Pulmonx: 3 Key Takeaways for Long-Term Investors

Pulmonx reported a resurgence in its top-line growth during its third-quarter 2026 earnings call held on October 27, 2026. Revenue reached $22.8 million, marking a year-over-year increase.

Management attributed this turnaround to strategic sales realignments and expense controls. Adjusted EBITDA loss, a key financial metric, dropped by nearly 60% year-over-year. This improvement was primarily driven by a reduction in operating expenses, a result of cost-cutting measures initiated at the beginning of the year. The company remains on track to further reduce its expense trajectory in 2026 while continuing to invest in key growth initiatives.

The focus on high-yielding sales accounts in the U.S. contributed to a 7% year-over-year revenue growth in domestic markets. Glendon E. French, President and Chief Executive Officer, emphasized that the company's sharper focus on fewer initiatives is accelerating growth by concentrating on what is most important.

Pulmonx is also expanding its reach by enrolling patients in a trial for AeriSeal, a specialized foam designed to seal lung air leaks. This initiative is expected to expand the company's total addressable market (TAM), potentially growing it by around 20% globally. French expressed confidence that the right people, focus, and culture now in place in the U.S. have rebuilt a foundation for continued revenue growth.

The company's high gross margins, above 75%, and disciplined spending provide financial flexibility. Management closely monitors sales force tenure and clinical trial milestones. With the current capital on hand and accessible, Pulmonx believes it has a clear pathway to achieve cash flow breakeven.