CapsoVision 2025 Q3 Earnings Net Loss Widens 36.7% Despite 19.3% Revenue Growth

CapsoVision reported Q3 2025 results that missed revenue expectations by $0.14 million and fell short of EPS guidance by $0.04 per share. The company’s net loss widened by 36.7% year-over-year, despite a 19.3% revenue increase, driven by elevated operating expenses. Management emphasized progress in product adoption and regulatory initiatives but acknowledged ongoing financial challenges.

Revenue

CapsoVision’s total revenue rose 19.3% year-over-year to $3.54 million in Q3 2025, fueled by a 31% increase in new accounts and higher sales of its CapsoCam Plus capsule. Product revenue accounted for the bulk of performance, contributing $3.30 million, while services generated $234,000. The growth reflects strong commercial traction, with over 151,000 patients adopting the flagship product by September 30, 2025.

Earnings/Net Income

The company’s net loss expanded to $7.92 million in Q3 2025, a 36.7% increase from $5.79 million in the prior-year period, despite a 93.9% improvement in per-share losses (from -$2.79 to -$0.17). This divergence highlights rising operating expenses, particularly in R&D and general administrative costs. While the EPS improvement is a positive signal, the widening net loss underscores financial strain.

Post-Earnings Price Action Review

CapsoVision’s stock price showed mixed post-earnings performance, rising 2.53% on the day of the report and surging 18.13% for the week. Month-to-date gains reached 20.90%, suggesting short-term market optimism. However, the stock fell 13.4% in after-hours trading following the earnings release, indicating investor caution amid the widened net loss and regulatory uncertainties. The mixed reaction reflects balancing acts between revenue growth and financial sustainability concerns.

CEO Commentary

Johnny Wang, CEO, highlighted the company’s 19% revenue growth and 31% new-account increase as indicators of market demand. Strategic priorities include the Breakthrough Device Designation submission for pancreatic cancer detection and advancing the AI analytics engine. The appointment of David Garcia as SVP of Finance aims to strengthen financial oversight, aligning with the CEO’s emphasis on disciplined capital management.

Guidance

CapsoVision anticipates submitting its AI analytics engine for regulatory approval by year-end 2025, pending FDA resumption of normal operations. The company plans to advance its colon-capsule program through clinical enrollment and expand into new GI indications. Risks include potential FDA delays and cash-flow constraints, with $17.8 million in cash and equivalents as of September 30, 2025.

Additional News

CapsoVision’s recent non-earnings developments include the appointment of David Garcia as SVP of Finance, a key leadership hire to bolster financial strategy and capital markets engagement. The company also submitted a Breakthrough Device Designation application to the FDA for its pancreatic cancer screening capsule, aiming to accelerate regulatory review and clinical development. Additionally, CapsoVision successfully completed its initial public offering in July 2025, raising $23.4 million in net proceeds to fund its growth initiatives.