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Date

Tuesday, November 4, 2025 at 4:30 p.m. ET

Call participants

  • Chief Executive Officer — Xingjuan Chao
  • Chief Financial Officer — Scott Blumberg

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Takeaways

  • Total revenue -- $22.6 million, representing a 31% increase year-over-year and marking the 30th consecutive quarter of sequential revenue growth.
  • Revenue -- $17 million in 2025, representing an increase of 28% from $13.3 million in 2024, primarily driven by increased adoption.
  • Subscription revenue -- $5.6 million, a 44% increase compared to last year.
  • Gross margin -- 88%, up from 87% in the prior year period, with the company expecting margins in the mid-80% range going forward, despite new tariffs.
  • Operating expenses -- $34.6 million, increasing 39% from $24.9 million due to investment in commercial organization, headcount, legal, and public company-related costs.
  • Sales and marketing expenses -- Increased by $1.1 million sequentially from Q2 to Q3, owing to headcount expansion and related compensation.
  • Net loss -- $13.5 million, or $0.37 per share, versus a loss of $10.4 million and $1.85 per share last year, based on 36.8 million weighted shares outstanding.
  • Cash, cash equivalents, and marketable securities -- $168.5 million as of September 30, 2025.
  • Active accounts -- 615 as of September 30, an increase of 31 sequentially, the largest quarterly gain since becoming a public company.
  • Full-year revenue guidance -- Raised to $87 million to $89 million, equating to 33%-36% annual growth; prior guidance was $85 million to $88 million.
  • Market penetration -- Estimated 10% of U.S. acute care hospitals adopted the CeriBell system; management estimates only 3% penetration into the core addressable market when factoring departmental and patient coverage.
  • Pediatric CLARITY FDA clearance -- 510(k) clearance received, covering patients one year and older; a retrospective study demonstrated 94.4% sensitivity, 93.1% specificity, and 99.8% negative predictive value in detecting status epilepticus in the pediatric population.
  • Neonatal head cap clearance -- New head cap version cleared for both preterm and term neonates in response to feedback from clinical pilots.
  • Expansion in VA system -- After receiving FedRAMP high authorization, a successful pilot resulted in the VA system indicating plans to further expand usage of the CeriBell system.
  • Tariffs and supply chain -- Transition to a new manufacturing line in Vietnam is complete; management expects continued resilient gross margins even as Q4 inventory transitions to higher-tariff goods from China.
  • Account utilization -- Utilization per account increased nearly threefold over five years; high-performing accounts exhibit rates about three times higher than average accounts of similar size, and continue to grow.
  • Deferred account launches in December -- Management will continue to defer new account launches during December to maximize early usage and avoid holiday disruptions.
  • Shelf registration -- CFO Scott Blumberg stated, "we do not have any intention to pursue a financing transaction at this time" following filing a shelf registration statement on Form S-3.
  • Clinical validation for product impact -- The SAFER EEG clinical trial showed the CeriBell system reduced median time to EEG by 19 hours and lowered severe disability rate by 18%.

Summary

CeriBell (CBLL +3.63%) reported continued revenue momentum and raised its full-year guidance, reflecting accelerating commercial traction. The company advanced its pediatric and neonatal platforms, securing critical FDA 510(k) clearances that broadened the addressable market by $400 million. FedRAMP high authorization secured access to nearly 200 VA hospitals, with a major system-wide expansion in progress following a successful pilot. Management emphasized strong uptake in both new and existing accounts, with consistent increases in per-account utilization and growing demand from hospital systems and new clinical departments.

  • Management stated, "We remain committed to achieving cash flow breakeven with cash on hand," citing a strong balance sheet and high gross margins as key supports for this path.
  • Pediatric CLARITY's 510(k) clinical validation showed, per CEO Xingjuan Chao, "a sensitivity of 94.4%, specificity of 93.1%, and a negative predictive value of 99.8%."
  • The transition of manufacturing to Vietnam is intended to mitigate tariff risks, supporting the company's projection of gross margins in the mid-80% range through 2026.
  • New account additions for the quarter reached a record high, which management attributed to prior commercial investments, and cited a growing pipeline of hospitals nearing launch.
  • Operating expense growth outpaced revenue as investments in commercial and clinical initiatives preceded expected 2026 revenue impact, signaling continued near-term spending above topline growth.
  • Deferred December account launches are a strategic choice based on observed benefits for utilization ramp in new installations.

Industry glossary

  • 510(k) clearance: U.S. FDA process allowing medical devices deemed substantially equivalent to existing approved devices to enter the market.
  • FedRAMP high authorization: A federal security standard granting high-level access for cloud service providers selling into U.S. government entities, including VA hospitals.
  • CLARITY: CeriBell's proprietary artificial intelligence algorithm for automated seizure detection in EEG monitoring.
  • SAFER EEG: A clinical trial referenced for evaluating the clinical impacts and efficiencies enabled by the CeriBell system.
  • IDN (Integrated Delivery Network): A network of healthcare facilities under unified management seeking standardized clinical protocols and purchasing.
  • CAM team: CeriBell’s Customer Account Management group responsible for training, education, and utilization expansion within hospital accounts.
  • NTAP: New Technology Add-On Payment, a Medicare program providing supplemental payments for new, high-cost technologies.

Full Conference Call Transcript

Xingjuan Chao: Thanks, Brian. Good afternoon, and thank you all for joining us for our third quarter 2025 earnings call. I'm very pleased to report on another strong quarter as we continue to execute on our key growth initiatives while solidifying our position as the category leader in point-of-care EEG. We have continued to expand patient access through new account growth and increased utilization while advancing our robust product pipeline. We believe the strength of these initiatives is clearly reflected in our results. Total revenue for 2025 was $22.6 million. This reflects 31% growth over the same period last year and marks our thirtieth consecutive quarter of sequential revenue growth.

Our performance is the result of the predictable recurring nature of our business model and continued excellence in commercial execution to launch new accounts and drive increased usage. Given these trends and momentum we build, exiting the quarter, we remain confident in our core commercial strategy. And we are raising our full-year 2025 revenue guidance. We now expect to deliver $87 to $89 million in revenue for the full year 2025, which represents 34% year-over-year growth at the midpoint. Our success to date reflects not only strong commercial execution but also the foundational work we have done to unlock what we believe to be an immediately addressable $2 billion market opportunity.

Our primary focus is on establishing point-of-care EEG as a new standard of care for seizure management in the acute care setting. We believe that every ICU and emergency department should have access to the CeriBell system and the benefits of a solution it provides. The need is both urgent and profound. There are roughly three million patients in the US at risk for seizures in the acute care setting. Many of these patients will face long delays in diagnosis with conventional EEG, spending hours or even days. Others may never receive monitoring at all due to limited access to EEG and lack of clinical awareness.

The consequences are significant, as prolonged and untreated seizures lead to severe and permanent brain damage or even death. Comparatively, the SAFER EEG clinical trial has shown that the CeriBell system reduces the median time to EEG by nineteen hours while reducing patients' severe disability rate by eighteen percent. At the same time, patients who are treated with anti-seizure medication without EEG confirming seizures based on observation alone may be exposed to unnecessary risks, including intubation and extended ICU stays. The CeriBell system has been shown to enable a median reduction in ICU length of stay by 4.1 days.

Ultimately, patients' lives and their quality of life are on the line, and we believe our platform can enable more timely and appropriate care. Helping these patients receive the care they need starts with working to make the CeriBell system available to hospitals across the US. To this end, we have steadily made strong progress in expanding our account base. As of September 30, we had 615 active accounts. This marks an increase of 31 accounts over the prior quarter, which is our largest sequential increase since becoming a public company. In parallel, we continue to broaden our reach across additional sites of care.

As part of these efforts, we received FedRAMP high authorization in the second quarter of this year, providing access to the nearly 200 hospitals within the VA system. We are pleased to report that following a successful recent pilot, we have been informed that the VA system intends to expand the usage of the CeriBell system even further in the coming quarters. As we expand into new facilities nationwide, we are also working with our current customers to drive usage and increase access across departments and patient populations. Our efforts to date have been successful, with utilization per account increasing nearly threefold over the past five years.

Still, we believe we're only 30% penetrated within our active account base, leaving substantial room for continued growth. Our top-performing accounts prove what's possible. Usage within our top 10% accounts is roughly three times higher than in average accounts of similar size, and these top accounts are still growing. These high-volume accounts maintain high rates of seizure, illustrating the sentiment that we hear from physicians: the more EEG you perform, the more seizures you find. We aim to facilitate the replication and expansion of best practices used by these top accounts through continued training and education, clinical evidence generation, protocol development, and expansion to new departments, including the ED.

Our CAM team is critical in leading this effort, which is well underway. Finally, beyond the adult population, we continue to invest in expanding to pediatric and neonatal populations. Earlier this year, we received 510(k) clearance for CLARITY in the pediatric population, making it the only seizure detection algorithm cleared for patients one year and older. We're actively developing this market through our ongoing pilot of pediatric CLARITY within our existing accounts, as well as children's hospitals, with a full launch anticipated next year. Our confidence is backed by strong clinical data supporting our product. Recently, in September, we were pleased to see the abstract documenting technical validation of pediatric CLARITY presented at the Neurocritical Society annual meeting.

The retrospective study evaluated the performance of CLARITY in detecting suspected status epilepticus across 645 pediatric patients aged one to 17. The results demonstrated a sensitivity of 94.4%, specificity of 93.1%, and a negative predictive value of 99.8%. These findings suggest that CLARITY can accurately monitor suspected status epilepticus in pediatric patients over one year old, providing timely and actionable guidance to the bedside team. With our AI-driven approach to product development, we expect these already excellent results to continue to improve as we build our database and continually refine our algorithms.

We also remain committed to expanding access to our system in the neonatal population, having already developed a head cap that meets the needs of this vulnerable patient group. We remain on track with the development of a neonatal application of CLARITY, which we anticipate bringing to market in 2026. In the meantime, we have launched multiple sites using the hardware without CLARITY and are conducting targeted market development efforts to better understand the nuances of the neonatal population. These investments reinforce our mission to help establish point-of-care EEG as a new standard of care for seizure detection in the acute care setting, serving all patients everywhere.

We also estimate the addition of pediatric and neonate products to expand our current addressable market opportunity of $2 billion by approximately $400 million. We see a tremendous growth runway as we advance our mission. We will continue to invest in evidence generation, product improvements, provider education, and the replication of the best practices from top-performing centers. Collectively, these investments, combined with our established advantages, give us great confidence in our ability to strengthen our reputation as the category leader and a trusted partner for rapid EEG and seizure detection and monitoring.

Before I turn it over to Scott, I want to also briefly touch on the second horizon of our vision, making EEG a new vital sign in acute care. This requires developing a multimodal system that can become a routine part of care for all patients at risk of a range of neurological abnormalities. We plan to achieve this by expanding our detection capabilities into new conditions such as delirium and stroke. Our near-term area of focus for innovation is the advancement of our delirium algorithm. We are pleased to be able to say we remain firmly on track with our development timeline.

As a reminder, this is a market where there is no commercially available diagnostic device, despite delirium being a pervasive and challenging condition that affects over 30% of patients in the ICU. We are thrilled with our progress to date and expect to detail a more comprehensive vision for the opportunity and our associated commercial strategy in the coming quarters. It's important to note that our excitement around potential new indications such as delirium is directly connected to our mission to help establish point-of-care EEG as the standard of care.

Broad adoption of the CeriBell system across our market for seizure detection gives us the installed base, data, trust, contractual relationships, security clearances, and the sales infrastructure to rapidly develop and deploy new algorithms. We believe these new algorithms will significantly expand our total addressable market by introducing much-needed solutions for new patient populations. We anticipate that we will also create synergistic value by allowing concurrent monitoring for patients at risk of multiple overlapping conditions. As a result, in addition to providing access to new patients, these pipeline products are expected to directly drive utilization within our installed base. We expect they will serve as a strong growth engine for years to come while largely leveraging our existing sales infrastructure.

To summarize, I'm incredibly proud of what we have achieved this quarter. Over 600 hospitals have adopted CeriBell, and our team is making meaningful progress in penetrating deeper within these accounts. And still, we remain very early in our journey to establish point-of-care EEG as the standard of care in the $2 billion US seizure detection market. We're currently used by roughly 10% of the hospitals that provide acute care service in the US. This means that there are still over 5,000 hospitals that do not have a point-of-care EEG solution that we believe could benefit from our technology.

Within the customers that we do serve, we estimate we are only about 30% penetrated for patients who need timely seizure detection. Taken together, this suggests that we're only about 3% penetrated into our core market in the US. We aim to go deeper and wider to address these unmet needs of the remaining 97% both through ongoing commercial efforts and by making investments in extending the life-changing benefit of the CeriBell system to additional patient populations. This includes monitoring neonatal and pediatric patients, which represents an incremental market opportunity of approximately $400 million as soon as next year. In parallel, we are working to go beyond seizure. We have made real progress in unlocking delirium and strokes.

We believe that these indications represent a multibillion-dollar expansion opportunity and serve as the foundation of our mission of making EEG a new vital sign. With that, I will now turn the call over to Scott Blumberg, our CFO, to provide a review of our third-quarter results and outlook for the remainder of 2025.

Scott Blumberg: Thank you, Xingjuan Chao, and good afternoon, everyone. As Xingjuan highlighted, total revenue for 2025 was $22.6 million, a 31% increase from $17.2 million in 2024. The increase is primarily driven by increased adoption. The 2025 was $17 million, representing an increase of 28% from $13.3 million in 2024. Subscription revenue for 2025 was $5.6 million, representing an increase of 44% from $3.9 million in 2024. In Q3, we continue to drive deeper into our accounts, increasing usage per account year over year. This was achieved despite abnormally high purchases relative to usage in Q3 2024, which led to excess product revenue during the comparison period.

As a reminder, we typically see reduced usage in Q2 and Q3 relative to Q1 and Q4, driven by lower ICU census in the summer months. Gross margin for 2025 was 88%, compared to 87% in the prior year period. As we enter Q4, I'll remind you that we will begin transitioning to utilizing inventory acquired after the implementation of increased tariffs on products originating in China. Despite this, we expect to maintain gross margins in the mid-eighty percent range in Q4. As we reported last quarter, we took proactive steps this year to establish an additional manufacturing line in Vietnam, which is now fully operational.

This reduces our exposure to China-based tariffs and positions us to benefit from potentially more favorable trade policies. Looking ahead, we believe initiatives undertaken this year to strengthen our supply chain and build resilience put us on track to deliver gross margins in the mid-eighty percent range for the full year 2026, assuming no changes to the currently proposed tariffs. Total operating expenses for 2025 were $34.6 million, an increase of 39% compared to $24.9 million in 2024. Non-cash stock-based compensation expense was $3.3 million in 2025.

The increase in operating expenses was primarily attributable to investments in our commercial organization, increased headcount to support the growth of the business, legal expenses, and expenses related to operating as a public company. Sales and marketing expenses increased $1.1 million in Q3 compared to Q2. The sequential increase was driven by salary and commission expenses associated with headcount expansion in Q3, as well as the full quarter impact of headcount additions from Q2. Net loss was $13.5 million for 2025, or a loss of $0.37 per share, compared to a loss of $10.4 million or a loss of $1.85 per share in 2024.

An average weighted share count of 36.8 million shares was used to determine the loss per share for 2025. Our cash, cash equivalents, and marketable securities as of September 30, 2025, were $168.5 million. Earlier today, we filed a shelf registration statement on Form S-3 with the SEC as we recently became eligible to do so following the one-year anniversary of our IPO. This is strictly a matter of standard corporate housekeeping as it allows us to maintain flexibility, but to be clear, we do not have any intention to pursue a financing transaction at this time.

We remain committed to achieving cash flow breakeven with cash on hand, and the strength of our balance sheet gives us a high degree of confidence that we can achieve this without raising additional capital. Turning now to our outlook for the remainder of 2025. Given our momentum in 2025, we now expect full-year 2025 revenue to range from $87 to $89 million, up from our prior guidance of $85 million to $88 million, which represents annual growth of 33% to 36% over 2024. We continue to add to our base of active accounts and have an extremely healthy backlog of accounts that have issued purchase orders to adopt the CeriBell system.

While we do not provide guidance on our account base, it's worth noting that we intend to continue the practice we began in 2023, in which we defer launching new accounts in December. This approach is grounded in our historical experience, as it's better to avoid launching during the holidays. As we've seen, uninterrupted attention to a high-quality launch is necessary to maximize usage during the first few weeks following launch, which we believe is critical to establishing healthy long-term utilization rates. With that, I'll turn the call back to Xingjuan Chao.

Xingjuan Chao: Thank you, Scott. And thank you all for your time today. In conclusion, I'm very pleased with our third-quarter performance and our team's ability to continuously advance initiatives that will enable us to realize our broader strategic vision. I'd like to thank our employees, our customers, and the patients we serve for enabling us to continue our mission to help save lives while delivering substantial value to our stakeholders. Finally, we appreciate your support and continued interest in CeriBell, Inc. We look forward to providing you with updates on our progress in the quarters to come. I will now turn the call over to the operator for any Q&A. Operator?

Operator: This will now kick start the question and answer session. In order to ask a question, press star and one on your telephone keypad. Just give me one moment to compile the Q&A roster. Your first question comes from the line of Travis Steed from Bank of America. Your line is live.

Travis Steed: Hi. Congrats, everybody. Maybe to start with just on kind of 2026. And curious if you have any early thoughts at this stage, you know, thinking about account ads and utilization and pricing, especially with the NTAP expiring for next year?

Scott Blumberg: I can take that. Hey, Travis. We're not providing commentary on 2026. We'll, of course, provide guidance in the coming call. I think the fundamentals of the business and the sources of growth in terms of adding new accounts and driving usage will remain our consistent drivers. As it relates to pricing, we've seen a very high degree of consistency in pricing in our headband this year. We've seen an increase in the Clarity AS we've driven more recorders into existing sites. And expect to maintain strong discipline as we think about pricing going forward.

Travis Steed: Okay. That's fair. And then maybe a question on the neonatal opportunity. I appreciate all the information on the call. But when you think about launching that, maybe just provide a little more color on how the full launch looks for that in '26. And, do you need to add new accounts or do you go deeper in your own accounts so you can go faster? Just trying to think about how that actually launches and rolls out.

Xingjuan Chao: Yeah. So the short answer is both. In terms of opening new accounts through 850 level three and number four, NICUs in the country, our existing installed base represents roughly 200 NICUs already. So for those 200 NICUs, that would be more a departmental expansion. So we put that more under the growth category of same-store growth driving. Outside that, there are two different market segments. One is the other 280 children's hospitals. We currently are barely presented in the children's hospital, not surprisingly because our product is very adult-focused. So that represents more new account acquisition. Even beyond children's hospitals, we have initially seen strong interest from NICU.

Through a specialty level three community hospital often have to transfer patients out for lack of EEG. We also anticipate that NICU can drive new account addition due to strong support from NICU.

Travis Steed: Great. Thank you, Travis.

Operator: Your next question comes from the line of Robert Marcus from JPMorgan. Your line is live.

Robert Marcus: Great. Good afternoon, and congrats on a nice quarter. Two for me. First, I really want to ask on just the progress you're making in penetrating accounts, the different components of the hospital. And I know last year, you spent a lot of time and focus building the model to make sure that new accounts ramp up in a consistent and sustainable manner and just your progress there and the traction you're getting?

Xingjuan Chao: Yeah. I would say the success there is a continuation. We have seen historically. As you can see, we continue not just driving account acquisition, but also utilization. Specifically, this year, we rolled out a few initiatives that we have been seeing success. One is, as Scott mentioned briefly, that we start to encourage the team success team, bring more additional recorders to existing accounts that often is, leading to additional departments. Using our device, so we can see a very strong correlation. Between growth and those initiatives. The second initiative we rolled out, we start seeing impact in this year, and we anticipate seeing even more impact next year is partnering with physicians on protocol protocolization outpatient population.

We especially see success with that with cardiac arrest or post hemorrhagic stroke, which are clearly recommended by the guideline. As hospitals do not always update their guideline every quarter. It's often, you know, every year. So as we can we anticipate next year, we'll see continued growth there. The other initiatives more, surround more, is about building on continued education to physicians as well as nurses also continue quarterly engagement to the administrator to not just theoretically show the economic value cerebral brain, but using their own clinical data to show the economic value.

Robert Marcus: Great. Maybe one on expenses. Your selling and marketing and R&D as per the guidance came in above revenue growth. You know, I respect your comment on 2026, on the fourth quarter earnings call. But how are you thinking about revenue versus OpEx growth in the short and medium term? And how do you feel about your progress towards cash flow even? Thanks a lot.

Scott Blumberg: Yes. I think we came into this year with a successful IPO raising more than we intended and a big portion of that proceed was invested in expanding the commercial infrastructure. The nature of our model is that there's a delayed impact. And so the nature of the relationship between sales and marketing growth this year and revenue is a reflection of that, that the investment comes ahead of the outcomes. Of course, we'll continue to look for opportunities to grow but our current thinking, at least on the account acquisition side, is the expansion we saw over the last year would probably be less, in the coming year. And so I'd expect the growth to moderate there a bit.

And the investments that we made this year should start to generate impact as we get into 2026 here. As far as cash goes, with an 88% gross margin and pretty strong control over our investment, which is tied almost entirely to growth and very little to maintenance. We have the flexibility to continually adapt our investment strategy to ensure that we always stay safe in terms of sufficient cash cushion.

Robert Marcus: Appreciate it. Thanks a lot.

Xingjuan Chao: Thank you, Robert.

Operator: Your next question comes from the line of Brandon Vazquez from William Blair. Your line is live.

Brandon Vazquez: Can you start maybe by talking a little bit about utilization growth across accounts by tenure, especially those that you know, you've been talking about some of these initiatives to establish protocols. At the accounts. Where patients per society guidelines should be getting EEGs. Are those kind of older, more tenure accounts continuous growing in utilization? Just kind of curious. The question is more around your more tenured accounts. Has utilization growth been pretty consistent, just to know if that's a good signal for growth going forward as your new accounts ramp.

Xingjuan Chao: Yes, Brandon. There are quite a few drivers under the growth we've seen from more tenured accounts, and we see many of these drivers would continue driving both top or just all the rest of the accounts. The number one driver is what you already articulated, is the external guidelines. The humor the stroke seizure management for the stroke population guideline came out in 2022 and 2023, cardiac guideline came out, 2019. So and then there's COVID. So there's quite a few many hospitals still are not fully adopted to this guideline yet. For our top account growth, we often just see the hospital start to over time rolling out one protocol over another.

First cardiac arrest, then, you know, ICH patient. So that's a continuous, driver. And even our top accounts, I would say not every single population group are fully on protocol yet. That's why we anticipate to see the continuous growth there. The second driver is the departmental expansion. Even our most tenured accounts or our top usage accounts are not in every single department yet. They might be in all the ICUs and ED, but they might not be in the step-down units or, or on the floor with the open rapid response nursing team yet. And, of course, as we start to launch a pediatric and neonate, there will be further departmental expansion.

The third driver I would say is more driven by our internal We realize, not every provider is trained even though they, they might miss the initial during the site initiation turnover, especially during the night shift. So our, camp team and really put a lot of effort when, above and beyond and, go late hours to train the night shifts, and that's not a 100% done yet. So those are some examples, probably the top drivers that we've seen how our tenured account's growing, and we see these account these drivers, is not applicable just to tenured accounts. But all our accounts.

Brandon Vazquez: Okay. Great. And then as a follow-up to that, I think, Xingjuan, you were just kind of alluding to this, but you made an interesting comment on the prepared remarks that only 30% of account or in your current accounts, you're only 30% adopted rather. Is going further into your current accounts driven a lot in putting these protocols? And then I think, like you said, going into new wings. Like, how do you do that What is the friction point of getting into these new wings? And then one unrelated follow-up, if I could just throw in there, late last week, I think you guys got a new 510(k) clearance on the head cap.

Any comments on the importance of that clearance? Thank you.

Xingjuan Chao: Yeah. I mean, in terms of, going to departmental, expansion and protocolization, a majority of it is really, execution. I think if we think about what are the potential barriers is both the resource on our end as well as, often the resource on the or the priority on the half end. And sometimes rolling out a new protocol is beyond the capacity of the nursing team. Or is currently they have other priority, for instance, you know, they are updating their epic system.

So those are some practical barriers we run into, but we believe that over time because of the strong guideline recommendation, and there's a clinical value and evidence will continue to generate, we should overcome those, those, those barriers. In terms of the 510(k) head cap, I think you are referring to the neonatal head cap. The main clearance we have there compared to the previous neonate head cap is that the previous version we have the label of approved for all ages.

And, during our pilot, we learned that our physician and nurses would like the FDA clearance to be even more specific that is cleared for, preterm as well as term the neonate, because they are very protective of this, vulnerable population. So our current and latest head cap is cleared for both preterm as well as term neonatal population. So this is actually a great manifestation example of our strategy As we do pilot, we actually learn things that we didn't as we rolled out the product. So we see this, recently approved or cleared head cap. Would be the product that will be ready for full commercialization as we receive the clearance of neonatal clarity.

Operator: Your next question comes from the line of Joshua Jennings from TD Cowen. Your line is live.

Joshua Jennings: Hi, good afternoon. Thanks for taking the questions. Congratulations on another strong quarter. I think, Xingjuan, you've caught out that cerebral point of care EEG has kind of penetrated about ten percent U. S. Acute care hospitals. The word-of-mouth, according to our checks, from the customer base is getting louder, the buzz is getting stronger. Library of clinical evidence, and the cost-effectiveness data is growing. I was hoping to just maybe intro, lead that intro into a question of okay, can you add some quantitative or qualitative color just on where the new customer account pipeline or funnel sits today relative to the beginning of the year?

And just in terms of giving yourself thinking about potential for account growth in 2026.

Scott Blumberg: Yes, Joshua. The numbers that are reflected in our active account base is launched accounts, is when the customer is fully trained and live. Of course, we measure, before that, we measure when we receive a purchase order, we measure the various stages of engagement that happened, that lead to a purchase order. Without getting quantitative on it, I can tell you that number, the funnel is growing, and it's growing as a direct reflection of both of the investments we've made in our commercial org over the past year, but also, I believe, the appreciation of the need for this technology that's growing by the day.

Joshua Jennings: And I just was hoping to better understand how CeriBell's positioned with IDNs or healthcare systems and has the company benefited from some IDNs kind of making best practices decisions or standard of care within their network? Or is that opportunity in front of CeriBell maybe just help us think about how you're positioned through the number of IDMs that are in play in The United States. Thanks for taking the questions.

Xingjuan Chao: Yeah, we definitely have seen that the partnership with hospital systems has been a strong growth engine from previous years, including the current one. And we see potentially even bigger opportunity ahead of us I think historically, especially a few years back when we were much smaller, we often do not engage IBN at the headquarter level because we were so small. We were more engaging at the individual hospital level as we becoming, available in 600 plus hospitals in The US, we are building our hospitals system sales team. And also the entire sales team between our entire sales team to not only thinking about individual hospital, but really thinking about hospital system level sales.

So that requires we call it, the bottom-up and top-down sales coordination. We more just started doing those systematically this year, so we anticipate continuing executing and capturing opportunity here, becoming even better, partners for our customers.

Joshua Jennings: Understood. Thanks, Xingjuan and Scott.

Xingjuan Chao: Thank you, Joshua.

Operator: Your next question comes from the line of William Plovanic from Canaccord Genuity. Your line is live.

William Plovanic: Hey. Great. Thanks. And you did a good job on the pronunciation. So, start out with first just you know, I'm looking at the guidance, and it's pretty broad. You know, low end is about, I think, 23% year over year. High end 25 or 35% year over year. Multiple questions here. First, you know, what drives the lower end versus the higher end of that? I mean, it's a pretty broad guidance range considering you're coming into the end of the year. Want to start with that and then multiple other

Scott Blumberg: William, I think our philosophy and guidance remains unchanged. When you appreciate the importance, especially as a company that's only been public for a year to deliver to put forth numbers that we feel very strongly we're able to achieve, and that colors the way we think about guidance. So when there's when there's things that we know or believe, like you know, Q4 seasonality, for example, being stronger than Q3, As we think about the bottom of the range, we think about being extremely conservative and essentially de-risking, all of the unknowns.

So I think it's I would read into the range really as risk calibration and us putting forth numbers that we have a very high degree of confidence in.

William Plovanic: Okay. And then I just wanna you know, post IPO, one the things you did was you took a lot of that and you invest in the sales force. Just any update on where you are with the TMs and the cams today? And then you know, you saw an uptick, I think, you know, based 31 net new active accounts sequentially. That's the highest number we've seen in a very long time. It's definitely ticking up. Just you know, is this a function of the new reps that were brought on kind what are the drivers of that this quarter?

Scott Blumberg: As far as the commercial infrastructure goes, we haven't made any fundamental changes to our strategy since last quarter. We still have roughly the same number of territories planned in the mid-fifties, right now on the TM side. We have, and we'll continue to invest in the CAM side of the business because that side that, side of the org grows roughly in line with the growth of the account base. So, we're fully staffed on that side, but that will continue to grow. I think we also are looking at areas to invest to accelerate further growth. And Xingjuan's answer to the prior question I think is one area where we're looking very closely, which is IDN level systems.

Thirty one. Oh, as far as far as the account ads go, we're obviously very pleased with the results this quarter. I know there's a lot of kind of emotional difference between the 29 we did last quarter a couple quarters ago, and 31. But I consider that large in the kind of range of expected outcomes here. And we fully expected that the hires we make start to become productive as we get into 26 here.

William Plovanic: Okay. And then, you know, I think Robert asked the question, you know, you've been growing revenue pretty strong. We haven't seen leverage in the P and L. And I think one of the questions we get from investors is, is that something where like I know you haven't given guidance yet, but is there a reason we won't start seeing it sometime in the next year?

Scott Blumberg: The only reason you would expect I would expect us not to see it is if we make a strategic decision because we see a profound growth opportunity to really invest in the OpEx, to capture that growth. And, if and when we make that decision, we'll communicate that, clearly to the street so that it's not a surprise.

William Plovanic: Okay. And then, any update just on competition? The other question we get a lot of is just competition. What are you seeing in the marketplace? Are you losing any more accounts today or winning any more? You know, versus where you were six or twelve months ago? And then any update on the IP litigation What are the next steps?

Xingjuan Chao: Yeah. On the competition front, I was saying Q1, Q2, we saw a significant increase of the competition activity as we mentioned before. In Q3, I would say there's, nothing substantial, change. We see continued growth of competition activities there. However, I would say our performance in 2025 speaks for itself. We have, b 10 raise our guidance every single quarter, and that shows that the competition is not meaningfully impacting our performance. And the reason we are achieving this is not only leveraging the superiority of our product, clinical evidence, and cybersecurity. We are also learning a lot about and put, you know, strategy and plan. In execution to address this.

And in terms of, ITC litigation, as investors or you'll probably see ITC have outlined, the before the shutdown. And at the time, the anticipated decision is September year. And this final ruling of January 2027. With the government shutdown, we anticipate some level of delay there Then we also expect that ITC would update the timeline as soon as, as the government reopens.

William Plovanic: Okay. And then just last for me, I think you mentioned the shift to Vietnam. With the manufacturing. We'll start to see the impact in q I think you mentioned that will drive mid-80s gross margin. Is a 100% of that into the quarter or is it kind of where we'll see margins ramp down this year in Q4 and then hit that mid-80s for next year? How do we think about kind of cadence there? Thanks for taking my questions.

Scott Blumberg: Sure. So Q4, we'll be relying for the first part of the quarter on pre-tariff inventory and then for the remainder of the quarter only on China inventory because it's essentially inventory that was acquired before we had the Vietnam up and running. So Vietnam doesn't impact this quarter. As we move into next year, you'll see is China inventory that we've acquired at a higher tariff rate mix in with Vietnam inventory at a lower tariff rate currently. And that should reflect itself in that continuation of the mid-eighty percent gross margin into next year.

Operator: Your next question comes from the line of Jeffrey Cohen from Ladenburg Thalmann.

Jeffrey Cohen: Hi, team and Scott. Thanks for taking the questions. Firstly, I wondered if you could dive into the VA channel a bit more and talk about some of the current accounts and some of the expanded accounts and what you may expect, how the implies into the fourth quarter and next year as far as the growth specific to VA?

Xingjuan Chao: Yeah. So we do not even though we cannot and do not disclose the specific numbers on VA or specific hospital system. But I'm really excited and talk can talk more about what we can share about VA So VA has a very rigorous process, in terms of piloting first and then systematically roll out, at different phases. So where we are now is the first of few pilots has been very successful. Both the physicians and administrators at the VA clearly not only, saw and also experienced the value our system delivers clinically as well as financially. So we are now confirmed to roll out the first larger cohort of VA accounts in the next couple of quarters.

And so this will be one of the largest top-down rollouts we've ever done at the CeriBell. In the CeriBell history. So that's what we are very excited about. It's just not only a big win for the company, but also for the veterans. Who we serve, who are at the risk of seizures.

Jeffrey Cohen: Okay, got it. And then as a follow-up, I know you spoke previously about the head cap and neonatals, but you made a comment about the utilization of hardware without clarity. That was happening in Q3. Could you just expand upon that a little bit for us, please?

Xingjuan Chao: Yeah. We it's premature to probably talk about utilization at account level for Neonatal this phase yet because the pilot we focus on is really on the population discussion, confirming signal quality, confirming ease of use. Because of the nature of that, it does not, perfectly reflect what would be the actual commercial clinical usage. However, what we can is it has been very well received. We already have a certain case studies that, the physicians and nurses, said they significantly helped the patient, either detecting seizure early or, avoid unnecessary medication for the patient, which is critical for patient's outcome. So we are excited to potentially bring the entire product from hardware with clarity to market in 2026.

Jeffrey Cohen: Okay. Perfect. Thanks for taking our questions.

Operator: Thank you, Jeffrey. Your final question comes from the line of Jason Bedford from Raymond James. Your line is live.

Elaine: Hi. This is Elaine on for Jason. Thanks for taking the question. So by our math, you grew utilization year over year despite the tough comp from stocking in Q3 2024. So I was just wondering how much would utilization have grown excluding the stocking impact? And also, did you see the usual seasonality impact this quarter as well?

Scott Blumberg: The quarter year-over-year growth comparison would have looked much more similar to the year-over-year growth we saw in Q1 and Q2. Had there not been the Purchases, the initial purchase in Q3. As far as seasonality goes, yes. Of course, we'll know for sure after we get through Q4. But if you look kind of sequentially, the Q1 was really strong and Q2 and Q3 on a sequential basis, were less so. And that's been, you know, exactly consistent with what we've seen the last two years. You know, we're still obviously only a few years in this commercial journey, but, this year has not surprised us in any way in terms of the quarter-to-quarter trends.

Elaine: Thank you. And for my follow-up, I was wondering, could you share more sorry, more color on the utilization trends or certain departments driving the increase utilization? Are you seeing more in the ICU or the ED? For instance? And I know you talked a little bit about the use cases.

Xingjuan Chao: Yeah. Overall, we actually see relatively broad growth drivers. So from departmental expansion to protocolization, and even beyond ICU and ED to the floor to the step-down units. And, particularly, we do see a bit stronger even stronger growth in the emergency department compared to the ICU because EDs are, in general, even less penetrated. And so that's why overall, but we don't see a single driver that accounts for the majority of the growth.

Operator: Thank you. That concludes the question and answer session. I'd now like to turn the call back over to Xingjuan Chao for closing remarks.

Xingjuan Chao: Thank you. Well, thank you, everyone, for your attention. And for joining the call. Again, we are very excited and proud of what we have accomplished for Q3 and look forward to sharing our performance of next quarter and quarters to come. Thank you.

Operator: This concludes the meeting. You may now disconnect.