This article first appeared on GuruFocus .
Release Date: April 29, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Pulmonx Corp ( NASDAQ:LUNG ) reported total worldwide revenue of $20.6 million for Q1 2026, showing operational momentum.
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The company is confident in achieving its full-year 2026 revenue guidance of $90 million to $92 million.
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Pulmonx Corp ( NASDAQ:LUNG ) has made substantial progress in aligning its cost structure, reducing operating expenses by over 10%.
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The gross margin for Q1 2026 increased to 78% from 73% in the prior-year period.
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The company added 15 new U.S. treating centers during the quarter, indicating expansion in its domestic market.
Negative Points
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Total worldwide revenue decreased by 9% compared to the same period last year.
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U.S. revenue in Q1 2026 decreased by 7% compared to the prior year.
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International revenue decreased by 12% due to the absence of sales to the distributor in China.
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The company is awaiting the renewal of its Chinese registration certificate, impacting sales in China.
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Net loss for Q1 2026 was $13.7 million, slightly improved from a net loss of $14.4 million in the prior year.
Q & A Highlights
Q: Can you elaborate on the strategies being used to accelerate sales growth and the productivity expectations for the new sales team members? A: Glenn French, CEO, explained that the focus has been on narrowing the tasks for the U.S. sales force to improve efficiency. The company has filled all open positions and is working on bringing new hires up to speed quickly. The strategy includes setting up high-quality valve programs and engaging COPD physicians to drive patient referrals. The company is seeing positive impacts from these efforts and expects continued improvement as the year progresses.
Q: With the first quarter results in hand, how does the company view the growth trajectory for 2026, and what gives confidence in achieving the guidance? A: Derek Sung, CFO, stated that the company expects sequential quarterly improvement in growth throughout the year. The U.S. market is expected to benefit from the new sales hires and focused strategies, while international growth will be impacted by the timing of sales in China. The company is confident in achieving positive year-over-year growth in the back half of the year, driven by the strength of the underlying business.
Q: What is the outlook for U.S. account additions, and what metrics are being used to monitor the success of the revamped sales force? A: Glenn French, CEO, noted that 15 new U.S. accounts were added in Q1, which is a strong number compared to last year. The company maintains an expectation of adding 10 accounts per quarter. Metrics for success include bringing new hires up to speed quickly and leveraging best practices to support high-performing accounts.
Q: Can you provide insight into the company's long-term growth aspirations, particularly regarding double-digit growth expectations? A: Glenn French, CEO, expressed confidence in achieving double-digit growth, especially as the company addresses past challenges such as sales rep turnover and strategic focus. The international markets have shown strong growth, and the company is optimistic about future prospects with initiatives like AeroSeal.
Q: What is the status of the Chinese registration renewal, and how does it impact the company's growth expectations? A: Derek Sung, CFO, explained that the renewal is expected in the back half of the year and is primarily an administrative process. The company does not anticipate a significant immediate impact on sales from China, and the guidance does not rely heavily on contributions from China in the second half of the year.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
