Mobia Medical (MOBI) Q2 2026 Earnings Call Transcript

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DATE

Tuesday, Aug. 11, 2026 at 4:30 p.m. ET

CALL PARTICIPANTS

• President and Chief Executive Officer - Richard Foust
• Chief Financial Officer - Nelson Curnes
• Investor Relations - Louisa Smith

TAKEAWAYS

• Revenue -- $13.5 million, representing a 102% increase year over year driven by broader adoption of the Vivistim system and increased unit sales.
• Gross Margin -- 83.2%, compared to 82.3% in the prior year period due to freight and tariff costs recognized in cost of goods sold.
• Full Year 2026 Revenue Guidance -- $54 million to $56 million, representing an expected growth range of 69% to 75% for the fiscal year.
• Average Active Territories -- 35.5, an increase of 92% from 18.5 territories in the second quarter of 2025.
• Vivistim Units Sold -- 367 units, supported by higher utilization in existing territories and the launch of new hospital programs.
• Net Loss -- $21.0 million, compared to $10.5 million in the prior year period.
• Net Loss Per Share -- $1.10, reflecting a decrease from $12.44 in the second quarter of 2025 primarily due to the increased common share count following the initial public offering.
• Cash and Cash Equivalents -- $177.1 million as of June 30, 2026, which includes net proceeds from the company's initial public offering.
• Initial Public Offering Proceeds -- $134 million, providing capital to accelerate commercialization, patient access, and geographic expansion.
• Selling, General and Administrative Expense -- $26.9 million, an 85% increase year over year reflecting higher commercial headcount, commissions, and IPO-related professional fees.
• Research and Development Expense -- $2.3 million, rising 61% from $1.4 million in the second quarter of 2025 due to increased headcount.
• Convertible Notes Charge -- $4 million, representing a noncash charge for marking convertible notes to fair market value immediately prior to their conversion.
• Medicare Reimbursement -- $45,000, assigned to the New Tech APC 1580 code under the CMS hospital outpatient prospective payment system for 2026.
• Serviceable Market Opportunity -- $30 billion, representing the estimated U.S. market value for on-label chronic ischemic stroke candidates.
• Target Stroke Centers -- 1,500, representing the approximate number of primary and comprehensive stroke centers in the United States targeted by the company's sales force.
• Ischemic Stroke Population -- 9 million, representing the number of survivors in the United States, many of whom live with chronic motor impairments.
• Clinical Performance -- twofold to threefold greater improvement in upper limb function for active Vivistim therapy patients compared to sham therapy in the VNS-REHAB study.
• IPO-Related Accruals -- $3.5 million, representing expenses recognized in the second quarter that were scheduled for payment in the third quarter.
• Employee Count -- 167 employees, focused on the development and commercialization of stroke recovery therapeutic solutions.
• Active Territory Definition -- nine months, representing the minimum duration a territory manager must be in their role for a territory to be categorized as active.

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RISKS

• Foust stated that the 2027 New Tech APC 1580 designation is currently a proposal from CMS and will not be finalized until the agency issues its final rule in November.
• Curnes noted that the second quarter net loss included a $4 million noncash charge associated with marking convertible notes to fair market value immediately prior to their conversion into common stock.

SUMMARY

Mobia Medical, Inc. (NASDAQ:MOBI) reported a 102% increase in revenue for the second quarter and established full year 2026 revenue guidance between $54 million and $56 million. Following the completion of its initial public offering in May, the company is scaling its commercial infrastructure by expanding its active territory footprint and targeting 1,500 U.S. stroke centers. Management indicated that commercial success is currently driven by a stable reimbursement framework and the publication of durable two-year clinical data for its Vivistim therapy. The company maintains a cash balance of $177.1 million to support its commercial playbook and further clinical development within the chronic ischemic stroke recovery market.

• CEO Foust stated, "With Vivistim, there is no expiration date on recovery, and we have effectively raised the ceiling of possibility on a stroke survivor's recovery journey."
• CFO Curnes noted that Mobia Medical intends to take a "measured approach" to capital deployment, focusing on a "commercial playbook" that emphasizes scalability across territories.
• Foust reported that the sales unit is split into territories comprising a territory manager and a therapy development specialist to "support the full patient journey from identification through therapy."
• Management indicated that program initiation at hospitals has become "sequenced and refined" over three years of commercial activity, observing that "every program that we open is easier than the next."
• Regarding clinical durability, Foust stated, "Participants maintained statistically significant and clinically meaningful gains for at least 2 years after treatment," with some patients showing further improvement between years one and two.
• Management expects to add approximately four to five active territories per quarter in the second half of 2026 to maintain its growth trajectory.

INDUSTRY GLOSSARY

• APC: Ambulatory Payment Classification, a system used by CMS to group services of similar clinical intensity and cost for reimbursement.
• CPT Code: Current Procedural Terminology code, a standardized medical code used to report medical, surgical, and diagnostic procedures.
• IPG: Implantable Pulse Generator, the battery-powered device that delivers electrical stimulation to the vagus nerve in the Vivistim system.
• Ischemic Stroke: A type of stroke caused by a blockage in an artery that supplies blood to the brain.
• Neuroplasticity: The ability of the brain to form and reorganize synaptic connections, especially in response to learning or experience or following injury.
• VNS: Vagus Nerve Stimulation, a medical treatment that involves delivering electrical impulses to the vagus nerve.
• Vivistim: Mobia Medical's FDA-approved paired VNS therapy system designed to improve upper limb function in chronic stroke survivors.

Full Conference Call Transcript

Operator: Good afternoon, and welcome to the Mobia Medical Second Quarter 2026 Earnings Conference Call. [Operator Instructions] Please note that today's conference is being recorded. I would now like to turn the call over to Louisa Smith of Gilmartin Group, Investor Relations for Mobia Medical. Louisa, please go ahead.

Louisa Smith: Good afternoon, and thank you for being on today's call. Joining me from Mobia Medical are Richard Foust, President and Chief Executive Officer, and Bunker Curnes, Chief Financial Officer. Earlier today, Mobia Medical issued a press release announcing financial results for the quarter ended June 30, 2026. A copy of the press release is available on the Investor Relations section of the company's website. Before we begin, I would like to remind you that management will make remarks during this call that constitute forward-looking statements within the meaning of the federal securities laws and that are being made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.

Any statements made during this call that relate to expectations or predictions of future events, results or performance, including our full year 2026 revenue guidance, are forward-looking statements. These statements involve material risks and uncertainties that could cause actual results or events to differ materially from those anticipated or implied by these forward-looking statements. Accordingly, you should not place undue reliance on these statements. For a full list and description of the risks and uncertainties associated with our business, please refer to the sections captioned Risk Factors and Management's Discussion and Analysis of Financial Condition and Results of Operations in our filings with the Securities and Exchange Commission.

This conference call contains time-sensitive information and is accurate only as of the live broadcast today, August 11, 2026. Mobia Medical disclaims any intention or obligation, except as required by law, to update or revise any forward-looking statements, whether because of new information, future events or otherwise. With that, I will now turn the call over to Richard.

Richard Foust: Thank you, Louisa. Good afternoon, everyone, and thank you for joining us today. We are pleased to welcome you to Mobia Medical's first earnings call as a public company. In May, we successfully completed our initial public offering, raising $134 million in net proceeds with strong support from top-tier investors who share our vision for the future of stroke care. This successful IPO marks an important milestone for Mobia Medical by strengthening our balance sheet and providing the capital needed to accelerate commercialization, patient access and support the next phase of our growth. At Mobia, we put patients first.

So, before we move to our quarterly remarks, and as will be our precedents going forward, we are going to start with a patient story that brings to light the why that drives our team every day. I would like to introduce you to Tess, who suffered a stroke 10 years ago and had accepted that she would never regain meaningful use of her dominant hand. Her greatest hope was simply to care for her children more independently. And, more importantly, but seemingly out of reach, she would love to hold her children in her arms. After completing Vivistim therapy, Tess reached and achieved something she never thought possible.

She picked up her young son with both arms for the first time since her stroke. That was an amazing moment for her. Today, she continues to reach new milestones, serves as a Vivistim ambassador and inspires other stroke survivors with a simple message. I wish I could show you just how different it will be. For Mobia, Tess's accomplishments are a living testimony of our mission to help stroke survivors regain independence and reclaim parts of their lives they thought were lost forever. This is our why. We mobilize breakthrough possibilities for chronic stroke survivors. Now that you have some context for the amazing things we are doing for patients, let's move to our quarterly results.

We delivered a strong second quarter with financial performance reflecting continued commercial adoption of our Vivistim Paired VNS therapy for upper extremity impairment in chronic ischemic stroke survivors. Revenue totaled $13.5 million, representing a 102% growth over the prior year and gross margin for the second quarter was 83.2%. We are pleased with our execution in the first half of the year and encouraged by the momentum entering the second half of the year. We are initiating revenue guidance of $54 million to $56 million for the full year of 2026, which represents a growth of 69% to 75% over the prior year. Bunker will cover the financial details later in our prepared remarks.

But first, I'd like to provide an overview of Mobia Medical for those of you who may be newer to our story. Mobia Medical is focused on redefining stroke recovery. Over the past few decades, stroke care has largely been focused on acute survival. There have been many meaningful advancements in acute stroke protocols and interventions such as tPA and thrombectomy. And, as a result, millions more people are surviving their strokes. But that has created a large and underserved population of chronic stroke survivors. There are approximately 9 million ischemic stroke survivors in the United States today, a large portion of who are living with chronic, life-altering motor impairments, particularly in their arm and hand.

Most of these patients undergo physical or occupational therapy in the first months following their stroke, but many will experience a plateau in improvement after the first 3 to 6 months. After that, there have historically been very few options to improve their upper limb function, and they are left to live with impairment for the rest of their lives. Our mission is to change that paradigm. Vivistim therapy is the first and only FDA-approved, clinically validated solution for chronic ischemic stroke survivors with moderate to severe upper limb impairment. The Vivistim system includes an implanted pulse generator and lead that delivers stimulation to the vagus nerve when activated during upper limb exercises.

This paired VNS therapy boosts neuroplasticity and enables the brain to create new neural connections and remodel motor pathways that were damaged by the stroke. The meaningful and durable benefits of Vivistim therapy were proven in our VNS-REHAB pivotal study. This was a randomized, triple-blinded, sham-controlled trial originally published in The Lancet in 2021, demonstrating that patients who received active Vivistim therapy had 2x to 3x greater improvement in upper limb function compared to patients who underwent sham therapy, with results out to 2 years. Importantly, this study included patients who are 9 months to 10 years post stroke, demonstrating that the results of Vivistim therapy are independent of time post stroke.

With Vivistim, there is no expiration date on recovery, and we have effectively raised the ceiling of possibility on a stroke survivor's recovery journey. Commercially, we have even successfully treated survivors up to 45 years post stroke. Across our clinical studies and commercial experience, the increase in motor improvement enabled by Vivistim therapy has translated to meaningful functional benefits for patients. Some patients have regained the ability to get dressed independently, feed themselves, drive a car or even return to work. Vivistim therapy has been life altering for many stroke survivors. We have continued to further the evidence associated with Vivistim therapy.

In July, we announced the publication of 2-year follow-up data from our pivotal trial in Neurology, the official peer-reviewed journal of the American Academy of Neurology, demonstrating the durability of improvement achieved with Vivistim therapy. Participants maintained statistically significant and clinically meaningful gains for at least 2 years after treatment. A subset of patients who had been followed out to 3 years also demonstrated similarly durable outcomes, underscoring the lasting impact of our therapy. The study also captured data indicating that upper limb motor improvements translated into impactful, real-world changes in the daily lives of stroke survivors as reflected across several patient-reported measures of quality of life.

Additionally, a separate subset of participants demonstrated further improvement between 1 to 2 years, suggesting recovery can continue over time with ongoing, self-directed Vivistim therapy. Because Vivistim can be effective no matter the time elapsed since stroke, we are able to serve the immense existing prevalence population as well as hundreds of thousands of people who suffer an ischemic stroke each year. Stroke is one of the leading causes of long-term disability in the United States, and we estimate that our serviceable market in the United States alone is worth over $30 billion. This figure is representative of patients who are on label and strong candidates for Vivistim therapy.

Given the significant opportunity within our current approved indication, we are focused on expanding access to this large market that we have approval for today. Our commercial model is purpose-built around the unique dynamics of the stroke market. We are targeting stroke centers because they have a strategic focus on delivering high-quality stroke care, and they have the expertise and infrastructure to lead the way in defining new standards of stroke recovery care. There are approximately 1,500 primary and comprehensive stroke centers in the United States, which is a concentrated and specialized group.

In addition, the surrounding infrastructure network of these stroke hospitals provides access to both acute stroke patients entering the care pathway as well as the larger population of stroke survivors already in ongoing recovery. To date, we have seen sustained interest from leading stroke centers across the country while health care providers are championing our technology for patients. Our field team is split into territories, each consisting of a territory manager and at least one therapy development specialist. Territory managers are responsible for hospital logistics, health care professional relationships and the support and creation of Vivistim program infrastructure.

The therapy development specialist, who's typically a licensed occupational or physical therapist, manages education and relationships within the ecosystem of stroke therapy sites and is responsible for establishing a community support structure that drives awareness and identification of Vivistim therapy candidates. These 2 roles are complementary by design to support the full patient journey from identification through therapy. We are excited about the progress that this sales unit has shown in effectively initiating and growing territories. As we build the stroke recovery market, our growth and commercial success will be driven by several interconnected priorities, all oriented around broadening access and awareness for Vivistim therapy.

The first is expansion into new territories and the launch of Vivistim programs at new stroke hospitals, which establishes a pathway for survivors to access treatment and ensures geographic coverage across the country. The second is increasing utilization within existing territories, supported by a robust patient funnel resulting from more efficient identification, evaluation and treatment. And the third is building awareness through education and engagement for all stakeholders. Health care professionals need both the awareness that Vivistim therapy is an option in chronic stroke recovery and confidence in the beneficial patient outcomes it delivers. We take a methodical approach to launching new Vivistim programs at each site.

Educating physicians, therapists and patients is central to generating stakeholder buy-in and establishing a strong patient referral pathway at each institution. Over time, as programs mature and awareness grows, we envision Vivistim therapy becoming embedded in the continuum of care at stroke centers across the country with survivors routinely screened and evaluated for Vivistim therapy upon discharge. This creates an increasingly self-sustaining patient flow at each program and further enables scalability in our business model.

As we build our position in the stroke recovery market, our success will be driven by our commercial team's ability to expand access to Vivistim therapy for patients across the U.S. and the success will be measured by growing the number of active territories and the number of units sold for these respective territories. We define an active territory as one that has had a territory manager in role for at least 9 months. In the second quarter, we expanded our geographic footprint to 35.5 average active territories, an increase of 92% over the 18.5 active territories in the same period last year.

We sold approximately 367 units in the quarter, driven by increasing utilization in existing territories and continued expansion into new territories and new hospital programs. On the reimbursement front, Vivistim has a Category 1 CPT code. And in 2026, CMS assigned this CPT code to a New Tech APC 1580 under the hospital outpatient prospective payment system with Medicare reimbursement of approximately $45,000. We also continue to make progress supporting patient access across Medicare and commercial payers. The completion of our initial public offering represents a meaningful milestone for Mobia Medical.

The proceeds give us the resources to accelerate growth for our commercial organization, expand our geographic footprint and invest in activities that will improve broader awareness of and access to Vivistim therapy. This is a market that remains significantly underserved, and we believe the opportunity ahead of us is substantial. The patients we serve are getting better and for many, Vivistim therapy has truly changed their lives. The future is bright for stroke survivors and the future is bright for Mobia Medical. With that, I will turn the call over to Bunker to review our second quarter financial results and provide our full year 2026 guidance. Bunker?

Nelson Curnes: Thank you, Richard, and good afternoon, everyone. I'll walk through our second quarter 2026 financial results and then provide our full year 2026 revenue guidance, which we are initiating today. I'd start by first reiterating the story about Tess's why and what she's able to do now. She and the other Vivistim patients' improvements can be life-changing, and it's why we do what we do. Total revenue for the second quarter of 2026 was $13.5 million, representing year-over-year growth of 102% compared to $6.7 million in the second quarter of 2025. The increase was driven by the broader adoption of the Vivistim system at both new and existing programs, driving higher unit sales.

Our patient funnel continues to create consistent, predictable revenues for our business. And with a massive TAM still ahead of us, we are excited about the trajectory going forward. Our gross margin was 83.2% for the second quarter of 2026 compared to 82.3% in the second quarter of 2025, reflecting that per unit product costs remained relatively consistent as expected. The increase was primarily due to freight and tariff costs recognized in cost of goods sold during the period, partially offset by other changes in product costs. Moving forward, we expect gross margin to remain in the low 80s.

Selling, general and administrative expenses were $26.9 million in the second quarter of 2026, an increase of 85% compared to $14.5 million in the second quarter of 2025. The increase was primarily driven by increased headcount in our commercial organization and higher commissions associated with our revenue growth as well as increased audit, legal and professional service fees associated with our IPO and marketing and clinical initiatives. Research and development expenses were $2.3 million in the second quarter of 2026, an increase of 61% compared to $1.4 million in the second quarter of 2025, driven primarily by increased headcount.

Net loss was $21.0 million, or $1.10 per share, in the second quarter of 2026 compared to a net loss of $10.5 million, or $12.44 per share, in the second quarter of 2025. The year-over-year decrease in net loss per share primarily reflects the significant increase in common shares outstanding following the company's IPO and the conversion of outstanding convertible preferred stock and convertible notes into common stock. Turning to the balance sheet. Cash and cash equivalents as of June 30, 2026, were $177.1 million. This includes the net proceeds of approximately $134.0 million from our initial public offering, which closed in May. One modeling note before I turn to guidance.

Approximately $3.5 million of IPO-related expenses have been accrued in Q2 but paid in Q3. This is timing associated with the completion of our offering, not a change in our underlying spend trajectory for OpEx or cash balance expectations. Turning to our outlook for the full year 2026. We expect total revenue to be in the range of $54.0 million to $56.0 million, representing growth of approximately 69% to 75% over the full year 2025. This outlook reflects our consistent commercial execution and is grounded in our confidence in the durability of our patient funnel and the momentum from hospitals implementing Vivistim programs. With that, I'll turn the call back to Richard for a few closing comments.

Richard Foust: Thanks, Bunker. Before we open the line for questions, I want to reiterate how excited we are about the opportunity in front of us. We have a clinically validated, FDA-approved therapy that is addressing an enormous unmet need and meaningfully improving the lives of stroke survivors. We have a commercial organization that is executing consistently and scaling with efficiency. And with the completion of our IPO, we can continue investing in our growth. The stroke recovery market is large and critically underserved. And, as we broaden access to our technology for millions of patients, we believe Vivistim therapy can and should become the standard of care for chronic stroke survivors with motor impairments.

Finally, I also want to thank our dedicated and talented Mobia Medical team, the health care providers and therapists we work with, the investors who support us and most importantly, the patients who are at the heart of our mission. Every implant therapy session and functional milestone a patient reaches is a testament to what we can accomplish together. We look forward to keeping you updated on our progress in the quarters ahead. With that, I will turn the call over to the operator for Q&A.

Operator: [Operator Instructions] Our first question comes from Travis Steed with Bank of America.

Travis Steed: Congrats on the quarter and the first earnings call, nice milestone. Maybe talk a little bit about the strong Q2 revenues beat by $1.3 million, raise the guide. Just kind of what you're seeing as you scale market adoption and how you set guidance as kind of the first time and how you're thinking about the guidance strategy here.

Richard Foust: Travis, this is Richard. Thank you very much for the question. I would say Q2 was an extremely strong quarter and all the things that we do to increase the number of active territories and drive adoption across the United States is working. And, as we think about the key assumptions around the guide, it's really that we have a tremendous growth profile in front of us. And we have high confidence in this range. We have a disciplined and thoughtful approach to how we do it. And we want to make sure that our growth is significant moving forward using the stable, predictable commercial model that we have.

So, we feel really confident in that comprehensive approach and how that translates to the range that we're giving.

Travis Steed: Okay. And then that's helpful. I wanted to ask about the New Tech APC that came through recently, if that gives you, kind of, more confidence in the Level 6 APC code. And then, maybe a nitpicky question, but there was some movement on value of converts on the P&L. And just wanted to make sure that was clear to everybody -- the OpEx movement and the P&L movements on the EPS line this quarter. If you could just help explain that.

Richard Foust: Absolutely. I'll take the first question and let Bunker take the second question on the EPS. In terms of Level 6, and I would just say New Tech APC 1580, today, it's a proposal by CMS. I mean, I think we're confident in that process, but it is a proposal. It's not done until it's done. We'll all find out in November when the final rule comes. But I think that is a very positive trend for us, obviously, being put in it for 2026 and have it being part of the proposed rule for 2027. So, that gives us a lot of stability and predictability associated with payment.

Nelson Curnes: And Travis -- this is Bunker. On the net loss figure that you're referencing, that would be the net income of approximately negative $21 million. That included a $4 million charge related to marking the convertible notes to fair market value immediately prior to the conversion. So, this is a noncash item related to a onetime conversion of those notes. And so, thank you for calling that out. That was one of the notes that we want to make sure that people got when they were updating their models.

Operator: Our next question comes from Robbie Marcus with J.P. Morgan.

Robert Marcus: Also add my congratulations on a good first quarter. Maybe I could start on an update on reimbursement or more commercial coverage and coverage. Where do you stand? Any big wins in the quarter? And any big wins on the horizon for second half of the year? And then I have a follow-up.

Richard Foust: Yes. Thank you, Robbie. So, I would start by saying, based on our stable, predictable commercial model that we have, reimbursement is right there. It's stable and predictable. And, as I break apart the way I think about this-coding, payment, and coverage-coding, we're in a really good spot with a Category 1 CPT code now in New Tech APC. Payment is something that comes in a very predictable way, and coverage is in development. So, I would say, today, we have a number of insurance providers across the United States that are paying claims. And then we also have development of real-world evidence and extension of our VNS rehab studies.

And those will play an important role for coverage development over time. And I see that happening over a period of years, not necessarily from one quarter to the next.

Robert Marcus: Great. Not sure who this question is most appropriate for, but with the IPO proceeds, maybe speak to some of the investments and programs you're able to now initiate with the added funds and how you're spending it?

Richard Foust: Yes. Thank you, Robbie. I'll take part of it and let Bunker add some comments at the end. I would say majority, as we think about the deployment of resources, first of all, we're following the plan that we laid out with our IPO thesis. And it really is -- this is an execution story, and most of our proceeds are going towards building and developing our commercial model, and that's hiring TMs, TDSs and building awareness across the United States. And so, really, the deployment of our OpEx is highly focused on the commercial model build.

There is obviously some part of it that is around clinical development as well, as we need to build evidence and confidence in our technology and our outcomes over time in the real-world setting. Bunker, would you like to add anything else to that?

Nelson Curnes: Only to reiterate the execution story that we see in front of us. We have a commercial playbook that we feel comfortable that we understand the rinse, wash, repeat of the scalability of what we need to do to build this out. And, with a $30 billion market ahead of us, we feel comfortable that the IPO proceeds give us the capital that we need to strategically deploy it as the business grows to make sure that we get the highest bang for our buck and continue to expand this across the country.

Operator: Our next question comes from Ryan Zimmerman with BTIG.

Ryan Zimmerman: I'll echo my congrats on the first quarter out the gate here. Richard, we were at SNIS. We got to hear from one of your users on how they approach VNS and stroke rehabilitation. I'd love to just hear your thoughts about how you're approaching physicians or how physicians, I should say, are approaching market development and building these programs and maybe contrast kind of existing users versus new users as we think about the growth in territories and so forth.

Richard Foust: Yes. I would say at the highest level, so again, Ryan, thank you for the question and congratulations. The way we think about this is redefining what stroke care means -- and all the conversations start with not just stroke survival, but it's about stroke recovery. And I think when we take programs, and that's more than one physician on that journey for a hospital, I think everyone gets it very quick and they lean into that story. And it doesn't take a lot of time or effort for people to understand kind of this high-level evidence that we have and that we have a solution that can be operationalized today.

And I would say our approach and our building out of these programs has gotten really sequenced and refined over the 3 years that we've been commercial. And every program that we open is easier than the next. And so, that's how we think about territories and a lot of physicians do reach out and are connecting with each other. So, as you can imagine, as we're building more territories, there's more people who know that this exists, and it really gets back to the story that we're building awareness and access for patients.

Ryan Zimmerman: And just as a follow-up, when I think about in the model, one of the things we try and understand is just the interplay between both territory growth and units per territory and just productivity. How do you think about kind of either gating that or accelerating that in the context of you have now the IPO proceeds and so forth? And just is it -- and you and I spoke about this before, but are you measured in how you're approaching demand build in the market right now as you raise awareness? And when do you feel like you reach that point where you can maybe unconstrain that a little bit?

Richard Foust: Yes. I think I'll let Bunker speak specifically to the metric. But before we get to that, I think what's important to recognize is that we have a commercial model that works really well. And there's still lots of, I would say, complementary inflection points that we are going to meet and achieve in the future that will unlock a lot more growth. And those are things like guidelines, coverage decisions, more clinical data and adoption. And so, we're building for those things. But even today, we are an execution story that is really high growth. Bunker, just to comment on the metrics.

Nelson Curnes: Yes. And, Ryan, I think you hit on the ones that we look at as well in terms of the units per active territory and the number of active territories that we're growing as we have a consistently high ASP that has remained durable over time. We see our growth as a combination of both those active territories and continue to have a high productivity as it really is about the balancing act of making sure that we are deploying the capital effectively across the different territories and taking a measured approach. It's hard to say when we're going to take the reins off, as you put it, and really start to deploy that capital much more expeditiously.

For now, we're taking a measured approach and just executing the plan that's in front of us that we laid out during our IPO.

Operator: Our next question comes from Michael Polark with Wolfe Research.

Michael Polark: Modeling question for the back half, piggybacking on Ryan's question there. So, in the quarter, I think you added 5 active territories quarter-over-quarter. My question on that metric is, how are you building the back half? What's the sequential expectation for active territory adds? And do you feel like 5 is comfortable? If so, why? And sorry, multiparter, that's annoying, I know. But the related topic is being public and being in territory add mode, do you think being public has added to your talent hiring pipeline? And if so, how?

Richard Foust: Thank you, Mike. I'll take the last question first, and then Bunker will get to your point about the active territories. I would say absolutely. Our reputation as a company has always been very positive. We pride ourselves in what people think and the culture that we provide here. And I think that shapes itself when people that work here get calls from other great people. I would say the IPO has just given us a bigger platform to talk about all the great things that we're doing and really showcase patient outcomes at a different level. It's so amazing to talk to new candidates.

And the first thing that they mentioned are the videos and the comments that our social media shows about patient outcomes. And I think this is something that we have that is inherent, and putting patients first is directly correlated to gaining more talent because people like the mission. They want to be responsible for bringing something that before today was not attainable. So, yes, thank you for the question. It's an amazing, amazing opportunity right now.

Nelson Curnes: And as it relates to your modeling question about the active territories, you're correct that we added 5 active territories in Q2. While we don't guide to the number of territories that we add each quarter, I think directionally, we're taking a measured approach to how we build these territories out over time. And that's the approximate range, kind of the 4 or 5 for the back half of the year would be a comfortable number for us.

Michael Polark: Helpful. A follow-up clinical question. Richard, in your prepared remarks, I think you mentioned commercially, you have -- Vivistim has been -- has treated a patient 45 years post stroke. So, that's a remarkable number. I don't think I heard it before. Obviously, 45 years post stroke is outside of what was studied in the pivotal. And so, maybe just remind us how you encourage physicians to screen these patients to ensure that the outcome in that patient scenario can be as good as folks studied in the trial or folks that are closer to the acute stroke event.

Richard Foust: Yes. Thank you, Mike. I would say the way we thought about this, and the reason why we structured our trial the way it was, is to really uncover whether there was a mechanistic reason around neuroplasticity between 9 months and 10 years that would show that patients stop responding at some time point. And we uncovered that, that was not the case. And part of our labeling doesn't include time since stroke. So, today, as patients are being screened by therapists and health care providers, they are looking at their function and their goals and whether they can undergo the procedure. And those are really the building blocks of how they screen patients.

And I think it's really important to note that patients can also hear from other patients. And so, when you have patients that have this 20 years or 30 years post stroke, they are usually in a position to speak and get their insights in terms of how their meaningful outcomes. As I mentioned in my prepared remarks, being able to drive a car, go to the bathroom, lift up your child for the first time. These are all things that people can decide for themselves whether that's something that they want to shoot for.

Operator: I'm not showing any further questions at this time. I'd like to turn the call back to Richard for any closing remarks.

Richard Foust: Yes. Thank you, Kevin. I just want to make a couple of comments here. One is thank you all for the questions and the time. I just want to remind everyone, this is a market that remains significantly underserved. We believe the opportunity ahead of us is substantial. The patients we serve are getting better. And, for many, Vivistim therapy has truly changed their lives. I believe that the future is bright for these stroke survivors. And, with all the things in positive directions, the future is extremely bright for Mobia Medical. Thank you very much.

Operator: Thank you. Ladies and gentlemen, this does conclude today's presentation. We thank you for your participation. You may now disconnect, and have a wonderful day.

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