CeriBell, Inc. Common Stock 2026 Q2 Earnings Call

You may begin. Good afternoon, and thank you all for participating in today's call.

Joining me from Ceribell are Jane Chao, Co-founder and Chief Executive Officer, and Scott Blumberg, Chief Financial Officer. Earlier today, Ceribell issued a press release announcing financial results for the quarter ended June 30, 2026. A copy of the press release is available on the investor relations section of the company's website. Before we begin, I would like to remind you that management will make remarks during this call that include forward-looking statements within the meaning of federal securities laws, and that these are being made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Any statements contained in this call that relate to expectations or predictions of future events, results, or performance are forward-looking statements.

These statements involve material risks and uncertainties that could cause actual results or events to materially differ from those anticipated or implied by these forward-looking statements. Accordingly, you should not place undue reliance on these statements. For a list and description of the risks and uncertainties associated with our business, please refer to the risk factors section of our public filings with the SEC, including our annual report on Form 10-K filed with the SEC on February 24, 2026, and quarterly report on Form 10-Q for the quarter ended June 30, 2026. This conference call contains time-sensitive information and is accurate only as of the live broadcast today, August 10, 2026. Ceribell disclaims any intention or obligation, except as required by law, to update or revise any financial projections or forward-looking statements, whether because of new information, future events, or otherwise.

With that, I will turn the call over to Jane.

Good afternoon, and thank you for joining us for our second quarter 2026 earnings call. Q2 marked another strong quarter for Ceribell as we delivered revenue of $28.1 million, growing 33% year-over-year. This is an acceleration from the 29% year-over-year growth we reported in Q1, which reflects a particularly strong performance in same-store growth driven by our clinical account management team. We also increased our account base by 32 accounts to a total of 712 active accounts. While the increase is similar to what we delivered in recent quarters, Q2 growth relied less on VA accounts than previous quarters. Our sustained success in growing our account base is a result of the continued maturation and performance of our account acquisition team. While revenue and commercial acceleration get top billing, I do want to take a moment to focus on our growth margin.

We delivered record growth margin of 92% in Q2. This number was positively impacted by a refund on previously paid tariff. Even when excluding this refund, we delivered growth margin of 89%. This does not happen by accident. It is a direct result of our proactive efforts in supply chain optimization and manufacturing diversification. Growth margin is more than just a number. It generates the outsized growth profit we're reinvesting to fund our growth initiatives and R&D with the eye towards executing our mission. With 33 consecutive quarters of sequential revenue growth, we believe we have built a repeatable growth engine. We're pointing that engine squarely at our defining objective, establishing Ceribell as the standard of care for seizure detection in the acute care setting.

At the center of our growth strategy is our commercial infrastructure, built with the dual purpose to acquire new customers and drive deeper adoption within our install base. Our account acquisition team continues to mature and is contributing in line with expectation. Their efforts are being supplemented by our newly added strategic account management team through top-down engagement of regional health systems. We have built a robust pipeline of prospects that gives us confidence in our ability to maintain an accelerated rate of new account additions in 2026 compared to 2025. While we continue to expand our account base, our clinical account management team is driving revenue through headband utilization expansion. Our strong performance this quarter reflects execution of our established utilization playbook, provider engagement, department expansion, and patient population portalization. A robust and expanding body of clinical evidence validates our platform.

Our aim is to make the case for Ceribell's clinical necessity by investing in high-quality evidence, demonstrating the clinical and economic value our system delivers. Adding to our established base of over 150 publications and abstracts. In Q2, a high impact study was published in Critical Care Medicine, one of the leading journals in intensive care research. The study found that when our Clarity algorithm reported a peak seizure burden of 90% or greater, patients were 3.6 times more likely to experience severe disability or death at discharge. Further, each additional hour of Clarity detected seizure activity was associated with nearly twofold increase in that risk. The premise that longer seizure duration correlates with worse outcome is not new. What is new is that a device output can quantitatively report seizure burden at the bedside in real time, and that this burden reliably correlates with patients' outcome.

These findings sharpen the clinical imperative for using the Ceribell solution, particularly Clarity, to reduce seizure burden for patients. As the body of evidence compounds, we are increasingly confident that Ceribell's path to becoming the standard of care is not a question of if, but when. As we continue to deliver within our core seizure market, we remain encouraged by the traction in our emerging market opportunities. In Q2, we launched our neonate and pediatric products and the commercial pilot of our Delirium algorithm. We remain encouraged by the early commercial traction of our neonate and pediatric seizure line extensions. Customer interest remains high. The clinical conviction is translating into early commercial success as we secured purchase orders from both new and existing customers in Q2. With a robust and growing pipeline, we are well-positioned to translate our commercial efforts into revenue contribution as we move into 2027.

We are also excited about the momentum of our first of its kind Delirium monitoring solution, which received 510(k) clearance in December. Delirium represents an estimated $1 billion U.S. market for Ceribell and a strong addition to our platform. Despite being the most common neurological complication in the ICU, before Ceribell, there had been no commercially available tool to continuously monitor Delirium. We launched our commercial pilot in April and are now live in multiple sites. The early feedback has been positive, with users praising improvements in clinical decision-making. For example, based on the survey, 40% of the patients were difficult to assess under CAM-ICU, the current standard of care, but could still be monitored with the Ceribell solution. Beyond the clinical signal, we are also seeing a utilization effect. Existing Ceribell customers that have joined the Delirium pilot are increasing headband utilization.

We believe this is a reflection of both the clinical value of the Delirium detection algorithm and the incidence overlap between seizure and Delirium, underscoring the synergistic value of our platform. We are also pleased to share that we just received a favorable final rule from CMS establishing a new technology add-on payment or NTAP for our Delirium monitoring solution. The NTAP, which becomes effective October 1st, 2026, provides up to $2,171 in incremental reimbursement per qualified patient. This is a meaningful milestone. It will support adoption by adding favorable economics to the strong clinical interest we are already seeing in the field. Our launch strategy is coming into focus, and we now have the confidence that we will launch Delirium commercially this year. With the commercial and clinical updates covered, I would like to turn to our vision for the future.

We believe we are well on our way to establishing the Ceribell system as the standard of care for seizure management. At the same time, our longer term vision to establish EEG as a new vital sign is no longer theoretical. We have made material progress and believe we can begin translating this vision to reality in 2027. Underpinning this is a two-pronged product strategy. We invested in algorithm and hardware enhancement to reach more patient populations while improving patient care and meeting physician needs. Our first prong is centered around developing novel algorithms to further improve clinical decision-making. Delirium and LVO are excellent examples of clinical expansion to new patient populations under this strategy. Through these advancements, we are delivering continuous objective brain monitoring to a set of underserved patient populations. We also apply algorithm development to improve care for patients we already serve.

We are pleased to announce today the receipt of FDA 510(k) clearances for two new algorithms targeting our core seizure market. We believe each meaningfully add to our platform clinical utility, strengthening the case for Ceribell as the standard of care. The first represents a significant enhancement to Clarity's ability to identify and reduce EEG artifact signals. Artifact recognition has long been the leading challenge to EEG interpretation in the acute care environment. It is not uncommon for even neurologists to mistake electrical signal from various medical equipment as seizure activity. EEG is so sensitive that even the electrical signal from an IV drip's movement can create artifacts. Our new algorithm, trained on a large artifact database created by Ceribell, can differentiate between brain activity and artifact, adding a layer of AI-driven sophistication. The new algorithm significantly simplifies EEG interpretation for neurologists and improves the point-of-care experience.