Pulmonx Corporation's Q2 Earnings Call: Strong International Growth, Challenging US Market

Pulmonx Corporation's Q2 earnings call revealed a mixed sentiment, with strong international revenue growth and innovative initiatives offset by slower US growth and challenges in executing new commercial initiatives. The company reported a record international revenue of $9.1 million, a 32% YoY increase, and a total worldwide revenue of $23.9 million, a 15% YoY increase. However, US revenue growth was limited to 6% and the company revised its full-year 2025 revenue guidance down to $90-$92 million. Pulmonx is focusing on leveraging diagnostic advancements and expanding its patient base through direct-to-patient campaigns and AI screening tools.

Pulmonx Corporation (LUNG) reported its Q2 2025 earnings, revealing a mixed sentiment with robust international revenue growth and innovative initiatives offset by slower U.S. growth and challenges in executing new commercial initiatives. The company reported a record international revenue of $9.1 million, a 32% YoY increase, and a total worldwide revenue of $23.9 million, a 15% YoY increase [1].

However, U.S. revenue growth was limited to 6%, and the company revised its full-year 2025 revenue guidance down to $90-$92 million, reflecting slower-than-expected revenue conversion from U.S. initiatives [1]. This downward revision was attributed to slower procedure volume growth in the U.S., driven by tough year-over-year comparisons, a decline in conventional StratX scans, and operational pressures at interventional pulmonology centers [1].

Pulmonx is focusing on leveraging diagnostic advancements and expanding its patient base through direct-to-patient campaigns and AI screening tools. The company highlighted measurable traction, with 1/3 of the patients treated in 2025 engaged through these campaigns [1]. Additionally, Pulmonx reported a rebound in StratX referrals to record levels in June and July, supported by early positive signals from new commercial pathways and partnerships [1].

Despite strong international results, management acknowledged the need for targeted cost efficiency measures to manage expenses. Gross margin expectations for 2025 remain at approximately 74%, and operating expense guidance was lowered to $128 million–$130 million [1]. International performance is expected to moderate in the second half, with continued momentum in direct markets and lower distributor revenue, particularly from China [1].

Analysts questioned the realism of the revised guidance and the pace of U.S. recovery, with some expressing a slightly negative to neutral sentiment. Management maintained a confident tone in prepared remarks, emphasizing strategic progress and long-term opportunity, but showed caution in Q&A, citing significant variability and a multivariant problem in U.S. recovery [1].

Pulmonx's strategic focus shifted to recalibrating timelines for commercial initiatives, particularly direct-to-patient and LungTraX Detect rollouts, compared to prior optimism about acceleration in the back half. The company is doubling down on commercial execution, direct-to-patient outreach, and ecosystem-building efforts, maintaining confidence in long-term growth potential while exercising transparency and caution around near-term conversion timelines and capacity constraints in the U.S. market [1].

References:
[1] https://seekingalpha.com/news/4475076-pulmonx-revises-2025-revenue-target-to-90m-92m-as-u-s-initiatives-ramp-slower-while
[2] https://www.nasdaq.com/articles/pulmonx-lung-q2-revenue-rises-15