CeriBell 2025 Q2 Earnings Loss Narrows as Revenue Surges 38%

CeriBell (CBLL) reported better-than-expected Q2 2025 results, with revenue rising sharply and the per-share loss significantly narrowing. The company raised full-year revenue guidance, reflecting confidence in continued growth. Despite a wider net loss in dollar terms, management remains optimistic about long-term expansion and commercial progress.

Revenue
CeriBell reported a 38.4% year-over-year increase in total revenue to $21.20 million in Q2 2025, driven by robust performance across its product and subscription segments. The company’s product revenue, its primary revenue stream, grew to $15.92 million, an increase of 38% compared to $11.60 million in the same period last year. Subscription revenue also showed strong momentum, climbing 41% to $5.28 million. This growth highlights CeriBell’s successful expansion into new accounts and deeper integration within existing ones, even as seasonal challenges in ICU utilization persisted.

Earnings/Net Income
CeriBell significantly reduced its per-share loss to $0.38 in Q2 2025, compared to $1.61 in the prior-year period—a 76.4% improvement. However, the company’s net loss widened to $13.64 million from $8.94 million in 2024 Q2, a 52.6% increase in absolute terms. The widening net loss was primarily due to elevated operating expenses, including investments in commercial infrastructure, legal costs, and increased headcount. While the improvement in EPS is a positive sign, the larger net loss underscores the costs associated with scaling the business. Although the company made progress on a per-share basis, the increasing absolute loss remains a concern.

Price Action
CeriBell’s stock recorded mixed short-term performance, with a 1.37% decline on the latest trading day, followed by a 2.17% weekly gain. However, the stock dropped 20.34% month-to-date, signaling investor caution amid the company’s ongoing financial challenges and unprofitable investment strategies.

Post Earnings Price Action Review
The investment strategy of buying CeriBell shares after a revenue increase quarter-on-quarter and holding for 30 days has proven to be highly unprofitable over the past three years. This strategy resulted in a total return of -45.37%, significantly underperforming a flat benchmark. The compound annual growth rate was a steep -56.70%, indicating a substantial erosion of value. While the strategy reported a maximum drawdown of 0%, the negative returns highlight the high risk associated with holding CeriBell shares during periods of volatility and uncertainty.

CEO Commentary
Xingjuan Chao, CEO of CeriBell, emphasized the company’s Q2 2025 revenue of $21.2 million and attributed the growth to new account expansion 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 enhancing clinical account manager support to improve utilization. Chao expressed optimism about 2026 growth, stressing the importance of demonstrating real-world clinical value. She also defended the company’s intellectual property and highlighted expansion plans 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 company anticipates gross margins in the mid- to high-80% range in 2025, with Vietnam-based production expected 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, underscoring the company’s commitment to investor engagement. The CEO highlighted sustained momentum in new account adoption and the successful scaling of commercial operations. As of the end of Q2, the company reported 584 active accounts, a key indicator of market penetration. No M&A activity, C-level changes, or dividend/buyback announcements were disclosed during the three-week period from August 5, 2025. The company remains focused on product expansion, operational efficiency, and long-term strategic initiatives to establish EEG as a standard diagnostic tool in critical care settings.