Pulmonx (LUNG) investor relations material

Sales organization and operational changes

• Sales leadership roles have been filled and U.S. sales structure reorganized, dividing the country into two regions reporting directly to the CEO.

• Sales territory coverage has improved, with turnover returning to industry norms after a spike in 2025.

• Junior reps now support 22 of 42 U.S. territories, aiding coverage and providing a pipeline for territory managers.

• Training and onboarding are central focuses, aiming for improved execution and benefits into next year.

• Cost restructuring reduced ongoing recurring costs by about 10%, with cash OpEx down 11% year-over-year.

Financial performance and guidance

• Full-year revenue guidance reiterated at $90M–$92M, with gross margin guidance raised to ~76%.

• Gross margin expansion driven by production efficiencies and supply chain cost reductions.

• OpEx guidance lowered to $109M–$111M, mainly due to reduced stock-based compensation and cost controls.

• Operating leverage improved, with careful protection of commercial and R&D investments.

• Q3 expected to follow typical seasonality, with flat to slightly down sequential performance.

Growth drivers and strategic initiatives

• Focus remains on maximizing existing account utilization rather than relying on new account growth.

• Direct-to-patient marketing shifted to a more targeted approach, increasing yield despite higher per-patient costs.

• StratX software continues to support patient identification, with strong alignment to projections.

• China registration renewal achieved; commercial activities restarting with revenue expected early next year.

• Long-term China revenue expected to return to and exceed previous levels of $2M–$2.5M.