Pulmonx's Leadership Shift and Revenue Outlook: A Strategic Inflection Point for LUNG Investors?

In October 2025, Pulmonx Corporation unveiled a significant leadership transition, reappointing Glen French as President and CEO while appointing Derrick Sung as Chief Operating Officer and Chief Financial Officer. This move follows the abrupt resignations of Steve Williamson and Mehul Joshi, who will remain in advisory roles until December 1, 2025, according to a Quiver Quant report. The board has expressed confidence in the new leadership team, citing French's 25 years of experience in interventional pulmonology and Sung's prior role as CFO as stabilizing factors. However, the sudden departure of key executives raises questions about operational continuity and its impact on investor sentiment.

Leadership Transition: Stability or Uncertainty?

The board's rationale for the changes emphasizes strategic clarity and long-term value creation. French, a seasoned leader in the interventional pulmonology space, returns to a role where his expertise aligns with Pulmonx's core therapeutic focus. Sung, who previously served as CFO, brings financial acumen to a leadership team now tasked with navigating a competitive market. Yet, the immediate exit of Williamson and Joshi-both of whom had been instrumental in recent growth phases-has sparked concerns about internal instability. Analysts on platforms like Seeking Alpha note that such abrupt transitions can erode stakeholder confidence, particularly in a sector where consistent leadership is critical for R&D momentum.

Revenue Outlook: Preliminary Figures and Historical Benchmarks

Pulmonx reported preliminary third-quarter 2025 revenue of $21.5 million, a figure that, while indicative of some growth, falls short of the $23.8 million recorded in Q4 2024, as reported in the Pulmonx Q4 2024 results. For context, the company's full-year 2024 revenue reached $83.8 million, reflecting a 22% year-over-year increase. This suggests that Q3 2025's performance may represent a temporary dip rather than a structural decline. However, the preliminary nature of the data and the rescheduling of the Q3 earnings call to November 12, 2025, underscore the need for caution. Investors will likely scrutinize the final numbers for clarity on whether the leadership shift has already impacted operational execution.

Market Reaction: Analyst Optimism vs. Short-Term Volatility

Despite the leadership uncertainty, Wall Street analysts have maintained a cautiously optimistic stance. Four recent "Buy" ratings from firms like D. Boral Capital and Lake Street highlight Pulmonx's long-term potential, with a median price target of $5.00 per share. However, the stock's post-announcement performance remains mixed. While the company's rescheduled earnings call may provide a catalyst for near-term volatility, the broader market appears to prioritize the board's confidence in the new leadership. Bloomberg analysts note that French's deep industry ties could accelerate partnerships or product approvals, which are critical for scaling revenue.

Strategic Implications for Shareholders

The leadership transition and preliminary revenue figures collectively present a dual-edged scenario for LUNG investors. On one hand, the reappointment of French and the return of Sung signal a return to proven leadership, potentially stabilizing operations and restoring investor trust. On the other, the abrupt exit of Williamson and Joshi-and the delayed Q3 results-introduce short-term risks. For now, the market seems to favor the former, as evidenced by the "Buy" ratings and elevated price targets. Yet, the true test will lie in the November 12 earnings call, where the company must demonstrate that the transition has not disrupted its growth trajectory.

Conclusion

Pulmonx's leadership shift represents a strategic inflection point, with the potential to either catalyze or hinder shareholder value creation. While the board's confidence and analyst optimism provide a bullish undercurrent, investors must remain vigilant about the operational and financial risks associated with rapid executive turnover. The coming weeks will be pivotal, as the final Q3 results and the new leadership's strategic roadmap take shape. For now, the balance tilts toward cautious optimism-but not without reservations.