Pulmonx: 3 Key Takeaways for Long-Term Investors

On its third-quarter 2026 earnings call, held on Oct. 27, 2026, Pulmonx (NASDAQ:LUNG) returned to year-over-year top-line growth with total revenue of $22.8 million. Commercial realignments and expense controls are narrowing losses while expanding the reach of its medical devices for severe lung disease.

Three management statements highlight the drivers behind this financial turn.

1. Cost Reductions Accelerate Operating Leverage

Pulmonx reduced its third-quarter adjusted EBITDA loss, or earnings before interest, taxes, depreciation, and amortization, by nearly 60% year over year. Lower operating expenses provided immediate financial leverage as revenue expanded.

The decrease in operating expenses reflects the cost reduction efforts that we initiated at the start of the year, and we remain on track to meaningfully reduce our expense trajectory in 2026 while maintaining investments in our key growth initiatives.
-- Derrick Sung, Chief Operating Officer and Chief Financial Officer

2. Focused Commercial Execution Rebuilds Sales Momentum

Management prioritized high-yielding sales accounts and filled substantially all open sales seats in the U.S. This tighter operational focus helped drive a 7% year-over-year revenue increase in domestic markets.

We are seeing evidence that our sharper focus on fewer initiatives is accelerating growth by prioritizing what matters most. With the right people, focus, and culture now in place in the U.S., we are confident that we have rebuilt a foundation for continued revenue growth.
-- Glendon E. French, President and Chief Executive Officer

3. Market Expansion Target Expands Total Addressable Audience

The company is enrolling patients in a trial for AeriSeal, a specialized foam designed to seal lung air leaks. Expanding into untreated patient segments broadens the total addressable market, or TAM, which measures the full revenue opportunity for its treatments.

We believe that AeriSeal represents a TAM expansion tool and a further revenue contributor with the ability to expand our addressable market by roughly 20% globally.
-- Glendon E. French, President and Chief Executive Officer

Looking Ahead

Top-line growth is returning across both domestic and international markets as sales team productivity improves. High gross margins above 75% and spending discipline provide financial flexibility, while management watches sales force tenure and clinical trial milestones.

Having returned to year-over-year growth in both our U.S. and international businesses in the third quarter, we expect this trend to continue for the remainder of the year...
-- Derrick Sung, Chief Operating Officer and Chief Financial Officer

Re-establishing commercial momentum in global regions and commercializing new therapeutic tools position the business to generate operating leverage without requiring heavy capital additions.

And we do believe that with capital that we have, on hand and have access to, that we do have a very clear pathway to get to cash flow breakeven.
-- Derrick Sung, Chief Operating Officer and Chief Financial Officer

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