CeriBell, Inc.'s Q2 2025 Earnings: Unpacking Contradictions on Margins, Market Expansion, and Growth Strategy

Impact of tariffs on gross margin, pediatric Clarity market expansion, expansion into the neonatal market, sales infrastructure and growth expectations, and gross margin expectations are the key contradictions discussed in CeriBell, Inc.'s latest 2025Q2 earnings call.



Revenue and Account Growth:
- Ceribell reported total revenue of $21.2 million for Q2 2025, representing a 38% year-over-year increase.
- The company also increased its full year 2025 revenue guidance to $85 million to $88 million, reflecting a year-over-year growth of 30% to 34%.
- The growth was driven by commercial expansion, which led to increased adoption of the Ceribell System across new and existing accounts.

Gross Margin and Supply Chain Strategy:
- Ceribell maintained a gross margin of 88% for Q2 2025, reflecting an improvement over the prior year.
- The company's strategy to diversify its supply chain by establishing production in Vietnam is expected to help maintain industry-leading gross margins despite the current trade environment.

Clinical and Market Expansion:
- Ceribell's pilot for the NICU population using FDA-cleared hardware showed promising ease of use and signal quality, validating the potential market need and supporting future development efforts.
- The company is also advancing its technology for delirium management, with positive reception from key opinion leaders, indicating a potential new market opportunity.

Legal Action and Intellectual Property Protection:
- Ceribell filed complaints against Natus Medical Incorporated for patent infringement, seeking financial damages and an injunction against further infringement.
- The action is part of the company's strategy to protect its intellectual property rights, with potential near-term effects including expedited resolution via the ITC forum.