GICS Sector : Healthcare
CVRx, Inc., a commercial-stage medical device company, focuses on developing, manufacturing, and commercializing neuromodulation solutions for patients with cardiovascular diseases.It offers Barostim, a neuromodulation device indicated to improve symptoms for patients with heart failure (HF) with reduced ejection fraction or systolic HF.The company sells its products through direct sales force, as well as sales agents and independent distributors in the United States, Germany, rest of Europe, and internationally.
CVRx reported a revenue of $14.7 million for Q3 2025, marking a 10% increase from $13.4 million in Q3 2024, driven primarily by the growth in its US heart failure business. The company's gross margin expanded to 87% from 83% in the same period last year, attributed to an increased average selling price and decreased cost per unit. The earnings per share (EPS) came in at -$0.49, slightly better than the estimated -$0.5. The company's active implanting centers in the US rose to 250 from 240 in Q2 2025, and the number of sales territories increased to 50, up 3 from the previous quarter.
Publication Date: Nov -23
The company is focusing on three strategic priorities: building a world-class sales organization, targeting high-potential centers, and addressing barriers to Barostim therapy adoption. According to Kevin Hykes, the new sales reps are getting up to speed and making meaningful contributions, with the company adding 10 net new centers in Q3. The refined approach to account targeting is also gaining traction. Management noted that it may take 6-12 months for new reps to reach full productivity, indicating a continued investment phase in the sales force.
CFO Jared Oasheim provided financial guidance, expecting total revenue between $55.6 million and $56.6 million for 2025, with a gross margin between 85% and 86%. For Q4 2025, the company expects revenue between $15 million and $16 million. Looking ahead to 2026, CVRx anticipates a reacceleration of growth, targeting mid-teens growth rates, with potential to exceed that if favorable developments occur, such as the implementation of a Category I code. The company expects continued leverage in its model, with OpEx growth at a lower rate than top-line growth.
With a P/S Ratio of 4.72, the market appears to have already priced in a certain level of growth for CVRx. Analysts estimate next year's revenue growth at 15.4%, which aligns with the company's guidance for mid-teens growth rates in 2026. The company's plans for a large randomized controlled trial (RCT) could potentially triple its Total Addressable Market (TAM) by expanding the indication to an adjacent group of patients, providing a significant growth catalyst. The current valuation multiples, including a P/E Ratio of -4.91 and an EV/EBITDA of -4.63, reflect the company's current loss-making position but also indicate market expectations for future growth.
The upcoming RCT, involving around 2,000 patients and likely taking about 4 years to enroll with another 18 months to 2 years of follow-up, is a significant future catalyst. Additionally, the expected Category I code implementation and subsequent reimbursement improvements could reduce friction in the system, leading to higher approval rates and shorter times to approval for prior authorizations, potentially driving growth beyond the mid-teens rate targeted by the company.
CVRx (NASDAQ:CVRX) versus Bluejay Diagnostics (NASDAQ:BJDX) Critical Comparison
Dec -01
CVRx to Participate at the Piper Sandler 37th Annual Healthcare Conference
Nov -19
CVRx, Inc. (CVRX) Q3 2025 Earnings Call Transcript
Nov -06
CVRx (CVRX) Reports Q3 Loss, Beats Revenue Estimates
Nov -06
CVRx to Report Third Quarter 2025 Financial and Operating Results and Host Conference Call on Nov. 5, 2025
Oct -22
CVRx (CVRX) Q2 Revenue Jumps 15%
Aug -05
CVRx, Inc. (CVRX) Q2 2025 Earnings Call Transcript
Aug -04
CVRx (CVRX) Reports Q2 Loss, Beats Revenue Estimates
Aug -04
CVRx, Inc.'s medical device growth is driven by increasing demand for minimally invasive treatments, rising prevalence of hypertension and heart failure, growing adoption of Barostim Neo device, and expanding reimbursement coverage. Additionally, strategic partnerships and investments in clinical trials are fueling innovation and market expansion, contributing to the 8.74% growth rate.
A minimally invasive, implantable device that uses the power of the body's natural baroreceptor mechanism to provide a unique, long-term treatment for hypertension and heart failure.
A device that uses the same technology as Barostim Neo, but is designed for patients who require a more compact device.
CVRx, Inc. has a unique technology that is not easily substitutable, reducing the threat of substitutes.
CVRx, Inc. has a diverse customer base, but some large customers may have bargaining power due to their size and purchasing power.
CVRx, Inc. has a diverse supplier base, reducing the bargaining power of individual suppliers.
The medical device industry is highly competitive, and new entrants may pose a significant threat to CVRx, Inc.'s market share.
The medical device industry is highly competitive, and CVRx, Inc. faces intense rivalry from established companies and new entrants.
| Value | |
|---|---|
| Debt Weight | 28.73% |
| Debt Cost | 3.95% |
| Equity Weight | 71.27% |
| Equity Cost | 10.37% |
| WACC | 8.53% |
| Leverage | 40.31% |
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