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DATE

Monday, Aug. 10, 2026 at 4:30 p.m. ET

CALL PARTICIPANTS

• Chief Executive Officer - Xingjuan Chao
• Chief Financial Officer - Scott Blumberg
• Gilmartin Group, Investor Relations - Brian Johnston

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TAKEAWAYS

• Total Revenue -- $28.1 million in the second quarter, representing 33% growth compared to $21.2 million in the prior year period.
• Active Accounts -- 712 hospitals at quarter end, an increase of 32 accounts during the period with less reliance on Veterans Affairs (VA) accounts than in previous quarters.
• Gross Margin -- 92% in the second quarter, reflecting a $1.6 million tariff refund; excluding the refund, gross margin was 89% due to manufacturing diversification in Vietnam.
• Full Year 2026 Guidance -- $114 million to $117 million, raised from the prior range of $112 million to $116 million, representing annual growth of 28% to 31%.
• Product Revenue -- $21.2 million, an increase of 33% versus $15.9 million in the second quarter of 2025.
• Subscription Revenue -- $6.9 million, growing 30% versus $5.3 million in the prior year period.
• Net Loss -- $19.3 million, or a loss of $0.51 per share, compared to a loss of $13.6 million, or $0.38 per share, in the prior year period.
• Operating Expenses -- $45.9 million, up 37% year over year, driven by headcount expansion in strategic account management and $3.9 million in intellectual property litigation costs.
• Adjusted EBITDA -- Negative $9.8 million, compared to a $10 million loss in the second quarter of 2025.
• Cash and Marketable Securities -- $129.3 million as of June 30, 2026, which management indicated is sufficient to reach cash flow breakeven.
• New Technology Add-On Payment (NTAP) -- Up to $2,170 in incremental reimbursement per qualified patient for delirium monitoring, effective Oct. 1, 2026.
• Delirium Market Opportunity -- $1 billion estimated U.S. opportunity, with a full commercial launch planned for the fourth quarter of 2026.
• Tariff Refund Allocation -- $1 million recognized in cost of goods sold and $600,000 capitalized to inventory during the quarter.
• Litigation Expense -- $3.9 million related to ongoing ITC litigation, which management expects to decrease in the third and fourth quarters.
• Credit Facility Refinancing -- $60 million in committed capital secured post-quarter, extending the repayment timeline by three years to 2031.
• Stock-Based Compensation -- $6 million in the second quarter, up from $3.2 million in the prior year period due to the annual equity cycle.
• Clinical Evidence -- A study in Critical Care Medicine reported that patients with a seizure burden of 90% or greater were 3.6 times more likely to experience severe disability or death at discharge.
• Core Market Penetration -- Less than 4% in the core seizure market, representing a significant remaining runway for the established product line.
• Same-Store Growth -- Accelerated from 29% in the first quarter, driven by clinical account management and provider engagement playbooks.
• Hardware Pipeline -- Multiple FDA 510(k) clearances received for a new recorder with video and ECG capability, targeting a full market launch in 2027.
• Algorithm Clearances -- FDA 510(k) clearances received for artifact reduction and epileptiform abnormality detection, with rollouts expected in the third and fourth quarters.

SUMMARY

Management reported an acceleration in revenue growth to 33% during the second quarter, driven by same-store utilization and the expansion of the hospital account base to 712 active sites. The company increased its full-year 2026 revenue guidance and achieved record gross margins through manufacturing optimization in Vietnam and one-time tariff refunds. Strategic focus remained on transitioning the platform from seizure detection to a comprehensive brain monitoring solution, supported by new FDA clearances for algorithms and hardware. The company also prepared for the fourth-quarter commercial launch of its delirium monitoring solution, bolstered by a new federal reimbursement milestone.

• CEO Chao stated that a survey from the delirium pilot showed "40% of the patients were difficult to assess under CAM-ICU," the current standard of care, but could be monitored using the company's platform.
• The company received two new FDA 510(k) clearances for algorithms that differentiate brain activity from electrical artifacts and detect epileptiform abnormalities.
• CFO Blumberg noted that top-performing accounts utilize the system at "roughly 3x the rate of average accounts of similar size," representing a significant internal growth opportunity.
• Management established a new hardware foundation with clearances for a recorder featuring video, ECG capability, and continuous monitoring functionality for a 2027 launch.
• CEO Chao noted that the new artifact rejection algorithm "significantly simplifies EEG interpretation for neurologists" and will be rolled out in the third quarter.
• The newly established strategic account management team, formed in Jan. 2026, is targeting regional health systems to drive top-down adoption.
• The company expects the recently refinanced credit facility to reduce interest expenses starting in the fourth quarter.

INDUSTRY GLOSSARY

• 510(k) clearance: A premarket submission made to the FDA to demonstrate that a medical device is at least as safe and effective as a legally marketed device.
• Artifact: Electrical signals in an EEG recording that do not originate from the brain, often caused by muscle movement or medical equipment.
• CAM-ICU: The Confusion Assessment Method for the Intensive Care Unit, a clinical tool used to diagnose delirium.
• Clarity: The company's proprietary AI software used for continuous seizure monitoring and detection.
• EBITDA: Earnings before interest, taxes, depreciation, and amortization, used to evaluate operating performance.
• EEG: Electroencephalography, a method to record electrical activity of the brain.
• Epileptiform Abnormality: Brain wave patterns that are not full seizures but indicate an increased risk for seizure activity.
• NTAP: New Technology Add-On Payment, an additional payment made by Medicare to hospitals to support the use of new medical technologies.

Full Conference Call Transcript

Operator: Ladies and gentlemen, thank you for standing by. My name is Dejirae and I will be your conference operator today. At this time, I would like to welcome everyone to Ceribell Q2 26 Earnings Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number 1 on your telephone keypad. If you would like to withdraw your question, I would now like to turn the call over to Brian Johnston of Gilmartin Group. You may begin.

Brian Johnston: Good afternoon, and thank you all for participating in today's call. Joining me from Ceribell are Jane Chao, Co Founder and Chief Executive Officer and Scott Blumberg, Chief Financial Officer. Earlier today, Ceribell issued a press release announcing financial results for the quarter ended June 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 2 thousand.

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, and quarterly report on Form 10 Q for the quarter ended 06/30/2026.

This conference call contains time sensitive information and is accurate only as of the live broadcast today, 08/10/2026. Ceribell disclaims any intention or obligation, except as required by law, to update or revise any financial projections or forward-looking statements because of new information, future events or otherwise. And with that, I will turn the call over to Jane.

Xingjuan Chao: Good afternoon, and thank you for joining us for our second quarter 2026 earnings call. Q2 launched another strong quarter for Ceribell. As we delivered revenue of $28.1 million growing 33% year over year. This is an acceleration from the 29% year over year growth we reported in Q1 which reflects a particularly strong performance in same store growth driven by our clinical account management team. We also increased our account base by 32 accounts. To a total of 712 active accounts. While the increase is similar to what we delivered in recent quarters, Q2 growth relied less on VA accounts than previous quarters.

Our sustained success in growing our account base is a result of the continued maturation and performance of our account acquisition team. While revenue and commercial acceleration get top billing, I do want to take a moment to focus on our gross margin. We delivered record gross margin of 92% in Q2. This number was positively impacted by a refund on previously paid tariff. Even when excluding this refund, we delivered gross margin of 89%. This does not happen by accident. It is a direct result of our proactive efforts in supply chain optimization and manufacturing diversification. And gross margin is more than just a number.

It generates the outsized gross profit we are reinvesting to fund our growth initiatives and R&D. With the eye towards executing our mission. With 33 consecutive quarters of sequential revenue growth, we believe we have built a repeatable growth engine. By pointing that engine squarely at our defining objectives, establishing Ceribell as the standard of care for seizure detection in acute care setting. At the center, of our growth strategy, is our commercial infrastructure. Built with the dual purpose of acquiring new customers and drive deeper adoption within our installed base. Our account acquisition team continues to mature and is contributing in line with expectation. The efforts are being supplemented by our newly added strategic account management team.

Through top-down engagement of regional health systems. We have built a robust pipeline of prospects that gives us confidence in our ability to maintain an accelerated rate of new account additions in 2026 compared to 2025. While we continue to expand our account base, our clinical account management team is driving revenue through a head-to-toe utilization expansion. Our strong performance this quarter reflects execution of our established utilization playbook. Provider engagement, department expansion, and patient population prioritization. A robust and expanding body of clinical evidence validates our platform. Our aim is to make the case for Ceribell's clinical necessity by investing in high quality evidence. Demonstrating the clinical and economic value our system delivers.

Adding to our established base of over 150 publications and abstracts, In Q2, a high impact study was published in Critical Care Medicine, 1 of the leading journals in 90% or greater, Patients were 3.6x more likely to experience severe disability or death. at discharge. Further, each additional hour of Clarity-detected seizure activity was associated with nearly 2-fold increase in that risk. The premise that longer seizure duration correlates with worse outcome is not new. What is new is that a device output can quantitatively report seizure burden at the bedside in real time. And that this burden reliably correlates with patient outcomes. These findings sharpen the clinical imperative for using the Ceribell solution, particularly clarity.

To reduce seizure burden for patients. As the body of evidence compounds, we are increasingly confident that Ceribell's path to becoming the standard of care is not a question of if but when. As we continue to deliver within our core seizure market, we remain encouraged by the traction in our emerging market opportunities. In Q2, we launched our Neonate and pediatric products and the commercial pilot of our delirium algorithm. We remain encouraged by the early commercial traction of our neonate and pediatric seizure line extensions. Customer interest remains high. The clinical conviction is translating into early commercial success. As we secured purchase orders from both new and existing customers. In Q2.

With a robust and growing pipeline, we are well positioned to translate our commercial efforts into revenue contribution as we move into 2027. We are also excited about the momentum of our first-of-its-kind delirium monitoring solution. Which received 510(k) clearance in December. Delirium represents an estimated $1 billion U.S. opportunity for Ceribell. And a strong addition to our platform. Despite being the most common neurological complication in the ICU, before Ceribell, there has been no commercially available tool to continuously monitor delirium. We launched our commercial pilot in April, and are now live in multiple sites. The early feedback has been positive. With users citing improvements in clinical decision making.

For example, based on the survey, 40% of the patients were difficult to assess under CAM-ICU, The current standard of care. That could still be monitored with the Ceribell solution. Beyond the clinical signal, we are also seeing a utilization effect. Existing Ceribell customers that have joined the Delirium pilot are increasing at band utilization. We believe this is a reflection of both the clinical value of the delirium detection algorithm and the incidence overlap between seizure and delirium. underscoring the synergistic value of our platform. We are also pleased to share that we just received a favorable final rule from CMS establishing a new technology add on payment or NTAP for our delirium monitoring solution.

The NTAP, which becomes effective October 1, 2026, provides up to $2.17 thousand in incremental reimbursement per qualified patient. This is a meaningful milestone. It will support adoption by adding favorable economics to the strong clinical interest we are already seeing in the field. Our launch strategy is coming into focus. And we now have the confidence that we will launch delirium commercially this year. With the commercial and clinical updates covered, I would like to turn to our vision for the future. We believe we are well on our way to establishing the Ceribell System as the standard of care for seizure.

At the same time, our longer term vision to establish EEG as a new vital sign is no longer theoretical. We have made material progress and believe we can begin translating this vision to reality in 2027. Underpinning this is a 2-pronged product strategy. We invested in algorithm and hardware enhancement to reach more patient populations while improving patient care and meeting physician needs. Our first prong is centered around developing novel algorithms to further improve clinical decision making. Delirium and LVL are excellent examples of clinical expansion to new patient populations under this strategy. Through these advancements, we are delivering continuous objective brain monitoring to assess our underserved patient populations.

Also apply algorithm development to improve care for patients we already serve. We are pleased to announce today the receipt of FDA 510(k) clearances for 2 new algorithms. Targeting our core seizure market. We believe each meaningfully add to our platform clinical utility, strengthening the case for Ceribell as the standard of care. The first represents a significant enhancement to Clarity's ability to identify and reduce EEG artifact signals. Artifact recognition has long been the leading challenge to EEG interpretation in the acute care environment. it is not uncommon for even neurologists to mistake electrical signal from various medical equipment. As seizure activity. EEG is so sensitive that even the electrical signal from an IV drip's movement can create artifacts.

Our new algorithm trained on a large artifact database created by Ceribell, Can differentiate between brain activity and artifact. Adding a layer of AI driven sophistication. The new algorithm significantly simplifies EEG interpretation for neurologists. And improves the point of care experience. We anticipate rolling this out in the third quarter. The second clearance is for epileptiform abnormality detection. This algorithm targets abnormal brain activity in a gray zone between clear seizure and normal signals. This activity is clinically important but has historically been difficult to consistently measure. To our knowledge, Ceribell is the first software to be FDA cleared for the detection of both seizure and epileptiform abnormality. This is a capability that neurologists have specifically asked for.

And we are proud to be the first to deliver it. We expect to activate this algorithm by the end of the year. These new algorithms serve to strengthen the clinical benefit offered by our system. We believe that by widening the gap between the value offered by Ceribell system compared to conventional EEG. We create a clinical imperative to adopt our leading edge technology. The second prong of our product strategy centers on enhancing and expanding our hardware platform. Over recent months, we have received FDA 510(k) clearances for several products. That together form the foundation of our new hardware platform.

This includes clearances for a recorder with video and ECG capability, compatibility to integrate with other vital sign measurements and the ability to monitor continuously while plugged in. We have also received clearances for 2 headband designs. That provide optionality for frontal touch, and multiple day continuous monitoring when needed. The features offered by our new platform serve to support our effort to make EEG a new vital sign. For example, delirium patients often require days in ICU before resolution. And the new system can be even more seamless in supporting this new use case. And when we add LBO in the future, a bigger screen will be needed to monitor multiple disease states.

Within our core tissue market, we believe our current product is optimized for majority of patients in the acute care setting. It is quick, simple and reliable. In a care setting where these are the most important needs. However, with our hardware line extensions, clinicians no longer have to choose between the speed or point of care EEG and the comprehensiveness of conventional EEG for patients who need both and can offer both with 1 device. We are continuing to test our products refine the design and scale our manufacturing. With the target launch of our new hardware platform in 2027. We will share more details as we get closer to the product launch.

As I step back, I am struck by how much is converging at once. Our core business continues to perform. Delivered 33% year over year growth and an acceleration compared to last quarter. We are the first and only point of care feature platform indicated for use with patients of all ages. At the same time, the work we have been building towards for years is coming to a head. New algorithms new hardware, new clearances, a delirium pilot tracking towards commercial launch, and a new NTAP. These advancements stand to meaningfully strengthen our value proposition. While reinforcing our market leadership position with significant innovation based barriers to entry. We see 2027 as a pivotal year.

With Neonate gaining more scale. Delirium commercially launched, our expanded hardware platform on the market. And an increasingly mature sales force delivering even greater impact. I am more convinced than ever that we are building the right platform at the right moment. Our goal of creating a single brain monitoring solution for the acute care setting is within reach. With that, I will now turn the call over to Scott Blumberg. Our CFO to provide a review of the second quarter results and 2026 guidance.

Scott Blumberg: Thank you, Jane, and good afternoon, everyone. As Jane highlighted, total revenue for the second quarter of 26 was $28.1 million which represents a 33% increase from $21.2 million in the second quarter of 25 and a 6% sequential increase quarter over quarter The increase was primarily driven by the success of our same store growth strategy in addition to increased adoption of the Ceribell system across new and existing accounts. Product revenue for the second quarter of 2020 was $21.2 million representing an increase of 33% from $15.9 million in the second quarter of 25.

Subscription revenue for the second quarter of 26 was $6.9 million representing an increase of 30% from $5.3 million in the second quarter of 25. We ended Q2 with an active account base of 712 hospitals, representing an increase of 32 accounts in the quarter. We have been pleased to see our investments in driving same store growth continue to deliver. While we saw signs of typical seasonality in Q2, when warmer months tend to result in reduced ICU census, our same store growth performance exceeded expectations. Including an acceleration in year over year growth from recent quarters.

We continue to believe that we have a significant untapped growth opportunity within our installed base in which our top accounts continue to use our product at roughly 3x the rate of average accounts of similar size. Gross margin for Q2 26 was 92%, compared to 88% in the prior year period. This includes the impact of $1.6 million in tariff refunds received in the quarter. Of which $1 million was recognized in cost of goods sold and $600 thousand was capitalized to inventory. Excluding this adjustment, gross margin was 89%, Our strong margin profile is a direct reflection of cost reduction efforts and the expansion of manufacturing capabilities in Vietnam.

We feel confident in our ability to maintain gross margins in the high-80s range throughout 2026 based on current tariff policies and believe we have built flexibility in our manufacturing capability to manage any future policy shifts. Total operating expenses for the second quarter of 26 were $45.9 million an increase of 37% compared to $33.6 million in the second quarter of 25. Non cash stock based compensation expense was $6 million in the second quarter of 26, and $3.2 million in the prior year period.

Sales and marketing expense in the second quarter grew as a result of headcount expansion, including the newly established strategic account management function and expansion of our CAM infrastructure in advance of the Delirium launch. G&A expense remains elevated in the second quarter of 26 as a result of expenses related to our ongoing ITC litigation which totaled $3.9 million. Looking ahead to the third and fourth quarters of 26, we anticipate a reduction in lawsuit related activities and associated expense. Research and development expense in the second quarter reflects investments we have made into our platform including our next generation hardware, algorithm development, clinical studies.

Net loss was $19.3 million for the second quarter of 26 or a loss of $0.51 per share compared to a loss of $13.6 million or a loss of $0.38 per share in the second quarter of 25. An average weighted share count of 38 million was used to determine loss per share in Q2 26. Last quarter, we instituted the disclosure of adjusted EBITDA to represent the ongoing operating performance of our business. Adjusted EBITDA reflects our net loss before interest taxes, depreciation and amortization expense and also excludes the noncash stock based compensation expenses as well as legal expenses associated with our ongoing ITC litigation.

Adjusted EBITDA loss for the second quarter of 26 was $9.8 million as compared to a $10 million loss in the second quarter of 25. This reflects our continued strategy of thoughtfully deploying gross profits from our expanding revenue base back into the business to pursue long-term growth opportunities. Our cash, cash equivalents, and marketable securities as of 06/30/2026, $129 million. We remain committed to our objective of achieving 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.

Finally, following close of the quarter, we successfully refinanced our existing credit facility securing access to up to $60 million in committed capital with an additional $25 million uncommitted. The structure includes a non formula revolver plus term loan that remains available to draw through year end 2028. We expect that this structure will reduce our interest expense starting in Q4 and extend our repayment time line by roughly 3 years. into 2031. We do not have plans to draw the committed but undrawn term loan in the near term, but we believe that its availability provide us with greater strategic flexibility. Turning now to our outlook for 2026.

We expect full year 2026 total revenue to range from $114 million to $117 million up from our prior guidance of $112 million to $116 million This represents annual growth of 28% to 31% over 2025. This change to guidance reflects the momentum we are seeing in our core business, with success driven both by new account additions and usage within our established account base. This range does not include material contributions from our neonate, pediatric, or delirium products, which we expect will begin to translate into revenue more meaningfully in 2027. With that, I will turn the call back to Jane.

Xingjuan Chao: Thank you, Scott. And thank you all for your time today. Q2 reinforced the confidence we have in our trajectory. Our core business is growing and accelerating. Our commercial execution across new accounts, utilization, and Neonate is on track. And the product and clinical evidence investments we have been making are beginning to compound in ways that will matter over the next year and beyond. We have less than 4% penetration in our core seizure market This tells you how much runway is still ahead of us. And we are advancing into new greenfield markets with urgency and purpose. Our mission to establish EEG as a new vital sign remains our North Star.

And the progress we made in Q2 gives us every reason to push harder. Now I will turn the call over to the operator for Q&A. Operator?

Operator: Thank you. We will now begin the question and answer session. Keypad to raise your hand and join the queue. Would like to withdraw your question, simply press star 1 again. If you are called upon to ask your question and are listening via speakerphone, please pick up your handset to ensure that your phone is not on mute when asking your question. We do request for today's session that you please limit to 1 question and requeue for any follow-up questions. Thank you. Our first comes from the line of Travis Steed with Bank of America. Your line is open.

Travis Steed: Hey. Congrats on the progress. I wanted to spend a little more time on all the FDA approvals that you guys have gotten and put together. And I do not know if there is anything else you want to add to that. But I think the real question is, like, what can all these approvals and new indications and everything do for kind of the revenue growth rate and kind of the incremental revenue dollars you can add to this business? That would be kind of helpful to put into context, but anything else you want to say on all the approvals? Would be helpful just to put in context for everybody. Then I have a follow-up.

Thank you, Travis Steed.

Xingjuan Chao: So, I will put our recent FDA clearance into 2 groups. Aligned with our 2 pronged strategy. The first group are the algorithm clearances that include artifact rejection as well as epileptiform abnormality. As we launch both of these algorithm later this year, we do not plan to charge more, but we see this tool will be very beneficial, especially for the neurologists. And directly or indirectly, this would further increase the stickiness and potentially increase the utilization at the account. We have always seen our top accounts always have very strong neurology support. So we could see at this at the leverage to drive usage, and potentially increase the deal velocity as well.

In terms of our new hardware platform, we are not launching this platform yet and similar to the previous strategies we have deployed. And we are planning on a limited market release for the new hardware platform. And potentially launch the platform in 2027. This new hardware platform really have been aiming at making EEG a new vital sign in conjunction with Delirium and the future LVO we are working on. We see this as giving us access to additional patients or even additional market segments. So we do see this can be a revenue driver in 2027 directly. As we get closer to the launch time, we will share even more details.

Operator: Our next question comes from the line of Robbie Marcus with JPMorgan. Your line is open.

Robbie Marcus: Great. Congrats on the quarter, and thanks for the question. Scott, I wanted to ask on OpEx. Companies your size, typically need to make a strong beeline towards leverage. And we have seen OpEx grow faster than sales the past several quarters. So maybe just speak to the investments and the spending that you are doing now. what is driving that? And when can we start to see leverage? On OpEx? Thanks a lot.

Scott Blumberg: Sure thing, Robert. First of all, the 2 things I would like to point out in the Q2 OpEx that were a little bit out of the normal is stock based compensation sequentially increasing by about $2.3 million We have an annual equity cycle that happens in Q2, so you will tend to see that step function in Q2. And then carry forward until the next cycle. The other, of course, is the IP litigation, which remained elevated lower than Q1 but higher than we would expect going forward. As it relates to our investment philosophy, we maintained adjusted EBITDA loss roughly at around $10 million give or take, for the past many quarters in a row.

Our strategy has been to continue to grow the top line. Line, generate outsized gross profit with our high gross margin and then reinvest that back into the business. And that investment comes in the form of sales infrastructure. In this quarter, both building the strategic account management function out as well as expanding our TAM infrastructure a bit ahead of our Delirium launch. As well as R&D, R&D And as we make those investments, we are very mindful of our objective to achieve cash flow breakeven with cash on hand. Have not guided specifically as to when we come, but we keep a very close eye on it to ensure that we control our own destiny.

And make sure that we are self sufficient as far as our cash position goes.

Operator: Next question comes from the line of Brandon Vazquez with William Blair. Your line is open.

Brandon Vazquez: Everyone. Thanks for taking the question, and congrats on a nice quarter. I think you had mentioned that, there was kind of an inflection here or driving factor of growth in the quarter was from new account ads. there is clearly a bunch of tailwinds going on in the business with new indications and things like that. I was hoping you could just spend a minute on unpacking, you know, are you guys seeing kind of, like, an inflection in interest from end users? I think you even said that Neonate and Pediatrics was driving new account openings that you were not even in before.

So just kind of give us a little bit of an update on interest in driving new accounts and, expectations on how durable that could be going forward. Thank you.

Xingjuan Chao: Thank you, Brandon. Yeah. Definitely echo your statement. We do see a lot of tailwinds on the account acquisition front. we saw the new purchase order related to Neonate both in existing accounts as well as new accounts. And I would say in Q2, it is still relatively early phase. As you know, it does still takes the sales cycle and we just launched the Neonate recently. We do expect the impact from Neonate is going to be even bigger in the second half of the year and especially in 2027. And as I mentioned in my previous call last quarter that we started the strategic account management team.

So we also continue seeing the pipeline and the momentum on from this team in closing accounts at the regional hospital system level, and we remain very optimistic for the impact to come later this year and into 2027. Another dimension of revenue drivers, of course, is from the utilization or the same store growth. As Scott mentioned, Q2 usually is our low seasonality quarter. But the same store growth this quarter exceeded expectation. And part of the majority of that is the continuous execution of the known playbook we have.

In addition to that, we also see coming tailwind as we later launch delirium at the limited market release did show that these existing Ceribell counts when they start to use Delirium it meaningfully increased the utilization as well. So we are very excited about the different tailwinds we are having.

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

Joshua Jennings: Hi. Good afternoon. Thanks, Jane and Scott. Congratulations on another strong quarter. Wanted to you have laid out some additional layers of growth that will be kicking in, in 2027. Right now, the street's projecting similar kind of revenue growth rate prior to today as the lower end of 2026 guidance that you just revised up. I know you are not going to provide explicit guidance for 2027. But with pediatric neonate kicking in next year, delirium the new hardware, Ceribell headband platform. How should we be thinking about kind of the trajectory of growth? It seems like there could be an acceleration even in 2027 versus 2026.

Scott Blumberg: Yeah, Joshua. You know, we are not yet going to comment on, 2027 guide. But as you pointed out, there is a lot of tailwinds that are all coalescing around at the same time. We feel really good about what we know. We feel good about what we have learned on the neonate early launch, the delirium pilot. There are still things we need to learn. We need to learn how the delirium launch later plan for later this year goes and as well as the limited market release on the new product platform. But we have got about, 6 or 7 months here before we are guiding for 2027.

We are learning and I am very happy to share our learnings with you when we issue our guide.

Operator: Our next question comes from the line of Bill Plovanic with Canaccord Genuity. Your line is open.

Zachary Day: Hi. it is Zachary on for Bill. Thank you for taking the question and congrats on the quarter. Can you talk more about the magnitude of the gross margin impact from the Vietnam manufacturing shift I thought that was going to be more impactful later in the year. It sounds like you are starting to get some benefit now. Can you try to quantify that, please? Thank you.

Scott Blumberg: Sure. I view the 89%, which effectively is if there had not been any sort of refund as effectively the steady state for where we are. And as we have mentioned, we plan to be in the expect to be in the high-80s% range for the remainder of the year. That 89%, which would have included the burden of tariffs, is essentially back to where we were, even a little better, before all the tariff noise, and that is a direct reflection of both the manufacturing move to Vietnam, but also some general cost reduction initiatives that we put into place over the course of the last year and a half that should continue to generate dividends going forward.

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

Destiny Hance: Hi. This is Destiny on for Jeffrey. Thank you for taking our question. Jane, I know you mentioned that like 45 percent of the patients in the delirium pilot were difficult to evaluate. But still could be monitored using Ceribell, the Ceribell system. So I am wondering, as the pilot has matured, are you seeing the initial commercial use case converge around a particular patient population or workflow? And if you could just kind of expand on that a little bit. Thank you.

Xingjuan Chao: Yeah. Thank you. This is a part of the reason we do a limited market release so we can really fine tune the value proposition and workflow and patient population. So the short answer to your question is, yes, we start to see emerging populations that hospitals and physicians particularly interesting related to delirium. The examples include sepsis patient with altered mental status, or elderly patients, especially with post-cardiac surgery or other procedures, and these patients are more likely to have delirium. And it is more than 40 percent of these patient with a conventional standard of care would not have been able to assess delirium is 1 of the value proposition.

In the same pilot and survey, we also show other results. For example, physicians and nurses show that about, you know, another 30% to 40% that they were able to reduce sedation or even intubation. Based on the algorithm. And about 20 percent of the time, they were able to improve care. So these give us even stronger confidence as well as the initial preliminary evidence to support the delirium launch. We are planning later this year as well.

Operator: Next question comes from the line of Marie Thibault with BTIG. Your line is open.

Marie Thibault: Hi. I wanted to hear a little bit more about the regional health system team. I know that is a small strategic team, targeting some of the regional health systems and I heard you say it is going well so far. But I wonder if we could get any more details on some of the early pipeline metrics, things like the number of systems under engagement or in conversation, number of hospitals in these kinds of discussions. Your best estimate for when this starts to really accelerate account adds further. Thanks for taking the questions.

Xingjuan Chao: Yeah. Thank you, Marie. So I mentioned probably about 2 quarters ago as we start forming this team, we also optimize our internal, you know, operation and tracking. So this year is the first time we start to track pipeline not just at hospital level, but also at the system level. We are not ready and probably will not share the pipeline of system level quantitatively. But what I can share is we have seen very, very strong momentum growth on this hospital system level pipeline. In many ways, they are growing even faster than the already very health hospital level pipeline we are seeing. As I have also mentioned earlier, this team only started in January.

We are just building up this team in January. And take a few months to build up the team and to learn So we are only 6 months in the process. And with the sales cycle, we expect to see early win. We already seeing an early win internally this year. But the bigger impact would come in 2027 and 2028.

Operator: Next question comes from the line of Jayson Bedford with Raymond James. Your line is open.

Jayson Bedford: Good afternoon, and congrats on the progress here. I guess, on Delirium, the decision to launch in late 26 versus what I think was your prior commentary of fourth quarter, early 2027. Is the decision due to what you are seeing in pilot? Is it the establishment of the NTAP? Is there any commentary on reasoning for what I assume is a fourth quarter launch? As a related question, you hinted at it earlier, but is there a need for additional sales infrastructure to launch Delirium? Thanks.

Xingjuan Chao: Yeah. Thank you, Jason. The answer is both. We saw both very positive feedback clinically and operationally, as I mentioned earlier, from the limited market release on delirium. Across the sites we have launched as well as the final rule from CMS on NTAP, effective October 2026. The combination of that give us the confidence that we are going to fully officially launch delirium in Q4 this year. In terms of sales oh, sorry. Q4. In Q4 this year. In terms of Salesforce, the short answer is no. We do not expect we need additional, you know, specific sales team for this. As we did with the limited market release, we leveraged the local monthly clinical account manager team.

And we expect we can continue to leverage our clinical account manager team. And, of course, if delirium really we can see it gaining even more momentum, we could consider, you know, opportunistically expand this team even further, but we definitely do not see a need to establish a different Salesforce.

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

Joshua Jennings: Hi. Thanks. Just had 1 follow-up to the, I guess, next generation or Ceribell headband hardware that you talked about introducing in 2027. I just wanted to get a better sense. I mean, is that you are adding? Is it gonna be a full montage EEG? Can you just talk about moving into conventional EEG territory and the TAM expansion opportunity there? Can you leverage all of the AI algorithms clarity that have been developed for reduced electrode montage on this next Ceribell headband hardware. Thanks for taking the questions.

Xingjuan Chao: Yeah. Thank you, Joshua. The new hardware platform really focused on providing the hardware solution to become the brain monitor. So the key features I would emphasize is when you think about brain monitor, sometimes it is video, a bigger screen. and continuous monitoring for days or even weeks. So the recorder need to plug in. And also the capability to integrate other signals. So the new recorder can add EKG or other vital sign into the recording. And it would be the platform that will run, you know, the seizure algorithm, the delirium algorithm, all the algorithm we already have. And also the future algorithm.

And the wearable that 1 of the variables get FDA clearance is even more comfortable, and that is where a patient can wear it for days. So the vision is really to become a brain monitor. And with that, we also have a wearable that has the parasagittal cap coverage. So that is the full montage. It only works in conjunction with our existing headband. So it is the add on variable plus our headband. Band together, plug it into the same recorder. We will provide the full montage. And that is because we believe that our existing system can support the majority of the patients. But occasionally, doctor preference or patient needs do need a full montage.

So we want to provide the optionality and you are right. With this entire new hardware, we are not just a brain monitor anymore. Also provide almost all of the functionality of the conventional EEG. So we look forward to sharing more our bigger picture and value proposition of our hardware as we are getting closer to the market release later this year.

Operator: And our last question comes from the line of Bill Plovanic with Canaccord Genuity. Your line is open.

Zachary Day: Hi. it is Zachary again for Bill. Thank you for taking the follow-up questions. Last quarter you provided that 85% of the new reps that at least 12 months of tenure contributed to the active account base and had a 100% purchase orders. What is that looking like now? Can you quantify how these newer reps are maturing as it is considered a bigger part of your revenue ramp for this year? Thank you.

Scott Blumberg: Zach, I do not have a precise soundbite for you, but we track very carefully the progression of the team across we know to be the productivity curve. And as we mentioned in the past, typically, we do not see reps add their first account until they hit the end of year 1, and then they continually get more productive throughout year 2 and then reach their kind of max rate of new ads at the end of year 2. With the infrastructure build we did starting in late 24, we are having more folks age into that 1-year bucket. Still, the majority of those are not at the 2-year bucket.

And the productivity is aligned with what we have seen historically, and I think that is a reflection of the ads you have seen on the account base, in which we delivered a pretty similar result in terms of new ads this quarter to the prior 2 quarters, but with much less reliance on VA to juice the number up and, really more of a reflection of the, organic maturation of the sales force.

Operator: That concludes the question and answer session. I would now like to turn the call back over to Jane Chao for closing remarks.

Xingjuan Chao: Thank you, everyone, for joining the call. We are very proud of what we have accomplished this quarter and really excited about what is ahead of us. And in 2027. Thank you all.

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