CVRx 2025 Q2 Earnings Slight Earnings Improvement Amid Sustained Losses

CVRx reported mixed earnings results, with a slight improvement in per-share losses and revenue growth. The company maintained its full-year revenue guidance and trimmed operating expense ranges, signaling cautious optimism for 2025.

Revenue
CVRx’s total revenue rose by 15.1% year-over-year to $13.59 million in the second quarter of 2025. In the U.S., Heart Failure (HF) revenue, the company’s core business, grew to $12.1 million, up 15% from the prior year. The increase was driven by expansion into new sales territories, new accounts, and rising awareness of Barostim among physicians and patients. Active implanting centers in the U.S. grew to 240, a 27% increase since June 2024. Revenue from Europe also increased by 19%, reaching $1.3 million, although total revenue units declined slightly due to lower device sales in the region.

Earnings/Net Income
Despite the revenue boost, the company’s net loss widened to $14.74 million in Q2 2025, or $0.57 per share, from $14.03 million, or $0.65 per share, in the same period in 2024, representing a 5.0% increase in the net loss. However, the per-share loss improved by 12.3%, indicating a slight narrowing of losses on a per-share basis. CVRx has now posted losses for six consecutive years in this quarter, underscoring ongoing financial challenges.

Price Action
The stock price of CVRx declined sharply following earnings, with an 8.29% drop on the latest trading day and a 17.62% decline during the most recent full trading week. However, it managed a modest 3.42% gain month-to-date.

Post-Earnings Price Action Review
The buy-and-hold strategy of purchasing CVRX following an earnings beat and selling after 30 days led to a substantial loss of -62.75%, significantly underperforming the benchmark by 102.12%. The strategy showed a maximum drawdown of 0% and a negative Sharpe ratio of -0.25, highlighting the high risk and volatility associated with this approach.

CEO Commentary
Kevin Hykes, President and CEO of CVRx, emphasized the company’s strong second-quarter performance and highlighted key growth drivers, including sales force transformation and the expansion of Barostim programs. He also noted progress in clinical evidence and favorable reimbursement updates, including the Centers for Medicare & Medicaid Services (CMS) proposal to retain Barostim in the New Technology APC 1580 with a $45,000 payment for outpatient procedures. Hykes expressed optimism about the company’s mature commercial organization and its potential for continued growth.

Guidance
CVRx provided updated full-year 2025 revenue guidance between $55.0 million and $57.0 million, slightly narrowing from previous estimates. The company expects a gross margin of 83% to 84% and operating expenses between $96.0 million and $98.0 million. For the third quarter, CVRx projects total revenue in the range of $13.7 million to $14.7 million.

Additional News
The company announced the appointment of Brent Binkowski as Chief Operating Officer, a newly created role. Binkowski brings over 20 years of leadership experience in the medical device industry, with expertise in implantable devices across various therapeutic areas. His responsibilities include overseeing research and development, operations, regulatory affairs, and quality functions. This leadership addition is expected to strengthen the company’s operational and strategic capabilities as it continues to scale. Additionally, CMS proposed favorable reimbursement updates, including retaining Barostim in the New Technology APC 1580 and favorable physician fee payment levels tied to new Category I CPT codes, which are set to take effect in 2026. These developments could enhance patient access and support the company’s commercial growth.