CeriBell (CBLL -15.25%), the neurotechnology company specializing in rapid electroencephalography (EEG) and artificial intelligence for seizure detection, announced its results for Q2 2025 on August 5, 2025. The company’s revenue (GAAP) reached $21.2 million, up from $15.3 million in Q2 2024, outpacing the analyst consensus of $20.45 million (GAAP). Earnings per share (EPS, GAAP) were $(0.38), also better than the expected $(0.40) (GAAP). Despite significant top-line gains and a gross margin increase to 88% (GAAP), heavy investment in research, development, and commercial operations led to a wider net loss of $13.6 million (GAAP), compared to $8.9 million (GAAP) in Q2 2024. The quarter reflected strong commercial momentum, continued innovation, and a further commitment to market expansion.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (GAAP) | ($0.38) | ($0.40) | ($1.61) | 76.4 % |
| Revenue (GAAP) | $21.2 million | $20.45 million | $15.3 million | 38.5 % |
| Gross Margin | 88 % | 86 % | 2.0 pp | |
| Operating Expenses | $33.6 million | $21.6 million | 55.6 % | |
| Net Loss | $13.6 million | $8.9 million | (52.8 %) |
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.
Understanding CeriBell’s Business
CeriBell focuses on improving detection and management of seizures in critical care settings via its portable Ceribell System, which combines a rapid EEG hardware platform with AI-powered algorithms. EEG, or electroencephalography, is a method of recording brain activity and is crucial for diagnosing seizures. Conventional hospital EEG systems are complex and slow to deploy, but CeriBell's portable solution enables real-time brain monitoring and interpretation at the patient’s bedside, even by non-specialists.
The company’s business model relies on recurring revenue from disposable headbands (hardware) and subscription fees for its Clarity platform, which delivers AI-driven seizure analysis. Driven by regulatory clearance from the U.S. Food and Drug Administration (FDA) and insurance reimbursement progress, CeriBell aims to expand its customer base across acute care hospitals and broaden clinical indications for its technology. Key success factors include clinical adoption, expanding hospital accounts, and investing in commercial and R&D infrastructure.
Q2 2025: Commercial, Financial, and Strategic Developments
CeriBell’s total revenue rose 38% from the prior year period, with product revenue (disposable headbands) up 38% and subscription revenue from the Clarity AI platform up 41%. This performance surpassed both internal targets and external forecasts, as Ceribell's GAAP revenue of $21.2 million and GAAP EPS of $0.38 exceeded analyst estimates and was attributed to growth in new account signings and expanded use within existing hospital customers. By the end of Q2 2025, CeriBell had 584 active accounts, up from 558 at the end of Q1 2025. However, the pace of new signings, while still positive, slowed compared to the prior quarter as part of the expected seasonal trends and as the account base matures.
Gross margin (GAAP) improved to 88%, a notable increase from 86% in Q2 2024. Management attributed this margin strength to a high proportion of subscription revenue, where margins reached 97% for FY2024. Gross margin (GAAP) is projected to remain in the mid-80% range for fiscal year 2025, although upcoming tariffs on Chinese imports may pressure profitability in later quarters, with management stating that no material impact on gross margins is expected until at least Q4 2025.
Operating expenses increased 56% year over year, totaling $33.6 million. The bulk of this spending was concentrated in sales and marketing, which increased 62.6% year over year, reflecting continued expansion of CeriBell's commercial teams and territory managers. Research and development expenditures also increased, including costs related to ongoing product innovation and preparation for future indications like pediatric and neonatal seizure detection.
The net loss (GAAP) widened to $13.6 million as operating costs outpaced revenue growth, though the loss per share (GAAP) showed apparent improvement compared to Q2 2024, which diluted the per-share impact. Cash, cash equivalents, and marketable securities totaled $177.4 million as of Q2 2025, providing a substantial operating runway despite persistent losses.
There were no material one-time or extraordinary items affecting the numbers in the period.
Product Families and Market Expansion
The Ceribell System is the foundation of CeriBell’s product line. This portable EEG hardware is designed for rapid application in acute medical settings and is sold as a disposable headband combined with a control unit. Its FDA clearance allows hospital staff to rapidly detect and monitor seizures, even without neurology expertise.
Clarity is CeriBell’s artificial intelligence platform, offered via subscription, that interprets EEG signals to detect non-convulsive seizures. Recently, Clarity was cleared by the FDA for pediatric use as well, but management noted that this pediatric approval is not expected to generate material revenue in 2025 due to the planned limited rollout and piloting phase. The recurring revenue from Clarity subscriptions contributes significantly to margins and helps insulate the company from some raw material cost and tariff risks affecting the hardware side of the business.
CeriBell has continued to diversify its market approach by focusing expansion efforts within hospital networks and across different care departments, such as intensive care units (ICUs), emergency departments, and step-down units. The company’s penetration remains early, serving about 3% of the U.S. market addressable for rapid EEG monitoring as of Q1 2025. Management emphasized the sizeable expansion opportunity both within current hospital accounts and among untapped acute care providers.
Intellectual property remains central to CeriBell's strategy, with a patent portfolio covering its AI technologies and hardware. The company maintains its position as a sector leader, citing both regulatory and commercial milestones, as well as growing clinical evidence and peer-reviewed publications supporting its approach.
Outlook and Guidance
Looking forward, management raised its revenue outlook for full year 2025 to a range of $85 million to $88 million, up from previous guidance of $83 million to $87 million. This forecast reflects confidence in sustained revenue momentum and account expansion, corresponding to expected annual growth of 30% to 34% over the prior year. Gross margin is expected to remain in the mid-80% range, with leadership noting planned mitigation strategies such as automation, cost negotiation, and possible reshoring to address expected tariff headwinds in Q4 2025 and into early 2026.
Investors should continue monitoring operating expense growth relative to revenue gains, particularly as CeriBell invests heavily in commercial hiring to drive adoption; operating expenses (GAAP) increased 56% year-over-year, primarily due to investments in the company’s commercial organization and increased headcount. The upcoming impact of import tariffs on gross margin, progress in new product launches, and further account additions will be important areas to watch in subsequent quarters (e.g. Q3 and Q4 2025), given the company’s early stage of market penetration. CeriBell does not currently pay a dividend.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
