Ceribell, Inc. (CBLL) - Q2 2026 10-Q Summary
Business Context and Reporting Period
This Quarterly Report on Form 10-Q covers the period ended June 30, 2026. Ceribell, Inc. is a commercial-stage medical technology company developing the Ceribell System, a point-of-care electroencephalography (EEG) platform utilizing AI for the diagnosis and management of seizures and delirium in acute care settings. As of June 30, 2026, the system was deployed in over 700 hospitals. The company is classified as an emerging growth company and a smaller reporting company.
Key Financial Metrics
| Metric (in thousands) | Q2 2026 | Q2 2025 | YTD 2026 | YTD 2025 |
|---|---|---|---|---|
| Total Revenue | $28,097 | $21,199 | $54,591 | $41,690 |
| Gross Profit | $25,938 | $18,682 | $49,060 | $36,689 |
| Gross Margin | 92.3% | 88.1% | 89.9% | 88.0% |
| Net Loss | $(19,268) | $(13,643) | $(39,005) | $(26,420) |
| Operating Cash Flow (YTD) | $(32,160) | $(18,936) | — | — |
| Cash & Marketable Securities | $129,261 | — | — | — |
| Long-Term Debt (Carrying Value) | $19,981 | — | — | — |
Note: Cash and marketable securities as of June 30, 2026, totaled $129.3 million ($32.7M cash + $96.6M securities).
Material Changes vs. Prior Period
- Revenue Growth: Total revenue increased 33% year-over-year (Q2) and 31% year-over-year (YTD). Product revenue grew 33% (Q2) driven by new customer acquisition and increased utilization of Wearables. Subscription revenue grew 30% (Q2) due to new customer additions.
- Expense Increases: Operating expenses rose significantly, increasing 37% in Q2 and 36% YTD.
- Sales & Marketing: Increased 40% (Q2) and 32% (YTD) primarily due to headcount expansion.
- General & Administrative: Increased 30% (Q2) and 41% (YTD), driven by headcount and a $6.8 million increase in professional services related to intellectual property enforcement (Natus litigation).
- R&D: Increased 39% (Q2) and 42% (YTD) due to personnel expansion.
- Tariff Refunds: The company recognized $1.6 million in refunds related to invalidated IEEPA tariffs. $1.0 million reduced cost of goods sold, and $0.6 million was capitalized in inventory.
- Net Loss: Net loss widened to $19.3 million in Q2 (from $13.6 million in Q2 2025) and $39.0 million YTD (from $26.4 million YTD 2025), reflecting the acceleration in operating expenses outpacing revenue growth.
Guidance, Outlook, and Risks
- Liquidity: Management believes existing cash, cash equivalents, and marketable securities ($129.3 million) are sufficient to fund operations for at least the next 12 months.
- Subsequent Financing Event: On August 5, 2026, the company entered into a new Credit Agreement with MidCap Funding IV Trust. This agreement provides a $30.0 million term loan commitment and a $20.0 million revolving facility. The company borrowed $20.0 million under the revolver to repay its previous Venture Loan and Security Agreement (VLSA) in full, terminating the VLSA.
- Legal Proceedings: The company is engaged in patent infringement litigation against Natus Medical Incorporated. Trial proceedings at the USITC concluded in June 2026, with an initial determination expected by November 2026. The company has a commitment to pay $2.9 million in deferred legal fees contingent on a favorable outcome or settlement.
- Risks: Key risks include the ability to achieve profitability, dependence on third-party payers for reimbursement, supply chain disruptions (manufacturing in China/Vietnam), and the outcome of ongoing IP litigation. The company maintains a full valuation allowance against net deferred tax assets.
Investor Verification Checklist
- Debt Restructuring: Verify the terms and covenants of the new August 5, 2026 Credit Agreement, specifically the financial covenants requiring minimum trailing 12-month net revenue of $70.0 million or minimum unrestricted cash of $65.0 million.
- IP Litigation Status: Monitor the USITC initial determination expected in November 2026 regarding the Natus patent infringement case and the potential impact of the $2.9 million deferred legal fee commitment.
- Reimbursement Landscape: Review the status of the New Technology Add-On Payment (NTAP) for the Delirium Monitor System (effective Oct 1, 2026) and its impact on hospital adoption rates.
- Operating Leverage: Assess whether the significant increase in Sales & Marketing and G&A expenses (driven by headcount and legal fees) will yield proportional revenue growth in future quarters to narrow the net loss.
- Supply Chain: Evaluate exposure to geopolitical risks and tariffs given reliance on contract manufacturers in China and Vietnam.