olivLaw · US equity research
Pulmonx Corporation LUNG
Surgical & Medical Instruments & Apparatus · SIC 3841 · Vertical: Surgical & Medical Instruments & Apparatus (SIC 3841)
Pulmonx is a commercial-stage medical technology company that provides minimally invasive treatment for severe emphysema through its Zephyr endobronchial valve. Sales fell slightly in the second quarter of 2026, but gross margin rose sharply, and management expects a return to growth against a global market estimated at 12 billion USD.
The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).
At the close of 30 Oct 2026, Pulmonx Corporation (LUNG) stock was 3.01 USD (−5.06% on the day), with market capitalisation 129.1 m USD, beta 1.16, 52-week range 1.17–3.17 USD. Latest reported quarter (Q2 2026): revenue of 22.8 m USD (−4.6% YoY), net income of -10.1 m USD, diluted EPS -0.24 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 76.8
- overbought (≥ 70)
- Bollinger (20, 2)
- 1.20 – 2.79
- above the upper band · %B 1.14 · band width 80.0%
- SMA 50 / 200
- 2.05 / 1.66
- uptrend (price > SMA50 > SMA200)
- MACD (12, 26, 9)
- 0.19 / 0.04
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | +57.3% | −0.9% | +58.3 pp | — |
| 3 months | +84.4% | +1.2% | +83.1 pp | — |
| 6 months | +122.6% | +4.8% | +117.8 pp | — |
| Year to date | +36.0% | +10.7% | +25.2 pp | — |
| 1 year | +70.7% | +11.1% | +59.6 pp | −1.5% |
| 3 years | −65.8% | +80.7% | −146.6 pp | −0.4% |
| 5 years | −92.3% | +64.6% | −156.9 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q2 2026 · 30 Jun 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q3 '24 | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 20.4 m | 23.8 m | 22.5 m | 23.9 m | 21.5 m | 22.6 m | 20.6 m | 22.8 m |
| Cost of revenue | 5.4 m | 6.2 m | 6.2 m | 6.7 m | 5.5 m | 5.1 m | 4.5 m | 5.0 m |
| Gross profit | 15.0 m | 17.6 m | 16.3 m | 17.2 m | 16.1 m | 17.5 m | 16.0 m | 17.7 m |
| Research & development | 3.7 m | 4.0 m | 4.8 m | 5.3 m | 4.8 m | 4.6 m | 4.9 m | 5.0 m |
| SG&A | 25.4 m | 27.0 m | 26.1 m | 26.7 m | 25.6 m | 22.9 m | 24.1 m | 21.8 m |
| Operating income | -14.1 m | -13.4 m | -14.6 m | -14.8 m | -14.4 m | -9.9 m | -13.0 m | -9.1 m |
| Interest expense | 891.0 k | 842.0 k | 781.0 k | 799.0 k | 805.0 k | 770.0 k | 976.0 k | 1.2 m |
| Pre-tax income | -14.0 m | -13.1 m | -14.3 m | -15.0 m | -13.8 m | -10.2 m | -13.5 m | -9.9 m |
| Income tax | 192.0 k | 38.0 k | 135.0 k | 177.0 k | 128.0 k | 186.0 k | 149.0 k | 133.0 k |
| Net income | -14.1 m | -13.2 m | -14.4 m | -15.2 m | -14.0 m | -10.4 m | -13.7 m | -10.1 m |
| Diluted EPS | -0.36 | -0.33 ≈ | -0.36 | -0.38 | -0.34 | -0.25 ≈ | -0.33 | -0.24 |
| Operating cash flow | -7.2 m ≈ | -6.7 m | -13.2 m | -3.9 m ≈ | -8.2 m ≈ | -7.1 m | -10.1 m | -5.2 m ≈ |
| Capex | 416.0 k ≈ | 111.0 k | 301.0 k | 49.0 k ≈ | 89.0 k ≈ | 13.0 k | 9.0 k | 1.0 k ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 20.0 m | 32.6 m | 32.7 m | 48.4 m | 53.7 m | 68.7 m | 83.8 m | 90.5 m |
| Revenue YoY | unavailable | +62.9% | +0.4% | +47.9% | +10.8% | +28.0% | +22.0% | +8.0% |
| Net income | -18.5 m | -20.7 m | -32.2 m | -48.7 m | -58.9 m | -60.8 m | -56.4 m | -54.0 m |
| Net income YoY | unavailable | unavailable | unavailable | unavailable | unavailable | unavailable | unavailable | unavailable |
| Diluted EPS | unavailable | unavailable | -3.16 | -1.35 | -1.59 | -1.60 | -1.44 | -1.33 |
| Diluted EPS YoY | unavailable | unavailable | unavailable | unavailable | unavailable | unavailable | unavailable | unavailable |
| net % | -92.4% | -63.5% | -98.5% | -100.5% | -109.8% | -88.6% | -67.3% | -59.7% |
| Free cash flow | -18.7 m | -21.5 m | -31.5 m | -45.1 m | -46.4 m | -38.4 m | -33.0 m | -32.8 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 69.8 m USD
- Financial debt
- 37.1 m USD
- Net debt
- -32.7 m USD
- Equity
- 54.1 m USD
- Total assets
- 129.3 m USD
- Debt / equity
- 0.69x
- Current ratio
- 5.07x
- ROE
- -77.2%
- ROA
- -37.0%
- FCF margin
- -36.3%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 32.7 m | 48.4 m | 53.7 m | 68.7 m | 83.8 m | 90.5 m | SEC (XBRL)· 10 Mar 2026verified |
| Cost of revenue | 11.5 m | 12.8 m | 13.8 m | 17.9 m | 21.8 m | 23.4 m | SEC (XBRL)· 10 Mar 2026verified |
| Gross profit | 21.2 m | 35.6 m | 39.9 m | 50.8 m | 62.0 m | 67.1 m | SEC (XBRL)· 10 Mar 2026verified |
| Research & development | 7.5 m | 13.1 m | 15.4 m | 18.1 m | 17.6 m | 19.5 m | SEC (XBRL)· 10 Mar 2026verified |
| SG&A | 46.1 m | 69.9 m | 83.1 m | 94.6 m | 102.1 m | 101.3 m | SEC (XBRL)· 10 Mar 2026verified |
| Operating income | -32.3 m | -47.3 m | -58.6 m | -61.9 m | -57.7 m | -53.7 m | SEC (XBRL)· 10 Mar 2026verified |
| Interest expense | 3.2 m | 829.0 k | 1.1 m | 3.2 m | 3.5 m | 3.2 m | SEC (XBRL)· 10 Mar 2026verified |
| Pre-tax income | -32.0 m | -48.3 m | -58.6 m | -60.3 m | -55.9 m | -53.4 m | SEC (XBRL)· 10 Mar 2026verified |
| Income tax | 213.0 k | 343.0 k | 353.0 k | 571.0 k | 500.0 k | 626.0 k | SEC (XBRL)· 10 Mar 2026verified |
| Net income | -32.2 m | -48.7 m | -58.9 m | -60.8 m | -56.4 m | -54.0 m | SEC (XBRL)· 10 Mar 2026verified |
| Diluted EPS | -3.16 | -1.35 | -1.59 | -1.60 | -1.44 | -1.33 | SEC (XBRL)· 10 Mar 2026verified |
| Weighted average diluted shares | 10.2 m | 36.1 m | 37.1 m | 38.0 m | 39.1 m | 40.7 m | SEC (XBRL)· 10 Mar 2026verified |
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 231.6 m | 148.5 m | 101.7 m | 83.5 m | 70.9 m | 69.8 m | SEC (XBRL)· 10 Mar 2026verified |
| Receivables | 4.2 m | 6.6 m | 8.7 m | 12.1 m | 13.1 m | 12.1 m | SEC (XBRL)· 10 Mar 2026verified |
| Inventories | 10.7 m | 16.3 m | 14.6 m | 16.7 m | 16.9 m | 15.8 m | SEC (XBRL)· 10 Mar 2026verified |
| Current assets | 250.0 m | 208.0 m | 169.0 m | 150.4 m | 136.2 m | 101.7 m | SEC (XBRL)· 10 Mar 2026verified |
| Property, plant & equipment, net | 1.5 m | 4.8 m | 4.7 m | 4.0 m | 2.9 m | 2.2 m | SEC (XBRL)· 10 Mar 2026verified |
| Goodwill | 2.3 m | 2.3 m | 2.3 m | 2.3 m | 2.3 m | 2.3 m | SEC (XBRL)· 10 Mar 2026verified |
| Intangibles (excl. goodwill) | 400.0 k | 277.0 k | 154.0 k | 31.0 k | 0 | — | SEC (XBRL)· 25 Feb 2025verified |
| Total assets | 263.7 m | 235.2 m | 193.7 m | 177.8 m | 162.9 m | 129.3 m | SEC (XBRL)· 10 Mar 2026verified |
| Accounts payable | 1.5 m | 1.6 m | 1.8 m | 1.5 m | 3.8 m | 3.9 m | SEC (XBRL)· 10 Mar 2026verified |
| Short-term debt | 0 | 91.0 k | 90.0 k | 2.2 m | 3.2 m | 106.0 k | SEC (XBRL)· 10 Mar 2026verified |
| Long-term debt | 17.4 m | 17.3 m | 17.2 m | 35.1 m | 34.0 m | 37.0 m | SEC (XBRL)· 10 Mar 2026verified |
| Current liabilities | 12.5 m | 17.6 m | 18.5 m | 23.2 m | 24.4 m | 20.1 m | SEC (XBRL)· 10 Mar 2026verified |
| Total liabilities | 37.6 m | 41.9 m | 39.7 m | 59.5 m | 77.0 m | 75.2 m | SEC (XBRL)· 10 Mar 2026verified |
| Equity | 226.1 m † | 193.2 m † | 154.0 m † | 118.3 m † | 85.8 m † | 54.1 m † | SEC (XBRL)· 10 Mar 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | -30.6 m | -41.4 m | -45.1 m | -37.6 m | -31.5 m | -32.4 m | SEC (XBRL)· 10 Mar 2026verified |
| Capex | 911.0 k | 3.7 m | 1.3 m | 807.0 k | 1.4 m | 452.0 k | SEC (XBRL)· 10 Mar 2026verified |
| Free cash flow | -31.5 m ≈ | -45.1 m ≈ | -46.4 m ≈ | -38.4 m ≈ | -33.0 m ≈ | -32.8 m ≈ | SEC (XBRL)· 10 Mar 2026derived |
| Investing cash flow | 12.7 m | -46.3 m | -4.2 m | -2.0 m | 17.5 m | 30.5 m | SEC (XBRL)· 10 Mar 2026verified |
| Financing cash flow | 234.8 m | 4.5 m | 2.4 m | 21.4 m | 1.4 m | 833.0 k | SEC (XBRL)· 10 Mar 2026verified |
| Share repurchases | 21.0 k | 26.0 k | 27.0 k | 0 | — | — | SEC (XBRL)· 27 Feb 2024verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
- score weight coverage: 43.8% of at least 60%
- valuation methods computed: 0 of at least 1
A scoring methodology on indicators and valuation, not investment advice.
Closing price
30 Oct 2026Source: olivLaw, closing series
Market cap: 129.1 m USD
Key indicators
Coverage and freshness
Score by group
44% · Insufficient data
Estimated value range
unavailable — no valuation method could be computed
Valuation assumptions are editorial choices, not measured; beta is not measured.
Valuation methods
- DCF (discounted cash flow)unavailable · the base of the ratio is not positive
- Peers: EV/EBITDAunavailable · input data missing
- Peers: P/Eunavailable · the base of the ratio is not positive
- Dividend discount (DDM)unavailable · the company pays no dividend: a dividend model needs an explicit initiation assumption
no valuation method could be computed
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Insufficient data
Minimum-evidence gate: score weight coverage: 43.8% of at least 60%; valuation methods computed: 0 of at least 1
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | -150.7% | 14 (vs peers) | 24% |
| Net margin · Quality | -55.0% | 31 (vs peers) | 14% |
| FCF conversion · Quality | unavailable | unavailable | — |
| Revenue CAGR 3Y · Growth | 19.0% | 100 (on a fixed band) | 19% |
| EPS CAGR 3Y · Growth | unavailable | unavailable | — |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Interest coverage · Balance sheet | -12.3x | 0 (on a fixed band) | 14% |
| Current ratio · Balance sheet | 4.3x | 100 (on a fixed band) | 10% |
| P/E (TTM) · Valuation | unavailable | unavailable | — |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | -23.8% | 0 (on a fixed band) | 19% |
| Shareholder yield (distributions) · Returns | unavailable | unavailable | — |
| Payout ratio (FCF) · Returns | unavailable | unavailable | — |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet40/100 · 2/3 factors with a value
- Growth· partial100/100 · 1/2 factors with a value
- Quality20/100 · 2/3 factors with a value
- Returns· partialunavailable · 0/2 factors with a value
- Valuation· partial0/100 · 1/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
PULMONX CORPORATION (LUNG). Latest full fiscal year: 2025; data up to 2026-06-30.
Figures computed from the financial statements: revenue 90.5 m USD in 2025; YoY growth 8.0%; net margin -55.0%; ROE -88.9%.
Valuation cannot be computed from the available data.
Insufficient data for a verdict (score weight coverage: 43.8% of at least 60%; valuation methods computed: 0 of at least 1).
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- Revenue CAGR 3Y: 19.0%
- Current ratio: 4.3x
What contradicts it
- ROIC: -150.7%
- Interest coverage: -12.3x
- FCF yield: -23.8%
Not assessed (insufficient data or a ratio without meaning): FCF conversion, EPS CAGR 3Y, Net debt / EBITDA, P/E (TTM), EV/EBITDA, Shareholder yield (distributions), Payout ratio (FCF).
Versus the vertical median
Surgical & Medical Instruments & Apparatus (SIC 3841) · same industry (4-digit SIC) · compared with 39 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| SYKStryker Corp | 111.1 bn | 31.1 | 16.0% | 13.8% | +11.2% | −18% / +8% |
| MMM3m Company | 90.1 bn | 26.0 | 80.8% | 14.0% | +1.5% | +5% / +129% |
| BSXBoston Scientific Corporation | 60.8 bn | 17.0 | 15.5% | 17.5% | +19.9% | −58% / −18% |
| BDXBecton, Dickinson And Company | 53.9 bn | 59.7 | 3.8% | 4.0% | +8.2% | +41% / −0% |
| RMDResMed Inc. | 32.3 bn | 20.9 | 26.4% | 27.8% | +9.9% | −7% / +63% |
| DXCMDexcom, Inc. | 30.7 bn | 32.4 | 37.7% | 19.4% | +15.6% | +41% / −7% |
| WSTWest Pharmaceutical Services, Inc. | 28.7 bn | 46.3 | 21.2% | 18.8% | +6.3% | +46% / +30% |
| SOLVSolventum Corporation | 13.8 bn | 9.9 | 34.0% | 17.3% | +0.9% | +18% / unavailable |
| BAXBaxter International Inc. | 11.9 bn | — | -10.5% | -6.2% | +5.7% | +25% / −29% |
| PODDInsulet Corporation | 10.4 bn | 28.0 | 26.0% | 12.3% | +30.7% | −52% / +13% |
| HAEHaemonetics Corporation | 5.4 bn | 58.5 | 11.2% | 7.1% | −2.0% | +139% / +40% |
| MMSIMerit Medical Systems Inc | 5.2 bn | 32.4 | 9.8% | 9.9% | +11.8% | −1% / +25% |
| HTFLHeartflow, Inc. | 5.1 bn | — | — | -55.8% | +39.9% | +59% / unavailable |
| ICUIIcu Medical Inc | 4.1 bn | 136.8 | 1.4% | 1.4% | −6.3% | +36% / +67% |
| IRTCiRhythm Holdings, Inc. | 4.1 bn | — | -9.6% | -1.7% | +26.2% | −34% / +57% |
| INSPInspire Medical Systems, Inc. | 2.0 bn | 14.7 | 18.0% | 15.0% | +13.6% | −6% / −54% |
| KMTSKestra Medical Technologies, Ltd. | 1.8 bn | — | -73.7% | -140.4% | +59.0% | +8% / unavailable |
| TNDMTandem Diabetes Care, Inc. | 1.3 bn | — | -48.0% | -6.1% | +7.9% | +37% / +10% |
| ATECAlphatec Holdings, Inc. | 1.1 bn | — | -1,888.0% | -10.3% | +25.0% | −63% / −23% |
| IARTIntegra Lifesciences Holdings Corp | 992.0 m | 76.0 | 1.2% | 0.8% | +1.5% | +6% / −65% |
| MDXGMimedx Group, Inc. | 566.2 m | — | -8.5% | -6.3% | +20.0% | −49% / −41% |
| SGHTSight Sciences, Inc. | 513.4 m | — | -48.4% | -35.7% | −3.1% | +84% / +488% |
| SSIISs Innovations International, Inc. | 470.9 m | — | -26.1% | -23.7% | +105.7% | −71% / unavailable |
| CERSCerus Corp | 459.5 m | — | -10.8% | -2.7% | +16.1% | +55% / +63% |
| CARLCarlsmed, Inc. | 408.2 m | — | -6,196.9% | -57.4% | +85.9% | +16% / unavailable |
1- and 3-year price returns: for LUNG from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable |
| 3 years | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable |
| 5 years | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable |
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 04 Aug 2026; since then the company filed 8-K (27 Oct 2026 · results).
In brief
Pulmonx is a commercial-stage medical technology company that provides minimally invasive treatment for severe emphysema through its Zephyr endobronchial valve. Sales fell slightly in the second quarter of 2026, but gross margin rose sharply, and management expects a return to growth against a global market estimated at 12 billion USD 13.
SWOT
Strengths
- The product has FDA approval, extensive clinical evidence including randomised trials, and inclusion in global treatment guidelines, which supports physician confidence 1.
- The high gross margin and lower operating costs show that the business model could become more efficient as volumes grow 13.
- Manufacturing entirely at one site, with higher inventory levels, gives the company control over production and protection against supply disruptions 1.
Weaknesses
- The company depends almost entirely on one product, the Zephyr valve, and sales are tied to broad adoption within a limited indication 1.
- Net losses continue, and the company relies on limited financial resources, with term loans outstanding and a need for further funding over the medium term 12.
- Revenue fell in the first half of 2026 compared with the prior year, showing that growth is not yet stable 23.
Opportunities
- Restoring access in China and growing in the rest of Asia and Europe could offset weakness in the United States 3.
- If the CONVERT II study supports a PMA application for AeriSeal, the company could expand its portfolio to patients with excessive collateral ventilation 1.
- Broader reimbursement from commercial insurers could speed adoption at hospitals still waiting for clear policies 12.
Threats
- Slow hospital and physician adoption, especially because of lengthy contracting processes, could limit sales growth 1.
- Competitors with greater resources and stronger ties to pulmonologists could gain market share or develop superior technologies 1.
- The risk of complications such as pneumothorax, which occurs frequently in trials, could reduce patient and physician interest in the procedure 1.
Risks
- Dependence on a single producthigh
The whole business depends on the success of the Zephyr valve, and a failure to commercialise it would directly affect financial results and expansion plans 1.
- Persistent net losseshigh
The company expects to keep posting losses and will need additional funding, which could involve share issuance or new borrowing 12.
- Blocked access in Chinamedium
The lack of sales in China while a registration renewal was pending shows that regulatory approvals can directly affect revenue 3.
- Lengthy hospital purchasing processmedium
Hospital contracts and tenders can take a long time and may be lost, which could slow sales growth 1.
- Uncertain reimbursementmedium
Some commercial insurers do not yet consider the procedure medically necessary, and approvals are made case by case, which may discourage physicians 12.
Investment thesis
What would need to be true (bull case)
- If the recovery in China and higher U.S. volumes materialise, the high gross margin could produce a visible reduction in losses, as the second quarter of 2026 results suggest 3.
- Clinical evidence and inclusion in international guidelines could reinforce the valve's position as a standard of care, which may attract new hospitals and physicians 1.
- Future approval of the AeriSeal System could open a new patient category and widen the addressable market 1.
What would break the thesis
- Sales fell in the first half of 2026, and if the U.S. decline persists, revenue guidance of 90 to 92 million USD could prove hard to reach 23.
- The company is still loss-making and has a relatively modest cash position, which could put pressure on funding if costs do not fall below expectations 23.
- Dependence on one product and a limited indication leaves little room for diversification if adoption stays slow 1.
What to watch
- Trend in U.S. revenue and return to annual growthQ3 2026
- Renewal of the China registration certificate and resumption of sales thereQ3 2026
- Delivery against revenue guidance of 90 to 92 million USD and gross margin of about 76%2026
- Results of the CONVERT II study and timing of the AeriSeal PMA applicationnext 10-K
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 04 Aug 2026; since then the company filed 8-K (27 Oct 2026 · results).
The business
Pulmonx develops and markets the Zephyr system, made up of the Zephyr Endobronchial Valve, the Chartis Pulmonary Assessment System and the cloud-based LungTraX Platform, for patients with severe emphysema who remain profoundly symptomatic despite medical management 1. The valve received FDA pre-market approval in 2018 and is commercially available in numerous countries, and it is included in global COPD treatment guidelines 1. The company also manufactures the AeriSeal System, which is not approved for sale in the United States and is in a global clinical trial, CONVERT II, to support a PMA application 12.
The distribution model combines a direct sales force in the United States with direct and distributor-based sales abroad. In fiscal 2025, 95% of revenue came from markets where the company sells directly, rising to 99% in the first six months of 2026 12. All products are manufactured at the headquarters in Redwood City, California 1.
Sales depend almost entirely on the Zephyr valves and delivery catheters, with the other product lines playing a smaller role 1. The company remains unprofitable, with a net loss of 10.1 million USD in the second quarter of 2026 and a gross margin of 78% 23.
Segments
Zephyr valve and delivery catheters
This is the main revenue driver and accounts for most of the company's sales, with the procedure typically lasting about one hour and requiring no open surgery 1.
Chartis system and LungTraX platform
Chartis measures collateral ventilation to identify patients likely to respond to treatment, while LungTraX analyses CT scans in the cloud; both generate smaller revenue and are tied to valve sales 1.
AeriSeal System
The product holds Breakthrough Device designation and a CE Mark in Europe, but it is not sold in the United States until PMA approval is obtained through the CONVERT II study 1.
Market context
Reimbursement in the United States is supported by most patients being Medicare beneficiaries, and several commercial insurers have issued favourable policies, though some still assess the procedure case by case 12. Adoption still depends on acceptance by physicians and hospitals, which could continue to shape sales volumes 1.
Trends
- Recovery of access in Chinamixed
Sales in China were paused while the company awaited renewal of its registration certificate; excluding China, international revenue grew 12% in the second quarter of 2026, which could support growth if access normalises 3.
- Improving gross margintailwind
Gross margin reached a record in the second quarter of 2026, and full-year 2026 guidance points to about 76%, compared with 74.2% in fiscal 2025, as higher volumes spread fixed manufacturing costs 13.
- Reduced operating expensestailwind
Costs were realigned, cutting the net loss by 34% in the second quarter of 2026, while full-year 2026 operating expense guidance sits between 109 and 111 million USD 3.
- Lower U.S. salesheadwind
U.S. revenue fell 4% in the second quarter of 2026 while the company consolidates its sales team, which could delay a return to growth 3.
Competitive position
The severe emphysema market is contested by existing treatments such as lung volume reduction surgery, transplantation and other minimally invasive approaches, and some competitors have established relationships with pulmonologists, greater brand recognition and larger marketing budgets 1. The company aims to make its solution the standard of care for this disease 1.
The filings note that some competitors may challenge the company's intellectual property or develop superior technologies, and that other companies could acquire or license competing products, which could reduce market share 1.
- Lung volume reduction surgery
Invasive surgical procedure, restricted by CMS to a subgroup of patients and offered only at a limited number of specialised centres 1.
- Lung transplantation
Complex surgical option for the most severe cases, with limited long-term survival on average 1.
- Other minimally invasive treatments
Approaches such as airway bypass, coils and vapour, which have not shown the same demonstrated safety and effectiveness in FDA studies as valves 1.
- Medical management providers
Inhaled medication, pulmonary rehabilitation and supplemental oxygen, baseline treatments that compete for attention from physicians in the same clinics 1.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
No news in our archive over the last 180 days.
SEC filings
- Current report27 Oct 2026Results of operations · Financial statements and exhibits
- Quarterly report04 Aug 2026
- Current report29 Jul 2026Results of operations
- Current report04 Jun 2026Shareholder vote
- Quarterly report04 May 2026
- Current report29 Apr 2026Results of operations
- Proxy statement22 Apr 2026
- Annual report10 Mar 2026
- Current report05 Mar 2026Material agreement · Termination of a material agreement · Creation of a direct financial obligation · Item 3.02 · Financial statements and exhibits
- Current report04 Mar 2026Results of operations
Sources
- [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / Pulmonx Corporation · 10 Mar 2026
- [2] Form 10-Q, quarter ended 2026-06-30 · SEC / Pulmonx Corporation · 04 Aug 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / Pulmonx Corporation · 29 Jul 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.