CeriBell 2025 Q2 Earnings Loss Narrows Despite Revenue Surge

CeriBell reported fiscal 2025 Q2 earnings on August 5th, 2025, showing a 38.4% year-over-year revenue increase to $21.20 million and a narrowed per-share loss, although the net loss widened in absolute terms. The company raised full-year revenue guidance to $85–$88 million, reflecting confidence in continued growth and commercial progress.

Revenue
CeriBell's revenue in Q2 2025 surged by 38.4% year-over-year to $21.20 million, driven by strong performance across its product and subscription lines. Product revenue, the company’s primary income source, reached $15.92 million, up 38% from $11.6 million in Q2 2024. Meanwhile, subscription revenue, which reflects recurring customer engagement, climbed 41% to $5.28 million. These figures highlight the company's successful expansion into new accounts and deeper penetration within existing ones, despite some seasonal challenges in ICU utilization.

Earnings/Net Income
CeriBell narrowed its per-share loss to $0.38 in Q2 2025 from $1.61 in the prior year, representing a 76.4% improvement. However, the net loss in absolute terms increased to $13.64 million compared to $8.94 million in Q2 2024—a 52.6% rise. This widening net loss was due to higher operating expenses, driven by investments in commercial infrastructure, legal costs, and increased headcount. While the EPS improvement is a positive signal, the growing net loss reflects the significant costs of scaling the business.

Price Action
The stock of CeriBell (CBLL) recorded a mixed performance in the short term. It fell 1.37% in the latest trading day but showed a weekly recovery with a 2.17% gain. However, the stock has experienced a sharp decline of 20.34% month-to-date, underscoring investor caution amid the company’s ongoing financial challenges.

Post Earnings Price Action Review
The investment strategy of buying CeriBell shares following a revenue increase in Q2 and holding for 30 days has been highly unprofitable over the past three years. The approach resulted in a -45.37% total return, significantly underperforming a flat benchmark. The compound annual growth rate was a steep -56.70%, indicating a substantial erosion of value. The strategy also experienced a maximum drawdown of 0%, underscoring the heightened risk of holding CeriBell shares during volatile market conditions.

CEO Commentary
Xingjuan Chao, CEO of CeriBell, highlighted the company’s Q2 2025 revenue of $21.2 million and emphasized the role of new account growth and efficient adoption within existing accounts. She outlined strategic investments in expanding the commercial team, including increasing territory managers to 55 by year-end and prioritizing clinical account managers to improve utilization. Chao expressed optimism about 2026 growth and stressed the importance of demonstrating real-world clinical value, citing a case study that illustrates the system’s cost and care benefits. Additionally, she defended the company’s intellectual property and outlined expansion plans for the seizure detection system into neonatal care and delirium detection.

Guidance
CeriBell raised its full-year 2025 revenue guidance to $85–$88 million, up from $83–$87 million, projecting 30–34% year-over-year growth. The CFO noted that gross margins are expected to remain in the mid- to high-80% range in 2025, with Vietnam-based production set to stabilize supply chain risks and support mid-80% gross margins in 2026. Legal costs related to the ITC and court actions were cited as a temporary Q2 expense, while the company continues to invest in R&D and commercial operations to drive long-term growth.

Additional News
On August 5, 2025, CeriBell announced a conference call to discuss its Q2 2025 results, reflecting the company’s commitment to investor engagement. The CEO highlighted continued momentum in new account adoption and the successful scaling of commercial operations. The company also reported a 584 active account base as of the end of Q2, a key indicator of market penetration. No M&A activity, C-level changes, or dividend/buyback announcements were disclosed within the 3-week period from August 5, 2025. The focus remains on product expansion, operational efficiency, and long-term strategic initiatives to establish EEG as a standard diagnostic tool in critical care settings.