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DATE

Monday, May 11, 2026 at 4:30 p.m. ET

CALL PARTICIPANTS

  • Co‑Founder and Chief Executive Officer — Xingjuan Chao
  • Chief Financial Officer — Scott Blumberg

TAKEAWAYS

  • Total Revenue -- $26.5 million, reflecting 29% year over year and 7% sequential growth, driven by record headband utilization and new account additions.
  • Gross Margin -- 87%, with management expecting gross margin to remain in the high‑80% range for the full year.
  • Hospital Account Base -- 680 active hospitals, up by 33 in the quarter, representing CeriBell’s strongest net quarterly account growth since becoming public.
  • Product Revenue -- $20.2 million, up 29% from the prior year period.
  • Subscription Revenue -- $6.3 million, also up 29% year over year.
  • Headband Utilization -- Achieved record usage per account; sequential same-store growth described as highest ever.
  • New Market Launches -- Full commercial launch commenced for both neonate and pediatric seizure monitoring products after positive pilot results at five hospitals.
  • Delirium Pilot -- First sites activated in April for the delirium pilot, indicating entry into a $1 billion market segment with CeriBell offering the only FDA-cleared diagnostic tool for delirium monitoring.
  • Breakthrough Device Designation -- Awarded for LVO stroke indication in January 2026.
  • Operating Expenses -- $43.9 million for the quarter, representing a 36% increase from last year, impacted by higher sales, marketing, R&D spend, and $5.6 million in litigation-related G&A expense.
  • Net Loss -- $19.7 million, or $0.52 per share, compared to $12.8 million, or $0.36 per share, in the prior year.
  • Adjusted EBITDA Loss -- $11.2 million, compared to $10.9 million in the prior-year quarter, with adjustments excluding stock-based compensation and litigation expenses.
  • Cash Position -- $141.2 million in cash, cash equivalents, and marketable securities at period end.
  • 2026 Revenue Guidance -- Raised to $112 million to $116 million, up from prior guidance of $111 million to $115 million; implies annual growth of 26% to 30%, with management citing “largest quarter of net new adds” and “record usage per account” as the basis for increased confidence.
  • Headband Manufacturing Transition -- CeriBell began transitioning inventory sourcing to Vietnam, with lower tariffs expected to benefit margins later in the year.
  • CMS NTAP Proposed Rule -- In April, received a CMS proposed rule supporting up to $2,171 in incremental reimbursement per patient for delirium monitoring, with a final rule anticipated in August 2026 and potential effective date of October 1, 2026.
  • Salesforce Productivity -- Among new sales hires with at least 12 months’ tenure, over 85% contributed to the account base and 100% generated purchase orders; CeriBell notes step-up in productivity is expected as more hires mature through 2026.
  • Total Addressable Market (TAM) -- Estimated at $3.5 billion in the U.S., stated to have nearly doubled within a year.
  • VA and Military Initiatives -- Ongoing pilot in military hospitals and increasing penetration in the VA health system, leveraging FedRAMP High authorization.
  • Account Acquisition Strategy -- Added top-down engagement team for regional hospital systems to complement territory manager efforts; pilot launched at select U.S. military hospitals.

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RISKS

  • Blumberg said, G&A expense increased in Q1 as a result of expenses related to our ongoing IP litigation, which totaled $5.6 million. This is considerably higher than what we have seen in prior quarters, which is a reflection of the nonlinear nature of litigation‑related activities.
  • Blumberg stated, Right now, in Q2, we are really at the heaviest expense as we prepare for and go to trial, so we would expect that to moderate as we get towards the back of the year. indicating sustained elevated legal costs in the near term.
  • Blumberg reminded, we typically see a sequential moderation in Q2 and Q3 volumes driven by a reduction in ICU census during the warmer months. flagging seasonally lower utilization per account in the coming quarters.

SUMMARY

CeriBell (CBLL 0.69%) reported 29% year-over-year growth in both total revenue and core revenue streams, as well as a record number of net new hospital accounts and peak same-store utilization metrics. New commercial launches in the neonate and pediatric segments transitioned rapidly to full-scale implementation following successful pilot results, while CeriBell’s initial delirium pilot launch introduced its FDA-cleared solution to a substantial new market segment. Management raised full-year revenue guidance and signaled confidence through detailed salesforce productivity data, advancing pilots in VA, military, and regional hospital systems, and highlighted a major regulatory milestone with a proposed reimbursement rule for the delirium indication.

  • Management explicitly quantified the U.S. total addressable market at $3.5 billion, nearly doubling its previous scope from a year prior, and linked future growth to less than 4% penetration of the seizure market.
  • Adjusted EBITDA loss is now a formally reported metric, with the figure excluding both stock-based compensation and high, transient legal expenses associated with IP litigation.
  • CeriBell’s episodic spike in litigation expense accounted for a significant portion of the quarter’s operating expense increase and is expected to remain elevated in Q2, with anticipated moderation in subsequent quarters as legal proceedings advance.
  • In addition to new account wins, management described early-stage sales pipeline success from its reorganized regional health system and military-focused teams, intended to drive system-level adoption beyond single-site gains.

INDUSTRY GLOSSARY

  • NTAP (New Technology Add-On Payment): A temporary, CMS-administered reimbursement program providing hospitals with incremental payments for adopting qualifying FDA-approved medical technologies prior to permanent coding and payment adjustments.
  • FedRAMP High Authorization: A U.S. federal security standard for cloud-based products and services, enabling eligibility to operate within sensitive federal healthcare systems such as the VA and military hospitals.
  • Clarity Assistant: CeriBell’s proprietary AI-enabled EEG analysis software that aids neurological diagnosis at the bedside.
  • LVO (Large Vessel Occlusion): A type of ischemic stroke involving blockage in major cerebral arteries; considered for targeted device development indicated by CeriBell’s recent FDA Breakthrough Device designation.
  • CAM (Clinical Account Manager): Role within the CeriBell commercial organization focused on increasing account utilization and customer engagement post-installation.
  • ACNS Guidelines: Clinical practice standards published by the American Clinical Neurophysiology Society, often referenced in the context of EEG electrode placement and monitoring protocols.

Full Conference Call Transcript

Xingjuan Chao, Co‑Founder and Chief Executive Officer, and Scott Blumberg, Chief Financial Officer. Earlier today, CeriBell, Inc. issued a press release announcing financial results for the quarter ended 03/31/2026. 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 Securities and Exchange Commission, including our Annual Report on Form 10‑K filed with the SEC on 02/24/2026. This conference call contains time‑sensitive information and is accurate only as of the live broadcast today, 05/11/2026.

CeriBell, Inc. 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 Xingjuan.

Xingjuan Chao: Good afternoon, and thank you all for joining us for our first quarter 2026 earnings call. Q1 was a strong quarter. We delivered revenue of $26.5 million, growing 29% year over year and 7% sequentially. Growth was driven by record headband utilization and our largest quarter of net new account additions. We also delivered 87% gross margin and expect to maintain gross margin in the high‑80% range throughout 2026. Beyond continued progress in penetrating our core seizure market, we delivered two major milestones that mark inflection points in the evolution of our platform. First, following a successful pilot, we have initiated the full commercial launch of our neonate and pediatric products.

We are privileged to now offer our seizure monitoring solution to some of the most vulnerable patients. Second, we activated the first sites in our delirium pilot in April, signifying our entry into the $1 billion market where we offer the only FDA‑cleared diagnostic tool. I will discuss both milestones in detail shortly. Let me start with our performance in our core market. Our goal is to become the standard of care for seizure management across 6,000 U.S. hospitals that offer acute care services. We are pursuing this through two paths: adding new accounts and deepening utilization within our existing installed base. On account acquisition, we ended Q1 with 680 hospitals actively using the CeriBell, Inc. system.

With 33 net additions, this marks our strongest single quarter of account growth since becoming a public company. We remain confident in our ability to increase the number of new adds in 2026 above the level seen in 2025. Our confidence is reinforced by three strengths in this part of the business: the continued maturation of our recently expanded sales organization, deepening penetration within the VA and other health systems, and our strong account backlog. The account acquisition team expansion we launched in Q4 2024 is delivering. Among the new hires with at least 12 months of tenure, over 85% have contributed to the active account base, and 100% have generated purchase orders.

Given the timing of our sales cycle and the time required to launch new accounts, this level of productivity is encouraging. As more of our new hires mature throughout 2026, we expect a further step‑up in productivity, with additional acceleration in 2027. Beyond growing the territory manager team, we are also gaining momentum in two initiatives focused on accelerating hospital system acquisition. First, we expect continued momentum within the VA system, where we remain in the early stages of penetrating the 170 hospitals unlocked by our FedRAMP High authorization last year. Separately, leveraging our success from the VA, we launched a pilot at select U.S. military hospitals.

The opportunity is incremental in scale, but it is nonetheless a compelling validation of our product and our position as category leader. Second, we have successfully hired a small team focused on top‑down engagement of regional hospital systems. This complements the bottom‑up activity of our TM organization and opens additional pathways to system‑level adoption. Overall, we are encouraged by the growing market receptivity to our technology and are pleased with our team’s momentum in adding new accounts. Meanwhile, same‑store growth trends remain strong. Q1 marks our strongest quarter ever in terms of headband usage per account. Our growing TAM team continues to drive utilization through departmental expansion, provider engagement across all shifts, and support of protocol development.

We believe we have a significant opportunity to increase utilization even further. In accounts that have adopted our best practices, the results speak for themselves. Our top accounts routinely monitor approximately three times as many patients as average comparable accounts. We are also increasingly encouraged by what we are hearing from our users in the real world. As our user base expands and real‑world data accumulates, recognition of the clinical imperative of quantifiable brain monitoring at the bedside continues to grow. In March, I had the opportunity to experience this firsthand at the annual meeting of the Society of Critical Care Medicine. There was strong excitement for our technology far beyond what we have experienced at past industry events.

It is clear that we are moving closer to achieving our goal of helping to redefine the standard of care for seizure management. Turning now to our neonate and pediatric seizure programs, we have initiated the commercial launch of both products. Neonates are a population where improvement in seizure management can change the entire course of an individual’s life. Our pilot was conducted at five sites, including both new and existing customers. All five of these hospitals are now moving forward from pilot to full implementation. This momentum reinforces both the clinical case for use of our technology in younger patients and the commercial opportunities ahead.

We are still early in our pediatric launch, but the feedback we are hearing from parents and physicians has already been profoundly meaningful. I would like to share a recent case involving a pediatric patient in the emergency department. A two‑year‑old boy was brought to the ER unresponsive by his mother. It was his second ER visit of the day. The bedside provider initially struggled to identify the root cause until the neurologist requested the CeriBell, Inc. system. Clarity immediately identified seizure activity, which the neurologist confirmed. This avoided the need for a lumbar puncture and a potential ICU admission while waiting for a conventional EEG.

The team was able to initiate treatment promptly, and the little boy gained full alertness later that day. He was discharged the next morning. This case reflects what the CeriBell, Inc. system is designed to do: quickly identify seizure activity, guide treatment decisions in real time, and help patients get the care they need faster. Moving now to delirium, in April we activated the first sites of our delirium pilot. This marks the beginning of a new chapter for CeriBell, Inc. as we continue moving towards our goal of establishing EEG as a new vital sign. As a reminder, following FDA 510(k) clearance in December, CeriBell, Inc. is the first and only company with an FDA‑cleared delirium monitoring solution.

Delirium is the most common neurological complication in the ICU, yet the standard of care for assessment remains subjective, labor‑intensive, and intermittent. Our solution offers something fundamentally different: objective, consistent, and continuous insight into a patient’s neurological state. Our pilot is designed to build real‑world experience, validating the right patient populations, optimizing clinical workflows, refining our commercial strategy, and generating clinical evidence. What we are hearing from the field is encouraging. Interest in our delirium solution has been strong. Notably, that interest is amplified when delirium monitoring is paired with seizure detection. This interest is further validated by our recently launched study with Vanderbilt Medical Center to examine the overlap between seizure and delirium across ICU patient populations.

While the standalone value of the delirium algorithm is clear, we are convinced that addressing seizure and delirium together has the potential to transform ICU care. We are also pleased to share that in April, we received a supportive CMS proposed rule for a New Technology Add‑On Payment, or NTAP, for our delirium monitoring solution. The rule proposes up to $2,171 in incremental reimbursement per patient. This is a positive indicator of the potential for a favorable final rule in August 2026. If adopted, the NTAP would become effective 10/01/2026. We believe that a positive final rule would supplement the significant clinical interest in our technology, helping to pave the way for its adoption.

Looking ahead, we remain on track for full commercial launch of our delirium solution in Q4 2026 or Q1 2027. Finally, turning to LVO stroke, we received Breakthrough Device designation for this indication in January 2026. We are continuing to push our clinical programs forward and look forward to sharing more in the coming quarters. Stepping back, I could not be prouder of what our team accomplished in the first quarter of the year. Q1 reinforced confidence in our trajectory, and I am energized by the momentum we are carrying into the rest of 2026. Execution across the business is on track, with several key initiatives running ahead of schedule.

We estimate our total addressable market at approximately $3.5 billion in the U.S. alone, nearly double what it was just a year ago. We believe CeriBell, Inc. is best positioned to lead this market with an integrated platform, established trust from physicians and administrators, and a growing body of clinical evidence. Our goal is a single brain monitoring platform that sets a new standard for neurological care, and we are executing against that vision. We remain committed to making EEG a new vital sign, and the early progress in 2026 only strengthens our conviction in the transformational nature of what we are building.

With that, I will now turn the call over to Scott Blumberg, our CFO, to provide a review of the first quarter results and 2026 guidance.

Scott Blumberg: Thank you, Xingjuan, and good afternoon, everyone. As Xingjuan highlighted, total revenue for Q1 2026 was $26.5 million, which is a 29% increase from $20.5 million in Q1 2025. The increase was primarily driven by increased adoption of the CeriBell, Inc. system across new and existing accounts. Product revenue for Q1 2026 was $20.2 million, representing an increase of 29% from $15.6 million in Q1 2025. Subscription revenue for Q1 2026 was $6.3 million, representing an increase of 29% from $4.9 million in Q1 2025. We ended Q1 with an account base of 680 hospitals, representing an increase of 33 accounts in the quarter.

This includes a number of accounts that are part of our ongoing expansion within the VA system. We continue to anticipate incremental addition of VA accounts over the course of the year. We are pleased with the continued sequential momentum in headband trends in the first quarter, which we believe reflects the success of our same‑store growth initiatives as well as our focus on high‑quality new account launches. While we expect to continue to drive deeper within our accounts, I will remind you that we typically see a sequential moderation in Q2 and Q3 volumes driven by a reduction in ICU census during the warmer months. Gross margin for Q1 2026 was 87%, compared to 88% in the prior‑year period.

This was achieved despite relying on inventory acquired from China at an elevated tariff rate. We were able to nearly fully offset this expense through a variety of cost‑reduction initiatives undertaken in 2025. As we move into 2026, we will begin shipping inventory sourced from our fully operational line in Vietnam, which is subject to lower tariff rates. Consequently, we feel confident in our ability to maintain gross margins in the high‑80% range throughout 2026. Total operating expenses for Q1 2026 were $43.9 million, an increase of 36% compared to $32.2 million in Q1 2025. Non‑cash stock‑based compensation expense was $3.7 million in Q1 2026.

The increase in sales and marketing expense in the first quarter was attributable to investments we made in our commercial organization, as previously detailed. Further, we typically hold our national sales meeting in Q1, resulting in elevated non‑headcount sales and marketing expense during the quarter. G&A expense increased in Q1 as a result of expenses related to our ongoing IP litigation, which totaled $5.6 million. This is considerably higher than what we have seen in prior quarters, which is a reflection of the nonlinear nature of litigation‑related activities. Research and development expense in Q1 increased as a result of headcount expansion to support enhancements to our product platform, including developing and improving our new product pipeline.

Net loss was $19.7 million for Q1 2026, or a loss of $0.52 per share, compared to a loss of $12.8 million, or a loss of $0.36 per share, in Q1 2025. An average weighted share count of 37.7 million shares was used to determine loss per share in Q1 2026. Going forward, we will begin reporting adjusted EBITDA, which we believe is representative of the ongoing operating performance of our business. Adjusted EBITDA reflects our net loss before interest, taxes, depreciation, and amortization expense, and also excludes non‑cash stock‑based compensation expense as well as legal expenses associated with our ongoing IP litigation. Adjusted EBITDA loss for Q1 2026 was $11.2 million as compared to $10.9 million in Q1 2025.

Our cash, cash equivalents, and marketable securities as of 03/31/2026 were $141.2 million. We remain committed to our objective to achieve cash‑flow breakeven with cash on hand, and the strength of our balance sheet and strong gross margin profile give us a high degree of confidence in our ability to do so. Turning now to our outlook for 2026, we expect full‑year 2026 total revenue to range from $112 million to $116 million, up from our prior guidance of $111 million to $115 million. This represents annual growth of 26% to 30% over 2025. With that, I will turn the call back to Xingjuan.

Xingjuan Chao: Thank you, Scott, and thank you all for your time today. We are pleased with our first quarter performance and the trajectory of our business. We continue to make tangible progress towards establishing the use of our system as the standard of care for seizure detection in the acute care setting. With less than 4% penetration in our core seizure market, we have a sizable runway ahead of us. At the same time, we are advancing our platform into new indications with urgency and purpose, building towards a comprehensive brain monitoring system. Our mission to establish EEG as a new vital sign remains our North Star. I will now turn the call over to the operator for Q&A. Operator?

Operator: We will now open the call for questions. As a reminder, to ask a question, you will need to press star then the number one on your telephone keypad. If you would like to withdraw your question, press star 1 again. We do request for today’s session that you please limit to one question and one follow‑up. Your first question comes from the line of Stephanie Algazi with Bank of America. Your line is open.

Analyst: Hi, thanks for taking the question. I just wanted to ask about Q1 and the guidance. Q1 came in a little better than the Street and you raised the guide by $1 million, a little bit more than the beat. So can you just talk about the decision to raise the guide and your confidence in the outlook for the year?

Scott Blumberg: Sure. Hi, Stephanie. It comes down to 2026—there are really two core drivers of our business: account acquisition and same‑store growth. We are doing quite well on both. We just had our largest quarter of net new adds since we have been a public company and record usage per account. That really forms the foundation of our confidence in the business and gives us the ability to raise guidance coming out of Q1.

Analyst: Got it. And then just to follow up, I wanted to ask about OpEx. It was a little higher than expected. Was that mostly from higher litigation, or was there increased commercial investment versus what you expected as well? And does Q1 change how you are thinking about the full year, or is it more a change in timing of expenses? Thank you.

Scott Blumberg: We do not provide OpEx guidance, but we saw a little bit of elevation in sales and marketing and R&D, and I would bucket those more as investments in the business. We continually look at the facts in front of us and make investments to drive future growth, and that includes expansion of the sales team. As Xingjuan outlined, a portion of that was related to our regional health systems function. We continue to invest in R&D on the basis of our new product enhancements as well as improving our current product. G&A is really where the IP expense came in. That was $5.6 million, considerably higher than what we have seen in prior quarters.

That is a result of the cadence of the lawsuit. Right now, in Q2, we are really at the heaviest expense as we prepare for and go to trial, so we would expect that to moderate as we get towards the back of the year.

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

Analyst: Hi. This is Lily on for Robbie. Thanks so much for taking the question. I was hoping you could talk a bit more about what you are seeing so far in pediatric and neonate. I know it is still early, but could you share a bit on the early feedback and utilization trends you are seeing so far, and how meaningful of a contributor it is assumed to be in guidance for this year?

Xingjuan Chao: Overall, as I mentioned on the call, we see very positive momentum. The initial neonate pilot sites have committed to move to full execution. We are also seeing both existing accounts and new accounts showing strong interest in neonate expansion as well. That could potentially drive both utilization and new account adds. On the pediatric ER front, the case I shared during the call is not an outlier. This is a very vulnerable patient population. When they go to the ER, physicians often cannot get EEG, so providers see an opportunity for improvement. The clinical validation has been very strong. In terms of how this implies to revenue, it is consistent with what we have been guiding.

Even getting to a new department or adding a patient population can take months for new accounts and similar effort and timeline. So we will see some impact in 2026, with a much more meaningful impact in 2027 and beyond.

Analyst: Perfect. And then just to follow up on gross margin, that came in really strong—above what we were thinking and above the range that you were guiding previously for the full year. So can you talk a bit more about what drove the strength in the quarter and in the guidance? And how much of that, if any, is driven by tariff refunds? Thanks so much.

Scott Blumberg: None of it is driven by tariff refunds. We have not reflected that in our financial statements and will, if and when, we get the refund. The strength is really driven by investments we made in mitigating costs last year. Those were things we did both in the ordinary course of business and also invested more in as tariffs came down the pipe. We were able to almost fully offset the cost of the increased tariffs from China. We also, as I mentioned, are now manufacturing in Vietnam. We have that inventory in house, but based on our first‑in, first‑out accounting, that has not flowed through our income statement yet.

As we move towards that, toward the back of 2026, we have some opportunity for upside as well.

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

Brandon Vazquez: First, I just wanted to stick on neonate for a second and try to get more details on how things are going there. Xingjuan, you mentioned that the first five accounts went from a pilot to a full launch. Talk to us a little bit about what those accounts saw that made them comfortable moving to a full launch. What do you see in the early days once this goes into a full launch? And once you go into that broader commercial stage, is there any pull‑through on the seizure side as well?

Xingjuan Chao: For the pilot‑account conversions, a couple of things stood out. First, neonatologists and NICU nurses are very protective of their patients, so they are cautious with new technology. Over the past couple of months, they validated very strong safety, especially related to skin integrity in this population. They also validated ease of use, and some validated the accuracy of Clarity. That translated into strong clinical buy‑in. On the health‑economic front, some sites are level‑three NICUs and used to transfer patients out because they could not get EEG. They were able to show that our solution could potentially reduce those transfers, which is a strong health‑economics driver in addition to the clinical driver—not to mention avoiding moving fragile patients.

We are now focused on implementing and rolling out our playbook. Lastly, pediatric epileptologists have been very supportive because our montage is consistent with ACNS guidelines for full montage, and they are encouraged to see the full picture and are happy with the Clarity Assistant. Overall, we remain optimistic about the full launch.

Brandon Vazquez: Great. Maybe switching gears to the account‑add side—you had a record quarter. You mentioned a couple of different buckets, and you have also talked about investing in corporate‑focused teams that push demand from the top down. What are the one or two most incremental drivers supporting that level of account adds, and how durable is that going forward?

Xingjuan Chao: This model builds on the success we saw last year. We noticed some of our top TMs could close a larger number of accounts by focusing on regional hospital systems, so we expanded that proven model. This team focuses more on system‑level executives—administrators, CMOs, VPs of patient transfer, CFOs—where TMs typically do not engage. Second, they coordinate across our TM and CAM organizations, since multi‑hospital systems may be split across territories and include existing accounts. Centralized coordination is a significant driver. Third, we are managing regional systems in a more sophisticated way—monitoring pipeline movement and ensuring TM and CAM collaboration to develop and close system‑level opportunities. It is early given longer system sales cycles, but early indicators are very encouraging.

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

Joshua Thomas Jennings: Thank you, and good afternoon. Congratulations on a nice start to the year. On utilization, trends are continuing to get stronger. You put forward the systematic department expansion initiative last year and it seems there has been more improvement. Any additional quantitative or qualitative color on how this effort is impacting utilization in same‑store accounts?

Xingjuan Chao: Our strategy remains consistent: departmental expansion, physician and provider engagement across all shifts, and protocolization across different patient populations. Q1 benefits partially from seasonality, as Scott mentioned, but a significant portion reflects execution. Last year, we invested in building a strong regional leader and director layer, expanded the CAM team, and strengthened our execution playbook. We are seeing those efforts pay off, and I am very proud of the team’s performance.

Joshua Thomas Jennings: Thanks. I was also hoping to better understand the synergistic interaction between the delirium and seizure indications. With the Vanderbilt study getting underway, how do you expect results—and even the current body of evidence—to drive deeper penetration for the seizure indication?

Xingjuan Chao: Clinically, delirium and seizure are heavily intertwined. For example, in sepsis patients with altered mental status, about 20% to 30% will have non‑convulsive seizures if you monitor them with EEG, and 40% to 50% will have delirium. Without EEG, these patients look the same at the bedside—altered mental status. To complicate things, roughly 40% of those seizure patients will later develop delirium, and a portion of delirium patients later develop seizures if monitored with EEG. Treatment highlights the need for objective tools: benzodiazepines are first‑line for status epilepticus, but they are the number‑one deliriogenic agents. If a patient has delirium, you want to avoid benzos. Without objective monitoring, physicians are guessing.

As we connect these clinical dots, many physicians realize they may be treating delirious patients who actually have non‑convulsive seizures. That recognition is a key driver behind our study with Vanderbilt.

Operator: Next question comes from the line of Analyst with Canaccord Genuity. Your line is open.

Analyst: Yes, thanks. With the launch of delirium as you go into the pilot, do you think you will be able to charge separately for delirium, or will it be part of the offering—measuring two metrics—and help build your install base and your defensive moat? Is this going to be incremental revenue, or will it primarily help you land and expand?

Xingjuan Chao: You are pointing to two potential drivers. One is pricing—charging more or separately for delirium—which could be a revenue driver. The other is increased patient usage within existing accounts by offering the delirium solution. Both are potential drivers. We know we have both options, but we are not ready to discuss pricing yet. The pilot is designed to study price elasticity and sensitivity as well as the impact of delirium on total patient expansion. We look forward to sharing more as we approach full commercial launch.

Analyst: Thank you. On guidance, it is rare to see a company beat by $600,000 to $700,000 and then raise guidance by $1 million after the first quarter. You have given reasons around the salesforce gaining traction, but the commentary on seasonality in Q2 and Q3 has me a little confused. For cadence, consensus is $27.2 million for the second quarter. Are you comfortable with that number? Any thoughts would be appreciated.

Scott Blumberg: The comment on seasonality is nothing new—it is a reminder. Most of the Street models Q4 and Q1 higher than Q2 and Q3. I will not comment on a specific quarterly consensus figure, other than to say people understand the seasonality. Our guidance is full‑year guidance, and we have high confidence in the full year. We just want to make sure people are appropriately thinking about the transition from Q1 to Q2, which has always been, and we expect will continue to be, sequentially down in terms of usage per account. Of course, that is offset by growth initiatives in new adds and the impact of CAMs.

Operator: Thank you. Your next question comes from the line of Marie Yoko Thibault with BTIG. Your line is open.

Marie Yoko Thibault: Good evening. Thanks for taking the questions. I wanted to circle back on salesforce productivity. You gave encouraging stats—of your folks with 12 months or more of tenure, over 85% have contributed to the account base and 100% have generated purchase orders. Since this is the first quarter we are getting these stats, is this largely new once they hit 12 months because of the length of the cycle? How long does it take for a rep to hit peak productivity? Any details on where this could go from here?

Scott Blumberg: Sure, Marie. First, we do not intend to introduce a new reporting metric. We wanted to quantify something we have talked about qualitatively because the reps from the expansion we started in late 2024 are now reaching the point where they should be productive. We generally expect reps to generate their first new add at about one year. That has been consistent, including our last broad sales‑org expansion in 2021. The math is roughly two to three months to train the rep, six or so months to acquire a purchase order, and three to four months to launch—about a year.

Over the past year and a half, we have been tracking precursor activities in CRM that correlate with purchase orders, and now we can translate that into tangible outcomes. It is a relatively small cohort reaching that 12‑month mark first, but the rest are tracking well. This gives us confidence we can drive more growth this year than last, with a number of folks aging into productivity throughout the year.

Marie Yoko Thibault: Great detail. One quick follow‑up on seasonality. Utilization per account might be impacted by ICU census, but would we expect any impact to account adds?

Scott Blumberg: There is no specific seasonality we see in account adds. There can be some quarter‑to‑quarter lumpiness, which may increase with the new regional health system function since accounts could close in bigger chunks. There is no consistent quarterly trend, but the direction is up and to the right. We saw that last year with Q2 lower than Q1 and Q3 much higher than Q1. It can move up or down quarter to quarter, but the trend is higher adds over time.

Operator: Your next question comes from the line of Jeffrey Scott Cohen with Ladenburg Thalmann. Your line is open.

Jeffrey Scott Cohen: Hi, Xingjuan and Scott. Thank you for taking our questions. Firstly, could you talk about military hospitals and the opportunity in TAM, perhaps as it relates to the size and scope of the VA network?

Xingjuan Chao: Military hospitals are approximately 30 facilities, significantly fewer than the 170 VA hospitals, but still a meaningful opportunity. Their cybersecurity requirements differ somewhat from the VA, but there is overlap, which allowed us to leverage our FedRAMP High authorization and VA success to begin this pilot with support from physicians and administrators. Clinically, they face challenges similar to the VA, including limited neurologist and EEG technician availability. For now, we are focused on the military hospitals and are excited about the potential upside this can bring.

Jeffrey Scott Cohen: That is helpful. Could you talk a little further about your comments regarding CT scans—specifically, pathways and triage monitoring as stroke and LVO patients are being evaluated with CTs and MRIs?

Xingjuan Chao: We are early to detail specific workflows, but our value proposition is complementary to CT and MRI, not a replacement for those gold standards. In the inpatient setting, our value is continuous monitoring to help triage potential LVOs faster. You cannot constantly send patients to CT or MRI. A continuous monitor can flag patients with a very high likelihood of large vessel occlusion, triggering a workflow to send the patient for CTA or MRI to confirm LVO. This could significantly shorten time to detection.

Operator: Your next question comes from the line of Analyst with Raymond James. Your line is open.

Analyst: Hi, good afternoon. Thanks for taking the questions. A couple here. I realize this may depend on hospital size, but utilization in VA hospitals versus non‑VA hospitals—how would you expect that to trend, if at all?

Xingjuan Chao: We do not disclose hospital‑system‑level utilization. While the VA is a notable opportunity enabled by FedRAMP High, we do not break out utilization by system externally.

Analyst: Understood. And on the $5.6 million in litigation expense in the quarter, Scott, is this peak spend? And is this relative to about $1 million per quarter over the last few quarters?

Scott Blumberg: We were running at about $1 million to $2 million per quarter before. Q1 was outsized. Q2 will also likely be higher—we are in the peak phase with depositions and an upcoming trial. I would expect it to moderate as we move later into 2026.

Analyst: Thank you.

Operator: There are no further questions at this time. I will now turn the call back over to Xingjuan Chao, Co‑Founder and Chief Executive Officer, for any closing remarks.

Xingjuan Chao: Thank you, everyone, for joining our call. I am very proud of what we have accomplished as a team and very excited about what is on the horizon. We look forward to sharing more milestones in the coming quarters.

Operator: Ladies and gentlemen, that concludes today’s call. Thank you for joining, and you may now disconnect.