CeriBell (CBLL -21.98%), the neurotechnology firm specializing in speedy electroencephalography (EEG) and synthetic intelligence for seizure detection, introduced its outcomes for Q2 2025 on August 5, 2025. The corporate’s income (GAAP) reached $21.2 million, up from $15.3 million in Q2 2024, outpacing the analyst consensus of $20.45 million (GAAP). Earnings per share (EPS, GAAP) had been $(0.38), additionally higher than the anticipated $(0.40) (GAAP). Regardless of vital top-line beneficial properties and a gross margin improve to 88% (GAAP), heavy funding in analysis, improvement, and business operations led to a wider internet lack of $13.6 million (GAAP), in comparison with $8.9 million (GAAP) in Q2 2024. The quarter mirrored sturdy business momentum, continued innovation, and an additional dedication to market growth.
MetricQ2 2025Q2 2025 EstimateQ2 2024Y/Y ChangeEPS (GAAP)($0.38)($0.40)($1.61)76.4 %Income (GAAP)$21.2 million$20.45 million$15.3 million38.5 %Gross Margin88 %86 %2.0 ppOperating Bills$33.6 million$21.6 million55.6 %Internet Loss$13.6 million$8.9 million(52.8 %)
Supply: Analyst estimates supplied by FactSet. Administration expectations based mostly on administration’s steerage, as supplied in Q1 2025 earnings report.
Understanding CeriBell’s Enterprise
CeriBell focuses on bettering detection and administration of seizures in important care settings by way of its transportable Ceribell System, which mixes a speedy EEG {hardware} platform with AI-powered algorithms. EEG, or electroencephalography, is a technique of recording mind exercise and is essential for diagnosing seizures. Typical hospital EEG methods are advanced and sluggish to deploy, however CeriBell’s transportable resolution permits real-time mind monitoring and interpretation on the affected person’s bedside, even by non-specialists.
The corporate’s enterprise mannequin depends on recurring income from disposable headbands ({hardware}) and subscription charges for its Readability platform, which delivers AI-driven seizure evaluation. Pushed by regulatory clearance from the U.S. Meals and Drug Administration (FDA) and insurance coverage reimbursement progress, CeriBell goals to increase its buyer base throughout acute care hospitals and broaden medical indications for its know-how. Key success components embrace medical adoption, increasing hospital accounts, and investing in business and R&D infrastructure.
Q2 2025: Industrial, Monetary, and Strategic Developments
CeriBell’s complete income rose 38% from the prior 12 months interval, with product income (disposable headbands) up 38% and subscription income from the Readability AI platform up 41%. This efficiency surpassed each inner targets and exterior forecasts, as Ceribell’s GAAP income of $21.2 million and GAAP EPS of $0.38 exceeded analyst estimates and was attributed to progress in new account signings and expanded use inside current hospital prospects. By the top of Q2 2025, CeriBell had 584 energetic accounts, up from 558 on the finish of Q1 2025. Nonetheless, the tempo of recent signings, whereas nonetheless optimistic, slowed in comparison with the prior quarter as a part of the anticipated seasonal developments and because the account base matures.
Gross margin (GAAP) improved to 88%, a notable improve from 86% in Q2 2024. Administration attributed this margin power to a excessive proportion of subscription income, the place margins reached 97% for FY2024. Gross margin (GAAP) is projected to stay within the mid-80% vary for fiscal 12 months 2025, though upcoming tariffs on Chinese language imports might strain profitability in later quarters, with administration stating that no materials affect on gross margins is anticipated till at the least This autumn 2025.
Working bills elevated 56% 12 months over 12 months, totaling $33.6 million. The majority of this spending was concentrated in gross sales and advertising, which elevated 62.6% 12 months over 12 months, reflecting continued growth of CeriBell’s business groups and territory managers. Analysis and improvement expenditures additionally elevated, together with prices associated to ongoing product innovation and preparation for future indications like pediatric and neonatal seizure detection.
The web loss (GAAP) widened to $13.6 million as working prices outpaced income progress, although the loss per share (GAAP) confirmed obvious enchancment in comparison with Q2 2024, which diluted the per-share affect. Money, money equivalents, and marketable securities totaled $177.4 million as of Q2 2025, offering a considerable working runway regardless of persistent losses.
There have been no materials one-time or extraordinary gadgets affecting the numbers within the interval.
Product Households and Market Enlargement
The Ceribell System is the muse of CeriBell’s product line. This transportable EEG {hardware} is designed for speedy utility in acute medical settings and is offered as a disposable headband mixed with a management unit. Its FDA clearance permits hospital employees to quickly detect and monitor seizures, even with out neurology experience.
Readability is CeriBell’s synthetic intelligence platform, supplied by way of subscription, that interprets EEG indicators to detect non-convulsive seizures. Just lately, Readability was cleared by the FDA for pediatric use as effectively, however administration famous that this pediatric approval will not be anticipated to generate materials income in 2025 as a result of deliberate restricted rollout and piloting part. The recurring income from Readability subscriptions contributes considerably to margins and helps insulate the corporate from some uncooked materials value and tariff dangers affecting the {hardware} facet of the enterprise.
CeriBell has continued to diversify its market strategy by focusing growth efforts inside hospital networks and throughout completely different care departments, equivalent to intensive care models (ICUs), emergency departments, and step-down models. The corporate’s penetration stays early, serving about 3% of the U.S. market addressable for speedy EEG monitoring as of Q1 2025. Administration emphasised the sizeable growth alternative each inside present hospital accounts and amongst untapped acute care suppliers.
Mental property stays central to CeriBell’s technique, with a patent portfolio masking its AI applied sciences and {hardware}. The corporate maintains its place as a sector chief, citing each regulatory and business milestones, in addition to rising medical proof and peer-reviewed publications supporting its strategy.
Outlook and Steerage
Wanting ahead, administration raised its income outlook for full 12 months 2025 to a spread of $85 million to $88 million, up from earlier steerage of $83 million to $87 million. This forecast displays confidence in sustained income momentum and account growth, equivalent to anticipated annual progress of 30% to 34% over the prior 12 months. Gross margin is anticipated to stay within the mid-80% vary, with management noting deliberate mitigation methods equivalent to automation, value negotiation, and doable reshoring to handle anticipated tariff headwinds in This autumn 2025 and into early 2026.
Traders ought to proceed monitoring working expense progress relative to income beneficial properties, notably as CeriBell invests closely in business hiring to drive adoption; working bills (GAAP) elevated 56% year-over-year, primarily on account of investments within the firm’s business group and elevated headcount. The upcoming affect of import tariffs on gross margin, progress in new product launches, and additional account additions can be necessary areas to look at in subsequent quarters (e.g. Q3 and This autumn 2025), given the corporate’s early stage of market penetration. CeriBell doesn’t presently pay a dividend.
Income and internet earnings offered utilizing U.S. typically accepted accounting rules (GAAP) except in any other case famous.
