CapsoVision (NASDAQ:CV) Releases Earnings Results

CapsoVision (NASDAQ:CV) posted its earnings results on Thursday. The company reported ($0.15) earnings per share (EPS) for the quarter, hitting the consensus estimate of ($0.15), Zacks reports. CapsoVision had a negative net margin of 214.74% and a negative return on equity of 177.85%. The business had revenue of $3.57 million for the quarter. During the same period in the previous year, the company earned ($0.17) earnings per share.

Here are the key takeaways from CapsoVision’s conference call:

• AI Highlights received FDA clearance and launched in the U.S. on November 2. Management cited encouraging early physician feedback and believes the software can improve review speed and accuracy, though the U.S. launch is still too recent to assess its commercial impact.
• CapsoVision completed enrollment and data collection for the CapsoCam Colon clinical study and remains on track to submit to the FDA before year-end 2026. The company said a statistician is analyzing the data, so key results have not yet been reported.
• Third-quarter revenue increased just 1% year over year to $3.6 million, while gross margin fell to 49% from 54%, reflecting higher flash-memory costs, an inventory obsolescence charge, and stock-based compensation. Shipments rose slightly and the company added 34 accounts, but management also cited a competitive U.S. pricing environment.
• Operating expenses declined to $9.1 million from $9.9 million, and net loss narrowed to $7.3 million from $7.9 million. Management expects clinical expenses tied to the now-completed colon study to decrease, though continued pipeline investment remains a cost.
• CapsoVision ended September with $21.8 million in cash, including approximately $17.8 million in net proceeds from an $18 million offering, which management said extends its cash runway. It also raised $1.7 million through its ATM facility, which may provide flexibility but involves issuing additional shares.

CapsoVision Stock Performance

Shares of CV stock traded down $0.26 on Friday, reaching $6.01. 45,170 shares of the company were exchanged, compared to its average volume of 230,874. The company has a market cap of $301.05 million, a price-to-earnings ratio of -12.54 and a beta of -2.34. The business has a 50-day moving average price of $6.52 and a 200 day moving average price of $6.36. CapsoVision has a 1 year low of $4.50 and a 1 year high of $15.37.

Insider Activity

In related news, major shareholder Eliyahou Et Al Harari purchased 1,757,469 shares of the firm’s stock in a transaction that occurred on Friday, September 18th. The shares were purchased at an average cost of $5.69 per share, with a total value of $9,999,998.61. Following the purchase, the insider owned 1,396,494 shares of the company’s stock, valued at $7,946,050.86. This represents a -486.87% increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, major shareholder Ching Hang Shen acquired 878,734 shares of the stock in a transaction that occurred on Tuesday, September 15th. The stock was purchased at an average price of $5.69 per share, for a total transaction of $4,999,996.46. Following the completion of the acquisition, the insider owned 2,926,655 shares in the company, valued at $16,652,666.95. The trade was a 42.91% increase in their position. The disclosure for this purchase is available in the SEC filing. 2.30% of the stock is owned by corporate insiders.

Analyst Upgrades and Downgrades

Several brokerages recently weighed in on CV. Roth Capital started coverage on CapsoVision in a research note on Friday, August 28th. They issued a “buy” rating and a $9.00 price target for the company. Weiss Ratings reiterated a “sell (d-)” rating on shares of CapsoVision in a research report on Friday, September 25th. Benchmark reissued a “speculative buy” rating on shares of CapsoVision in a report on Friday, August 14th. Finally, Zacks Research upgraded CapsoVision to a “hold” rating in a research report on Monday, August 31st. Two equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the company currently has an average rating of “Hold” and an average target price of $9.50.

CapsoVision Company Profile

CapsoVision develops medical technology for capsule endoscopy, a method of examining the digestive tract using a swallowable camera. Its products are designed to help clinicians visualize the small intestine as part of diagnostic evaluation. The company’s CapsoCam Plus system uses a swallowable capsule with multiple cameras to capture panoramic images as it moves through the small intestine. Images are stored in the capsule and later retrieved for review using the company’s supporting hardware and software.