Why did PLSE's EPS remain stagnant in recent quarters?

The EPS of Pulse Biosciences (PLSE) remained stagnant in recent quarters due to several factors:

1. **Increase in GAAP Costs and Expenses**: The GAAP costs and expenses for Pulse Biosciences have significantly increased, rising from $12.5 million in Q4 2023 to $20.3 million in Q4 2024. This increase is primarily driven by higher stock-based compensation and other expenses to support the company’s expanding operations and advancement of its nanosecond Pulsed Field Ablation (nsPFA) technology. This increase in costs has resulted in a wider net loss for the company, which directly impacts the EPS.
2. **Strategic Investments and Development**: Pulse Biosciences has been actively investing in its research and development, as well as strategic initiatives. For instance, the company has received FDA clearance for a new soft tissue ablation device and has initiated a first-in-human study for its nsPFA-enabled percutaneous electrode. These strategic investments are crucial for the long-term growth of the company but can temporarily strain financial performance, impacting short-term EPS.
3. **Operating Efficiency and Liquidity**: Despite the challenges, Pulse Biosciences has maintained strong liquidity with a current ratio of 11.93 and operates with moderate debt levels. The company's focus on innovative medical technologies and an increase in cash reserves from warrant exercises have positioned it well for future growth.

In conclusion, the EPS of Pulse Biosciences has remained stagnant due to increased GAAP costs and expenses, strategic investments, and operating efficiency. These factors have collectively impacted the company's financial performance in the recent quarters.