ClearPoint (CLPT) Q1 2026 Earnings Transcript

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DATE

Wednesday, May 13, 2026 at 4:30 p.m. ET

CALL PARTICIPANTS

• Chief Executive Officer — Joseph Michael Burnett
• Chief Financial Officer — Danilo D'Alessandro

TAKEAWAYS

• Total Revenue -- $12.1 million, reflecting 43% growth, with 16% organic growth and the remainder attributed to the EraFlow product line acquisition.
• Biologics & Drug Delivery Revenue -- $4.8 million, up 2%, driven mainly by a $100,000 increase in product revenue; services revenue was flat.
• Neurosurgery Navigation Revenue -- $5.9 million, which includes $2.1 million from EraFlow disposables, with the growth attributed to a higher installation base and the full market release of the Prism laser system and ICT solution.
• Capital Equipment & Software Revenue -- $1.4 million, up 177% from $500,000, attributed to increased placements of navigation systems, Prism laser units, and Airflow Control units.
• Gross Margin -- 64%, up from 60%, with the increase mostly due to a decrease in excess and obsolete inventory reserves.
• Research & Development Expenses -- $4.5 million, up 34%, primarily due to $600,000 higher personnel costs and $300,000 product and software development expenses.
• Sales & Marketing Expenses -- $6.7 million, up 75%, driven by $1.9 million in personnel costs, $500,000 in travel related to Eris integration, and $200,000 in increased amortization expense.
• General & Administrative Expenses -- $5 million, up 22%, due mainly to $700,000 higher occupancy costs and $200,000 in additional personnel spend.
• Cash and Cash Equivalents -- $35.6 million as of March 31, with a $10.3 million decrease quarter over quarter, primarily reflecting $8 million in operational burn and $2 million in equity award-related tax payments.
• EraFlow Revenue Contribution -- Currently at 20%-25% of total revenue, with management expecting this proportion to remain steady over the year.
• 2026 Revenue Guidance -- Management expects full-year revenue of $52 million to $56 million, driven by growth across all four business pillars but excluding any contribution from commercial cell and gene therapies.
• Gross Margin Commentary -- CEO Burnett said, "gross margin expanded to 64%. Now although gross margin can fluctuate from quarter to quarter, it is encouraging that our first full quarter with the Eris technology came in slightly ahead of our pre integration projections."
• Global Commercial Footprint -- Over 175 active sites are currently using ClearPoint technology, with expectations to surpass 200 by year-end.
• Post-Merger Cost Synergies -- Integration costs from the Eris acquisition are largely complete, with expected operational cash burn to decrease in coming quarters.
• FDA and Regulatory Progress -- More than 10 partner programs are under some form of FDA expedited review, with Pillar 1 benefitting from a record number of active clinical trials across more than 15 disease indications.
• Velocity MR Drill -- Management highlighted the FDA clearance and recent CE marking in Europe for the Velocity MR high-speed surgical drill, stating it will reduce procedure times and broaden the customer base globally.

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RISKS

• CEO Burnett referenced "incredible confusion at the FDA, in huge confusion on some of the feedback that had been provided across multiple ClearPoint partners," noting industry-wide uncertainty around rare disease guidance and clinical trial enrollment.
• Cash and cash equivalents declined by $10.3 million during the quarter, primarily due to $8 million operational burn and $2 million related to equity awards, though management expects operational cash burn to moderate going forward.

SUMMARY

ClearPoint Neuro (NASDAQ:CLPT) delivered record quarterly revenue, boosted by both organic growth and the EraFlow acquisition, while its gross margin improved due to operational efficiencies and reduced inventory reserves. EraFlow now represents a significant revenue component and has expanded the company’s product offering, supported by completion of integration costs and further operational synergy initiatives. The FDA clearance and European CE mark for the Velocity MR drill enhance the firm’s global positioning for procedural growth and customer expansion. Ongoing uncertainty around rare disease regulatory guidance, as described on the call, presents a persistent external risk factor for several clinical development partners.

• Management described the new Advanced Laboratories facility as not yet fully operational, with further revenue capacity expected from planned incremental buildout and utilization through at least 2027.
• The company continues to prioritize biopharma services through more than 60 active industry partnerships, anchoring ClearPoint’s long-term opportunity in cell and gene therapy delivery.
• Sales and marketing expense increased sharply as a result of ongoing commercial team expansion supporting newly acquired assets and strengthened clinical field presence.
• Direct sales strategy changes in Europe for EraFlow have temporarily slowed international revenue growth, as certain distributors were replaced by a direct commercial model outside the U.S.

INDUSTRY GLOSSARY

• Biologics & Drug Delivery (B&DD): Revenue category that includes ClearPoint’s disposables and service activities supporting preclinical and clinical studies for drug delivery in brain applications.
• EraFlow: Dual lumen, flexible indwelling catheter line for drug delivery and neurocritical care, acquired from Eris, supporting multi-day brain infusions and active CSF exchange.
• ICT Solution: Intraoperative Computer Tomography guidance workflow, a navigation segment enhancement referenced in capital equipment growth.
• CAL Facility: ClearPoint Advanced Laboratories, new company-operated site focused on preclinical and benchtop biopharma services and early-stage medical device development.
• Prism Laser System: MRI-guided laser catheter ablation therapy platform with expanded labeling for broad MRI compatibility, driving recent commercial growth.
• Velocity MR Drill: Recently FDA-cleared and CE marked high-speed surgical drill for neurosurgical access, manufactured by AdiOR Medical AG.

Full Conference Call Transcript

Joe Burnett, chief executive officer. Please go ahead.

Joseph Michael Burnett: Thank you, Shamali. And as always, thank you to all of the investors analysts and biopharma partners listening to today's call. We remain both committed to and focused on developing a complete neuro ecosystem capable of delivering various minimally invasive treatments, including cell and gene therapies to the brain. Believe that this approach will finally unlock hope for the patients and their families who are battling these frightening neurologic disorders and who today have very few options to choose from. Is 1 of the largest unmet needs in all of medicine, and we at ClearPoint believe we can play a crucial, if not essential role in this exciting future.

Our company has started 2026 on a strong note by achieving record revenue of $12.1 million for the quarter driven primarily by organic devices growth of 25% which includes our historical drug delivery cannulas, navigation disposables, laser ablation applicators, capital systems, and software. This revenue was complemented by inorganic device growth from our acquisition of the new EraFlow product line which pushed our overall growth rate to 43% company-wide. Continue to realize meaningful revenue and cost synergies as a result of our new completed acquisition of Eris with the majority of post merger integration costs now behind us and taking place in the first quarter.

Importantly, we made progress across all 4 of our growth pillars that are designed to make our unique drug delivery ecosystem more refined and more accessible to biopharma partners surgeons, and to patients globally. We believe that we are truly a unique hybrid device biotech enabling company that not only has an existing revenue plan of more than $50 million today, but a completely untapped and expansive opportunity in commercial cell and gene therapy delivery built for tomorrow. Our strategy now includes more than 60 active biopharma partners, more than 25 existing clinical trials, across more than 15 different disease indications and more than 10 partner programs that are already under some form of FDA expedited review.

That is a significant head start and through both our team and our investment into this portfolio, we intend to extend our lead. With that, I will turn the call over to Danilo D'Alessandro, our CFO who will walk through the financial detail, after which I will give a more strategic update on our progress. Danilo?

Danilo D'Alessandro: Thank you, Joe, and thank you all for joining us today. Looking at the first-quarter 26 results, total revenue was $12.1 million for the 3 months ended March 31, 2026. and $8.5 million for the 3 months ended March 30, 2025, which represents 43% growth versus the 2025 and 16% organic growth. Our revenue is made up of 3 components: biologics and drug delivery, neurosurgery navigation and therapy, capital equipment and software. Biologics and drug delivery revenue includes sales of disposable products and services related to customer sponsored preclinical and clinical trials utilizing our products. Biologics and drug delivery revenue increased 2% to $4.8 million in the first quarter, up from $4.7 million in 2025.

This increase was mainly due to an increase in product revenue of $100 thousand. B&DD service revenue was in line with prior year. Neurosurgery navigation revenue consists of commercial sales of the disposable products and services related to cases utilizing the ClearPoint system the Prism laser system and EraFlow. This revenue segment grew to $5.9 million for the 2026, including $2.1 million in EraFlow disposable revenue. The growth in this segment was primarily due to our increased installation base and the full market release of our Prism laser system and ICT solution.

Capital equipment and software revenue consisting of sales of our reusable hardware and software and related services increased 177% to $1.4 million in the quarter, from $500 thousand for the same period in 2025 due to an increase in the placements of ClearPoint Navigation System, Prism laser units and Airflow Control units. Gross margin for the first quarter 26 was 64%, an increase of 4% compared to 60 in Q1 25, mostly related to a decrease in excess and obsolete inventory reserves. Research and development costs were $4.5 million for the 3 months ended March 31, 2026 compared to $3.4 million for the same period in 2025. An increase of $1.1 million or 34%.

The increase was due primarily to higher personnel costs of $600 thousand and higher product and software development cost of $300 thousand. Sales and marketing expenses were $6.7 million for Q1 compared to $3.8 million for the same period in 2025. An increase of $2.9 million or 75%. This increase was due primarily to additional personnel costs of $1.9 million and increase in travel costs of $500 thousand resulting from the expansion of our clinical and sales teams due to the Eris integration. As well as additional amortization expense of acquired intangible assets of $200 thousand. General and administrative expenses were $5 million for the first quarter, an increase of $900 thousand or 22%.

This increase was due primarily to higher occupancy costs of $700 thousand and higher personnel cost of $200 thousand. As of March 31, 2026, we held cash and cash equivalents totaling $35.6 million as compared to $45.9 million at December 31, 2025. The cash reduction was primarily due to the operational cash burn of $8 million in Q1 26, and $2 million due to payments for taxes related to net share settlement of equity awards. We expect the operational cash burn to decrease in the coming quarters as we complete the Eris integration. I would like now to turn the call back to Joe.

Joseph Michael Burnett: Thank you, Danilo. We look to build upon a successful first quarter and continue to expect 2026 revenue to be in the range of $52 million to $56 million. We are also pleased to report that our first quarter burn came in on budget from what we were expecting. As a reminder, the first quarter each year has historically been our highest burn quarter, and onetime events related to post merger integration costs after the acquisition of the Eris assets. Additionally, gross margin expanded to 64%. Now although gross margin can fluctuate from quarter to quarter, it is encouraging that our first full quarter with the Eris technology came in slightly ahead of our pre integration projections.

As always, let's now turn to our 4 pillar growth strategy for a bit more detail. As a quick reminder, our 4 pillars consist of the following segments. Number 1, pre commercial biologics and drug delivery products and services. Number 2, neurosurgery navigation and robotics. Number 3, laser therapy and access. And number 4, neurocritical care and active CSF exchange. These are the 4 markets that we participate actively in today and pretty much 100% of our current revenue is coming from these 4 markets. In 2026, we expect all 4 of these segments to each grow double digits.

For clarity sake, this does not include any revenue from the commercial launch of cell and gene therapies, which we expect to start in the years ahead upon appropriate global drug approvals. First let's start with pillar number 1, pre commercial biologics and drug delivery. The team has made substantial progress building out the ClearPoint Advanced Laboratories facility in Torrey Pines, California, affectionately known as the CAL. This new facility will become a common starting point for our relationship with biopharma partners to perform benchtop and preclinical studies as well as troubleshoot workflows to build custom devices and software that are drug and target specific.

Despite the fact that the facility was significantly limited for most of the month of March for planned construction projects, we were still able to perform numerous studies in the first quarter, which included multiple new routes of administration which were tested for the very first time by the ClearPoint team. This demonstrates not only our ability to co develop new products with partners, but also shows how we expect our drug delivery portfolio will continue to grow in the future, often with new techniques and new intellectual property that we are building alongside of our partners. Additional progress was made globally evidenced by a record number of clinical trials.

Our biopharma partners need to know that their therapies can reach patients anywhere in the world and our commitment to global availability of our ecosystem delivers on exactly that. it is a costly investment, but also a key competitive advantage that reinforces the significant head start we have built in the space. And as planned, we have begun to integrate the EraFlow product line into our portfolio. The EraFlow dual lumen catheter is a flexible multi day placement catheter that we expect to address. We had multiple meetings with interested researchers, and plan to provide updates later this year on this new option for our partners.

Moving on to pillar number 2, which is neuro navigation and robotics, where we have made some tremendous progress recently as well. Our successful launch of the 3.X platform continues in the United States, and our first clinical cases ever performed in Canada are expected here in the near future. Numerous demonstrations of our prototype ClearPoint robotic platform, which prioritizes cranial procedures, have been extremely well received and have repeatedly highlighted our unique understanding of the cranial drug delivery space. It is important to remember that we are leveraging more than 15 years of software development focused on the brain.

This historical investment into our best in class cranial segmentation and navigation workflow allows us to jump out of the starting gate especially when paired with an established robotic arm provider using the KUKA LBR Med robotic arm. 1 highlight to share is that we recently performed our first ever preclinical drug delivery case at our CAL facility using this robotic platform, and the results were better than expected. We plan to offer this system for use in preclinical biopharma studies at the Cal facility to our more than 60 active partners. For pillar number 3, laser therapy and access, our biggest highlight of the quarter was the FDA clearance of the Velocity MR high speed surgical drill system.

Manufactured by our partner, AdiOR Medical AG. We believe this drill will be an attractive solution for surgeons compared to our historical hand operated twist drill. This device operates at more than 75 thousand RPM and when using our custom drill bits, we expect to meaningfully reduce procedure times. These efficiency gains were already evident during the very first ever clinical procedure performed with the drill just a couple of weeks ago for 1 of our partners' cell therapy clinical trial.

Additionally, we were pleased to announce just today that the drill has now received CE marking in Europe as well, which expands the system's availability beyond The United States and provides a scalable pathway to support neurosurgical procedures and therapy adoption globally, including across our European partnered biologic programs. Our prism laser therapy system continues to be highly competitive solution in the market with multiple installs, evaluations, and purchases completed in the first quarter. As a quick reminder, our newly expanded labeling now includes both 3.0 and 1.5 Tesla scanners which has significantly expanded our potential customer base compared to where we were a year ago.

And last but not least, pillar number 4, which is neurocritical care and active CSF exchange is made up of the various Eraflow assets included in the acquisition of Eris at the end of 2025. This is a completely new market for ClearPoint, but an important 1 as it fits into our 2 phase strategy perfectly. Number 1, it adds a flex flexible indwelling catheter to our biologics and drug delivery portfolio, a capability we have historically lacked, opening up a new potential pathway for drug delivery to the brain. In the first quarter, we have successfully merged our commercial teams together including initial cross training on the devices.

With the sales integration now behind us, we expect to continue to grow this business in 2026 and in the years ahead. Having mapped out multiple revenue and cost synergies, we believe that the addition of the EraFlow assets could potentially be cash neutral for ClearPoint as early as 2027. Globally, we now have more than 175 active sites using some form of ClearPoint technology and expect that number to surpass 200 by the end of 2026. This site expansion not only allows ClearPoint technology, to be available to more hospitals and patients worldwide, but it also enables the scaling of our business model, including the expert clinical support for which we are very well respected in the neurosurgical community.

With that, I would like to open up the call to any questions.

Operator: Thank you. We will now be conducting a question and answer session. It may be necessary to pick up the handset before pressing the star keys. Our first question comes from the line of Frank Takkinen with Lake Street Capital Markets. Please proceed with your question.

Analyst (Frank Takkinen): Great. I was hoping to start with 1 in pillar 1, and a kind of 2-part question and a little unrelated. So sorry if it is a little lengthy. But, Part 1 would be related to can you just give us an update from ClearPoint standpoint, the current state of affairs or clinical backdrop at the FDA. Obviously, there is been some headlines around some leadership changes and I am just curious how this has, impacted some of your interactions. Do you foresee maybe some of those, conversations becoming a little bit more efficient in the future with different leadership and, anything else that is important there. that is part 1.

And then Part 2, 1 of your partners was acquired by UCB or pending acquisition. Just was curious if you could provide any updates related to your partner activities, ongoing there that you are able to discuss? Thanks. And sorry again for the lengthy question.

Joseph Michael Burnett: Frank, I expect nothing less than multipart questions for you. From, so thanks for asking. So the first 1 relative to the FDA, you know, there is 2 different groups of the FDA that we generally work with, which you know, part on the devices side and then part on the combination side, which definitely has a component of biologics to it. On the devices side, we have seen very little change. We have seen incredible cooperation We have hosted multiple pre submission meetings with a team that is been pretty well intact.

So, you know, we have not seen anything negative at all on that side. it is been very positive, you know, for really years now at this point. And that includes conversations we have had with the newly acquired Eris assets as well. So if you think about the traditional device part of the business, we have not seen, very much difference. If anything, I think it is going smooth.

On the biologic side, you know, we are not always privy to each and every 1 of these questions, but obviously, you cannot read a headline today without understanding that there is been incredible confusion at the FDA, in huge confusion on some of the feedback that had been provided across multiple ClearPoint partners, and I am sure likely others as well. And, I think everyone is looking for really that confusion, I think, to halt more than anything else as the first step. And my understanding is where we are with the new lease selection or, for both the head of CBER as well as the head of the FDA itself.

We are still a little bit in a waiting mode here to see what that final decision is. That certainly any appointment to either 1 of those roles from someone who, you know, is not only incredibly competent in the device I am sorry, the biologic space, statistical clinical trial design, etcetera, that would be very, very welcome. And then, of course, anyone who is you know, gone through the gauntlet of how difficult it is to enroll these incredibly complex clinical trials, I think would also be viewed as a positive, not just by ClearPoint, but the entire community as well.

So, you know, we are anxiously awaiting as well see what those final decisions look like and the, sort of the ability to get started. On the second question relative to I believe you are talking about the Neurona acquisition by UCB. Again, that was, I think, a very, very positive. The Neurona team is still very much intact, very much working alongside us. And from our standpoint, we have had a wonderful relationship with UCB for many years now as well. So, it is kind of 2 partners sort of coming together and getting the benefits of both teams at that time.

So we expect to continue to support the Neurona asset as it as it moves into their phase 3, phase 3 pivotal trial as we speak. And just, 1 quick thing I would bring up, Frank, because it is a really important question too. it is kind of getting back to the FDA, side of things. We need to remember that, you know, not to bucket everything together. there is sort of the rare disease side of things. Which are things like Huntington's disease and, you know, a number of these very, very rare conditions that sit on sort of 1 side. And then there is the much higher volume higher prevalence diseases like epilepsy, Parkinson's, etcetera.

So when the FDA had given guidance in the past to provide expedited review for these programs to try to accelerate their pathway to market, The larger market opportunities were always in a position where they were going to be some form of a pivotal Phase 3 study. So when this sort of confusion arose to some extent where it was argued that, you know, that some of the decisions have been changed or some of the guidance have been changed. I do not personally believe that is impacted disorders like Parkinson's or epilepsy or Alzheimer's disease or dementia or things like that because the plan was always to do that pivotal trial.

I think the bigger question was on the other side with these rare diseases where it is just incredibly difficult to do 1 of these randomized sham studies. Because surgeons are not necessarily comfortable enrolling patients, and patients themselves might feel like they are missing a chance to experiment with other studies if they are waiting for 1 in a situation where they do not even get the experimental drug. They were just given a placebo. So, that is just the practicality of some of these rare disease studies is really the thing that was the biggest question that we had seen.

Analyst (Frank Takkinen): Got it. Very helpful. And then maybe for my second 1, just help us through kind of low end versus high end of guidance. What are some of the key variables you are tracking that might push you towards 1 of those 2 ends?

Joseph Michael Burnett: Yeah. I mean, I would I would say the largest factor there, is really the continued investment and preparation of the preclinical services that we are providing at the new Cal facility. You know, as you have seen, you know, throughout our history, there is always choppiness from quarter to quarter. But the thing I would point out there is that we are still very much, not fully operational yet and under capacity. And I view that as kind of a positive. And Danilo's comments he made, he mentioned that our preclinical services, our biologics and drug delivery services, were flat year over year. What I would point out is sort of twofold.

If you think about our new facility, think of it this way. This is floor 1 of them. And these are all 3 revenue generating floors for, benchtop testing, for, analytics, for histology, you know, you name it. So to even start the quarter, we only had 1/3 of that revenue generating space, if you will. And then even if you look at the 1/3 we had, there was an entire month of May where we were not doing studies because we were finishing completion of some of the construction there too.

So if you think about estimating capacity of what that facility could do for us, We still came in the millions of dollars, but you could argue we were at like 2/9 or 20% of, you know, what the what our actual capacity is. So we are we are significantly subscale on that as well. And, you know, we expect if you think by the end of Q2, early Q3, we should be getting close to taking the first floor over, the second or the second floor, if you think of it in my analogy. And then by 2027, we would have the full facility completed.

So it is gonna be this kind of sort of, stable, but increase over the next year or so. In the next 18 months. And, you know, to answer your question, when those facilities and studies get booked is really the biggest driver of that. That range in guidance.

Analyst (Frank Takkinen): Got it. Okay. Very helpful. Thank you. Sure.

Operator: Thank you. Our next question comes from the line of Tom Steffen with Stifel. Please proceed with your question.

Analyst: Great. Hey, guys. Thanks for taking the questions. Maybe as a follow-up to Frank's prior question, Danilo, maybe for you, can you talk a bit about revenue cadence for the year as we think about the guide and notably as well as how much of the mix is the kind of base business versus EraFlow? And then I will have a follow-up.

Danilo D'Alessandro: Yes. The way I would think about it is with sequential growth, potentially quarter over quarter. For the coming for the remainder of the year. So it will be gradual but we expect it to be somewhat consistent over the next 3 quarters. With regard to the Eraflow side of things, we expect it to grow and it still accounts for that 20% in that 20% to 25% of our total of our total business. that is what we expect between now and the end of the year.

Analyst: Got it. that is really good.

Joseph Michael Burnett: Tom, the only thing maybe I would add there as well is that, you know, as we mentioned at the beginning in the first half of the year, our European and OUS strategy for Eraflow has changed a little bit. Where we have moved on from certain distributors and we are going direct in different markets as well. So that sort of paused our European growth to some extent, while the U.S. continues to kind of fire here in the first half. So there could be a little bit of a lag there relative to when, sort of outside of the U.S., EraFlow kicks in because of some of these changes.

Again, it is, you know, it is--I would not say it is just noise. I mean, I think it is real, but it is not something that is gonna change the map of our revenue for the year. Got it. that is great. Appreciate that. And then I guess moving down the P&L, if you will, specifically around EraFlow and I know you mentioned it can fluctuate, but is this mid-60 percent range potentially sustainable moving forward? And then sort of similarly on OpEx, Joe, you mentioned some 1-timers. How much were those? And what is kind of the right OpEx run rate moving forward for 2026? Yeah.

You know, quarter to quarter, there is definitely going to be some fluctuations. I mean, it could be down next quarter and then up the 1 after that. it is it is nice to get a good 1 under our belt for the first quarter. But we are still very much subscale in just about everything that we do. including EraFlow. So if you think about what took place in Q1, we shut down the EraFlow factory that was in San Diego, and we moved all of their operations and employees over to our Carlsbad facility.

So if you think of it something that showed up on the G&A, for example, as an increase, we have an empty building right now that we are in the process of subleasing. to go ahead and get over--that is 1 that is 1 of those very obvious cost synergies that we have already done all the work to move everything over. Now it is just finding a tenant to take over the lease.

So those are the types of things you know, multiply that times 10 or 15 different opportunities with redundant vendors, with the ability to have some sort of negotiating power with our vendors of just, you know, raw materials, putting more and more products through our factory, And then even on the sales and marketing side, to be able to have our clinicals travel less because the volume has increased across our portfolio in different cities, you know, with gas prices where they are and travel expenses where they are, that is a very, very meaningful part of the strategy too that does not hit our gross margin.

But it helps that, it is definitely gonna help us on the select side of things. Got it.

Analyst: Thanks, guys. Thank you.

Operator: Thank you. Our next question comes from the line of Matt Blackman with TD Cowen. Please proceed with your question.

Analyst (Mathew Blackman): Hey, Joe, Danilo, thanks for taking my questions. Can you hear me okay?

Joseph Michael Burnett: Yes, we are loud and clear.

Analyst (Mathew Blackman): Great. Well, good to hear your voices. Clearly, a lot has happened since I last had the opportunity. To be on a ClearPoint call. And so on that theme, sort of a big-picture question. You are now more evolved 4-phase, 5 growth-pillar strategy, I think, with a combined $500 million long-term revenue target. Here's a another multipart question for you. Question 1, do you have all the key pieces in place today to hit that $500 million number some time in the future? Are there still platforms or services you need to roll in to make that number achievable?

And Part 2 is, is there a way to get to that $500 million target faster inorganically? are there assets out there that have technology and revenue bases that could help accelerate your pathway. Do you evaluate that pathway versus getting there organically? And then I do have 1 follow-up question.

Joseph Michael Burnett: Yes. So the first question was around, do we have all the parts to build this spaceship and get to our destination here? And I think the answer is yes. I would say it in the way that there is still refinements in our portfolio. But we have control of the portfolio. So I will give you a perfect example of that is our robotics platform. You know, we do not have an FDA cleared robot today. We have 1 that we are doing preclinical cases with for pharma partners. So it is functional in the preclinical setting.

We have every confidence in this program because of the development that KUKA has put into the robotic arm development and parallel to what we have done over 15 years for our software development. So it is not that we are dependent on something inorganic or dependent on something that requires invention or luck. You know, these are things that I think are execution. But once we have a robotic platform and arguably become the only company where you have 1 software that can be done in the MRI, using the same frame in ICT and then also with the robot as well.

You know, I think that is something that, especially if our pharma partners support it as their robot of choice. I think that is going to differentiate us and give us a right to win. If you think about other things that are out there inorganically, it is interesting if we are not gonna cross into neurovascular, and we are not going to go out of the brain or implant something into the brain, which dramatically increased sort of complexity and cost and patient outreach and neurology call points and things like that.

You know, there are not that many assets that are out there, and it is interesting because the reason for that is so few patients go through with surgery compared to the sheer number of patients that are out there that need help. And that is really the promise of improvements with DBS. Improvements to laser systems and awareness and access, improvements to reimbursement, and arguably most importantly, the availability, you know, final commercial availability of cell and gene therapies and other drugs that can be restorative and not ablative or not be an implant, which I think patients are very likely from what we understand to pursue first.

So, to the extent that they are available, which is something that I think will scale us quite a bit. So that is that is why I am saying I do not think we are dependent on something inorganic to get there.

Analyst (Mathew Blackman): Got it. that is really helpful. And then the follow-up, for you as well, Joe. on the EraFlow catheter, look, I appreciate it is still very early days. But are you feeling any interest from current or even potentially new partners in using the indwelling delivery option? And maybe, Danilo, if you could,

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