Stereotaxis, Inc. Earnings Call: GenesisX Sales Mix, U.S. Capital Market Signals Don't Align

Date of Call: Mar 9, 2026

Financials Results

• Revenue: Q4: $8.6M, up 36% YOY. Full Year: $32.4M, up 20.4% YOY.
• Gross Margin: Q4 and Full Year: ~50% and 53% respectively.

Guidance:

• Expect double-digit revenue growth in 2026 with annual revenue surpassing $40M.
• Quarterly revenue expected to be below $10M in Q1 and Q2, then above $10M in Q3 and Q4.
• Expect reduced cash use in 2026 compared to 2025, with a working capital benefit.
• Project over $3M in capital revenue from Synchrony system sales in 2026.
• Expect to manufacture approximately 1 GenesisX robot every 2 months, scaling to several dozen per year.
• Plan to scale MAGiC catheter manufacturing from ~100 to ~500 units per month by year-end.

Business Commentary:

Revenue Growth and Regulatory Milestones:

• Stereotaxis reported revenue of $8.6 million for Q4 2025, a 36% increase compared to $6.3 million in the prior year fourth quarter.
• The growth was driven by achieving regulatory approvals for the GenesisX robot, MAGiC Ablation Catheter, and MAGiC Sweep catheter, which have expanded their commercial capabilities.

Manufacturing Challenges and Ramp-Up:

• The company faced challenges in ramping up production of MAGiC catheters, with output initially in the dozens of catheters per month range, far below the required hundreds.
• The issue was attributed to a production change implemented by contract manufacturer Osypka to address yield issues, which caused a temporary shortage.

Commercial Strategy and Economic Models:

• Stereotaxis aims to establish at least 5 active GenesisX programs in 2026, focusing on key opinion leaders in electrophysiology.
• The strategy involves a mix of sales, leases, and placements funded by disposable commitments, reflecting a structural shift from previous sales models.

Synchrony and Digital Surgery Suite:

• The company expects over $3 million in revenue from the Synchrony digital surgery suite in 2026, with FDA clearance anticipated in the coming weeks.
• This reflects strong initial demand and the capital equipment sales model for Synchrony systems, which will be standardized in several hospitals.

Operating Expenses and Financial Outlook:

• Adjusted operating expenses for 2025 were $26.3 million, primarily driven by lower general and administrative expenses.
• Stereotaxis expects stable operating expenses in 2026, with a focus on funding manufacturing ramps and commercial activities, aiming for double-digit revenue growth.

Sentiment Analysis:

Overall Tone: Positive

• CEO stated: 'This has been a year of tremendous progress.' 'We are in a particularly exciting period for Stereotaxis... we are starting to see very positive fruits of our strategy materialize.' 'We are confident they will be overcome and excited by the way things are coming together.'

Q&A:

• Question from Daniel Stauder (Citizens JMP Securities): On the goal of 5 GenesisX programs, is this in addition to still expecting to sell the previous Genesis system? Trying to understand the mix between segments for the full year.
  Response: Yes, expect Genesis sales to continue at similar mid-single-digit pace (~$10M annually) while ramping GenesisX, which is focused on key opinion leader accounts for new technology adoption.

• Question from Daniel Stauder (Citizens JMP Securities): On the $3+ million revenue goal for Synchrony in 2026, what assumptions are included? Is it based on target accounts or timing?
  Response: The guidance is focused on upfront capital sales of Synchrony systems, expecting several hospitals to standardize EP labs with multi-system deals and individual system sales, with pricing around $150k-$200k per system.

• Question from Joshua Jennings (TD Cowen): With MAGiC manufacturing capacity constraints, how are you allocating catheters to specific accounts? Is access to THERMOCOOL RMN still in play?
  Response: Managing supply through collaboration with physicians and commercial team, with users being patient and accommodating the ramp. Administrative efforts are underway with hospitals to secure contracts before supply increases.

• Question from Joshua Jennings (TD Cowen): What needs to be shown to EU regulators for MAGiC compatibility with CardioFocus PFA generator, and what are the timing milestones for EU approval?
  Response: Arguing that compatibility testing between MAGiC and Centauri PFA generator shows no higher risk than existing approved catheters. Regulatory dossier submission to EU notified body is complete, with launch expected by year-end.

• Question from Kyle Bauser (ROTH Capital Partners): Can you talk more about product mix for the $40M+ guidance? What percentage will come from Systems vs. disposables?
  Response: System revenue will have a baseline plus GenesisX growth (mix of sales/leases/disposable commitments). Most revenue growth will come from disposables (MAGIC and MAGIC Sweep), with Synchrony adding capital revenue.

• Question from Kyle Bauser (ROTH Capital Partners): Any initial feedback on switching third-party catheters to MAGIC?
  Response: Transition is challenging due to previous partner, but customer base is excited about MAGIC's navigation, stability, and lesion characteristics. Regulatory approval and manufacturing ramp are progressing to enable a significant revenue ramp.

• Question from Frank Takkinen (Lake Street Capital Markets): What drove the lower Q4 disposable revenue versus guide?
  Response: Primary factors were lower MAGIC catheter manufacturing due to a process adjustment causing high scrap, and transition-related slowdown from J&J catheter.

• Question from Frank Takkinen (Lake Street Capital Markets): What are the different economic models for GenesisX, and how might the mix look long-term?
  Response: Three models: outright sale, lease, or placement with disposable commitments. Pricing is agnostic across models; placements can accelerate adoption and offer attractive returns, similar to Intuitive Surgical's approach.

• Question from Kyle Edward Winborne (Piper Sandler): What are OpEx plans for 2026? Is it stable YOY, and any color on investments?
  Response: Operating expenses expected to be flat YOY, including adjusted OpEx under $30M. Savings from completed regulatory projects will fund investments in commercial activities and manufacturing ramp, with more significant commercial team investments likely in 2027.

• Question from Kyle Edward Winborne (Piper Sandler): What is the opportunity in China for this year, and what is the portfolio outlook?
  Response: Expect first Genesis systems to be sold in China, with MicroPort projecting roughly a handful of systems. Portfolio includes Genesis, robotic catheter, and mapping system with royalty economics. Regulatory submissions for GenesisX and MAGIC are also planned.

Contradiction Point 1

GenesisX Sales Mix and Adoption Pace

Contradiction on whether GenesisX or Genesis will be the primary sales driver, impacting revenue forecasts and investor expectations.

Daniel Stauder (Citizens JMP Securities, LLC) - Daniel Stauder (Citizens JMP Securities, LLC)

2025Q4: Yes, the company expects to continue selling the Genesis system at a similar mid-single-digit pace annually... The GenesisX effort targets KOLs to demonstrate the new technology... - David Fischel(CEO)

Are the 5 GenesisX programs being launched in addition to the existing Genesis system, and how might this impact the full-year revenue mix? - Joshua Jennings (TD Cowen)

20251112-2025 Q3: orders for GenesisX are expected to outpace those for Genesis significantly. - David Fischel(CEO)

Contradiction Point 2

Operating Expense Trajectory

Contradiction on future commercial team investment timing, affecting financial planning and expense forecasts.

Kyle Edward Winborne (Piper Sandler & Co., Research Division) - Kyle Edward Winborne (Piper Sandler & Co., Research Division)

2025Q4: Operating expenses are expected to be flat year-over-year... More significant commercial team investments are anticipated in 2027. - David Fischel(CEO)

What are the 2026 OpEx plans, their year-over-year stability, and any insights into investments in manufacturing and commercial scaling? - Unknown Analyst (ROTH Capital Partners, on behalf of Kyle Bauser)

20251112-2025 Q3: Clinical team growth will be significant to support catheter revenue... as GenesisX scales, dedicated capital reps may be added to drive further growth. - David Fischel(CEO)

Contradiction Point 3

MAGiC Catheter Adoption Timeline in Europe

Contradiction on the reported adoption rate of the MAGiC RF catheter among European accounts, affecting disposable revenue forecasts.

Joshua Jennings (TD Cowen, Research Division) - Joshua Jennings (TD Cowen, Research Division)

2025Q4: Demand is already in place for volumes expected as manufacturing scales from 100 to 500 catheters per month. ... The transition from the previous Johnson & Johnson catheter (THERMOCOOL RMN) has been challenging but is being worked through. - David Fischel(CEO)

Given MAGiC manufacturing ramp constraints, how are catheters being allocated to accounts and is access to the THERMOCOOL RMN catheter still available? - Adam Carl Maeder (Piper Sandler & Co., Research Division)

2025Q2: Approximately 30% of European accounts have now started using the MAGiC RF catheter in procedures (up from about 20% last quarter). It is being used across the full spectrum of procedures... - David Leo Fischel(CEO)

Contradiction Point 4

U.S. Capital Equipment Environment Assessment

Contradiction on the health of the U.S. capital equipment market, influencing capital sales forecasts and market strategy.

Daniel Stauder (Citizens JMP Securities, LLC) - Daniel Stauder (Citizens JMP Securities, LLC)

2025Q4: The guidance focuses on capital sales of Synchrony systems. The company expects several hospitals to standardize their EP labs with Synchrony... and has confidence in selling a decent number of systems. - David Fischel(CEO)

What assumptions underpin the $3+ million revenue goal for Synchrony in 2026, such as target accounts or sales timeline? - Adam Maeder (Piper Sandler)

2025Q1: In the **U.S.**, the ecosystem is less advanced (no MAGiC approval), making it a **challenged market**, but there is a pipeline with one Genesis order in Q1. Interest exists, but **actionable decisions are pending** GenesisX and MAGiC approvals. - David Fischel(CEO)