CeriBell Revenue Rises 30% to $29.3 Million in Third Quarter
Key Facts
CeriBell reported on November 3 results for the third quarter ended September 30, 2026, posting revenue of $29.3 million, up 30% from the year-earlier period. The company said sales growth came alongside record use within existing accounts and increased adoption of its system among new and current customers. Operating expenses, meanwhile, rose faster than revenue, and the net loss widened to $21.4 million. The results reflect continued expansion of the company’s core business alongside investment and pressure on profitability. Management also raised its full-year revenue outlook, citing continued demand momentum.
Third-quarter revenue comprised $22.2 million from products, up 31% from $17.0 million a year earlier, and $7.1 million from subscriptions, up 28% from $5.6 million. The company ended the period with 747 active accounts after adding 35 net new customers during the quarter. Chief Executive Jane Chao said results set new records for account additions and use within the existing customer base. She added that the strength of the core seizure-monitoring business represents a “sustainable growth engine.” The company also reported double-digit year-over-year growth in comparable use, supporting revenue growth from existing customers alongside expansion of its account base.
Gross margin was 90% in the third quarter, compared with 88% in the same period of 2025. The company attributed the margin improvement to lower manufacturing costs and operating a fully operational manufacturing line in Vietnam. Operating expenses, however, rose 36% to $46.9 million from $34.6 million a year earlier. The company said the increase was tied to commercial and research and development investments, stock-based compensation, and legal costs to enforce intellectual property rights. Net loss was $21.4 million, or $0.55 per share, compared with $13.5 million and $0.37 per share a year earlier. The company also posted adjusted earnings before interest, taxes, depreciation and amortization loss of $12.1 million, compared with $9.2 million in the third quarter of 2025.
Compared with the previous quarter, revenue rose from $28.1 million in the second quarter to $29.3 million in the third, while net loss increased from $19.3 million to $21.4 million. Revenue had grown 33% year over year in the second quarter, from $21.2 million to $28.1 million. In an August announcement, the company had raised its annual outlook at the time to a range of $114–117 million. The range announced now is $115–117 million, with expected annual growth of about 29%–31%. The company said the outlook does not include material contributions from its neonatal and pediatric products or delirium-monitoring solution.
CeriBell ended September with $117.5 million in cash, cash equivalents and marketable securities. In August, it entered into a credit facility providing up to $60 million in committed capital, split between a term loan and a revolving credit facility. An additional $25 million in uncommitted financing is available under the arrangement, at the lender’s discretion. This liquidity and available financing provide resources to continue investing in commercial operations and development as losses widen. The coming results will continue to test whether revenue and usage growth can offset rising operating expenses.
The company announced the full commercial launch of its delirium-monitoring solution after what it described as a successful commercial trial, and said a new hardware platform will be introduced later. The launch came a day before the results announcement, alongside the announcement by the U.S. Centers for Medicare & Medicaid Services of an additional reimbursement of up to $2,171 per eligible case using the solution, effective October 1, 2026. The company said delirium affects about 30% of intensive care patients, and the rate can reach 80% among patients receiving mechanical ventilation. Its system combines seizure and delirium monitoring in one device. In the stock market, the company’s shares closed at $26.96 on November 2, while an Investing.com report said the stock fell 4.53% in after-hours trading on November 3 to $26.99, after the regular session closed at $28.27.