CVRx’s CPT Code Shift and Trial Launch Could Triple Its Market

Date of Call: Feb 12, 2026

Financials Results

• Revenue: Q4: $16M, up 4% YOY. Full Year: $56.7M, up 10% YOY.
• EPS: Q4 net loss of $0.46 per share, compared to net loss of $0.43 per share in Q4 2024.
• Gross Margin: 86% in Q4, compared to 83% in the prior year.

Guidance:

• Full year 2026 total revenue expected between $63M and $67M.
• Full year 2026 gross margin expected between 84% and 86%.
• Full year 2026 operating expenses expected between $103M and $107M.
• Q1 2026 total revenue expected between $13.7M and $14.7M.

Business Commentary:

Revenue and Market Growth:

• CVRx reported Q4 revenue of $16 million, representing a 4% increase, and full-year revenue of $56.7 million, a 10% increase.
• Growth was driven by investments in strengthening the sales organization, refining the go-to-market approach, and expanding into new sales territories and accounts.

Sales Force and Strategic Priorities:

• CVRx expanded to 53 territories with 252 active implanting centers, up 10% and 13%, respectively.
• The expansion and transformation of the sales force were part of strategic priorities to build a world-class sales organization and drive deeper adoption in targeted centers.

Category 1 CPT Code Impact:

• The transition to Category 1 CPT codes, effective January 1, 2026, is expected to improve patient access and reimbursement predictability.
• This change aims to eliminate automatic prior authorization denials associated with Category III codes and formalizes implanting physician payment.

BENEFIT-HF Trial and Market Opportunity:

• The initiation of the BENEFIT-HF trial, with enrollment expected in Q2 2026, could potentially triple CVRx's addressable market to approximately $30 billion.
• The trial's success may significantly expand the prevalence-based addressable market by including patients with higher ejection fractions and NT-proBNP levels.

Financial Outlook and Guidance:

• For the full year of 2026, CVRx expects total revenue between $63 million and $67 million, with Q1 revenue projected between $13.7 million and $14.7 million.
• This guidance reflects expected benefits from the Category 1 CPT codes and the anticipated acceleration in sales productivity as the sales team matures.

Sentiment Analysis:

Overall Tone: Positive

• "We delivered fourth quarter revenue of $16 million and full year revenue of $56.7 million, representing growth of 4% and 10%, respectively." "2025 was a year of important and necessary investment... that position us for growth ahead." "We believe these initiatives will support our accelerated growth." "We have several catalysts in place that we believe will drive improved performance."

Q&A:

• Question from John Young (Canaccord Genuity Corp.): On BENEFIT-HF, can you talk about the initial sites? Will these be new or existing commercial sites? And what's the overlap in the current indication? Will there be any revenue generation from the cases?
  Response: The trial will involve a mix of centers already using Barostim and some new to commercial implantation. Approximately 1,600-1,700 devices will be sold and reimbursed by Medicare/Medicare Advantage as part of the trial.

• Question from John Young (Canaccord Genuity Corp.): The growth of active accounts in Q4 was low sequentially. How should we expect that to trend through 2026?
  Response: Guidance assumes adding ~3 active territories per quarter in 2026, expecting high single-digit net account adds each quarter.

• Question from Unknown Analyst (William Blair, on for Brandon Vazquez): On BENEFIT-HF, do you see any scenario where chatter around the trial can be a tailwind for the core business while it's ongoing?
  Response: Yes, the trial will create significant goodwill and credibility, signaling confidence in the therapy and exciting the heart failure community, though no significant revenue contribution is expected in the next year.

• Question from Unknown Analyst (William Blair, on for Brandon Vazquez): Can you share any anecdotal examples on how Category 1 code has helped lower barriers to treatment and how the tailwind will build?
  Response: Early transition shows payers who previously rejected 100% of prior authorizations are now beginning to approve them, and Medicare Advantage approval rates are higher and faster. It will take several quarters to complete the transition.

• Question from Unknown Analyst (Piper Sandler, on for Matthew O'Brien): What gives you the confidence in the 11% to 18% top line growth guide for 2026, and what's contemplated in the low and high ends?
  Response: Confidence stems from seeing sequential growth from Q1 2025 through Q4 as new reps gained productivity, expecting a seasonal dip from Q4 to Q1 but return to sequential growth thereafter.

• Question from Lilia-Celine Lozada (JPMorgan Chase & Co): Can you talk about what you've seen in getting reps up the productivity curve and the pace of improvement in 2026?
  Response: Reps are increasingly productive with more territories activated and revenue units per territory rising. Expect more reps to reach 1 implant per month, building flywheels for sustained growth.

• Question from Lilia-Celine Lozada (JPMorgan Chase & Co): You've had strong gross margins. Is there any reason for the guide of 84%-86% in 2026, and what are the key drivers?
  Response: The guide assumes U.S. average selling prices around $31,000 (vs. >$31,000 in 2025) and continued manufacturing efficiencies lowering cost per unit, though further cost declines from increased volume are not baked in.

• Question from Frank Takkinen (Lake Street Capital Markets): How do you expect the HFmrEF cohort to react to the technology, and is a more durable response expected from earlier-stage patients?
  Response: HFmrEF patients should respond similarly to HFrEF patients as it's the same disease with lower event rates. The trial is designed to prove a difference in both populations.

• Question from Frank Takkinen (Lake Street Capital Markets): For the guide, is low end vs. high end more dependent on center activation or same-store sales?
  Response: Priority is deeper adoption at existing centers (flywheel effect) to increase same-store sales, with new territory/center adds also contributing, but growth is expected mainly from deeper adoption.

• Question from Chase Knickerbocker (Craig-Hallum Capital Group): What do the top high-volume accounts have in common, and what resonates with them?
  Response: Top accounts have supportive CEO/CFO, multiple heart failure specialists, a pool of cardiologists for referrals, and redundant surgeons for consistent implantation, creating a sustainable flywheel.

• Question from Chase Knickerbocker (Craig-Hallum Capital Group): What's the age of those top accounts?
  Response: They range from as new as 9-12 months to several years, but all have taken over 6 months to establish the necessary network and flywheel.

• Question from Chase Knickerbocker (Craig-Hallum Capital Group): What portion of BENEFIT-HF enrollment do you expect to be OUS, and how is that treated?
  Response: Very small number of centers, primarily a U.S.-focused Medicare trial with Category B reimbursement. OUS enrollment is not revenue-generative and is treated as expense.

• Question from Chase Knickerbocker (Craig-Hallum Capital Group): Any thoughts on the path to profitability and managing the business to profitability over the medium term?
  Response: Path to profitability is about driving faster top-line growth than SG&A growth via increased sales productivity. With $86M in cash and access to more via debt milestones, capital is not a concern.

Contradiction Point 1

Sales Rep Productivity Outlook

Contradiction on whether new sales reps are near full productivity.

Can you comment on recent market trends? - Robbie Marcus (JPMorgan)

2025Q4: Positive momentum continues from 2025, with more reps reaching activation state and accounts achieving 1 implant per month. - [Jared Oasheim](CFO)

How is sales rep productivity progressing, and what is the expected rate of improvement in 2026? - Samantha Munoz (Piper Sandler)

20251106-2025 Q3: More reps than ever before contributed implants in Q3. The new hires are 'pleasingly' ramping up, but they are nowhere near full productivity yet. - [Kevin Hykes](CEO)

Contradiction Point 2

2026 Revenue Growth Guidance

Contradiction on the expected growth rate for 2026.

Matthew O'Brien (Piper Sandler), what are your key questions for the quarter? - Matthew O'Brien (Piper Sandler)

2025Q4: The guide reflects an expected seasonal dip from Q4 to Q1 2026, followed by a return to sequential growth throughout the year. - [Jared Oasheim](CFO)

What factors support the 11%-18% 2026 revenue guidance and differentiate its low and high ends? - John Young (Canaccord Genuity)

20251106-2025 Q3: The company is coming off ~10% growth (midpoint) in 2025 and anticipates continued investment, targeting mid-teens growth for 2026, with potential to accelerate to longer-term targets of higher mid-20% growth in 2027 and beyond. - [Jared Oasheim](CFO)

Contradiction Point 3

Sales Force Growth Strategy and Territory Adds

Contradiction on the pace and priority of sales force expansion.

What is John Young's earnings call question? - John Young (Canaccord Genuity)

2025Q4: The company expects to add around 3 active territories per quarter... leading to high single-digit net account adds per quarter in 2026. - [Jared Oasheim](CFO)

How will active accounts growth in Q4 trend through 2026? - Frank Takkinen (Lake Street Capital Markets, LLC)

2025Q3: The company will continue to add ~3 new sales territories per quarter as a baseline, with potential for increase later. - [Kevin Hykes](CEO)

Contradiction Point 4

Gross Margin Guidance and Drivers

Contradiction on the primary driver of gross margin improvement.

What are your thoughts on the earnings report? - Robbie Marcus (JPMorgan)

2025Q4: The guide is conservative, assuming U.S. average selling prices (ASPs) around $31,000 versus the >$31,000 seen in 2025. Continued manufacturing efficiencies and potential cost per unit reduction... are possible but not baked into the base case. - [Jared Oasheim](CFO)

Why is the 2026 guidance 84%-86% despite recent gross margins above 86%? What are the key drivers? - Rohin Patel (JPMorgan Chase & Co.)

2025Q3: The margin increase was driven by a mix of higher average selling prices (ASPs, >$31k globally in Q3 vs. <$30k last year) and decreased cost per unit due to manufacturing efficiencies. The larger contributor was cost improvement. - [Jared Oasheim](CFO)

Contradiction Point 5

Sales Rep Productivity Ramp-Up Timeline

Timeline for new sales reps to reach full productivity appears to have shifted.

What are your thoughts on the earnings report? - Robbie Marcus (JPMorgan)

2025Q4: The expectation is for reps to focus on building sustainable programs... to drive deeper adoption and increased productivity. - [Jared Oasheim](CFO)

What are the current trends in sales rep productivity and the expected improvement rate by 2026? - Samantha Munoz (Piper Sandler & Co.)

2025Q2: Productivity ramp-up takes 6-12 months, with reps having cardiovascular/heart failure experience... contributing faster (closer to 6 months). The company has added resources to training and onboarding to accelerate this process. - [Kevin Hykes](CEO)