CBLL Q1 2026 Earnings Call

Operator: Thank you for standing by. At this time, I would like to welcome everyone to the CeriBell, Inc. First Quarter 2026 Earnings Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. If you would like to ask a question at that time, simply press star followed by the number one on your telephone keypad. Thank you. I will now turn the conference over to Brian Johnston, Investor Relations. You may begin.

Brian Johnston: Good afternoon, and thank you all for participating in today’s call. Joining me from CeriBell, Inc. are Jane Shao, Co-Founder and Chief Executive Officer, and Scott Blumberg, Chief Financial Officer. Earlier today, CeriBell, Inc. issued a press release announcing financial results for the quarter ended 03/31/2026. A copy of the press release is available on the Investor Relations section of CeriBell, Inc.’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, 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. 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 02/24/2026. This conference call contains time-sensitive information and is accurate only as of the live broadcast today, 05/11/2026. CeriBell, Inc. 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. With that, I will turn the call over to Jane.

Jane Shao: Good afternoon, and thank you all for joining us for our first quarter 2026 earnings call. Q1 was a strong quarter. We delivered revenue of $26.5 million, growing 29% year-over-year and 7% sequentially. Growth was driven by record headband utilization and our largest quarter of net new account additions. We also delivered 87% gross margin and expect to maintain gross margin in the high 80% range throughout 2026. Beyond continued progress in penetrating our core seizure market, we delivered two major milestones that mark inflection points in the evolution of our platform. Following a successful pilot, we have initiated the full commercial launch of our neonate and pediatric products. We are privileged to now offer our seizure monitoring solution to some of the most vulnerable patients. Second, we activated the first sites in our delirium pilot in April, signifying our entry into the $1 billion market where we offer the only FDA-cleared diagnostic tool. I will discuss both milestones in detail shortly. Let me start with our performance in our core market. Our goal is to become the standard of care for seizure management across 6 thousand U.S. hospitals that offer acute care services. We are pursuing this through two paths: adding new accounts and deepening utilization within our existing installed base. On account acquisition, we ended Q1 with 680 hospitals actively using the CeriBell, Inc. system. With 33 net additions, this marks our strongest single quarter of account growth since becoming a public company. We remain confident in our ability to increase the number of new adds in 2026 above the level seen in 2025. Our confidence is reinforced by three strengths in this part of the business: the continued maturation of our recently expanded sales organization, deepening penetration within the VA and other health systems, and our strong account backlog. The account acquisition team expansion we launched in Q4 2024 is delivering. Among the new hires with at least 12 months of tenure, over 85% have contributed to the active account base and 100% have generated purchase orders. Given the timing of our sales cycle and the time required to launch new accounts, this level of productivity is encouraging. As more of our new hires mature throughout 2026, we expect a further step-up in productivity, with additional acceleration in 2027. Beyond growing the territory manager team, we are also gaining momentum in two initiatives focused on accelerating hospital system acquisition. First, we expect continued momentum within the VA system, where we remain in the early stages of penetrating the 170 hospitals unlocked by our FedRAMP High authorization last year. Separately, leveraging our success from the VA, we launched a pilot at select U.S. military hospitals. The opportunity is incremental in scale, but nonetheless, it is a compelling validation of our product and our position as category leader. Second, we have successfully hired a small team focused on top-down engagement of regional hospital systems. This complements the bottom-up activity of our TM organization and opens additional pathways to system-level adoption. Overall, we are encouraged by the growing market receptivity to our technology and are pleased with our team’s momentum in adding new accounts. Meanwhile, same-store growth trends remain strong. Q1 marks our strongest quarter ever in terms of headband usage per account. Our growing TAM team continues to drive utilization through departmental expansion, provider engagement across all shifts, and support of protocol development. We believe we have a significant opportunity to increase utilization even further. In accounts that have adopted our best practices, the results speak for themselves: our top accounts routinely monitor approximately three times as many patients as average comparable accounts. We are also increasingly encouraged by what we are hearing from our users in the real world. As our user base expands and real-world data accumulates, recognition of the clinical imperative of quantifiable brain monitoring at the bedside continues to grow. In March, I had the opportunity to experience this firsthand at the annual meeting of the Society of Critical Care Medicine. There was strong excitement for our technology far beyond what we have experienced at past industry events. It is clear that we are moving closer to achieving our goal of helping to redefine the standard of care for seizure management. Turning now to our neonate and pediatric seizure programs, we have initiated the commercial launch of both products. Neonate is a population where improvement in seizure management can change the entire course of an individual’s life. Our pilot was conducted at five sites, including both new and existing customers. All five of these hospitals are now moving forward from pilot to full implementation. This momentum reinforces both the clinical case for use of our technology in younger patients and the commercial opportunities ahead. We are still early in our pediatric launch, but the feedback we are hearing from parents and physicians has already been profoundly meaningful. I would like to share a recent case involving a pediatric patient in the emergency department. A two-year-old boy was brought to the ER unresponsive by his mom. It was his second ER visit of the day. The bedside provider initially struggled in identifying the root cause until the neurologist requested the CeriBell, Inc. system. Clarity immediately identified seizure activity, which the neurologist confirmed. This avoided the need for a lumbar puncture and potential ICU admission while waiting for a conventional EEG. The team was able to initiate treatment promptly, and the little boy gained full alertness later that day. He was discharged the next morning. This case reflects what the CeriBell, Inc. system is designed to do: quickly identify seizure activity, guide treatment decisions in real time, and help patients get the care they need faster. Moving now to delirium, in April, we were thrilled to have activated the first sites of our delirium pilot. This marks the beginning of a new chapter for CeriBell, Inc. as we continue moving towards our goal of establishing EEG as a new vital sign. As a reminder, following FDA 510(k) clearance in December, CeriBell, Inc. was the first and only company with an FDA-cleared delirium monitoring solution. Delirium is the most common neurological complication in the ICU, yet the standard of care for assessment remains subjective, labor intensive, and intermittent. Our solution offers something fundamentally different: objective, consistent, and continuous insight into a patient’s neurological state. Our pilot is designed to build real-world experience, validating the right patient populations, optimizing clinical workflows, refining our commercial strategy, and generating clinical evidence. What we are hearing from the field is encouraging. Interest in our delirium solution has been strong, and notably, that interest is amplified when delirium monitoring is paired with seizure detection. This interest is further validated by our recently launched study with Vanderbilt Medical Center to examine the overlap between seizure and delirium across ICU patient populations. While the stand-alone value of the delirium algorithm is clear, we are convinced that addressing seizure and delirium together has the potential to transform ICU care. We are also pleased to share that in April, we received a supportive CMS proposed rule for a New Technology Add-on Payment, or NTAP, for our delirium monitoring solution. The rule proposes up to $2,171 in incremental reimbursement per patient. This is a positive indicator of the potential for a favorable final rule in August 2026. If adopted, the NTAP would become effective 10/01/2026. We believe that a positive final rule would supplement the significant clinical interest in our technology, helping to pave the way for its adoption. Looking ahead, we remain on track for full commercial launch of our delirium solution in Q4 2026 or Q1 2027. Finally, turning to LVO stroke, we received Breakthrough Device Designation for this indication in January 2026. We are continuing to push our clinical programs forward and look forward to sharing more in the coming quarters. Stepping back, I could not be prouder of what our team has accomplished in the first quarter of the year. Q1 reinforced our confidence in our trajectory, and I am energized by the momentum we are carrying into the rest of 2026. Execution across the business is on track, with several key initiatives running ahead of schedule. We estimate our total addressable market at approximately $3.5 billion in the U.S. alone, nearly double what it was just a year ago. We believe CeriBell, Inc. is best positioned to lead this market with an integrated platform, established trust from physicians and administrators, and a growing body of clinical evidence. Our goal is a single brain monitoring platform that sets a new standard for neurological care, and we are executing against that vision. We remain committed to making EEG a new vital sign, and the early progress in 2026 only strengthens our conviction in the transformational nature of what we are building. With that, I will now turn the call over to Scott Blumberg, our CFO, to provide a review of the first quarter results and 2026 guidance.

Scott Blumberg: Thank you, Jane, and good afternoon, everyone. As Jane highlighted, total revenue for Q1 2026 was $26.5 million, which is a 29% increase from $20.5 million in Q1 2025. The increase was primarily driven by increased adoption of the CeriBell, Inc. system across new and existing accounts. Product revenue for Q1 2026 was $20.2 million, representing an increase of 29% from $15.6 million in Q1 2025. Subscription revenue for Q1 2026 was $6.3 million, representing an increase of 29% from $4.9 million in Q1 2025. We ended Q1 with an account base of 680 hospitals, representing an increase of 33 accounts in the quarter. This includes a number of accounts that are part of our ongoing expansion within the VA system, and we continue to anticipate incremental addition of VA accounts over the course of the year. We are pleased with the continued sequential momentum in headband trends in the first quarter, which we believe reflects the success of our same-store growth initiatives as well as our focus on high-quality new account launches. While we expect to continue to drive deeper within our accounts, I will remind you that we typically see a sequential moderation in Q2 and Q3 volumes driven by a reduction in ICU census during the warmer months. Gross margin for Q1 2026 was 87%, compared to 88% in the prior-year period. This was achieved despite relying on inventory acquired from China at an elevated tariff rate. We were able to nearly fully offset this expense through a variety of cost reduction initiatives undertaken in 2025. As we move into 2026, we will begin shipping inventory sourced from our fully operational line in Vietnam, which is subject to lower tariff rates. Consequently, we feel confident in our ability to maintain gross margins in the high 80% range throughout 2026. Total operating expenses for Q1 2026 were $43.9 million, an increase of 36% compared to $32.2 million in Q1 2025. Non-cash stock-based compensation expense was $3.7 million in Q1 2026. The increase in sales and marketing expense in the first quarter was attributable to investments we made in our commercial organization, as previously detailed. Further, we typically hold our national sales meeting in Q1, resulting in elevated non-headcount sales and marketing expense during the quarter. G&A expense increased in Q1 as a result of expenses related to our ongoing IP litigation, which totaled $5.6 million. This is considerably higher than what we have seen in prior quarters, which is a reflection of the non-linear nature of litigation-related activities. Research and development expense in Q1 increased as a result of headcount expansion to support enhancements to our product platform, including developing and improving our new product pipeline. Net loss was $19.7 million for Q1 2026, or a loss of $0.52 per share, compared to a loss of $12.8 million, or a loss of $0.36 per share, in Q1 2025. An average weighted share count of 37.7 million shares was used to determine loss per share in Q1 2026. Going forward, we will begin reporting adjusted EBITDA, which we believe is representative of the ongoing operating performance of our business. Adjusted EBITDA reflects our net loss before interest, taxes, depreciation, and amortization expense, and also excludes non-cash stock-based compensation expense as well as legal expenses associated with our ongoing IP litigation. Adjusted EBITDA loss for Q1 2026 was $11.2 million, as compared to $10.9 million in Q1 2025. Our cash, cash equivalents, and marketable securities as of 03/31/2026 were $141.2 million. We remain committed to our objective to achieve 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. Turning now to our outlook for 2026, we expect full year 2026 total revenue to range from $112 million to $116 million, up from our prior guidance of $111 million to $115 million. This represents annual growth of 26% to 30% over 2025. With that, I will turn the call back to Jane.

Jane Shao: Thank you, Scott, and thank you all for your time today. We are pleased with our first quarter performance and the trajectory of our business. We continue to make tangible progress towards establishing the use of our system as the standard of care for seizure detection in the acute care setting. With less than 4% penetration in our core seizure market, we have a sizable runway ahead of us. At the same time, we are advancing our platform into new indications with urgency and purpose, building towards a comprehensive brain monitoring system. Our mission to establish EEG as a new vital sign remains our North Star. I will now turn the call over to the operator for Q&A. Operator?

Operator: Thank you. As a reminder, to ask a question, you will need to press star then the number one on your telephone keypad. And if you would like to withdraw your question, press star-1 again. We do request for today’s session that you please limit to one question and one follow-up. Your first question comes from the line of Stephanie Algazi with Bank of America. Your line is open.

Analyst: Hi, thanks for taking the question. I just wanted to ask about Q1 and the guidance. Q1 came in a little better than The Street and you raised the guide by $1 million, a little bit more than the beat. So can you just talk about the decision to raise the guide and your confidence in the outlook for the year?

Scott Blumberg: Sure. Hi, Stephanie. It comes down to 2026. There are really two core drivers of our business: account acquisition and same-store growth. And we are doing quite well on both. We just had our largest quarter of net new adds since we have been a public company, and record usage per account. So that really forms the foundation of our confidence in the business and gives us the ability to raise guidance coming out of Q1.

Analyst: Got it. And then just to follow up, I wanted to ask about OpEx. It was a little higher than expected. Was that mostly from higher litigation, or was there increased commercial investment versus what you expected as well? And does Q1 change how you are thinking about the full year, or is it more a change in timing of expenses? Thank you.

Scott Blumberg: We do not provide OpEx guidance, but as it relates to what you saw, there was a little bit of elevation in sales and marketing and R&D, and I bucket those more as investments in the business. We continually look at the facts in front of us and make investments to drive future growth, and that includes expansion of the sales team. As Jane outlined, a portion of that was related to our regional health systems function. We continue to invest in R&D on the basis of our new products and adding as well as improving our current product. G&A is really where the IP expense came in. That was about $5.6 million, higher than what we have seen in prior quarters. That is a result of the cadence of the lawsuit. We are right now, and in Q2, really at the heaviest expense as we prepare for and go to trial, so we would expect that to moderate as we get towards the back of the year.

Operator: Your next question comes from the line of Robbie Marcus with JPMorgan.

Analyst: Hi. This is Lily on for Robbie. Thanks so much for taking the question. I was hoping you could talk a bit more about what you are seeing so far in pediatric and neonate. I know it is still early, but could you share a bit on the early feedback and utilization trends you are seeing so far, and how meaningful of a contributor it is assumed to be in guidance for this year?

Jane Shao: Overall, as I mentioned on the call, we see very positive momentum. The initial neonate pilot sites have committed to move to full execution. We are also seeing both existing accounts and new accounts showing strong interest in neonate expansion as well, so that could potentially drive both utilization as well as new account adds. On the pediatric ER front, that case I shared during the call is not an outlier. This is a very vulnerable patient population. When they go to the ER, physicians often have to deal with the situation that they do not get EEG and they cannot get EEG. So we see physicians and nurses see that opportunity for improvement. Overall, the clinical validation has been very strong. In terms of the revenue implication, it is still very consistent with what we have been guiding. Even getting to a new department or adding a patient population can take months, and for new accounts can take the same amount of effort and timeline. So we will see some impact in 2026, and we see the much more meaningful impact coming in 2027 and beyond.

Analyst: Perfect. And then just to follow up on gross margin, that came in really strong, above what we were thinking and above the range that you were guiding previously for the full year. So can you talk a bit more about what drove the strength in the quarter and in the guidance? And how much of that, if any, is driven by tariff refunds? Thanks so much.

Scott Blumberg: I will answer the back half first. None of it is driven by tariff refunds. We have not reflected that in our financial statements, and we will if and when we get the refund. It is really driven by investments we made in mitigating costs last year. Those were things we did both as an ordinary course of business but also invested more in as tariffs were coming down the pipe. So we were able to almost fully offset the cost of the increased tariffs from China. We also, as I mentioned, are now manufacturing in Vietnam. We have that inventory in-house, but based on our first-in, first-out accounting, that has not flown through our income statement yet. As we move towards that, towards the back of 2026, we have some opportunity for upside as well.

Operator: Your next question comes from the line of Brandon with William Blair.

Brandon Vazquez: First, I just wanted to stick on neonate for a second and try to get more details on how things are going there. Jane, you had mentioned that the first five accounts went from a pilot to a full launch. Talk to us a little bit about what those accounts saw that made them comfortable that you and the accounts could go to a full launch. What do you see in the earlier days once this goes into a full launch? And once you go into that broader commercial stage, is there any pull-through on the seizure side as well?

Jane Shao: For the new accounts, the pilot-to-conversion often involved a couple of things we learned. One is the neonatologists and the neonatal nurses are even more protective of their patients. When they roll out new technology, they are very cautious and make sure the new technology does no harm and is actually safe. Over the past couple of months, they all validated very strong safety, especially related to skin integrity of this patient population. They also validated the ease of use, and some validated the accuracy of Clarity. With all of that, that translates to very strong clinical buy-in. On the health economic front, some of these sites are not level four; they can be level three, so they used to transfer patients out because they could not get EEG. Of course, they lose the reimbursement with the patient, and they were able to show that they could potentially use this to reduce those transfers. That is a very strong health economics driver in addition to the strong clinical driver, not to mention not having patients move. It is very encouraging that we are seeing early on our hypothesis of clinical and health economic drivers from our market research translating into what we see in the commercial pilot. Now our goal is to further implement and roll out our playbook. The last thing I will mention is we also see that pediatric epileptologists are very supportive because our montage is consistent with the ACNS guideline for the full montage. They are encouraged to see that they can see the full picture as well and are happy with the Clarity assistant. Overall, we remain optimistic about the full launch.

Brandon Vazquez: Great. Maybe switching gears a little bit to the account add side. You had a great quarter there and a record quarter. I know you mentioned a couple of different buckets, but you have talked also about investing in some of these corporate-focused teams, if that is the right terminology, that push demand from the top down. Maybe talk to us a little bit about the one or two most incremental drivers that are supporting that level of account adds, and help us understand durability going forward. Thanks.

Jane Shao: This model was built upon the success we saw last year. We noticed some of our very top TMs were able to close a much bigger number of accounts because they really focused on regional hospital systems. That is why we decided to expand the proven success model. This team does a few things. One, they focus more on the hospital system level—often administrators, CMOs, VPs in charge of patient transfer, CFOs—because the TM level usually does not get to the regional system level. Two, they can coordinate across our TM as well as CAM organization. Even in a 10–20 hospital system, some are our existing accounts with a CAM responsible, and some are split across territories. Having someone centralize and coordinate the efforts is a significant driver. Three, this is the first time we are managing regional systems in a more sophisticated way. Internally, we are monitoring pipeline movement and making sure the TM and TM work closely to develop the pipelines for this hospital system to close. It is too early to report actual results because this process takes longer—regional systems can take even a little bit longer than individual accounts—but from the early indicators, we are very optimistic.

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

Josh Jennings: Thank you, and good afternoon. Congratulations on a nice start to the year. I wanted to ask on the utilization front. It seems like trends are continuing to get stronger. You put forward the systematic department expansion initiative last year, and it seems like there has been more and more improvement. Any quantitative or qualitative color you can provide on how this effort is impacting utilization of same-store accounts?

Jane Shao: I will add more qualitative color. Overall, the strategy remains consistent: departmental expansion, physician and provider engagement across all shifts, and driving protocolization across different patient populations. The strong quarter partially, as Scott mentioned, reflects seasonality in Q1, but we also believe a significant portion is because of execution. Last year, we significantly invested in building up a very strong regional leader and director leadership team, building up the CAM team accordingly, and strengthening our execution and playbook. I think we are seeing a lot of these efforts we have put in, with the team executing in an excellent way. We are very proud of what the team has accomplished here.

Josh Jennings: Thanks for that. I was also hoping to better understand what you have described as a synergistic interaction between the delirium and seizure indications. With this Vanderbilt study going, can you build out how you expect results, or even what is in the current library of evidence, and how, as the launch is in play, it can drive deeper penetration for the seizure indication? Thank you.

Jane Shao: Clinically, delirium and seizure are heavily intertwined. As one example, take sepsis patients with altered mental status. About 20%–30% of these patients, if you monitor them with EEG, have non-convulsive seizures, and 40%–50% would have delirium. Without EEG, their symptoms look the same—altered mental status. To make things more complicated, for the 20%–30% seizure patients, about 40% of them later would have delirium, and for the delirium patients, if you monitor them with EEG, a good portion would later develop seizure. Existing publications show how intertwined they are. In treatment, benzodiazepines are the first-line treatment for status epilepticus for inpatients and are often used empirically to treat seizure. However, benzodiazepines are also the number one deliriogenic agent. If a patient has delirium, you want to keep them away from benzos. Right now, without an objective tool, physicians have to guess. As we show this clinical evidence and connect the dots for physicians, the light bulb goes on. Many will wonder how many of the delirium patients they are treating actually have non-convulsive seizures. That is the initial discussion that led to the study we are initiating with Vanderbilt.

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

Analyst: Yes, great. Thanks. Good evening, and thanks for taking my questions. I wanted to start with the launch of delirium as you go into the pilot here. Do you think that you are going to be able to charge separately for delirium, or will this be part of the offering—measuring two metrics—and enable you to build your install base and your defensive moat against other players? Is this going to be incremental revenue, or will it help you continue to land, expand, and really dominate the market?

Jane Shao: You are pointing out two potential drivers. One is that we could charge more or separately for delirium, which could be a revenue driver. The other is that by offering the delirium solution, even in existing accounts, we could drive more patient usage. Both are potential drivers of launching delirium. At this point, we know we have both options. We are not making the decision and are not ready to discuss pricing yet. That is exactly why we are doing the delirium pilot: to study price elasticity or sensitivity, as well as the potential impact of delirium on the number of patient expansions we could achieve. We look forward to discussing this more down the road as we are ready to launch delirium fully.

Analyst: Thank you. I wanted to come back to the guidance question. It is rare to see a company beat by $600,000–$700,000 and then raise guidance by $1 million, especially after the first quarter. You have given reasons around the salesforce gaining traction, but the commentary on the seasonality in Q2 and Q3 has me a little confused. From a cadence standpoint, consensus is $27.2 million for the second quarter. Are you comfortable with that number? Any thoughts or comments would be greatly appreciated. Thank you.

Scott Blumberg: The comment on seasonality is nothing new; it is more of a reminder. I believe most of The Street has appropriately modeled the seasonal impact of Q4 and Q1 being higher than Q2 and Q3. I will not comment specifically on a particular quarter of consensus, other than that I think people understand the seasonality. I would disconnect the two. The guidance is full-year guidance, and we have very high confidence in the full year. We just want to make sure that people are appropriately thinking about the transition from Q1 to Q2, which has always been—and we expect to continue to be—sequentially down in terms of usage per account, but of course that is offset by the growth initiatives we are pursuing, both in terms of new adds and the impact of the CAMs.

Operator: Thank you. Your next question comes from the line of Marie Yoko Thibault with BTIG. Your line is open.

Marie Yoko Thibault: Good evening. Thanks for taking the questions. I wanted to circle back on salesforce productivity. You gave us some great stats—very encouraging—that of your folks that have 12 months or more of tenure, over 85% have contributed to the account base and 100% have generated purchase orders. Since this is the first quarter we are getting these sorts of stats, is this all pretty new—that once they hit 12 months, they start to be able to contribute in this way because of the length of the cycle? How long does it take for a rep to hit peak productivity in terms of tenure, and maybe there is not even a ceiling? Any details on where this could go from here?

Scott Blumberg: Sure, Marie. First, I want to make it clear that we do not intend to introduce a new reporting metric here. We wanted to quantify something that we have talked about qualitatively for a while because we just got to the point where reps who were a part of that expansion that we started toward the end of 2024 and beginning Q4 are just getting to the phase where we generally have expected reps to generate their first new add at about one year. That has been consistent. We last expanded our sales org pretty broadly back in 2021, but of course we have added reps along the way. The math is essentially two or three months to train the rep, six or so months to acquire a purchase order, and three or four months to launch. That adds up to about a year. Throughout the past year and a half since we started that expansion, we have been tracking the precursors to that—the CRM measurement of the activity that we know is associated with purchase orders. We have now gotten to the point where we can translate that into something tangible for you, so we thought we would give you a little bit behind the curtains in terms of how that is translating. I do want to point out it is a relatively small group since we did that expansion over the course of a year, and it is the first portion of those, but the rest are tracking as well. That gives us confidence in the ability to drive more growth this year than last year because we have a number of folks aging into productivity throughout the year.

Marie Yoko Thibault: Great detail there, Scott. Thank you. Just one quick follow-up for me: a clarification on seasonality. Of course, I understand utilization per account might be impacted by ICU census, but would we expect any impact to account adds? It seems to me that you would still be able to sell into these departments. Just want to clarify that.

Scott Blumberg: There is no specific seasonality we see there. There is a little bit of quarter-to-quarter lumpiness, and that may be increased down the road with the addition of the new regional health system function because they will get accounts in bigger chunks. There is no consistent trend, but you can see it move up or down. As long as the direction is up and to the right, we are happy. We saw that last year where I think Q2 was lower than Q1, and then Q3 was much higher than Q1. It is a little bit up and down, but the trend is they will add more.

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

Jeffrey Cohen: Hi, Jane and Scott. Thank you for taking our questions. Firstly, could you talk about military hospitals and the opportunity in TAM, perhaps as it relates to the size and scope of the VA network?

Jane Shao: The military hospitals, in terms of number of hospitals, our understanding is around 30 hospitals, which is significantly lower than the 170 VA hospitals, but still a very meaningful opportunity. They have slightly different cybersecurity requirements compared to the VA; however, there is overlap. We were able to leverage the success we had from the VA and have both physician and administrator support and leverage the cybersecurity rigor through FedRAMP High, as well as the success in the VA, to start this pilot. In terms of clinical unmet needs, they face many similar challenges as the VA, with under-resourced neurologists and EEG technicians being among them. For now, we focus on the military hospitals, and we are excited about the potential upside this can bring.

Jeffrey Cohen: Got it. That is helpful. And could you talk a little bit further about your comment regarding CT scans—some of these pathways and triage monitoring as stroke and LVO patients are being looked at as far as CTs and MRIs?

Jane Shao: To make sure I understand the question, you mean how our LVO monitoring algorithm would be complementary to CT and MRI and other imaging tools?

Jeffrey Cohen: That is right. And in practice, what might you envision as a protocol or standard of care?

Jane Shao: We are a little early to talk about the exact workflow. However, we do not replace CT or MRI as the gold standard of LVO detection. For the inpatient setting, the value proposition of our product is the continuous monitoring element, so that we can potentially triage an LVO faster. You cannot constantly send a patient to CT and MRI. If we have a continuous monitor, we can indicate that a patient has a very high likelihood of large vessel occlusion, which can potentially trigger a workflow to send the patient for a CTA or MRI that is needed to confirm LVO. That could significantly shorten the delay of LVO detection. I hope that answers your question.

Jeffrey Cohen: Yeah, very helpful. Thanks a lot for taking our questions.

Jane Shao: Thank you, Jeffrey.

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

Analyst: Hi, good afternoon. Thanks for taking the questions. Maybe just a couple here. I realize this may depend on hospital size, but utilization in VA hospitals versus non-VA hospitals—how would you expect that to trend, if it is different at all?

Jane Shao: We do not disclose hospital system–level utilization. Even though we talk about the VA as an opportunity because FedRAMP High opened a large system, externally we do not disclose specific system-level utilization.

Analyst: In terms of the $5.6 million in litigation expense in the quarter, Scott, is this peak spend? And is this relative to about $1 million a quarter over the last few quarters—do I have that correct?

Scott Blumberg: We were running at about $1 million to $2 million a quarter before, and as we move through the year—and you have the comparison period in adjusted EBITDA—you will be able to track that. So Q1 was outsized. Q2 also will likely be higher. We are in the peak part of the action with depositions and an upcoming trial. I would expect Q2 to be elevated too, and then it will start to moderate as you move later into 2026.

Analyst: Okay. Thank you.

Operator: There are no further questions at this time. I will now turn the call back over to Jane Shao, Co-Founder and Chief Executive Officer, for any closing remarks.

Jane Shao: Thank you, everyone, for joining our call. I am very proud of what we have accomplished as a team and very excited about what is on the horizon. We look forward to sharing more milestones in the coming quarters.

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