policy shifts. Total operating expenses for the second quarter of 2026 were $45.9 million, an increase of 37% compared to $33.6 million in the second quarter of 2025. Non-cash stock-based compensation expense was $6.0 million in the second quarter of 2026 and $3.2 million in the prior year period. Sales and marketing expense in the second quarter grew as a result of headcount expansion, including the newly established strategic account management function and expansion of our CAM infrastructure in advance of Delirium launch.

Speaker #1: Total operating expenses for the second quarter of 2026 were $45.9 million, an increase of 37% compared to $33.6 million in the second quarter of 2025.

Speaker #1: Non-cash stock-based compensation expense was $6.0 million in the second quarter of 2026, compared to $3.2 million in the prior year period. Sales and marketing expense in the second quarter grew as a result of headcount expansion, including the newly established strategic account management function and expansion of our CAM infrastructure in advance of the delirium launch.

Speaker #1: G&A expense remains elevated in the second quarter of 2026 as a result of expenses related to our ongoing IP litigation, which totaled $3.9 million.

Scott Blumberg: G&A expense remains elevated in the second quarter of 2026 as a result of expenses related to our ongoing IP litigation, which totaled $3.9 million. Looking ahead to the third and fourth quarters of 2026, we anticipate a reduction in lawsuit-related activities and associated expense. Research and development expense in the second quarter reflects investments we have made into our platform, including our next generation hardware, algorithm development, and clinical studies. Net loss was $19.3 million for the second quarter of 2026, or a loss of $0.51 per share, compared to a loss of $13.6 million, or a loss of $0.38 per share in the second quarter of 2025. An average weighted share count of 38.0 million shares was used to determine loss per share in Q2 2026. Last quarter, we instituted the disclosure of adjusted EBITDA to represent the ongoing operating performance of our business.

Speaker #1: Looking ahead to the third and fourth quarters of 2026, we anticipate a reduction in lawsuit-related activities and associated expenses. Research and development expense in the second quarter reflects investments we have made into our platform, including our next-generation hardware, algorithm development, and clinical studies.

Speaker #1: Net loss was $19.3 million, for the second quarter of 2026, or a loss of $51 cents per share, compared million, or a loss of $38 cents per share, in the second quarter of 2025.

Speaker #1: An average weighted share count of 38.0 million shares was used to determine loss per share in Q2 2026. Last quarter, we introduced the disclosure of adjusted EBITDA to represent the ongoing operating performance of our business.

Speaker #1: Adjusted EBITDA reflects our net loss before interest, taxes, depreciation, and amortization expense, and also excludes non-cash stock-based compensation expenses, as well as legal expenses associated with our ongoing IP litigation.

Scott Blumberg: Adjusted EBITDA reflects our net loss before interest, taxes, depreciation, and amortization expense, and also excludes non-cash stock-based compensation expenses, as well as legal expenses associated with our ongoing IP litigations. Adjusted EBITDA loss for the second quarter of 2026 was -$9.8 million, as compared to a -$10.0 million loss in the second quarter of 2025. This reflects our continued strategy of thoughtfully deploying gross profits from our expanding revenue base back into the business to pursue long-term growth opportunities. Our cash equivalents, and marketable securities as of 30 June 2026, were $129.3 million. We remain committed to our objective of achieving cash flow breakeven with cash on hand, and the strength of our balance sheet and strong gross margin profile give us a high degree of confidence in our ability to do so.

Speaker #1: Adjusted EBITDA loss for the second quarter of 2026 was $9.8 million, as compared to a $10.0 million loss in the second quarter of 2025.

Speaker #1: This reflects our continued strategy of thoughtfully deploying gross profits from our expanding revenue base back into the business to pursue long-term growth opportunities. Our cash, cash equivalents, and marketable securities as of June 30, 2026, were $129.3 million.

Speaker #1: We remain committed to our objective of achieving cash flow break-even with cash on hand, and the strength of our balance sheet and strong gross margin profile give us a high degree of confidence in our ability to do so.

Speaker #1: Finally, following the close of the quarter, we successfully refinanced our existing credit facility, securing access to up to $60 million in committed capital, with an additional $25 million uncommitted.

Scott Blumberg: Finally, following close of the quarter, we successfully refinanced our existing credit facility, securing access to up to $60 million in committed capital with an additional $25 million uncommitted. The structure includes a non-formula revolver plus term loan that remains available to draw through year-end 2028. We expect that this structure will reduce our interest expense starting in Q4 and extend our repayment timeline by roughly three years into 2031. We do not have plans to draw the committed but undrawn term loan in the near term, but we believe that its availability will provide us with greater strategic flexibility. Turning now to our outlook for 2026. We expect full year 2026 total revenue to range from $114 to $117 million, up from our prior guidance of $112 to $116 million. This represents annual growth of 28% to 31% over 2025.

Speaker #1: The structure includes a non-formula revolver plus a term loan that remains available to draw through year-end 2028. We expect this structure will reduce our interest expense starting in Q4 and extend our repayment timeline by roughly three years, into 2031.

Speaker #1: We do not have plans to draw the committed but undrawn term loan in the near term, but we believe that its availability will provide us with greater strategic flexibility.

Speaker #1: Turning now to our outlook for 2026. We expect full year 2026 total revenue to range from $114 to $117 million, up from our prior guidance of $112 to $116 million.

Speaker #1: This represents annual growth of 28 to 31 percent over 2025. This changed the guidance reflects the momentum we are seeing in our core business with success driven both by new account additions and usage within our established account base.

Scott Blumberg: This change to guidance reflects the momentum we are seeing in our core business, with success driven both by new account additions and usage within our established account base. This range does not include material contributions from our neonate, pediatric, or delirium products, which we expect will begin to translate into revenue more meaningfully in 2027. With that, I will turn the call back to Jane.

Speaker #1: This range does not include material contributions from our neonate, pediatric, or delirium products, which we expect will begin to translate into revenue more meaningfully in 2027.

Speaker #1: With that, I will turn the call back to Jane.

Speaker #2: Thank you, Scott. And thank you all for your time today. Q2 reinforced the confidence we have in our trajectory. Our core business is growing and accelerating.

Xingjuan Chao: Thank you, Scott, and thank you all for your time today. Q2 reinforced the confidence we have in our trajectory. Our core business is growing and accelerating. Our commercial execution across new accounts, utilization, and neonate is on track. The product and clinical evidence investments we have been making are beginning to compound in ways that will matter over the next year and beyond. We have less than 4% penetration in our core seizure market. This tells you how much runway is still ahead of us. We are advancing into new greenfield markets with urgency and purpose. Our mission to establish EEG as a new vital sign remains our North Star, and the progress we made in Q2 gives us every reason to push harder. Now, I will turn the call over to the operator for Q&A. Operator?

Jane Chao: Thank you, Scott, and thank you all for your time today. Q2 reinforced the confidence we have in our trajectory. Our core business is growing and accelerating. Our commercial execution across new accounts, utilization, and neonate is on track. The product and clinical evidence investments we have been making are beginning to compound in ways that will matter over the next year and beyond. We have less than 4% penetration in our core seizure market. This tells you how much runway is still ahead of us. We are advancing into new greenfield markets with urgency and purpose. Our mission to establish EEG as a new vital sign remains our North Star, and the progress we made in Q2 gives us every reason to push harder. Now, I will turn the call over to the operator for Q&A. Operator?

Speaker #2: Our commercial execution across new accounts, utilization, and neonate is on track. The product and clinical evidence investments we have been making are beginning to compound in ways that will matter over the next year and beyond.

Speaker #2: We have less than 4% penetration in our core seizure market, which tells you how much runway is still ahead of us. And we are advancing into new greenfield markets with urgency and purpose.

Speaker #2: Our mission to establish EEG as a new vital sign remains our north star, and the progress we made in Q2 gives us every reason to push harder.

Speaker #2: Now, I will turn the call over to the operator for Q&A. Operator?

Speaker #3: Thank you. We will now begin the question-and-answer session. If you have dialed in and would like to ask a question, please press star 1 on your telephone keypad to raise your hand and join the queue.

Xingjuan Chao: Thank you. We will now begin the question and answer session. If you have dialed in and would like to ask a question, please press star one on your telephone keypad to raise your hand and join the queue. If you would like to withdraw your question, simply press star one again. If you are called upon to ask your question and are listening via speakerphone in your device, please pick up your handset to ensure that your phone is not on mute when asking your question. We do request for today's session that you please limit to one question and requeue for any follow-up question. Thank you. Our first question comes from the line of Travis Steed with Bank of America. Your line is open.

Operator: Thank you. We will now begin the question and answer session. If you have dialed in and would like to ask a question, please press star one on your telephone keypad to raise your hand and join the queue. If you would like to withdraw your question, simply press star one again. If you are called upon to ask your question and are listening via speakerphone in your device, please pick up your handset to ensure that your phone is not on mute when asking your question. We do request for today's session that you please limit to one question and requeue for any follow-up question. Thank you. Our first question comes from the line of Travis Steed with Bank of America. Your line is open.

Speaker #3: If you would like to withdraw your question, simply press *1 again. If you are called upon to ask your question and are listening via speakerphone on your device, please pick up your handset to ensure that your phone is not on mute when asking your question.

Speaker #3: We do request for today's session that you please limit yourself to one question, and re-queue for any follow-up questions. Thank you. Our first question comes from the line of Travis Teed with Bank of America.

Speaker #3: Your line is open.

Speaker #4: Hey, congrats on the progress. I wanted to spend a little more time on all the FDA approvals that you guys have gotten and put together.

Travis Steed: Hey, congrats on the progress. I wanted to spend a little more time on all the FDA approvals that you guys have gotten and put together. I do not know if there is anything else you want to add to that, but I think the real question is what can all these approvals and new indications and everything do for kind of the revenue growth rate, and kind of the incremental revenue dollars you can add to this business? That would be kind of helpful to context. Anything else you want to say on all the approvals would be helpful just to put in context for everybody. Then I have a follow-up.

Speaker #4: And I don't know if there's anything else you want to add to that, but I think the real question is, what can all these approvals and new indications and everything do for the revenue growth rate, and the incremental revenue dollars you can add to this business?

Speaker #4: That would be helpful for context. If there's anything else you'd like to mention regarding all the approvals, that would also be helpful to provide context for everyone.

Speaker #4: Then I have a follow-up.

Speaker #2: Yeah. Thank you, Travis. So, to output our recent FDA clearance into two groups, aligned with our two-prong strategy: The first group are the algorithm clearances, that include artifact rejection as well as epileptiform abnormality. As we launch both of these algorithms later this year, we do not plan to charge more, but we see these two will be very beneficial, especially for the neurologists.

Xingjuan Chao: Yeah. Thank you, Travis. I will put our recent FDA clearance into two groups, aligned with our two-pronged strategy. The first groups are the algorithm clearances that include artifact rejection as well as epileptiform abnormality. As we launch both of these algorithm later this year, we do not plan to charge more, but we see these two will be very beneficial, especially for the neurologists. Directly or indirectly, this would further increase the stickiness and potentially increase the utilization as account. We have always seen our top accounts always have very strong neurologist support. So we could see this as a leverage to drive usage and potentially increase the deal velocity as well.

Jane Chao: Yeah. Thank you, Travis. I will put our recent FDA clearance into two groups, aligned with our two-pronged strategy. The first groups are the algorithm clearances that include artifact rejection as well as epileptiform abnormality. As we launch both of these algorithm later this year, we do not plan to charge more, but we see these two will be very beneficial, especially for the neurologists. Directly or indirectly, this would further increase the stickiness and potentially increase the utilization as account. We have always seen our top accounts always have very strong neurologist support. So we could see this as a leverage to drive usage and potentially increase the deal velocity as well.

Speaker #2: And directly or indirectly, this would further increase the stickiness and potentially increase the utilization at the account. We have always seen our top accounts always have very strong neurologist support, so we could see as this at the leverage to drive usage and potentially increase the deal velocity as well.

Speaker #2: In terms of our new hardware platform, we are not launching this platform yet. Similar to the previous strategies we have deployed, we are planning on a limited market release for the new hardware platform, and potentially launching the platform in 2027.

Xingjuan Chao: In terms of our new hardware platform, we are not launching this platform yet, and similar to the previous strategies we have deployed. We are planning on a limited market release for the new hardware platform and potentially launch the platform in 2027. This new hardware platform really have been aiming at making EEG a new vital sign in junction to delirium and the future LVO we are working on. So we see this as giving us access to additional patients or even additional market segments. So we do see this can be a revenue driver in 2027 directly. As we get closer to the launch time, we will share even more details.

Jane Chao: In terms of our new hardware platform, we are not launching this platform yet, and similar to the previous strategies we have deployed. We are planning on a limited market release for the new hardware platform and potentially launch the platform in 2027. This new hardware platform really have been aiming at making EEG a new vital sign in junction to delirium and the future LVO we are working on. So we see this as giving us access to additional patients or even additional market segments. So we do see this can be a revenue driver in 2027 directly. As we get closer to the launch time, we will share even more details.

Speaker #2: This new hardware platform really has been aiming at making EEG a new vital sign in conjunction with delirium and the future LVO we are working on.

Speaker #2: So, we see this as giving us access to additional patients or even additional market segments, so we do see this can be a revenue driver in 2027 directly.

Speaker #2: As we get closer to the launch time, we will share even more details.

Speaker #3: Our next question comes from the line of Robbie Marcus with J.P. Morgan. Your line is open.

Xingjuan Chao: Our next question comes from the line of Robbie Marcus with J.P. Morgan. Your line is open.

Operator: Our next question comes from the line of Robbie Marcus with J.P. Morgan. Your line is open.

Speaker #5: Great. Congrats on the quarter, and thanks for taking the question. Scott, I wanted to ask about opt-outs. Companies your size typically need to make a strong beeline towards leverage.

Robbie Marcus: Great. Congrats on the quarter, and thanks for taking the question. Scott, I wanted to ask on OpEx. Companies your size typically need to make a strong beeline towards leverage, and we have seen OpEx grow faster than sales the past several quarters. Maybe just speak to the investments and the spending that you are doing now. What is driving that, and when can we start to see leverage on OpEx? Thanks a lot.

Speaker #5: And we've seen opt-outs grow fast in the sales the past several quarters. So maybe just speak to the investments and the spending that you're doing now.

Speaker #5: What's driving that? And when can you start to see leverage on opt-outs? Thanks a lot.

Speaker #4: Sure thing, Robbie. First of all, the two things I'd like to point out in the Q2 opt-outs that were a little bit out of the normal are, first, stock-based compensation sequentially increasing by about $2.3 million.

Scott Blumberg: Sure thing, Robbie. First of all, the two things I would like to point out in the Q2 OpEx that were a little bit out of the normal is stock-based compensation sequentially increasing by about $2.3 million. We have an annual equity cycle that happens in Q2. So you will tend to see that step function in Q2, and then carrying forward until the next cycle. The other, of course, is the IP litigation, which remained elevated, lower than Q1, but higher than we would expect going forward. As it relates to our investment philosophy, we have maintained adjusted EBITDA loss roughly at around $10 million, give or take, for the past many quarters in a row. Our strategy has been to continue to grow the top line, generate outsized gross profits with our high gross margin, and then reinvest that back into the business.

Speaker #4: We have an annual equity cycle that happens in Q2, so you'll tend to see that step function in Q2 and then carrying forward until the next cycle.

Speaker #4: The other, of course, is the IP litigation, which has remained elevated—lower than Q1, but higher than we'd expect going forward. As it relates to our investment philosophy, we've maintained adjusted EBITDA loss at roughly $10 million, give or take, for the past many quarters in a row.

Speaker #4: Our strategy has been to continue to grow the top line, generate outsized gross profits with our high gross margin, and then reinvest that back into the business.

Speaker #4: And that investment comes in the form of sales infrastructure. In this quarter, both building the strategic account management functionality, as well as expanding our CAM infrastructure, a bit ahead of our delirium launch.

Scott Blumberg: That investment comes in the form of sales infrastructure in this quarter, both building the strategic account management functionality as well as expanding our CAM infrastructure a bit ahead of our Delirium launch, as well as R&D. As we make those investments, we are very mindful of our objective to achieve cash flow breakeven with cash on hand. We have not guided specifically as to when leverage will come, but we keep a very close eye on it to ensure that we control our own destiny and make sure that we are self-sufficient as far as our cash position goes.

Speaker #4: As well as R&D. And as we make those investments, we're very mindful of our objective to achieve cash flow break even with cash on hand.

Speaker #4: We haven't guided specifically as to when leverage will come, but we keep a very close eye on it to ensure that we control our own destiny and make sure that we're self-sufficient as far as our cash position goes.

Speaker #3: Next question comes from the line of Brandon Vasquez with William Beer. Your line is open.

Scott Blumberg: Next question comes from the line of Brandon Vazquez with William Blair. Your line is open.

Operator: Next question comes from the line of Brandon Vazquez with William Blair. Your line is open.

Speaker #6: Hey, everyone. Thanks for taking the question, and congrats on the nice quarter. Jane, I think you had mentioned that there was kind of an inflection here or driving factor of growth in the quarter was from new account ads.

Brandon Vazquez: Hey, everyone. Thanks for taking the question and congrats on a nice quarter. Jane, I think you had mentioned that there was kind of an inflection here, or a driving factor of growth in the quarter was from new account adds. There is clearly a bunch of tailwinds going on in the business with new indications and things like that. I was hoping you could just spend a minute on unpacking, are you guys seeing kind of an inflection in interest from end users? I think you even said that neonate and pediatrics was driving new account openings that you were not even in before. Just kind of give us a little bit of an update on interest in driving new accounts and expectations on how durable that can be going forward. Thank you.

Speaker #6: There are clearly a bunch of tailwinds going on in the business with new indications and things like that. So I was hoping you could just spend a minute unpacking—are you guys seeing kind of an inflection in interest from end users?

Speaker #6: I think you even said that neonate and pediatrics was driving new account openings that you weren't even in before. So just kind of give us a little bit of an update on interest in driving new accounts and expectations on how durable that can be going forward.

Speaker #6: Thank you.

Speaker #2: Thank you, Brandon. Yeah, I definitely echo your statement. We do see a lot of tailwinds. On the account acquisition front, we saw new purchase orders related to neonate, both in existing accounts as well as new accounts.

Xingjuan Chao: Thank you, Brandon. Yeah. Definitely echo your statement. We do see a lot of tailwinds. On the account acquisition front, we saw the new purchase order related to neonate, both in existing accounts as well as new accounts. I would say in Q2, it is still relatively early phase. As you know, it still takes a sale cycle, and we just launched the neonate recently. We do expect the impact from neonate is going to be even bigger H2 of the year and especially in 2027. As I mentioned in my previous call last quarter, that we started the strategic account management team. So we also continue seeing the pipeline and the momentum from this team in closing accounts at the regional hospital system level, and we remain very optimistic for the impact to come later this year and in 2027.

Jane Chao: Thank you, Brandon. Yeah. Definitely echo your statement. We do see a lot of tailwinds. On the account acquisition front, we saw the new purchase order related to neonate, both in existing accounts as well as new accounts. I would say in Q2, it is still relatively early phase. As you know, it still takes a sale cycle, and we just launched the neonate recently. We do expect the impact from neonate is going to be even bigger H2 of the year and especially in 2027. As I mentioned in my previous call last quarter, that we started the strategic account management team. So we also continue seeing the pipeline and the momentum from this team in closing accounts at the regional hospital system level, and we remain very optimistic for the impact to come later this year and in 2027.

Speaker #2: And I would say in Q2, instead of relatively early phase, as it does still take the sales cycle, and we just launched the neonate recently, we do expect the impact from neonate is going to be even bigger second half of the year, and especially in 2027.

Speaker #2: And as I mentioned in my previous call last quarter, that we started the strategic account management team. So we also continue seeing the pipeline and the momentum from this team in closing accounts as the regional hospital system level.

Speaker #2: And we remain very optimistic for the impact to come later this year and in 2027. Another dimension of revenue drive, of course, is from the utilization or the same store growth.

Xingjuan Chao: Another dimension of revenue drive, of course, is from the utilization or the same-store growth. As Scott mentioned, Q2 usually is our low seasonality quarter, but the same-store growth this quarter exceeded expectation. The majority of that is the continuous execution of the known playbook we have. In addition to that, we also see coming tailwind as we later launch Delirium. The limited market release did show that these existing Ceribell accounts, when they start to use Delirium, it meaningfully increased the utilization as well. So we are very excited about the different tailwinds we are having.

Jane Chao: Another dimension of revenue drive, of course, is from the utilization or the same-store growth. As Scott mentioned, Q2 usually is our low seasonality quarter, but the same-store growth this quarter exceeded expectation. The majority of that is the continuous execution of the known playbook we have. In addition to that, we also see coming tailwind as we later launch Delirium. The limited market release did show that these existing Ceribell accounts, when they start to use Delirium, it meaningfully increased the utilization as well. So we are very excited about the different tailwinds we are having.

Speaker #2: As Scott mentioned, Q2 usually is our low seasonality quarter, but the same store growth this quarter exceeded the expectation. And the majority of that is the continuous execution of the known playbook we have.

Speaker #2: In addition to that, we also see coming tailwind as we later launch delirium as the limited market release did show that these existing Cerebell accounts, when they start to use delirium it meaningfully increased the utilization as well.

Speaker #2: So we are very excited about the different tailwinds we're having.

Speaker #3: Next question comes from the line of Joshua Jennings with TD Cowen. Your line is open.

Xingjuan Chao: Next question comes from the line of Joshua Jennings with TD Cowen. Your line is open.

Operator: Next question comes from the line of Joshua Jennings with TD Cowen. Your line is open.

Speaker #7: Good afternoon. Thanks, Jane, Scott. Congratulations on another strong quarter. I wanted to lay out some additional layers of growth that would be kicking in in 2027.

Joshua Jennings [Managing Director and Health Care: Good afternoon. Thanks, Jane and Scott. Congratulations on another strong quarter. You have laid out some additional layers of growth that will be kicking in in 2027. Right now, the Street is projecting a similar kind of revenue growth rate prior to today as the lower end of 2026 guidance that you just revised up. I do not think you are going to provide explicit guidance for 2027, but with pediatric neonate kicking in next year, Delirium, the new hardware, Ceribell headband platform, how should we be thinking about kind of the trajectory of growth? It seems like there could be an acceleration even in 2027 versus 2026.

Joshua Jennings: Good afternoon. Thanks, Jane and Scott. Congratulations on another strong quarter. You have laid out some additional layers of growth that will be kicking in in 2027. Right now, the Street is projecting a similar kind of revenue growth rate prior to today as the lower end of 2026 guidance that you just revised up. I do not think you are going to provide explicit guidance for 2027, but with pediatric neonate kicking in next year, Delirium, the new hardware, Ceribell headband platform, how should we be thinking about kind of the trajectory of growth? It seems like there could be an acceleration even in 2027 versus 2026.

Speaker #7: Right now, the street's projecting a similar kind of revenue growth rate prior to today. As the lower end of 2026 guidance that you just revised up.

Speaker #7: I don't think you're going to provide explicit guidance for 2027, but with pediatric and neonate kicking in next year, delirium, the new hardware, Ceribell headband platform—how should we be thinking about the trajectory of growth?

Speaker #7: It seems like there could be an acceleration even in 2027 versus 2026.

Speaker #4: Yeah, Josh. We're not yet going to comment on 2027 guide, but as you pointed out, there's a lot of tailwinds that are all coalescing around the same time.

Scott Blumberg: Yeah, Josh. We are not yet going to comment on 2027 guide, but as you pointed out, there is a lot of tailwinds that are all coalescing around the same time. We feel really good about what we know. We feel good about what we learned on the neonate early launch, the Delirium pilot. There are still things we need to learn. We need to learn how the Delirium launch that planned for later this year goes, and as well as the limited market release on the-

Speaker #4: We feel really good about what we know. We feel good about what we've learned on the neonate early launch, the delirium pilot. There's still things we need to learn.

Speaker #4: We need to learn how the delirium launch plan for later this year goes as well as the limited market release on the new product platform.

Speaker #4: But we've got about six or seven months here before we're guiding for 2027, and we're learning and very happy to share our learnings with you when we issue our guide.

Scott Blumberg: On the new product platform. But we have got about six or seven months here before we are guiding for 27, and we are learning and very happy to share our learnings with you when we issue our guide.

Speaker #3: All right. Next question comes from the line of Bill Buvanic with Canaccord Genuity. Your line is open.

Scott Blumberg: Our next question comes from the line of Bill Plovanic with Canaccord Genuity. Your line is open.

Operator: Our next question comes from the line of Bill Plovanic with Canaccord Genuity. Your line is open.

Speaker #5: Hi. It's Zachary Ahn for Bill. Thank you for taking the question, and congrats on the quarter. Can you talk more about the magnitude of the gross market impact from the Vietnam manufacturing shift?

[Analyst] (Canaccord Genuity): Hi, it is Zachary on for Bill. Thank you for taking the question, and congrats on the quarter. Can you talk more about the magnitude of the gross margin impact from the Vietnam manufacturing shift? I thought that was going to be more impactful later in the year. It sounds like you are starting to get some benefit now. Can you try to quantify that, please? Thank you.

Speaker #5: I thought that was going to be more impactful later in the year. It sounds like you're starting to get some benefit now. Can you try to quantify that, please?

Speaker #5: Thank you.

Speaker #4: Sure. I view the 89%—which, effectively, is if there had not been any sort of refund—as effectively the steady state for where we are.

Scott Blumberg: Sure. I view the 89%, which effectively is as if there had not been any sort of refund as effectively the steady state for where we are. As we have mentioned, we plan to expect to be in the high 80% range for the remainder of the year. That 89%, which would have included the burden of tariffs, is essentially back to where we were, even a little better before all the tariff noise. That is a direct reflection of both the manufacturing move to Vietnam, but also some general cost reduction initiatives that we put into place over the course of the last year and a half that should continue to generate dividends going forward.

Speaker #4: And as we mentioned, we plan to be in the expect to be in the high 80% range for the remainder of the year. That 89%, which would have included the burden of tariffs, is essentially back to where we were even a little better.

Speaker #4: Before all the tariff noise, and that's a direct reflection of both the manufacturing moved to Vietnam, but also some general cost reduction initiatives that we put into place over the course of the last year and a half that should continue to generate dividends going forward.

Speaker #3: Next question comes from the line of Jeff Cohen with Ladenberg Tauman. Your line is open.

Scott Blumberg: Next question comes from the line of Jeff Cohen with Ladenburg Thalmann. Your line is open.

Operator: Next question comes from the line of Jeff Cohen with Ladenburg Thalmann. Your line is open.

Speaker #2: Hi, this is Destiny Ahn for Jeff. Thank you for taking our question. Jane, I know you mentioned that about 45% of the patients in the delirium pilot were difficult to evaluate but still could be monitored using Ceribell.

[Analyst] (Ladenburg Thalmann): Hi, this is Destiny on for Jeff. Thank you for taking our question. Jane, I know you mentioned that 45% of the patients in the delirium pilot were difficult to evaluate but still could be monitored using the Ceribell System. I am wondering, as the pilot has matured, are you seeing the initial commercial use case converge around a particular patient population or workflow? If you could just kind of expand on that a little bit. Thank you.

Destiny Hance: Hi, this is Destiny on for Jeff. Thank you for taking our question. Jane, I know you mentioned that 45% of the patients in the delirium pilot were difficult to evaluate but still could be monitored using the Ceribell System. I am wondering, as the pilot has matured, are you seeing the initial commercial use case converge around a particular patient population or workflow? If you could just kind of expand on that a little bit. Thank you.

Speaker #2: The Cerebell system. So I'm wondering as the pilot has matured, are you seeing the initial commercial use case converge around a particular patient population or workflow?

Speaker #2: And if you could just kind of expand on that a little bit. Thank you. Yeah. Thank you. This is part of the reason we do limited market release.

Xingjuan Chao: Yeah. Thank you. This is part of the reason we do a limited market release, so we can really fine-tune the value proposition and workflow and patient population. The short answer to your question is, yes, we start to see emerging populations that hospitals and physicians are particularly interested in related to delirium. The examples include sepsis patient with altered mental status or elderly patient, especially with post-cardiac surgery or other surgical procedures. These patients are more likely to have delirium. More than 40% of these patients with a conventional standard of care would not have been able to assess delirium is one of the value propositions. In the same pilot and survey, we also show other results. For example, physicians and nurses show that about another 30%, 40% of the patients, they were able to reduce sedation or even intubation based on the delirium algorithm.

Jane Chao: Yeah. Thank you. This is part of the reason we do a limited market release, so we can really fine-tune the value proposition and workflow and patient population. The short answer to your question is, yes, we start to see emerging populations that hospitals and physicians are particularly interested in related to delirium. The examples include sepsis patient with altered mental status or elderly patient, especially with post-cardiac surgery or other surgical procedures. These patients are more likely to have delirium. More than 40% of these patients with a conventional standard of care would not have been able to assess delirium is one of the value propositions. In the same pilot and survey, we also show other results. For example, physicians and nurses show that about another 30%, 40% of the patients, they were able to reduce sedation or even intubation based on the delirium algorithm.

Speaker #2: So we can really fine-tune the value proposition and workflow and patient population. So the short answer to your question is yes, we start to see emerging populations that hospitals and physicians are particularly interested in related to delirium.

Speaker #2: The examples include sepsis patients with altered mental status, or elderly patients—especially those who are post-cardiac surgery or have undergone other surgical procedures. These patients are more likely to have delirium.

Speaker #2: And this—more than 40% of these patients, with a conventional standard of care, would not have been able to assess delirium—is one of the value propositions.

Speaker #2: In the same pilot and survey, we also show other results. For example, physicians and nurses show that about another 30, 40% of the patients, they were able to reduce sedation or even intubation based on the delirium algorithm.

Speaker #2: And about 20% of the time, they were able to improve care. So these give us even stronger confidence as well as the initial preliminary evidence to support the delirium launch we are planning later this year as well.

Xingjuan Chao: About 20% of the time, they were able to improve care. These give us even stronger confidence as well as the initial preliminary evidence to support the delirium launch we are planning later this year as well.

Jane Chao: About 20% of the time, they were able to improve care. These give us even stronger confidence as well as the initial preliminary evidence to support the delirium launch we are planning later this year as well.

Speaker #3: Next question comes from the line of Marie Thiebault with US Bancorp BTIG. Your line is open.

Xingjuan Chao: Next question comes from the line of Marie Thibault with BTIG. Your line is open.

Operator: Next question comes from the line of Marie Thibault with BTIG. Your line is open.

Speaker #6: Hi. I wanted to hear a little bit more about the regional health system team. I know that's a small strategic team, targeting some of the regional health systems.

Marie Thibault: Hi. I wanted to hear a little bit more about the regional health system team. I know that is a small strategic team targeting some of the regional health systems, and I heard you say it is going well so far. I wonder if we could get any more details on some of the early pipeline metrics, things like the number of systems under engagement or in conversation, number of hospitals in these kinds of discussions, and your best estimate for when this starts to really accelerate account adds further. Thanks for taking the question.

Speaker #6: And I heard you say it's going well so far, but I wonder if we could get any more details on some of the early pipeline metrics, things like the number of systems under engagement or in conversation, number of hospitals in these kinds of discussions.

Speaker #6: And your best estimate for when this starts to really accelerate account ads further. Thanks for taking the question.

Speaker #2: Yeah. Thank you, Marie. So I mentioned probably about two quarters ago as we start forming this team, we also optimized our internal operation and tracking.

Xingjuan Chao: Yeah. Thank you, Marie. I mentioned probably about two quarters ago, as we start forming this team, we also optimized our internal operation and tracking. This year is the first time we start to track pipeline, not just at hospital level, but also at the system level. We're not ready and probably won't share the pipeline of system level quantitatively, but what I can share is we've seen very strong momentum growth on this hospital system-level pipeline. In many ways, they are growing even faster than the already very healthy hospital-level pipeline we're seeing. As I also mentioned earlier, this team only started in January. We're just building up this team in January and take a few months to build up the team and to learn. We are only six months in the process, and with the sales cycle, we expect to see early win.

Jane Chao: Yeah. Thank you, Marie. I mentioned probably about two quarters ago, as we start forming this team, we also optimized our internal operation and tracking. This year is the first time we start to track pipeline, not just at hospital level, but also at the system level. We're not ready and probably won't share the pipeline of system level quantitatively, but what I can share is we've seen very strong momentum growth on this hospital system-level pipeline. In many ways, they are growing even faster than the already very healthy hospital-level pipeline we're seeing. As I also mentioned earlier, this team only started in January. We're just building up this team in January and take a few months to build up the team and to learn. We are only six months in the process, and with the sales cycle, we expect to see early win.

Speaker #2: So, this year is the first time we started to track pipeline not just at the hospital level, but also at the system level. We're not ready, and probably won't share the pipeline at the system level quantitatively.

Speaker #2: But what I can share is we've seen very, very strong momentum and growth on this hospital system-level pipeline. In many ways, it's growing even faster than the already very healthy hospital-level pipeline we're seeing.

Speaker #2: As I also mentioned earlier, this team only started in January. We began building up this team in January, and it takes a few months to build up the team and to learn, so we're only six months into the process.

Speaker #2: And with the sales cycle, we expect to see early wins. We've already seen early wins internally this year. But the bigger impact would come in 2027 and 2028.

Xingjuan Chao: We're already seeing early win internally this year, but the bigger impact would come in 2027 and 2028.

Jane Chao: We're already seeing early win internally this year, but the bigger impact would come in 2027 and 2028.

Speaker #3: Next question comes from the line of Jason Bedford with Raymond James. Your line is open.

Xingjuan Chao: Next question comes from the line of Jason Bedford with Raymond James. Your line is open.

Operator: Next question comes from the line of Jason Bedford with Raymond James. Your line is open.

Speaker #7: Good afternoon. And congrats on the progress here. I guess on delirium, the decision to launch in late '26 versus what I think was your prior commentary of fourth quarter, early '27, is the decision due to what you're seeing in the pilot?

Jason Bedford: Good afternoon, and congrats on the progress here. I guess on delirium, the decision to launch in late 2026 versus what I think was your prior commentary of Q4, early 2027. Is the decision due to what you're seeing in the pilot? Is it the establishment of the NTAP? Any commentary on reasoning for what I assume is a Q4 launch. Then as a related question, you hinted at it earlier, but is there a need for additional sales infrastructure to launch delirium? Thanks.

Speaker #7: Is it the establishment of the NTAP? Any commentary on the reasoning for what I assume is a fourth quarter launch? And then as a related question, you hinted at it earlier, but is there a need for additional sales infrastructure to launch delirium?

Speaker #7: Thanks.

Speaker #2: Yeah, thank you, Jason. The answer is both. We saw both very positive feedback, clinically and operationally, as I mentioned earlier, from the limited market release on delirium.

Xingjuan Chao: Yeah. Thank you, Jason. The answer is both. We saw both very positive feedback, clinically and operationally, as I mentioned earlier, from the limited market release on delirium across the sites we have launched, as well as the final rule from CMS on NTAP effective October 2026. The combination of that give us the confidence that we are going fully, officially launch delirium in Q4 this year. In terms of sales force, the short answer is no, we do not expect we need additional specific sales team for this. As we did with the limited market release, we leveraged the local, mostly CAM, clinical account manager team, and we expect we can continue to leverage our clinical account manager team.

Jane Chao: Yeah. Thank you, Jason. The answer is both. We saw both very positive feedback, clinically and operationally, as I mentioned earlier, from the limited market release on delirium across the sites we have launched, as well as the final rule from CMS on NTAP effective October 2026. The combination of that give us the confidence that we are going fully, officially launch delirium in Q4 this year. In terms of sales force, the short answer is no, we do not expect we need additional specific sales team for this. As we did with the limited market release, we leveraged the local, mostly CAM, clinical account manager team, and we expect we can continue to leverage our clinical account manager team.

Speaker #2: Across the sites, we have launched as well as the final rule from CMS on NTAP effective October 2026. So the combination of that give us the confidence that we're going to fully officially launch delirium in Q2 this year.

Speaker #2: In terms of sales—sorry, Q4. In Q4 this year, in terms of sales force, the short answer is no, we do not expect that we need additional, specific sales team for this.

Speaker #2: As we did with the limited market release, we leveraged the local, mostly clinical account manager team, and we expect we can continue to leverage our clinical account manager team.

Speaker #2: And of course, if delirium really we can see it gaining even more momentum we could consider opportunistically expand this team even further. But we definitely do not see a need to establish a different sales force.

Xingjuan Chao: If delirium, really we can see it gaining even more momentum, we could consider opportunistically expand this team even further. But we definitely do not see a need to establish a different sales force.

Jane Chao: If delirium, really we can see it gaining even more momentum, we could consider opportunistically expand this team even further. But we definitely do not see a need to establish a different sales force.

Speaker #3: Next question comes from the line of Joshua Jennings with TD Cowan. Your line is open.

Xingjuan Chao: Next question comes from the line of Joshua Jennings with TD Cowen. Your line is open.

Operator: Next question comes from the line of Joshua Jennings with TD Cowen. Your line is open.

Speaker #5: Hi, thanks. Just one follow-up to the, I guess, next-generation or cerebral headband hardware that you talked about introducing in 2027. I just wanted to get a better sense.

Joshua Jennings [Managing Director and Health Care: Hi. Thanks. Just one follow-up to the, I guess, next generation or Ceribell headband hardware that you talked about introducing in 2027. I just wanted to get a better sense. I mean, is that you adding electrodes? Is it going to be a full montage EEG? Can you just talk about moving into conventional EEG territory and the TAM expansion opportunity there? Can you leverage all of the AI algorithms Clarity that have been developed for reduced electrode montage on this next Ceribell headband hardware? Thanks for taking the question.

Joshua Jennings: Hi. Thanks. Just one follow-up to the, I guess, next generation or Ceribell headband hardware that you talked about introducing in 2027. I just wanted to get a better sense. I mean, is that you adding electrodes? Is it going to be a full montage EEG? Can you just talk about moving into conventional EEG territory and the TAM expansion opportunity there? Can you leverage all of the AI algorithms Clarity that have been developed for reduced electrode montage on this next Ceribell headband hardware? Thanks for taking the question.

Speaker #5: I mean, is that you're adding electrodes? Is it going to be a full montage EEG? Can you just talk about moving into conventional EEG territory and the TAM expansion opportunity there?

Speaker #5: And can you leverage all of the AI algorithms, clarity that have been developed for reduced electrode montage on this next cerebral headband hardware? Thanks for taking the question.

Speaker #2: Yeah. Thank you, Josh. The new hardware platform really focused on to provide the hardware solution to become the brain monitor. So the key features I would emphasize is when you think about brain monitor, sometimes physicians would want video, a bigger screen, and continuous monitor for days or even weeks.

Xingjuan Chao: Yeah. Thank you, Josh. The new hardware platform really focus on to provide the hardware solution to become the brain monitor. The key features I would emphasize is when you think about brain monitor, sometimes physician would want video, a bigger screen, and continuous monitor for days or even weeks, so the recorder need to plug in. Also the capability to integrate other signals so the new recorder can add EKG or other vital sign into the recording. It would be the platform that will run the seizure algorithm, the delirium algorithm, all the algorithm we already have, and also the future algorithm. One of the variables that FDA clearance is even more comfortable, and that's where a patient can wear it for days. The vision is really to become a brain monitor.

Jane Chao: Yeah. Thank you, Josh. The new hardware platform really focus on to provide the hardware solution to become the brain monitor. The key features I would emphasize is when you think about brain monitor, sometimes physician would want video, a bigger screen, and continuous monitor for days or even weeks, so the recorder need to plug in. Also the capability to integrate other signals so the new recorder can add EKG or other vital sign into the recording. It would be the platform that will run the seizure algorithm, the delirium algorithm, all the algorithm we already have, and also the future algorithm. One of the variables that FDA clearance is even more comfortable, and that's where a patient can wear it for days. The vision is really to become a brain monitor.

Speaker #2: So the recorder need to plug in. And also the capability to integrate other signals. So the new recorder can add EKG or other vital signs into the recording.

Speaker #2: And it would be the platform that will run the seizure algorithm, the delirium algorithm, all the algorithm we already have. And also the future algorithm.

Speaker #2: And the variable that one of the variables get FDA clearance is even more comfortable. And that's where a patient can wear it for days so the vision is really to become a brain monitor.

Speaker #2: And with that, we also have a variable that has the parasagittal coverage, so that's the full montage. It only works in conjunction with our existing headband.

Xingjuan Chao: With that, we also have a variable that has the parasagittal cap coverage. That's the full montage. It only works in conjunction with our existing headband. So it's the add-on variable plus our headband together, plug it into the same recorder, will provide the full montage. That's because we believe that our existing system can support the majority of the patients. But occasionally, doctor preference or patient needs do need full montage, so we want to provide the optionality. You are right, with this entire new hardware, we're not just the brain monitor anymore. We also provide almost all the functionality of the conventional EEG. So we look forward to sharing more our bigger picture and value proposition of our hardware as we're getting closer to the market release later this year.

Jane Chao: With that, we also have a variable that has the parasagittal cap coverage. That's the full montage. It only works in conjunction with our existing headband. So it's the add-on variable plus our headband together, plug it into the same recorder, will provide the full montage. That's because we believe that our existing system can support the majority of the patients. But occasionally, doctor preference or patient needs do need full montage, so we want to provide the optionality. You are right, with this entire new hardware, we're not just the brain monitor anymore. We also provide almost all the functionality of the conventional EEG. So we look forward to sharing more our bigger picture and value proposition of our hardware as we're getting closer to the market release later this year.

Speaker #2: So it's the add-on variable plus our headband together plug it into the same recorder. We'll provide the full montage. And that's because we believe that our existing system can support the majority of the patients.

Speaker #2: But occasionally, doctor preference or patient needs do need full montage. So we want to provide the optionality. And you're right with this entire new hardware.

Speaker #2: We're not just the brain monitor anymore. We also provide almost all the functionality of the conventional EEG. So we look forward to sharing more our bigger picture and value proposition of our hardware as we're getting closer to the market release later this year.

Speaker #3: And our last question comes from the line of Bill Buvanic with Canaker Genvity. Your line is open.

Xingjuan Chao: Our last question comes from the line of Bill Plovanic with Canaccord Genuity. Your line is open.

Operator: Our last question comes from the line of Bill Plovanic with Canaccord Genuity. Your line is open.

Speaker #6: Hi. It's Zachary again for Bill. Thank you for taking the follow-up question. Last quarter, you provided that 85% of the new reps with at least 12 months of tenure contributed to the active account base and had 100% purchase orders.

[Analyst] (Canaccord Genuity): Hi, it's Zachary again for Bill. Thank you for taking the follow-up question. Last quarter, you provided that 85% of the new reps with at least 12 months of tenure contributed to the active account base and had 100% purchase orders. What is that looking like now? Can you quantify how these newer reps are maturing as it is considered a bigger part of your revenue ramp for this year? Thank you.

Speaker #6: What does that look like now? Can you quantify how these newer reps are maturing, as it is considered a bigger part of your revenue ramp for this year?

Speaker #6: Thank you.

Speaker #1: Yeah, Zach, I don't have a precise sound bite for you, but we track very carefully the progression of the team across what we know to be the productivity curve.

Scott Blumberg: Zach, I do not have a precise soundbite for you, but we track very carefully the progression of the team across what we know to be the productivity curve. As we have mentioned in the past, typically, we do not see reps add their first account until they hit the end of year 1, and then they continually get more productive throughout year 2 and then reach their max rate of new adds at the end of year 2. With the infrastructure build we did starting in late 2024, we are having more folks age into that one-year bucket. Still the majority of those are not at the two-year bucket.

Speaker #1: And as we mentioned in the past, typically we don't see reps add their first account until they hit the end of year one and then they continually get more productive throughout year two and then reach their kind of max rate of new ads at the end of year two.

Speaker #1: With the infrastructure build we did starting in late 2024, we're having more folks age into that one-year bucket. Still, the majority of those are not at the two-year bucket.

Speaker #1: And the productivity has aligned with what we've seen historically. And I think that's a reflection of the ads you've seen on the account base.

Scott Blumberg: The productivity has aligned with what we have seen historically, and I think that is a reflection of the adds you have seen on the account base, in which we delivered a pretty similar result in terms of new adds this quarter to the prior two quarters, but with much less reliance on VA to juice the number up and really more of a reflection of the organic maturation of the sales org.

Speaker #1: We wish we delivered a pretty similar result in terms of new ads this quarter to the prior two quarters, but with much less reliance on VA to juice the number up and really more of a reflection of the organic maturation of the sales work.

Speaker #3: That concludes the question-and-answer session. I would now like to turn the call back over to Jean Chow for closing remarks.

Scott Blumberg: That concludes the question and answer session. I would now like to turn the call back over to Jane Chao for closing remarks.

Operator: That concludes the question and answer session. I would now like to turn the call back over to Jane Chao for closing remarks.

Speaker #2: Well, thank you, everyone, for joining the call. We are very proud of what we have accomplished this quarter. And really excited about what's ahead of us and in 2027.

Xingjuan Chao: Thank you everyone for joining the call. We are very proud of what we have accomplished this quarter and really excited about what is ahead of us and in 2027. Thank you all.

Jane Chao: Thank you everyone for joining the call. We are very proud of what we have accomplished this quarter and really excited about what is ahead of us and in 2027. Thank you all.

Speaker #2: Thank you all.

Xingjuan Chao: Ladies and gentlemen, that concludes today's call. Thank you all for joining. You may now disconnect.

Operator: Ladies and gentlemen, that concludes today's call. Thank you all for joining. You may now disconnect.

Q2 2026 CeriBell Inc Earnings Call

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