CeriBell (NASDAQ:CBLL) reported second-quarter 2026 revenue growth of 33% as increased utilization at existing hospital accounts and continued customer additions supported results. The company also raised its full-year revenue outlook and outlined plans to commercially launch its delirium-monitoring solution later this year.
Revenue for the quarter ended June 30 rose to $28.1 million from $21.2 million a year earlier, including a 6% sequential increase. Product revenue increased 33% to $21.2 million, while subscription revenue rose 30% to $6.9 million.
“Q2 marked another strong quarter,” Chao said, pointing to an acceleration from the company’s 29% year-over-year growth reported in the first quarter. She said CeriBell has recorded 33 consecutive quarters of sequential revenue growth.
Margins Lifted by Tariff Refund, Manufacturing Efforts
Gross margin reached a record 92% in the second quarter, compared with 88% a year earlier. The result included $1.6 million in tariff refunds received during the period, with $1 million recognized in cost of goods sold and $600,000 capitalized into inventory.
Excluding the tariff-refund impact, gross margin was 89%. Chief Financial Officer Scott Blumberg said the company expects gross margins in the high-80% range for the remainder of 2026, based on current tariff policies.
Blumberg said margins have benefited from manufacturing expansion in Vietnam and broader cost-reduction initiatives. He characterized the 89% adjusted gross-margin result as a steady-state level that includes the burden of tariffs.
Operating expenses increased 37% to $45.9 million. The company cited higher sales and marketing costs from headcount additions, including a new strategic account management function and expanded clinical account management infrastructure ahead of the delirium launch. Research and development spending reflected investment in next-generation hardware, algorithm development and clinical studies.
Net loss widened to $19.3 million, or 51 cents per share, from $13.6 million, or 38 cents per share, a year earlier. Adjusted EBITDA loss was $9.8 million, compared with a $10 million loss in the prior-year quarter. CeriBell ended June with $129.3 million in cash, cash equivalents and marketable securities.
Following the quarter’s close, the company refinanced its credit facility, obtaining access to up to $60 million in committed capital and an additional $25 million in uncommitted capacity. Blumberg said the new structure is expected to reduce interest expense beginning in the fourth quarter and extend the repayment timeline to approximately 2031.
Delirium Launch Set for Fourth Quarter
CeriBell launched its neonate and pediatric products during the second quarter and began a commercial pilot for its delirium-monitoring algorithm, which received FDA 510(k) clearance in December. Chao said the company has received purchase orders for the neonate and pediatric line extensions from both existing and new customers, though management expects more meaningful revenue contributions from those products in 2027.
The company’s delirium solution is now live at multiple pilot sites. Chao said users have reported improvements in clinical decision-making, and that 40% of patients in a survey were difficult to assess under CAM-ICU, the current standard of care, but could still be monitored using the CeriBell system.
During the question-and-answer session, Chao said emerging use cases in the pilot include sepsis patients with altered mental status and elderly patients after cardiac surgery or other surgical procedures. She also said clinicians reported being able to reduce sedation or intubation in roughly 30% to 40% of patients based on the delirium algorithm, while care was improved about 20% of the time.
CMS issued a final rule establishing a new technology add-on payment for the delirium-monitoring solution, effective Oct. 1, 2026. The payment provides up to $2,171 in incremental reimbursement per qualified patient. CeriBell now plans to fully launch the product commercially in the fourth quarter, Chao said.
The company does not expect to need a separate sales force for the rollout, planning instead to leverage its clinical account managers. It could expand that team opportunistically if delirium adoption gains further momentum, Chao said.
New Algorithms and Hardware Platform Planned
CeriBell also disclosed FDA 510(k) clearances for two algorithms targeting its core seizure market. One is designed to recognize and reduce EEG artifact signals, while the other is intended to detect epileptiform abnormalities, or abnormal brain activity that falls between clear seizures and normal signals.
The artifact-recognition algorithm is expected to roll out in the third quarter, while the epileptiform-abnormality algorithm is expected to be activated by year-end. Chao said the company does not plan to charge more for the algorithms, but believes they can support neurologist engagement, account utilization and sales velocity.
Separately, CeriBell is developing a new hardware platform targeted for launch in 2027. The platform has received clearances for a recorder with video and ECG capability, compatibility with other vital-sign measurements, and continuous monitoring while plugged in. It will also support headband options for formal EEG coverage and multi-day monitoring.
Chao said an add-on wearable used with the company’s existing headband can provide full-montage EEG coverage. The new platform is intended to run the company’s existing seizure and delirium algorithms as well as future algorithms.
Revenue Outlook Raised
CeriBell raised its 2026 revenue guidance to a range of $114 million to $117 million, from prior guidance of $112 million to $116 million. The updated forecast represents growth of 28% to 31% over 2025.
Management said the guidance does not assume material revenue contributions from neonate, pediatric or delirium products, which it expects to contribute more meaningfully in 2027. While executives did not provide 2027 guidance, Blumberg said the company sees several potential growth drivers converging next year, including the newer product lines, delirium commercialization and the planned hardware platform release.
About CeriBell (NASDAQ:CBLL)
CeriBell Corp (NASDAQ: CBLL) is a healthcare technology company specializing in the design, manufacture and sale of automated newborn hearing screening devices. The company offers a suite of medical diagnostic tools based on otoacoustic emissions (OAE) and auditory brainstem response (ABR) technologies, enabling early detection of auditory impairments in infants. CeriBell’s solutions are used in hospitals, birthing centers and audiology clinics to support universal newborn hearing screening programs aimed at improving language development outcomes through prompt intervention.
The company’s product portfolio includes handheld and desktop screening units, proprietary software for data management, and accessories designed to streamline testing workflows.
