1Revenue declined 52.6% to $15.2M from $32.1M primarily due to lower sales and marketing investment as the Company shifted to a 'business to business to customer' strategy, distributor transitions in Q2 2025, and temporary sales suspension in France.
2Gross profit fell 55.5% to $9.6M (62.8% margin) reflecting decreased revenue and gastric balloon sales volume coupled with lower production volumes.
3Operating loss improved 39.9% to -$30.2M from -$50.2M, demonstrating operating leverage as losses narrowed relative to prior year amid revenue contraction.
4Net loss widened to -$28.8M (-299.5% YoY) from -$7.2M, with diluted EPS at -$3.81 versus -$3.20, driven by non-operating items amid ongoing investments.
5Gross profit decrease stemmed from lower revenue and sales volume of the gastric balloon system, with cost of revenue reflecting fewer balloons sold partially offset by unabsorbed manufacturing labor and overhead from reduced production.
6Cash used in operations eased to -$28.9M from -$42.3M, yielding free cash flow of -$29.6M after $0.6M capex, as the Company focused investment policy on capital preservation and liquidity support.
7Management implemented Q3 2025 workforce reduction to drive expected G&A expense declines in 2026, supporting ongoing cost reduction initiatives.