Stereotaxis (STXS) Q1 2025 earnings summary

Executive summary

• Achieved 9% year-over-year revenue growth in Q1 2025, reaching $7.5 million, driven by recurring revenue from proprietary catheters, initial MAGIC catheter sales in Europe, and contributions from the APT acquisition.

• Focused on expanding recurring revenue, commercializing MAGIC in Europe, launching Genesys-X, and integrating APT to broaden robotic adoption and in-house catheter capabilities.

• Strategic transformation underway, supported by a robust innovation pipeline, multiple regulatory submissions, and regulatory milestones achieved in Europe for GenesisX and MAGIC.

• Net loss attributable to common stockholders widened to $6.1 million from $4.8 million in Q1 2024, reflecting higher operating expenses and acquisition-related costs.

• Demonstrated GenesisX at major conferences and secured first GenesisX order, with further Genesis system orders received.

Financial highlights

• Q1 2025 revenue was $7.5 million, up from $6.9 million in Q1 2024; recurring revenue grew 29% to $5.5 million, while system revenue declined to $2.0 million.

• Gross margin was 54%; recurring revenue gross margin 68%, system gross margin 15%, impacted by acquisition-related accounting and low system production.

• Operating loss was $5.9 million; net loss was $5.8 million; adjusted operating loss was $2.7 million.

• Cash and equivalents at quarter-end were $10.7 million, with no debt.

• Negative free cash flow improved to $1.8 million from $2.3 million year-over-year.

Outlook and guidance

• Reiterated double-digit revenue growth guidance for full-year 2025, with system revenue expected at $2–3 million per quarter and recurring revenue scaling to $7 million in Q4.

• Guidance excludes MAGIC and Genesys-X revenue in the U.S.; China viewed as potential upside.

• Expects reduced cash use in 2025 and sufficient liquidity to fund commercialization and growth, but additional funding may be needed if macroeconomic conditions worsen.

• Focus on advancing regulatory approvals and clinical adoption in new and existing markets.

• Recurring revenue margins expected to normalize by Q3 2025.