STXS · Stereotaxis, Inc.

Stereotaxis' Q1 2026 results reflect a transitional period with revenue declining 16% year-over-year to $6.3 million, driven by system revenue dropping to $1.3 million from partial recognition on one Genesis system installation and recurring revenue falling to $5.0 million amid the wind-down of the Johnson & Johnson catheter relationship. New proprietary MAGiC catheter contributions remain modest despite demand exceeding supply, as manufacturing ramps toward 500 units monthly by year-end. Gross margins held at 60%, supported by higher recurring margins of 66%, though system margins were 39%. Operating expenses of $9.8 million included $3.1 million in non-cash items, yielding adjusted expenses of $6.7 million, nearly flat year-over-year. The resulting GAAP operating loss of $6.0 million and net loss of $5.9 million were comparable to prior year, with adjusted figures showing slight widening to ($2.9) million. Cash burn increased with negative free cash flow of $3.5 million, leaving $14.6 million in cash and no debt at quarter-end. Management highlights regulatory wins with FDA approval for the MAGiC catheter in January and Synchrony digital OR system in April, plus a definitive agreement to acquire Robocath for expanded robotic capabilities across endovascular procedures. These position Stereotaxis for a 'structural transformation' in disposables and capital sales, including upcoming GenesisX placements. Forward guidance signals optimism with double-digit full-year revenue growth to over $40 million, sequential acceleration, and Q3/Q4 exceeding $10 million each, while aiming for profitability without major dilution.