Pulmonx Corporation

What they do

Pulmonx develops and sells a minimally invasive treatment for severe emphysema, a form of COPD. Its solution combines the Zephyr Endobronchial Valve, the Chartis Pulmonary Assessment System and the LungTraX Platform, and is aimed at patients who remain symptomatic despite medical management and who are not candidates for surgery. The Zephyr Valve received FDA pre-market approval in 2018 and is sold in North America, Europe and Asia Pacific. The company manufactures its products at its Redwood City, California facility.

Revenue drivers

• Zephyr Valves and delivery catheters — The primary source of revenue; these are sold in the United States through a direct sales force and internationally through direct and distributor models. In 2025, 95% of revenue came from markets where Pulmonx sells directly.
• Chartis System — A smaller revenue contributor consisting of balloon catheter sales, usage fees and Chartis console sales, used to assess patients for treatment.
• LungTraX Platform — A smaller revenue line used to identify patients potentially eligible for Zephyr Valve treatment.
• AeriSeal System — A synthetic polymer foam with FDA Breakthrough Device designation and CE Mark in Europe; not approved in the U.S. and currently in the CONVERT II clinical trial, so it does not generate U.S. commercial revenue.

Recent performance

Second quarter 2026 worldwide revenue was $22.8 million, a 5% decrease from $23.9 million in the second quarter of 2025 and a 6% decrease on a constant currency basis. U.S. revenue was $14.2 million, down 4% year over year, while international revenue was $8.6 million, down 6% (down 9% constant currency). Excluding China, international revenue grew 12% year over year, with the decline attributed to a lack of sales into China pending renewal of the registration certificate. Gross margin reached a record 78% in the quarter, and net loss improved to $10.1 million from $15.2 million a year earlier. For the six months ended June 30, 2026, revenue was $43.3 million versus $46.4 million in the prior-year period.

Strategy

Pulmonx is expanding its U.S. commercial operations while continuing international growth, selling directly in most markets and through distributors in others. The company is focused on cost realignment to drive operating leverage, which reduced second quarter 2026 net loss by 34% and adjusted EBITDA loss by 39% year over year. It is advancing clinical initiatives including the CONVERT II global trial for the AeriSeal System, which is intended to support a PMA application. Management cited a fully staffed U.S. sales leadership team and a more focused global commercial team.

Risks

• Persistent net losses — Pulmonx had net losses of $54.0 million in 2025 and $56.4 million in 2024, with an accumulated deficit of $521.6 million as of December 31, 2025 and $545.3 million as of June 30, 2026.
• China registration certificate — International revenue declined due to a lack of sales into China while the company awaited renewal of its registration certificate.
• Limited commercialization experience — The company began U.S. commercialization only in 2018 and has a limited number of approved products, making future prospects difficult to predict.
• AeriSeal regulatory risk — The AeriSeal System is not approved by the FDA or for commercial sale in the United States and depends on the CONVERT II trial supporting a PMA application.

Outlook

Pulmonx continues to expect full year 2026 revenue of $90 million to $92 million. The company now expects full year 2026 gross margin of approximately 76% and operating expenses of $109 million to $111 million, including about $15 million of non-cash stock-based compensation. It expects cash, cash equivalents and marketable securities to decrease by approximately $23 million for the full year 2026, assuming no additional drawdowns under its credit facility. Management stated confidence in returning to year-over-year revenue growth and driving operating leverage.