CapsoVision 2025 Q3 Earnings Wider Net Loss Despite 93.9% EPS Improvement

CapsoVision’s Q3 2025 earnings report revealed mixed results, with the company missing revenue estimates and narrowing its per-share loss while reporting a wider net loss. The stock surged post-earnings, reflecting optimism around product adoption and regulatory progress.

Revenue

CapsoVision’s total revenue rose 19.3% year-over-year to $3.54 million in Q3 2025, driven by strong demand for its CapsoCam Plus® capsules and a 31% increase in new accounts. Products accounted for $3.30 million of the total, while Services contributed $234,000. The growth underscores commercial traction, with over 151,000 patients using the flagship product as of September 30.

Earnings/Net Income

The company narrowed its per-share loss to $0.17 from $2.79 in Q3 2024, a 93.9% improvement. However, the net loss widened to $7.92 million, a 36.7% increase from $5.79 million in the prior-year period. The EPS progress reflects operational efficiency, but rising R&D and operating expenses—particularly a $6.1 million investment in Canon collaboration—offset gains.

Post-Earnings Price Action Review

CapsoVision’s stock gained 2.53% in intraday trading, 18.13% weekly, and 20.90% month-to-date. The rally aligns with management’s emphasis on Breakthrough Device Designation progress for pancreatic cancer detection and AI analytics development. However, the GAAP EPS of -$0.17 missed estimates by $0.04, and revenue fell short by $0.14 million, creating mixed investor signals. Analysts highlighted the IPO’s $23.4 million in proceeds as a buffer for near-term operations, though the widening net loss raises concerns about long-term sustainability.

CEO Commentary

CEO Johnny Wang highlighted robust CapsoCam Plus® adoption and partnerships, including collaboration with Canon on CMOS sensors. The appointment of David Garcia as SVP of Finance is expected to strengthen capital management. Strategic priorities include FDA regulatory submissions for AI analytics and a Breakthrough Device Designation for pancreatic cancer detection.

Guidance

CapsoVision aims to submit its AI analytics engine for regulatory review by year-end 2025 and advance its colon-capsule program with the FDA. While no revenue or EPS guidance was provided, the company outlined timelines for clinical enrollment and product development, emphasizing expansion into new GI indications.

Additional News

1. Breakthrough Device Designation: CapsoVision submitted a BDD application to the FDA for its pancreatic cancer capsule, aiming to accelerate regulatory review and clinical development.

2. Leadership Addition: David Garcia, a finance executive with 20+ years of experience, joined as SVP of Finance to enhance financial strategy and capital markets engagement.

3. IPO Proceeds: The company raised $23.4 million in July 2025, bolstering cash reserves to $17.8 million as of September 30, supporting R&D and commercial expansion.

Key Dependencies

The company’s near-term success hinges on FDA regulatory timelines, particularly for the AI analytics submission and pancreatic cancer capsule. Technical outcomes from the Canon sensor collaboration and clinical enrollment progress for the colon-capsule study will also shape development milestones over the next 6–12 months.