Saluda Shares Fall 1.89% to $0.26 After Revenue Grows 26% and Misses Estimates
Key Facts
Saluda Medical shares fell 1.89% to $0.26 in premarket trading on Oct. 29, compared with a previous close of $0.27, while results for the first quarter of fiscal 2027 showed annual revenue growth of 26%, below market expectations. The results cover the period ended Sept. 30, 2026, contrary to the first draft’s reference to the first quarter of 2026. Investing.com reported the results details from the company’s call transcript and did not attribute the share move to a single cause. The figures combine an expansion in commercial activity with liquidity pressure, while management maintained its annual guidance. It also said the path to profitability will require additional financing.
U.S. revenue was $17.4 million, up 34% year over year, while international revenue rose 7% to $5.8 million, according to the results call transcript published by Investing.com. On activity, the company implanted its devices in 838 patients in the United States during the quarter, a quarterly record. The number of patients with implanted devices increased 55% from the same period a year earlier and 9% from the fourth quarter of fiscal 2026. Management said on the call: "We implanted devices in 838 U.S. patients, a record quarter for Saluda." These indicators show an expansion in implants alongside revenue growth, but they did not prevent revenue from falling short of market estimates.
The average number of active U.S. physicians performing implants rose 47% to 374, while physician utilization increased 5% during the quarter, according to management on the call. The company said the relationship between patient growth and revenue was affected by the timing of customer purchases and by some customers using inventory acquired in previous quarters. It also pointed to an ongoing shift in the account mix toward higher-volume ambulatory surgery centers, where pricing is based on sales volume. Management said that "some customers used inventory in the first quarter that they had purchased in previous quarters," and also linked this to changes in the account mix. These factors offer the company’s explanation for the gap between implant growth and revenue growth, without changing the fact that revenue came in below market estimates.
Cash and cash equivalents fell to $73.6 million at the end of the quarter, from $116.4 million at the end of the previous quarter, according to the call transcript. The company used $42.7 million in cash in operations during the first quarter of fiscal 2027. Chief Financial Officer Jim Hollingshead said the company expects cash use in the remaining three quarters of the fiscal year to return to levels similar to previous quarters, after exceptional payments were concentrated in the first quarter. Management estimated that current cash resources would provide funding through around June 2027 under its current operating plan. It added that reaching profitability will require additional capital, making the cash runway and need for future financing among the quarter’s main considerations.
Saluda reaffirmed its fiscal 2027 guidance, expecting revenue growth of between 25% and 35%, a gross margin of between 50% and 52%, and adjusted EBITDA loss of between $95 million and $101 million. Management said it expects about 90% of the annual increase in gross profit to translate into an improvement in adjusted EBITDA loss during the fiscal year. After the quarter ended, the CAP24 surgical lead entered full commercial launch in the United States. The company estimated the market for surgical spinal cord stimulation leads at about $670 million in U.S. revenue, or about 30% of the U.S. market, according to the call transcript. The CFO said the company would provide more details on sales team productivity after publishing half-year data, alongside full income statement context.