CeriBell, Inc.

What they do

Ceribell sells the Ceribell System, consisting of a headband, recorder, and portal, which it began selling in 2018, and the Clarity AI-powered algorithm cleared by the FDA in an early version in 2019. The company focuses on diagnosis and management of patients with serious neurological conditions, principally seizure detection in ICU settings, and grew to over 300 employees as of December 31, 2025. It manufactures through a fully operational manufacturing line in Vietnam and holds FDA 510(k) clearances for its recorder, headband, Clarity, and, in 2026, new Epileptiform Abnormality Detection and Artifact Reduction algorithms.

Revenue drivers

• Product revenue — Sales of headbands and recorders generated $21.2 million in Q2 2026, up 33% from $15.9 million in Q2 2025, and represent the majority of total revenue.
• Subscription revenue — Clarity subscription revenue from the installed base was $6.9 million in Q2 2026, up 30% from $5.3 million in Q2 2025.
• Active account base — The company ended Q2 2026 with 712 total active accounts, with growth driven by new account additions and increased utilization within existing accounts.
• Delirium monitoring — Ceribell received a New Technology Add-On Payment for its delirium monitoring solution from CMS effective October 1, 2026, and described early progress in a delirium pilot.

Recent performance

Q2 2026 total revenue was $28.1 million, up 33% from $21.2 million in Q2 2025, with product revenue of $21.2 million and subscription revenue of $6.9 million. Gross margin was 92%, up from 88%, aided by manufacturing cost reductions, the Vietnam manufacturing line, and a one-time tariff refund benefit. Operating expenses rose 37% to $45.9 million, driven by commercial investment, headcount, stock-based compensation, and legal costs including the patent suit against Natus Medical Incorporated. Net loss was $19.3 million, or $0.51 per share, versus $13.6 million, or $0.38 per share, a year earlier, while Adjusted EBITDA loss narrowed to $9.8 million from $10.0 million. The company reported $129.3 million in cash, cash equivalents, and marketable securities as of June 30, 2026.

Strategy

Ceribell is investing in its commercial organization and product pipeline, including multiple 2026 FDA 510(k) clearances for new recorder and headband designs intended to form the foundation of a next-generation hardware platform. It is pursuing new indications and adjacent markets, having received clearances for Epileptiform Abnormality Detection and Artifact Reduction algorithms and an NTAP for delirium monitoring effective October 1, 2026. The company strengthened its balance sheet in August 2026 with a new credit facility providing access to up to $60 million in committed capital, comprising a $30 million term loan and a $30 million revolver. Management also added Tom West and Sharon O'Keefe to the Board of Directors and is enforcing intellectual property through a patent infringement suit against Natus Medical Incorporated filed in July 2025.

Risks

• Limited operating history and rapid growth — Ceribell was founded in 2014 and began selling its headband, recorder, and portal in 2018, so its business and future prospects are difficult to evaluate and growth strains its resources.
• Persistent net losses — Net loss widened from $29.5 million in 2023 to $53.4 million in 2025, with Q2 2026 net loss of $19.3 million, and operating cash flow was negative $40.8 million in 2025.
• Litigation costs — Q2 2026 operating expenses included legal costs associated with intellectual property enforcement, including the patent infringement suit initiated against Natus Medical Incorporated in July 2025.
• Reliance on component manufacturers and suppliers — The company's risk factors identify its relationships with, and the capabilities of, its component manufacturers and suppliers as a risk to its business.

Outlook

Ceribell issued a 2026 financial outlook in its August 10, 2026 earnings release, though the specific figures were not included in the provided excerpt. Management said Q2 2026 results reflected adoption accelerating across new and existing accounts despite seasonal summer ICU census moderation, and expressed confidence in the business and its mission to establish EEG as a new vital sign. The company cited early progress in its delirium pilot and multiple new FDA 510(k) clearances as supports for that confidence.