Pulmonx Corp. (LUNG)
NASDAQHealth CareMedical - DevicesSnapshot 2026-09-04
$2.21-2.21%
Close 2026-09-04 · 1-day change
NASDAQHealth CareMedical - DevicesSnapshot 2026-09-04
Intact: The reason to own it still holds.
Pulmonx aims to keep its gross margin at 75% in 2026. Revenue is expected to grow to about $91 million. The company is managing costs around $115 million. Recent earnings beats show some operational progress.
Pulmonx is still loss-making with negative free cash flow of $23 million expected in 2026. Operating expenses remain high, pressuring profitability. Revenue growth may not be enough to offset costs and losses.
The market expects about 7% revenue growth and values the stock near $9.73. Our fair value is close at $9.92, reflecting justified growth but ongoing losses. We differ by emphasizing the risk from continued negative cash flow.
Breaks if: Gross margin falls below 70% in FY26
Breaks if: Operating expenses exceed $120M in FY26
Breaks if: Revenue falls below $85M in FY26
Pulmonx expects revenue for the full year 2026 to be in the range of $90 million to $92 million.
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a speculative growth opportunity. The company is currently loss-making, but management is focused on driving revenue growth and controlling costs, which adds a layer of uncertainty to the thesis.
The current valuation suggests that LUNG is priced cheaply compared to its peers, with a notable expectations gap. The market appears to have factored in some fragility, but overall, the valuation remains justified given the company's recent performance.
Management has shown mixed results in achieving revenue growth, with recent declines in revenue. However, they have successfully improved gross margins and reduced operating expenses, indicating some positive operational progress.
The thesis hinges on management's ability to return to year-over-year revenue growth and the overall performance of the healthcare sector. Key triggers include potential guidance cuts and the performance of sector bellwethers, which could influence sentiment and expectations.
In the next 1 to 3 years, LUNG's performance will depend on its operational execution and external market conditions. Not investment advice.
The most important moves since the prior daily snapshot.
Yes, our read has strengthened. The latest earnings beat supports this improved outlook. There are no current threats to the thesis.
as of 2026-09-04
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.