Pulmonx Reports Third Quarter 2026 Financial Results

Pulmonx narrows losses and returns to revenue growth, but remains unprofitable.

What the company is saying

Pulmonx emphasizes a return to year-over-year revenue growth in Q3 2026, highlighting a 6% increase in worldwide revenue to $22.8 million. The company frames its narrative around operational discipline, citing an 18% reduction in operating expenses to $24.9 million and a 57% reduction in adjusted EBITDA loss to $3.5 million. Glen French, President and CEO, attributes these improvements to a fully staffed U.S. sales leadership team, a more focused global commercial team, and a realigned cost structure. The company acknowledges the impact of paused China sales, noting that international revenue excluding China grew 9%. Pulmonx reiterates confidence in its commercial strategy and longer-term priorities, projecting full-year 2026 revenue of $90–92 million, gross margin of approximately 77%, and operating expenses of $108–109 million. The tone is upbeat and focused on operational progress, but forward-looking statements about growth and strategic execution are not backed by quantified clinical or commercial milestones in this release.

What the data suggests

The disclosed numbers show Pulmonx achieved $22.8 million in Q3 2026 revenue, up 6% year-over-year, with U.S. revenue at $14.9 million (up 7%) and international revenue at $7.9 million (up 5%). Excluding China, international revenue grew 9%. Gross margin improved to 76% from 75%, and gross profit rose to $17.4 million. Operating expenses fell 18% to $24.9 million, driving a net loss reduction to $8.4 million ($0.19 per share) from $14.0 million ($0.34 per share) a year ago. Adjusted EBITDA loss dropped 57% to $3.5 million. Cash and cash equivalents stood at $52.7 million at quarter-end, with management forecasting a $22 million decrease in cash and marketable securities for the full year. Full-year guidance calls for $90–92 million in revenue, 77% gross margin, and $108–109 million in operating expenses, including $14 million in non-cash stock-based compensation. The company remains unprofitable, and the projected cash burn signals ongoing capital needs. The improvement in losses is driven by cost controls rather than revenue acceleration, and the absence of China sales temporarily dampened international growth.

Analysis

The announcement presents a positive tone, highlighting year-over-year revenue growth, improved gross margin, and reduced net loss and operating expenses. These improvements are supported by detailed numerical disclosures, including revenue, gross margin, net loss, and adjusted EBITDA loss. However, the company remains unprofitable, with a net loss of $8.4 million for the quarter and a projected $22 million decrease in cash for the full year, indicating ongoing capital intensity. While the narrative emphasizes execution on commercial strategy and advancing clinical initiatives, no specific operational or clinical milestones are quantified. Several forward-looking statements (e.g., full-year guidance, confidence in future growth) are present but are near-term and not overly aspirational. The gap between narrative and evidence is moderate: financial improvements are real, but profitability remains elusive and qualitative claims are not fully substantiated.

Risk flags

• ●Pulmonx remains unprofitable, with a Q3 2026 net loss of $8.4 million and a projected $22 million reduction in cash and marketable securities for the full year, raising the risk of future capital needs if losses persist.
• ●International revenue growth was negatively impacted by the absence of China sales due to a paused distributor relationship, and the company's ability to fully restore commercial activity in China remains uncertain.
• ●The improvement in financials is primarily due to cost reductions, not accelerating revenue growth, which may limit the sustainability of margin gains if top-line growth does not accelerate.
• ●Full-year guidance assumes no additional drawdowns under the company’s credit facility, so any deviation in cash usage or unexpected expenses could pressure liquidity.
• ●Forward-looking statements about commercial execution and clinical advancement are not supported by specific operational milestones or quantified pipeline progress in this release, increasing the risk that narrative outpaces tangible results.

Bottom line

Pulmonx delivered improved financial results for Q3 2026, with revenue growth resuming and losses narrowing due to aggressive cost controls. The company projects continued improvement for the full year, but remains unprofitable, with a net loss of $8.4 million for the quarter and a forecasted $22 million cash burn for 2026. International growth was held back by the absence of China sales, and while management expects to restart commercial activity there, this remains a key execution risk. The narrative is credible on cost discipline and margin improvement, but less so on commercial or clinical progress, as no new milestones are quantified. Investors should focus on Pulmonx’s ability to restore China revenue, sustain U.S. growth, and manage cash burn. The most important takeaway is that while operational efficiency is improving, the path to profitability and cash self-sufficiency is not yet clear.

Announcement summary

(NASDAQ:LUNG) Pulmonx Corporation reported financial results for the third quarter of 2026 ended September 30, 2026. Worldwide revenue for the third quarter of 2026 was $22.8 million, representing a 6% increase from $21.5 million in the third quarter of 2025 on both a GAAP and constant currency basis. U.S. revenue for the quarter was $14.9 million, a 7% increase from $13.967 million in the prior year period. International revenue was $7.9 million, a 5% increase from $7.535 million in the third quarter of 2025, and a 6% increase on a constant currency basis. Excluding China, international revenue grew 9% year-over-year on both a GAAP and constant currency basis, with international revenue excluding China at $7.924 million compared to $7.301 million in the prior year. Gross profit for the third quarter of 2026 was $17.4 million, up from $16.1 million in the third quarter of 2025. Gross margin was 76% for the third quarter of 2026, compared to 75% in the same period of 2025. Operating expenses for the quarter were $24.9 million, down from $30.4 million in the third quarter of 2025, an 18% decrease. Net loss for the third quarter of 2026 was $8.4 million, or $0.19 per share, compared to a net loss of $14.0 million, or $0.34 per share, for the same period in 2025. Adjusted EBITDA loss for the third quarter of 2026 was $3.5 million, a reduction of 57% compared to $8.2 million in the prior year period. Cash and cash equivalents totaled $52.7 million as of September 30, 2026. For the nine months ended September 30, 2026, total revenue was $66.177 million, compared to $67.899 million for the same period in 2025. Total operating expenses for the nine months ended September 30, 2026 were $80.688 million, compared to $93.358 million in the prior year. Net loss for the nine months ended September 30, 2026 was $32.128 million, compared to $43.578 million for the same period in 2025. Pulmonx continues to expect full year 2026 revenue to be in the range of $90 million to $92 million. The company now expects gross margin for the full year 2026 to be approximately 77%. Total operating expenses for the full year 2026 are expected to fall within the range of $108 million to $109 million, inclusive of approximately $14 million of non-cash stock-based compensation. Pulmonx expects cash, cash equivalents, and marketable securities to decrease by approximately $22 million for the full year 2026, assuming no additional drawdowns under the company’s credit facility. Glen French, President and Chief Executive Officer of Pulmonx, stated that the company is pleased to have returned to year-over-year revenue growth, is executing on its commercial strategy, advancing clinical initiatives, and delivering expected operating leverage. The company hosted a conference call on October 27, 2026, at 1:30 p.m. PT / 4:30 p.m. ET to discuss its third quarter financial results. Pulmonx’s Zephyr Endobronchial Valve, Chartis Pulmonary Assessment System, LungTraX Platform, and StratX Lung Analysis Reports are designed to assess and treat patients with severe emphysema/COPD. The Zephyr Valve is commercially available in more than 25 countries and is included in global treatment guidelines.

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