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1. Company Snapshot

1.a. Company Description

Pulmonx Corporation, a medical technology company, provides minimally invasive devices for the treatment of chronic obstructive pulmonary diseases.It offers Zephyr Endobronchial Valve, a solution for the treatment of bronchoscopic in adult patients with hyperinflation associated with severe emphysema; and Chartis Pulmonary Assessment System, a balloon catheter and console system with flow and pressure sensors that are used to assess the presence of collateral ventilation.The company also provides StratX Lung Analysis Platform, a cloud-based quantitative computed tomography analysis service that offers information on emphysema destruction, fissure completeness, and lobar volume to help identify target lobes for the treatment with Zephyr Valves.


It serves emphysema patients in the United States, Europe, the Middle East, Africa, the Asia-Pacific, and internationally.The company was formerly known as Pulmonx and changed its name to Pulmonx Corporation in December 2013.Pulmonx Corporation was incorporated in 1995 and is headquartered in Redwood City, California.

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1.b. Last Insights on LUNG

Pulmonx Corporation's recent performance was negatively impacted by the emergence of a new competitor in the minimally invasive treatments for lung disease market. The company's flagship product, Zephyr, faces increased competition from Amgen's IMDELLTRA, which demonstrated superior overall survival in small cell lung cancer patients. This development may erode Pulmonx's market share and revenue growth. Additionally, the company's Q4 2024 earnings report showed a loss of $0.33 per share, although it beat revenue estimates.

1.c. Company Highlights

2. Pulmonx's Q3 Earnings: A Mixed Bag

Pulmonx reported Q3 revenue of $21.5 million, a 5% increase from the same period last year, slightly ahead of expectations. The company's U.S. revenue grew 1% to $14 million, while international revenue rose 15% to $7.5 million. Gross margin was 75%, and total operating expenses were $30.4 million. The company reported an EPS loss of $0.34, better than the estimated loss of $0.4. As Derrick Sung noted, "We're committed to taking a disciplined approach to capital allocation and extending our cash runway."

Publication Date: Nov -30

📋 Highlights
  • Revenue Growth:: Q3 revenue reached $21.5M (5% YoY), with U.S. at $14M (+1%) and international at $7.5M (+15%).
  • Cash Position:: Ended Q3 with $76.5M cash, a $7.7M decline from Q2, reflecting ongoing cash burn.
  • 2025 Guidance:: Full-year revenue projected at $89–90M, gross margin ~73%, and operating expenses capped at $125–126M.
  • Operational Challenges:: Slowing U.S. growth and elusive operating leverage acknowledged despite strong 75% gross margin.
  • Strategic Focus:: Prioritizing disciplined capital allocation, resource reallocation to high-impact areas, and improving underperforming regions.

Financial Performance

The company's financial performance was mixed, with revenue growth slowing down in the U.S. market. The 1% increase in U.S. revenue was a significant slowdown compared to previous quarters. However, international revenue growth was robust, driven by the company's strong presence in key markets. The company's gross margin remained stable at 75%, indicating a well-managed cost structure.

Guidance and Outlook

Pulmonx revised its full-year 2025 revenue guidance to $89 million to $90 million, and operating expense guidance to $125 million to $126 million. The company expects to reduce its cash burn and extend its cash runway through a disciplined approach to capital allocation. Analysts estimate revenue growth of 5.1% next year, indicating a moderate improvement in the company's growth trajectory.

Valuation

The company's valuation metrics indicate a challenging financial situation. The P/S Ratio is 0.74, indicating that the stock is trading at a discount to its revenue. The EV/EBITDA ratio is -0.8, reflecting the company's negative EBITDA. The ROE and ROIC are also negative, indicating a lack of profitability. However, the company's Net Debt/EBITDA ratio is 0.31, suggesting a manageable debt burden.

Operational Challenges

The company faces operational challenges, including a slowing growth trajectory in the U.S. market and elusive operating leverage. Glen French acknowledged that the company needs to "narrow our investments to prioritize areas where we can deliver the greatest impact and create long-term value." The company is focused on improving its operational efficiency and reducing its cash burn.

3. NewsRoom

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Pulmonx Announces Inducement Grants under Nasdaq Listing Rule 5635(c)(4)

Dec -03

Source: globenewswire.com

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FDA GRANTS FULL APPROVAL TO AMGEN'S IMDELLTRA® IN EXTENSIVE STAGE SMALL CELL LUNG CANCER

Nov -19

Source: prnewswire.com

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Pulmonx Corporation (LUNG) Q3 2025 Earnings Call Transcript

Nov -13

Source: seekingalpha.com

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Pulmonx Corporation (LUNG) Reports Q3 Loss, Beats Revenue Estimates

Nov -12

Source: zacks.com

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Pulmonx Reports Third Quarter 2025 Financial Results

Nov -12

Source: globenewswire.com

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Penny Stocks To Watch Today – October 28th

Oct -30

Source: defenseworld.net

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Pulmonx Announces Management Transition and Preliminary Third Quarter 2025 Revenue; Reschedules Third Quarter 2025 Earnings Call to November 12, 2025

Oct -27

Source: globenewswire.com

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Pulmonx to Report Third Quarter 2025 Financial Results on October 29, 2025

Oct -15

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (15.00%)

6. Segments

Interventional Pulmonology

Expected Growth: 15%

Strong demand for minimally invasive treatments, increasing prevalence of COPD and lung cancer, growing adoption of Zephyr Valve technology, and expansion into new geographies drive 15% growth in Interventional Pulmonology from Pulmonx Corporation.

7. Detailed Products

Zephyr Endobronchial Valve

A minimally invasive treatment for severe emphysema, a type of chronic obstructive pulmonary disease (COPD). The valve is designed to occlude diseased areas of the lung, allowing healthier areas to expand and improve breathing.

Chartis Pulmonary Health System

A patient selection system that uses quantitative CT scan analysis to identify patients who may benefit from bronchoscopic lung volume reduction (BLVR) with the Zephyr Valve.

Pulmonx Flex

A single-use, flexible bronchoscope designed for use in BLVR procedures, providing improved visualization and access to the lungs.

8. Pulmonx Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Pulmonx Corporation's Zephyr Valve is a unique product with no direct substitutes, but other treatments like lung transplantation and bronchoscopic lung volume reduction are available, making the threat of substitutes medium.

Bargaining Power Of Customers

Pulmonx Corporation's customers are primarily hospitals and healthcare systems, which have limited bargaining power due to the specialized nature of the Zephyr Valve and the company's strong relationships with these customers.

Bargaining Power Of Suppliers

Pulmonx Corporation has a diversified supplier base, and the company's suppliers have limited bargaining power due to the specialized nature of the components and materials used in the Zephyr Valve.

Threat Of New Entrants

The medical device industry has high barriers to entry, including regulatory hurdles and significant research and development investments, making it difficult for new entrants to compete with Pulmonx Corporation.

Intensity Of Rivalry

The market for endobronchial valves is relatively niche, and Pulmonx Corporation faces competition from a few established players, but the company's strong brand recognition and established relationships with customers help to mitigate the intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 25.42%
Debt Cost 7.27%
Equity Weight 74.58%
Equity Cost 7.27%
WACC 7.27%
Leverage 34.08%

11. Quality Control: Pulmonx Corporation passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Pulmonx

A-Score: 3.1/10

Value: 9.0

Growth: 4.6

Quality: 4.2

Yield: 0.0

Momentum: 0.0

Volatility: 1.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

2.01$

Current Price

2.02$

Potential

-0.00%

Expected Cash-Flows