Earnings call transcript: Stereotaxis Q2 2025 revenue beats forecasts

Stereotaxis Inc. reported its second-quarter 2025 earnings, showcasing a revenue of $8.8 million, which significantly surpassed analyst expectations of $7.75 million. The company posted an earnings per share (EPS) of -$0.05, beating the forecasted -$0.07. Despite the positive earnings surprise, Stereotaxis’ stock closed down 2.67% at $2.19 in after-hours trading. According to InvestingPro data, the stock has shown significant volatility, with a beta of 1.51, indicating higher market sensitivity than average. The stock is currently trading near its Fair Value, suggesting balanced market pricing.

Key Takeaways

• Stereotaxis achieved a 95% year-over-year revenue growth in Q2 2025.
• The company reported a narrower-than-expected loss per share, beating EPS forecasts.
• Despite positive financial results, the stock price fell by 2.67% in after-hours trading.
• Stereotaxis is preparing for the full launch of new technologies, including the Genesis X robotic system.

Company Performance

Stereotaxis demonstrated robust performance in the second quarter of 2025 with a 95% increase in revenue compared to the same period last year. The company’s strategic focus on innovation and expansion into new markets, such as endovascular surgery platforms, appears to be driving significant growth. The CE Mark approval for the Genesis X robotic system and the MAGIC ablation catheter positions the company well within the competitive landscape of the electrophysiology market.

Financial Highlights

• Revenue: $8.8 million, up 95% year-over-year
• System Revenue: $3 million
• Recurring Revenue: $5.8 million
• Gross Margin: 52% (Recurring Revenue Gross Margin:68%, System Gross Margin: 22%)
• Operating Loss: $4 million
• Cash and Cash Equivalents: $7 million (increased to $18.8 million post-financing)

Earnings vs. Forecast

Stereotaxis reported an EPS of -$0.05, exceeding the forecast of -$0.07 by 28.57%. The revenue of $8.8 million also surpassed the expected $7.75 million, resulting in a revenue surprise of 13.55%. This marks a notable improvement, reflecting the company’s strategic initiatives and operational efficiencies.

Market Reaction

Despite the positive earnings report, Stereotaxis’ stock experienced a 2.67% decline in after-hours trading, closing at $2.19. This movement might be attributed to broader market trends or investor caution regarding the company’s future profitability and competitive pressures. InvestingPro data shows the stock has delivered an 18.38% return over the past year, despite recent volatility. Analyst consensus remains bullish, with price targets ranging from $4.00 to $5.00, suggesting significant upside potential. The stock remains within its 52-week range, between $1.54 and $2.716.

Outlook & Guidance

Stereotaxis reiterated its expectation of double-digit revenue growth for 2025. The company anticipates system revenue to range between $2-3 million per quarter and aims for recurring revenue of $7 million in Q4. The upcoming launch of the Genesis X is expected to drive further growth, with orders projected to outpace current Genesis orders.

Executive Commentary

David Fischel, CEO of Stereotaxis, emphasized the significance of the current year, stating, "We’ve described this year as a pivotal milestone rich year." He further highlighted the company’s innovation strategy, which "rests on four primary pillars," and expressed optimism about launching new technologies with a focus on accelerating growth.

Risks and Challenges

• Regulatory approvals: Delays in FDA clearance for new products could impact launch timelines.
• Market competition: Increasing competition in the electrophysiology market may pressure margins.
• Operational expenses: Maintaining stable operating expenses while expanding globally remains a challenge.
• Economic conditions: Broader macroeconomic pressures could affect healthcare spending and investment.

Q&A

During the earnings call, analysts inquired about Stereotaxis’ commercial strategy and the potential expansion of its sales force. The company also addressed questions regarding the FDA interaction process for the MAGIC catheter and highlighted the potential revenue from the MAGIC Sweep catheter, estimated at over $2,000 per procedure.

Full transcript - Stereotaxis Inc (STXS) Q2 2025:

Operator/Moderator: Good afternoon. Thank Thank you for joining us for Stereotaxis’ Second Quarter twenty twenty five Earnings Conference Call. Certain statements during the conference call and question and answer period to follow may relate to future events, expectations and as such constitute forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the company in the future to be materially different from the statements that the company’s executives may make today. These risks are described in detail in our public filings with the Securities and Exchange Commission, including our latest periodic report of Form 10 ks or 10 Q.

We assume no duty to update these statements. At this time, all participants have been placed on a listen only mode. The floor will be opened for questions and comments following the presentation. As a reminder, today’s call is being recorded. It is now my pleasure to turn the floor over to your host, Mr.

David Fischel, Chairman and CEO of Astero Texas.

David Fischel, Chairman and CEO, Stereotaxis: Thank you, operator, and good afternoon, everyone. We’ve described this year as a pivotal milestone rich year in which we advance a broad portfolio of strategic innovations to market and demonstrate their initial commercial impact. We’re diligently executing on multiple fronts and I’m pleased with our results. From both the regulatory and commercial perspective, our results are in line with the guidance provided at the start of this year. I’ll keep our prepared remarks brief, providing updates on our key innovation and commercial efforts.

As a reminder, our innovation strategy rests on four primary pillars. First, making our robot widely available by innovating it such that it doesn’t require construction and can be rapidly installed in the majority of labs. Second, building an ecosystem of catheters and integrations in our core EP ablation market, so physicians have greater choice in technologies, while we reduce our dependencies and build an attractive razor blade business. Third, developing the right interventional devices, so that our robots become a platform for endovascular surgery more broadly, providing value in several new clinical indications. And fourth, establishing a digital backbone that introduces connectivity and AI to our robot and the broader cath lab environment.

Genesis X is the key technological innovation enabling robotics to be more broadly accessible. We received CE Mark in Europe and have been working through the regulatory process for FDA clearance in The US. On our last call, we described having addressed the vast majority of FDA’s questions and that we received additional questions on a few final topics. We addressed these topics in a submission to the FDA late in the second quarter and view regulatory approval of GENESIS X as likely still this summer. Concurrent with the regulatory effort, we are working to enhance compatibility of the robot with various X rays and preparing our supply manufacturing, installation and commercial processes for a full launch.

We successfully completed transfer to manufacturing of Genesis X in the second quarter, manufacturing the first commercial Genesis X system. That system is expected to be installed at our first customer in Europe as soon as they complete installation of an X-ray in their lab as they are placing Genesis X in a newly built cath lab. We expect to demonstrate Genesis X working in daily clinical use in one or two hospitals still this year, upon which we should be ready for full launch in Europe and The U. S. We continue to see steady demand for Genesis, but expect Genesis X orders to outpace the tempo of Genesis orders following full launch.

Our effort to build an ecosystem of proprietary EP catheters in our core EP ablation market has seen two significant regulatory milestones so far this year. CE Mark of the MAGIC ablation catheter during the first quarter and FDA clearance of the MAGIC Sweep high density mapping catheter just a couple of weeks ago. We’ve talked about the importance and impact of MAGIC on previous calls. In line with our guidance, MAGIC contributed approximately a couple of $100,000 in revenue from initial European customers during the second quarter. Initial procedures have now taken place at approximately 30% of our EU accounts and administrative efforts at others are ongoing.

Continue to work on FDA approval for MAGIC and maintain a continuous dialogue with FDA. FDA received formal clinical results from our ongoing MAGIC study in the second quarter, and we are working with FDA through a body of questions on sterility, biocompatibility and manufacturing practices. We continue to expect U. S. Regulatory approval of MAGIC later this year.

U. S. Regulatory clearance of MAGIC Sweep was a major milestone for Stereotaxis. We discussed on a previous call the impact of high density mapping on the EP field and why a robotic HD mapping catheter is a significant opportunity to positively impact physicians’ clinical results and workflow, the relevance of robotics in EP and our commercial results. Prominent KOLs were quoted in the press release announcing Sweep’s clearance describing the importance of the catheter and how the lack of a mapping catheter has held back overall adoption of robotics.

Magic Sweep promises rapid and detailed electro anatomical mapping with the precision and inherent safety of our technology, the ability to map otherwise difficult to reach areas of the heart, and more anatomically accurate maps by avoiding distention caused by rigid catheters. There are many EPs who think similar to those KOLs and are excited to use the catheter. We’re already working through hospital administrative processes at several hospitals that will be the first users of the catheter and expect usage at multiple accounts this quarter. We expect the combination of MAGIC and MAGIC Sweep to increase our disposable revenue per procedure significantly and expand our user base and robotic utilization. Stepping back, FDA clearance of Magic Sweep is reflective of a major strategic transformation underway.

It’s the first FDA clearance Stereotaxis has received for a catheter in nearly twenty years. It demonstrates the foresight of our strategy to bring catheter development and manufacturing expertise in house with acquisition of APT last year. It’s a tangible reflection of our progress, building a robust ecosystem of robotically navigated interventional devices, a strategy that provides a much more attractive technological and commercial foundation for growth. It is even more exciting that this is just one of several proprietary catheters we are advancing to market across key geographies this year. In addition to MAGIC and MAGIC Sweep, we’ve developed a portfolio of catheters and wires that enable our robot to provide value in several new clinical indications.

We submitted the Imagine catheter for regulatory approval earlier this year and continue to expect clearance this quarter. Following clearance, we look forward to beginning the process of demonstrating that our robot can serve as a broad platform for endovascular surgery. We have initial physician interest in working with us to pioneer use across several neuro interventional, interventional cardiology and interventional radiology procedures. We expect that following regulatory clearance, we’ll have several quarters clinical updates demonstrating initial use and clinical value in these procedures. This transition of Stereotaxis from a single application robot to a platform endovascular robot is a significant driver of strategic value and ultimately increases our total addressable market multiple fold.

The final significant innovation effort nearing regulatory milestones is our digital surgery platform that enables operating room connectivity and smart AI capabilities in the cath lab. Synchrony and SYNC digitize the various disparate systems in the cath lab, allow for seamless control of all those systems from a consolidated cockpit, offer modern cloud based connectivity between the lab and the external world, and provide attractive opportunities for smart AI features to be integrated into the operating room. The technology has been designed for use with our robot, but also as a very attractive independent offering across non robotic cath labs. We’ve completed all regulatory testing for Synchrony and expect to submit it for FDA clearance and declare CE Mark in Europe very shortly. During the recently completed second quarter, we began limited commercialization of just the first technologies in this comprehensive innovation strategy.

Our results in the quarter benefited from revenue recognition on the First Gen ISS X system and initial MAGIC sales in Europe. These launches will accelerate and as we achieve additional regulatory milestones, we will benefit from the layering of additional growth tailwinds. While these innovations are modestly contributing to system and recurring revenue in 2025, they set us up for breakout growth as we look towards 2026. Kim will now provide additional commentary on our financial results, and then I’ll make a few financial comments as well before opening the call to Q and A. Kim?

Kim, CFO, Stereotaxis: Thank you, David, and good afternoon, everyone. Revenue for the 2025 totaled $8,800,000 growth of 95% from $4,500,000 in the prior year second quarter and growth of 18% sequentially compared to $7,500,000 in the 2025. System revenue for the second quarter was $3,000,000 and recurring revenue was 5,800,000.0 compared to $200,000 and $4,300,000 in the prior year’s second quarter. System revenue in the quarter reflects revenue recognition on a Genesis system and our first Genesis X system. Recurring revenue growth reflects the contribution of Maffitt catheters from last year’s acquisition of APT as well as initial sales of our robotically navigated Magic Ablation catheter.

Gross margin for the second quarter twenty twenty five was 52% of revenue. Recurring revenue gross margin was 68%, and system gross margin was 22. Gross margins remain impacted by acquisition related accounting that temporarily reduces disposable margin and by fixed overhead allocated over low system production levels. Operating expenses in the quarter of $8,600,000 included $2,600,000 in noncash charges for stock compensation expense, a favorable mark to market adjustment for acquisition related contingent earn out consideration, and amortization of acquired intangible assets. Excluding these noncash charges, adjusted operating expenses were $6,000,000 compared to the prior year adjusted operating expenses of $6,800,000 Approximately half of the decline in adjusted operating expenses is from the receipt of an employee retention tax credit for the 2020 tax year, with the remaining decline due to natural reductions in R and D spending with the completion of certain larger projects.

Operating loss and net loss in the 2025 were $4,000,000 and $3,800,000 compared with $6,000,000 and $5,800,000 in the previous year. Adjusted operating loss and adjusted net loss for the quarter, excluding noncash charges, were $1,400,000 and $1,300,000 compared with $3,500,000 and $3,300,000 in the previous year. Negative free cash flow for the second quarter was $3,700,000 compared to $3,100,000 in the previous year. At June 30, Stereotaxis had cash and cash equivalents of $7,000,000 and no debt. Subsequent to the end of the quarter, in July, Stereotaxis announced a registered direct financing for the sale of 12,500,000.0 of its shares of common stock to a strategic industry partner and select institutional investors.

A first closing of 8,500,000.0 was completed in July, with the remaining 4,000,000 to be completed and a second closing within four months. Incorporating the net proceeds from this offering, Stereotaxis would have $18,800,000 in cash and no debt. I will now hand the call back to David.

David Fischel, Chairman and CEO, Stereotaxis: Thank you, Kim. As mentioned in our press release, we are reiterating our revenue guidance of double digit revenue growth for the full year 2025, with system revenue in any given quarter fluctuating between approximately $2,000,000 to $3,000,000 and recurring revenue scaling to approximately $7,000,000 in the fourth quarter. Our revenue expectations assume only modest contributions from Genesis X and no system revenue from China. We have demonstrated the ability to launch new technologies while maintaining stable operating expenses. Our recently completed equity financing offers us a stronger balance sheet with which to accelerate adoption of our comprehensive innovation strategy as the puzzle pieces come together, and we are preparing for a full launch.

We expect to launch our new technologies with a balanced focus on accelerating growth, while also ensuring improved margins, earnings accretion and achievement of profitability. We will now take your questions. Operator, can you please open the line to Q and A?

Operator/Moderator: Thank you. We will now begin the question and answer session. At this time, I would like to remind everyone in order to ask a question, press star, then the number one on your telephone keypad. We do request for today’s session that you please limit to one question and one follow-up. And your first question comes from the line of Adam Maeder with Piper Sandler.

Your line is open.

Adam Maeder, Analyst, Piper Sandler: Hi, good afternoon. Thank you for taking the questions and congrats on all the progress. Great to see. David, maybe we can start on kind of your closing remarks there and a little bit of discussion around the financing and kind of how you’re thinking about use of proceeds. The portfolio has obviously transformed a lot here over the past twelve, eighteen months and kind of a complete refresh.

And so will you I think you’ve run pretty lean from a commercial standpoint historically. Will you start to build out the sales force to push more aggressively? Maybe just talk about the commercial strategy there with the new products in hand. And if you could provide some kind of headcount figures too, that would be appreciated. Thanks.

David Fischel, Chairman and CEO, Stereotaxis: Sure. Thanks a lot, Adam, the questions. Good afternoon. And so it’s great questions. We obviously, this is the year in which we are getting regulatory approvals and starting the initial launches of many technologies that described in the prepared remarks, both capital systems and then several catheters in the EP space and outside of EP.

And so that is kind of exciting for our sales team and for us as a company. We have a good existing commercial team direct in both The US, Europe, and even have direct sales members in Asia. In total, the commercial team numbers about 40 people, of which about 20 are in The US, 15 are in Europe and five are in Asia. That spans clinical support and capital sales and sales management and training. So it’s kind of the broader commercial team with the predominant focus on the clinical side.

And we have demonstrated, I believe that seen pretty nicely that both with the Mapit catheters since acquisition of APT a year ago, and more recently with the MAGIC catheters and we’re seeing already the start of activity with MAGIC sweep very quickly after the regulatory approval that our team has the ability to do much more than what historically they were doing. And in some ways, it’s not just adding additional work to them. It makes their work much more successful and it contributes to the success of their work. So, I think there’s a lot of synergy to product portfolio and the way it’s coming together in allowing each of the team members to actually be much more successful than what they’ve been historically. It’s very synergistic, all of these product approvals and the addition of them to their back.

And with that said, I know that we have a relatively lean team and we could increase our team significantly. And so there’s gonna be a balanced approach between on the one hand, during the initial launch stage, our existing team is fantastic and able to do everything with the products that are gaining approval and starting to launch. As we start to see traction at individual accounts, we definitely plan to shift gradually to the model of having one clinical rep per hospital rather than our current model where we have about one clinical rep for every three or four hospitals. That will allow us to go much deeper in terms of utilization and provide much better support and the revenue model with our own proprietary catheters allows that model to be very attractive and sustainable. And so that’s definitely a model that we’re going to be implementing both in Europe and The US as we gain the regulatory approvals.

And I think we can do that in an accretive way. So we can build up the sales force the adoption of these new catheters is growing, and that all can happen accretively. But we will be reinvesting a lot of the incremental gross profit and operating profit from these catheters back into the sales team for that growth. On the capital side, we have a very lean team. They’ve been able to continue a relatively steady tempo of Genesis orders and sales.

But as we have Genesis X transitioning to a full launch later this year, we’d probably invest a couple million dollars in a more robust dedicated capital team, both in Europe and The US. And that should allow us to see capital sales next year growing very significantly. And so that’s kind of our that’s our overall high level plan. I hope that gave enough color help you.

Adam Maeder, Analyst, Piper Sandler: That was fantastic. Thank you for the detailed response, David. And for the follow-up, I’ll ask about Europe and the catheter business. And a two part question, I guess. First, you talked a little bit about the progress that Magic RF is making in Europe in terms of account penetration.

Could you just maybe double click on how your customers are using the Magic RF catheter? Is it still largely SVT, VT? Or are they doing kind of broader, more simple cases as well? And then just quickly, Genesis sweep, the mapping catheter, just OUS timelines there, and I’ll drop back in the queue. Thank you.

David Fischel, Chairman and CEO, Stereotaxis: Sure, thanks. So, yeah, MAGIC in Europe, we talked about approximately 30% of our European accounts have now started to use MAGIC in procedures. That’s up from about 20% when we talked last quarter. And we see kind of steady, it’s amazing the administrative burdens in various countries in Europe and how just getting through tenders and getting on contract in certain countries and certain hospitals just takes it’s kind of an administrative grind. But we’re working on many of those in tandem.

So I kind of I see that percentage very naturally increasing month by month. And we see usage of MAGIC so far across the full breadth of procedures. So you’re correct that predominantly our robot has been used and is being used to treat more complex arrhythmias, VTs, PVCs, congenital patients. But we’ve seen MAGIC being used already in AF, in AVNRT, AVRT, flutters, so really kind of across the spectrum from the simpler cases to the most complex. So that’s kind of obviously been nice to see that usage and to see the value that the catheter can provide across a broader spectrum of procedures.

And in Europe, have a very broad label for ablation in all four chambers of the heart. And so that obviously supports kind of that broad utilization across the spectrum. We’re still in the earlier stages of this launch, The second quarter was our first real quarter of sales and revenue. And so I kind of I don’t have any statistics yet on how MAGIC will grow utilization at individual accounts. But obviously, we penetrate further in these accounts and go kind of more broadly across all of the accounts in Europe, I do expect MAGIC to have a positive halo effect on overall utilization.

And if we step back to your second question was related to, I remember MAGIC sweep and European regulatory timeline and there was something else that I’m now missing. But on the Europe Magic Sweep, we’ve talked about still getting clearance in Europe this quarter. That’s our expectation. It obviously depends on the notified body. And so as we know more, we will share more.

Adam Maeder, Analyst, Piper Sandler: That’s perfect. Thanks again.

David Fischel, Chairman and CEO, Stereotaxis: Thank you.

Operator/Moderator: And your next question comes from the line of Frank Takinen with Lake Street Capital Markets. Your line is open.

Frank Takinen, Analyst, Lake Street Capital Markets: Great. Thanks for taking the questions and congrats on all the I progress and the nice was hoping to start with some additional color on MAGIC FDA interactions. Appreciate the update you provided today, but maybe help us understand kind of the how long some of these interactions could take with the FDA, when those could be submitted, and then the timeline from when those are submitted, answered, and then hearing back, just bridging us from kind of where we are today to that second half approval.

David Fischel, Chairman and CEO, Stereotaxis: Okay, sure. FDA does professional diligent work in its reviews. We see that across all of our submissions, and they’re very much active and kind of fulfill their professional mandate in reviewing submissions. We have been working with FDA very collaboratively in a lot of back and forth on many topics that are part of the PMA submission and PMA approval process. I mentioned in the prepared remarks that we are predominantly working through a body of questions on sterility, biocompatibility and GMP good manufacturing practices.

And so that’s where most of the effort is. We submitted clinical data from ongoing trial in Europe in the second quarter. And so, overall kind of there is a regular tempo of interaction between FDA and us. We feel given that tempo and given the type of commentary from the ongoing discussions that approval in the second half of this year still makes a lot of sense. And I think FDA is also aware of that and of the importance of this catheter to US patients and US physicians who benefit from robotics.

And so we’re just grinding through the process and have appreciated the collaborative nature of FDA in this process.

Frank Takinen, Analyst, Lake Street Capital Markets: Got it. That’s helpful. And then maybe just sizing up sweep in The US a little bit more. Happy to hear that’s up to a strong start, but maybe talk about kind of what that can contribute per procedure. What how many of your current cases today may use the catheter and then just kind of extrapolating that into how much revenue that

David Fischel, Chairman and CEO, Stereotaxis: Sure. High density mapping catheters are typically priced north of $2,000 per procedure, and so you should expect kind of similar numbers for us. I’d say that high density mapping is probably used in the majority and the majority probably means somewhere in the 70% or so, perhaps a little bit more than that percent of the procedures that we see on our robot. So, it’s not every procedure, but it’s a significant number of them. I think that kind of one of the big benefits of Magic Sweep though, is not just having it used in our existing procedures, but this is really if you think about our existing utilization and our core business, it has been it’s predicated on still a catheter that is by now twenty years old with no catheter innovation for these physician users for many, many years, essentially since they started using us.

And so this is a significant opportunity, I think, to have them rethink how they do workflow, and to kind of to tap other benefits from the robot beyond what they’ve historically experienced. And so, think this is a real opportunity also to grow utilization to engage with physicians at existing sites that perhaps historically weren’t using our robot as much. And So I think that there’s going to be a broader benefit beyond just the step up in revenue per procedure.

Frank Takinen, Analyst, Lake Street Capital Markets: Perfect. Really helpful. Thank you.

David Fischel, Chairman and CEO, Stereotaxis: Thank you.

Operator/Moderator: Thank you. I’m not showing any further questions in the queue. I would now like to turn it back to David for closing remarks.

David Fischel, Chairman and CEO, Stereotaxis: Okay. Thank you very much for your questions and for your continued support. We look forward to working hard on your behalf and speaking again soon. Thank you very much.

Operator/Moderator: And ladies and gentlemen, this concludes today’s call. Thank you all for joining. You may now disconnect.

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