Stereotaxis Q3 2025: Contradictions Emerge on Commercial Team Expansion, MAGiC RF Adoption, and Revenue Forecasts

Date of Call: November 11, 2025

Financials Results

• Revenue: $7.5M (Q3 2025); system $1.9M and recurring $5.6M (prior-year Q3 system $4.4M and recurring $4.8M)
• Gross Margin: 55% of revenue (Q3 2025); recurring gross margin 67%, system gross margin 19%

Guidance:

• Q4 revenue expected to exceed $9M with system revenue ~ $3M and recurring revenue > $6M.
• Full-year 2025 expected to deliver >20% annual revenue growth (in line with prior guidance).
• 2026 directional: quarterly revenue expected to surpass an average of $10M per quarter.
• Expect sustained growth in systems and recurring revenue through 2026 as Genesis backlog, GenesisX launch and catheter adoption scale.
• Synchrony expected to contribute at least a couple million dollars of revenue in its first year.

Business Commentary:

• Revenue Growth and Diversification:
• Stereotaxis reported $7.5 million in revenue for Q3, with system revenue at $1.9 million and recurring revenue at $5.6 million.
• The growth was driven by the launch of new catheters like MAGiC Sweep and Map-iT catheters, contributing to the company's strategy to expand its razor-razorblade business model.

• Innovation and Product Approvals:
• The company received FDA approval for the GenesisX system, marking a significant milestone in its efforts to expand its robotic system potential.

• This approval follows a successful PMA submission and is part of Stereotaxis' strategy to develop advanced robotic systems to enhance its competitive position in the market.

• International Expansion and Market Penetration:

• Two new Genesis robots were ordered by European hospitals, adding to the existing system backlog.
• This reflects the company's strategy to focus on international markets, particularly in Europe, where it has a more complete product ecosystem approval and commercialization.

• Catheter Revenue and Market Impact:
• The MAGiC Sweep catheter contributed over $300,000 in revenue within two months of its launch.
• This success is attributed to its unique clinical benefits in high-density mapping and the company's strategy to expand its portfolio of proprietary catheters to drive recurring revenue growth.

Sentiment Analysis:

Overall Tone: Positive

• Management described the GenesisX FDA approval as a "landmark" and said "we are in an exciting period with a lot of progress." They announced Q4 revenue >$9M and forecast 2026 quarterly revenue averaging >$10M, highlighted new catheter revenue (>$300k MAGiC Sweep in first two months) and multiple commercial wins and CE/FDA progress.

Q&A:

• Question from Joshua Jennings (TD Cowen): Congratulations on the GenesisX approval. Update on the sales pipeline for GenesisX, pent-up demand in the U.S., and how we should think about the mix of orders going forward—more GenesisX placements next year or continued Genesis placements replacing Niobe systems?
  Response: GenesisX is additive to Genesis; Genesis demand should continue at ~1–2 systems/quarter while GenesisX—once fully launched—should generate materially higher order rates.

• Question from Joshua Jennings (TD Cowen): Will GenesisX be sold at a similar price to Genesis or at a premium, and will 2026 assume GenesisX sales into non-EP accounts (neurovascular/endovascular) or will that occur later?
  Response: GenesisX will be priced at a premium (same ballpark as Genesis); expect initial non‑EP use in 1–2 centers next year with broader non‑EP adoption following guide catheter/guidewire regulatory approvals.

• Question from Adam Maeder (Piper Sandler & Co.): You indicated a limited U.S. launch for GenesisX—when should we expect transition to a full launch? Any timeline update on MAGiC RF approval in the U.S.?
  Response: Full launch transition likely early next year (by spring conferences) contingent on MAGiC approval and manufacturing ramp; MAGiC PMA interactions are progressing and the company views the review positively.

• Question from Adam Maeder (Piper Sandler & Co.): For your 2026 directional commentary (avg >$10M/quarter), how should we model the revenue mix between systems and consumables/recurring?
  Response: Consumables/recurring should scale relatively linearly as catheters ramp; systems will be lumpy but are expected to be in the teens/high‑teens dollars and represent roughly 30–50% of total revenue.

• Question from Frank Takkinen (Lake Street Capital Markets): Can you detail the FDA questions on MAGiC you responded to in Q3 and whether any significant issues remain or any feedback since the submission?
  Response: FDA's questions were comprehensive across PMA modules (clinical, biocompatibility, labeling, technical testing); company fully responded, saw nothing troubling, and views the review as progressing constructively.

• Question from Frank Takkinen (Lake Street Capital Markets): The original Q4 disposables/service expectation was about $7M and now you guided to at least $6M—what changed in assumptions?
  Response: Assumptions changed due to timing of device approvals and geography-by-geography launches; MAGiC Sweep ramp in the U.S. is strong but approval timing for other devices shifted near-term disposable revenue assumptions.

• Question from Kevin (ROTH Capital Partners) on behalf of Kyle Bauser: With GenesisX and new catheters, how should we think about growth in commercial headcount over the next 12–24 months?
  Response: Commercial headcount (~40 today) will grow materially on the clinical side to support catheter scaling (moving toward ~1 clinical rep per hospital) and add a small number of dedicated capital reps as GenesisX full launch scales.

• Question from Kevin (ROTH Capital Partners) on behalf of Kyle Bauser: Beyond MAGiC and Map‑iT, what longer‑term opportunities exist to expand the disposables portfolio?
  Response: Company plans continuous catheter innovation across three pillars—MAGiC (robotic ablation/mapping), endovascular guidewires/guides/stents, and Map‑iT diagnostic catheters—with additional pipeline projects in development.

Contradiction Point 1

Commercial Team Expansion and Strategy

It involves differing statements on the commercial team expansion strategy, which impacts the company's sales and revenue growth projections.

How should we think about commercial organization headcount expansion over the next 12-24 months? - Unknown Analyst (ROTH Capital Partners)

2025Q3: Commercial team expansion planned in parallel with catheter revenue growth. Targeting a one-to-one relationship between clinical reps and hospitals. Additional capital reps anticipated as GenesisX scales. - David Fischel(CEO)

Can you outline your financing plans and potential use of proceeds? How will the new products impact your commercial strategy and headcount? - Adam Carl Maeder (Piper Sandler & Co., Research Division)

2025Q2: The company is leveraging a lean commercial team, with plans to expand once new products launch successfully. The team currently comprises 40 members, with 20 in the U.S., 15 in Europe, and 5 in Asia. - David Leo Fischel(CEO)

Contradiction Point 2

MAGiC RF and Sweep Launch and Adoption

It involves differing statements on the timeline and expected adoption of MAGiC RF and Sweep products, which impacts revenue projections and market positioning.

Are there additional opportunities to expand the disposables business and grow the portfolio? - Unknown Analyst (ROTH Capital Partners)

2025Q3: MAGiC RF in Europe has started in about 30% of accounts, showing usage across all procedure categories, from simpler cases to complex ones. The goal is to expand its adoption across all European accounts. - David Fischel(CEO)

Can you share details on MAGiC RF's usage and the MAGiC Sweep timeline in Europe? - Adam Carl Maeder (Piper Sandler & Co., Research Division)

2025Q2: In Q2, we launched MAGiC RF in Europe. And the data is now showing that we have achieved in 17 accounts using MAGiC RF in about 30% of those accounts. - David Leo Fischel(CEO)

Contradiction Point 3

System Revenue and Recurring Revenue Projections

It involves differing statements on the expected revenue mix and growth for system and recurring revenue, which impacts financial forecasting and investor expectations.

Can you clarify the 2026 revenue mix? - Adam Maeder (Piper Sandler)

2025Q3: System revenue expected in mid- to high teens range, with recurring revenue in the low mid-$20 million range. - David Fischel(CEO)

Will procedure numbers see a significant increase and how does this impact recurring revenues? - Frank James Takkinen (Lake Street Capital Markets, LLC, Research Division)

2025Q2: We expect to report between approximately $17 million and $21 million in system revenue for the third quarter of this year, and recurring revenue to be between approximately $12.5 million and $17.5 million. - David Leo Fischel(CEO)

Contradiction Point 4

GenesisX Sales Pipeline and Demand

It directly impacts expectations regarding the sales trajectory and demand for a new product, influencing company revenue and investor expectations.

What is the sales pipeline for GenesisX with the recent U.S. approval? How should we assess the forward-looking order mix? - Joshua Jennings(TD Cowen)

2025Q3: GenesisX is additive to Genesis sales, with new features like compatibility with various x-rays and refined supply chain. Demand for Genesis continues at a pace of 1-2 systems per quarter, with GenesisX expected to have a higher order rate post-full launch. - David Fischel(CEO)

Can you detail the backlog for Genesis and GenesisX systems in the U.S. and Europe and how capital equipment demand is impacting sales? - Adam Maeder(Piper Sandler)

2025Q1: Capital demand varies by region. In the U.S., MAGiC's approval is needed for better sales. In Europe, there's a more robust pipeline for both Genesis and GenesisX. In China, regulatory approval was recently obtained, but macroeconomic instability creates uncertainty. Overall, our business is mainly driven by our internal capabilities, not the broader macroeconomic capital equipment environment. - David Fischel(CEO)

Contradiction Point 5

MAGiC RF and U.S. Market Adoption

It involves differing perspectives on the adoption and market demand for a key product in the U.S. market, which could impact revenue projections and guidance.

When will the limited launch of GenesisX transition to full launch? Any timeline for MAGiC RF approval in the U.S.? - Adam Maeder(Piper Sandler)

2025Q3: Full launch expected within first part of next year, with manufacturing ramp-up and MAGiC RF approval in the U.S. key factors. Manufacturing is progressing steadily. - David Fischel(CEO)

What is the status of FDA review for MAGiC? - Frank Takkinen(Lake Street Capital Markets)

2025Q1: FDA is responsive, addressing detailed questions and comments. The review involves bio-compatibility and sterilization tests. Enrollment in the European study continues to support U.S. submission. - David Fischel(CEO)