Hyperfine, Inc. Q1 FY2025 earnings call

Financial Performance - Q1 2025

• Revenue was $2.1 million from selling six systems.
• Gross profit was $0.9 million with a gross margin of 41.3%.
• Net loss for the quarter was $9.4 million, equating to $0.12 per share.
• Net cash burn including financing in Q1 was $4.6 million, with $33.1 million in cash and cash equivalents as of March 31, 2025.

Segment Progress

• Hospital: Continued expansion into the emergency department; ACTION PMR study completed enrollment at 100 patients across four leading institutions; pipeline shows increase in multiple unit deals.
• Office: Pilot accounts are IAC accredited, scanning, and going through CMS reimbursement process; NEURO PMR clinical study is about halfway enrolled and expected to conclude ahead of estimate by end of Q3 2025; field teams trained on office market opportunity.
• International: Strong interest and healthy demand in Europe, Middle East, and Asia; anticipation of regulatory approval and market entrance in India in the second-half of 2025.

Expenses

• R&D expenses for Q1 2025 were $5.0 million, compared to $5.6 million in Q1 2024.
• Sales, general, and administrative expenses were $6.7 million, compared to $6.4 million in Q1 2024.

In the first quarter of 2025, Hyperfine generated revenue of $2.1 million from the sale of six systems. Gross profit for the quarter was $0.9 million, resulting in a gross margin of 41.3%, which was a 20 basis point improvement versus the prior year period. Revenue contribution details by specific product segments weren't explicitly broken down beyond general mentions of hospital, office, and international verticals.

Revenue Outlook

• First-half 2025 revenue expected in the range of $5 million to $6 million, adjusted due to loss of U.S. deals from grant funding cancellations.
• Full-year 2025 revenue growth expected to be in the range of 10% to 20% over 2024.

Gross Margin

• Full-year 2025 gross margin outlook revised to 47% to 50%, representing a 280 basis point increase year-over-year at the midpoint.

Cash Burn

• Full-year 2025 total cash burn expected in the range of $25 million to $28 million, a 31% decline year-over-year at the midpoint.
• Company has a cash runway to the end of 2026 after completing a reorganization and raising $6 million via a registered direct offering.

• Tariffs: Monitoring potential impact on business, but guidance assumes no material impact at this time.
• Sales Cycles: Hospital deals have protracted sales cycles and high variability in deal timing.
• Grant Funding: Loss of several deals at large academic institutions funded by grants due to new political environment, with grants not expected to quickly return.