Stereotaxis Q1 Earnings Call Highlights
Stereotaxis (NYSEAMERICAN:STXS) said its first-quarter results did not yet reflect what management described as a major commercial transition driven by new regulatory approvals, new catheter products and the launch of its GenesisX robotic system.
Chairman and CEO David Fischel told investors that the company is “going through one of the most exciting periods in Stereotaxis’ history,” citing recent U.S., European and Chinese regulatory approvals for a new ecosystem of robotic surgery products. He said Stereotaxis has spent the past eight years and more than $75 million rebuilding its research and development pipeline, resulting in approvals for a complex surgical robot, robotically steered therapeutic and diagnostic catheters, and a digital surgery cockpit.
Despite that progress, first-quarter revenue declined from the prior year as the company continued to transition away from its legacy dependence on Johnson Johnson catheters.
First-quarter revenue declines as catheter transition weighs on results
Chief Financial Officer Kimberly Peery said revenue for the first quarter of 2026 totaled $6.3 million, down from $7.5 million in the prior-year quarter. System revenue was $1.3 million, compared with $2 million a year earlier, while recurring revenue was $5 million, down from $5.5 million.
Peery said system revenue reflected revenue recognition on the installation of one Genesis system and partial revenue recognition of other ancillary systems. Recurring revenue was “pressured by the transition from the Johnson Johnson ecosystem,” she said.
Gross margin in the quarter was 60% of revenue. Recurring revenue gross margin was 66%, while system gross margin was 39%.
Operating expenses totaled $9.8 million and included $3.1 million in non-cash charges related to stock compensation expense, a mark-to-market adjustment for acquisition-related contingent earn-out consideration, and amortization of acquired intangibles. Excluding those charges, adjusted operating expenses were $6.7 million, roughly in line with $6.8 million in the prior-year period.
The company reported an operating loss of $6 million and a net loss of $5.9 million, compared with an operating loss of $5.9 million and net loss of $5.8 million a year earlier. Adjusted operating loss was $2.9 million, and adjusted net loss was $2.8 million. Negative free cash flow was $3.5 million, compared with $1.8 million in the prior-year quarter. Stereotaxis ended the quarter with $14.6 million in cash and cash equivalents and no debt.
MAGiC catheter rollout begins, but supply remains constrained
Fischel highlighted the FDA’s January PMA approval of the MAGiC cardiac ablation catheter, which he said is Stereotaxis’ first proprietary therapeutic catheter and the first ablation catheter approved by the FDA specifically for arrhythmia patients with complex congenital heart disease. He said the product allows Stereotaxis to reduce its historical dependence on Johnson Johnson and participate more directly in recurring procedure revenue.
The company recently began its first MAGiC procedures at multiple U.S. hospitals. Fischel said those procedures “have gone well,” including a case involving a patient with complex congenital heart disease who had previously failed multiple attempts with manual catheters. He quoted the physician involved as saying, “That was the most gratifying case I’ve ever done. I could have never done this without robotics.”
Fischel said demand for MAGiC is “much higher than supply,” and the company is rolling out the catheter in Europe and the U.S. in line with manufacturing capacity. He said Stereotaxis’ contract manufacturer still expects production to exceed 500 catheters per month by the end of the year. To help address shortages, Stereotaxis has also begun selling an additional catheter in Europe through an exclusive collaboration with MicroPort.
Management said initial U.S. MAGiC procedures are generating disposable revenue often above $8,000 per procedure and always above $5,000. Fischel said Stereotaxis also recently received a $100,000 order for disposables from a single European hospital for what that hospital expects to use in a month of procedures.
During the question-and-answer session, Fischel said adoption remains limited by production capacity. Some sites are ready to shift fully to MAGiC, some are using both MAGiC and remaining Johnson Johnson catheters, and others remain with Johnson Johnson for now but expect to transition over the coming months.
GenesisX and Synchrony seen as drivers of capital equipment growth
Fischel said Stereotaxis is also seeking to transform its capital equipment business through GenesisX, a robotic system that received FDA clearance late last year. Unlike prior systems, GenesisX does not require construction to be installed in existing catheterization labs.
He said the company has a “healthy pipeline” of physicians and hospitals working toward GenesisX orders and continues to expect at least five active GenesisX programs this year. In the Q session, Fischel said the company has already shipped its first GenesisX system, which is awaiting installation, and is working to demonstrate the system’s compatibility with non-integrated X-ray systems from major manufacturers.
Stereotaxis also recently received FDA clearance for Synchrony, its digital surgery cockpit designed to add connectivity and intelligence to the operating room. Fischel said the company has received orders for multiple Synchrony systems and has shipped the first systems to customers. He reiterated guidance for $3 million in Synchrony revenue this year.
Company reiterates full-year revenue outlook
Fischel reiterated the company’s full-year guidance for double-digit revenue growth, with annual revenue expected to surpass $40 million. He said revenue is expected to increase sequentially each quarter, with both the third and fourth quarters expected to exceed $10 million in revenue.
He said operating losses should decline as recurring revenue grows, with much of that recurring revenue “dropping to the bottom line.” Fischel also said Stereotaxis has used its at-the-market equity program opportunistically at prices “significantly higher than our current valuation,” resulting in what he characterized as minimal dilution while strengthening the balance sheet.
The company also discussed longer-term initiatives, including its acquisition of Robocath, efforts in artificial intelligence and automation, and future versions of its robotic systems that are wireless, battery-operated and mobile. Fischel said the Robocath acquisition gives Stereotaxis a complementary robotic mechanism for endovascular device navigation and supports a broader vision for remote, automated robotic treatment of stroke and cardiovascular disease.
In response to analyst questions, Fischel said the company remains committed to an open ecosystem around its robot. He said Abbott’s EnSite X mapping system has been the predominant mapping system used with MAGiC, while MicroPort’s Columbus system is available in Europe and China. He also said Stereotaxis continues to work with CardioFocus on pulsed field ablation compatibility in Europe and sees a potential long-term opportunity for its robots in ambulatory surgery centers, particularly because of the company’s safety profile.
About Stereotaxis (NYSEAMERICAN:STXS)
Stereotaxis, Inc is a medical device company that develops and commercializes robotic magnetic navigation systems for use in electrophysiology procedures. Its core technology leverages precisely controlled magnetic fields to guide ultra-thin, magnetically enabled catheters through the vascular system, allowing physicians to perform complex cardiac ablation and diagnostic procedures with enhanced precision and stability. This platform aims to reduce procedure times and radiation exposure for both patients and clinical staff.
The company's flagship offering, the Niobe Magnetic Navigation System, integrates with a variety of catheter types and electrophysiology mapping systems to support treatment of arrhythmias such as atrial fibrillation and ventricular tachycardia.
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