Ekso Revenue Falls 58 Percent in Q2

Key Points

• - Revenue fell 58.0% year over year to $2.1 million in Q2 2025, missing estimates by more than 50 %.

• - Earnings per share loss was $(1.24) for Q2 2025, narrower than expected.

• - Sharp contraction in gross margin to 40% for Q2 2025, driven by lower Enterprise Health sales and higher shipping costs.

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Ekso Bionics (NASDAQ:EKSO), a developer of wearable robotic exoskeletons primarily for medical rehabilitation and mobility assistance, reported second quarter 2025 earnings on July 28, 2025. The most important news in the release was revenue dropping to $2.1 million for Q2 2025, missing analyst expectations of $4.31 million for Q2 2025 by more than 50%. This underperformance was due to delays in Enterprise Health device sales. The company recorded a net loss of $(2.7) million for Q2 2025 and Gross margin declined from 53% in Q2 2024 to 40% in Q2 2025. While earnings per share were a narrower loss than expected at $(1.24) for Q2 2025, the results overall showed significant challenges for the quarter, with management attributing the revenue shortfall to postponed, rather than lost, enterprise deals. The period was marked by uncertainty about demand and financial flexibility despite some bright spots in the personal device segment.

Source: Analyst estimates for the quarter provided by FactSet.

About the Company and Recent Focus Areas

Ekso Bionics specializes in designing and building robotic exoskeletons for people with mobility impairments. These wearable medical devices help individuals regain movement, especially after spinal cord injuries or neurological conditions. The company's solutions serve two main markets: Enterprise Health (such as rehabilitation centers and hospitals) and Personal Health (home-use devices for individuals).

Recently, the company's strategy has focused on expanding its distribution channels and gaining regulatory approvals, like Medicare coverage for certain products. Success depends on getting medical device clearances, winning insurance reimbursement, managing production costs, and maintaining a strong pace of innovation. The shift toward personal-use devices and strategic distribution partnerships signal a push to diversify away from heavy reliance on institutional buyers.

Key Developments and Financial Performance in the Quarter

The quarter stood out for a dramatic drop in total revenue, which fell to $2.1 million in Q2 2025 compared with $5.0 million in Q2 2024, Revenue missed analyst estimates by 51.3% for Q2 2025. This miss was mainly caused by delayed sales of Enterprise Health devices. Management attributed the delay to slow customer decision-making and sales deferrals. Meanwhile, sales of Ekso Indego Personal, the company's home mobility exoskeleton, grew by more than 50% in the first half of 2025, offering a positive sign in the Personal Health segment.

Gross profit shrank to $0.8 million for Q2 2025 with margin dropping to 40% from 53% the prior year (Q2 2025 vs Q2 2024). The company cited fixed costs related to production and increased shipping expenses, alongside a higher proportion of sales going through a new distribution model. Lower gross margins often reflect lower volumes and changes in the type of buyer or device mix. Service cost improvements and better Personal Health margins offset some of these negative effects, but not enough to prevent a steep overall decline.

Sales and marketing costs were down slightly and research and development spending was reduced due to headcount adjustments. General and administrative expenses rose to $2.3 million for Q2 2025, mainly due to fewer costs being allocated to the manufacturing side of the business. Management highlighted ongoing outsourcing and partnership efforts to control fixed expenses, although these did not fully offset the negative leverage from lower sales.

In terms of strategic progress, the company named Bionic Prosthetics & Orthotics Group as its first distributor in the orthotics and prosthetics channel and continued working with National Seating & Mobility for the complex rehabilitation technology market. The period also saw a new partnership through the NVIDIA Connect program, enabling artificial intelligence enhancements like the new Ekso Voice Agent, which aims to give users more intuitive control over devices. These developments mark continued efforts to innovate and expand market access despite the tough revenue picture in the quarter.

Looking Forward: Guidance and Watch Points

Management did not provide quantitative guidance for either the coming quarter or the full year, leaving uncertainty around the pace and scale of recovery, especially for Enterprise Health device sales. Leadership expressed optimism about rebounds based on the current pipeline and expected that some postponed sales would close in the second half of the year. Management expects a growing contribution from Personal Health products.

With a cash balance of $5.2 million as of Q2 2025 and Net losses increased to $2.7 million for Q2 2025 from $2.4 million for Q2 2024, cash management and sales execution will be critical variables to watch. The company faces risks if delayed Enterprise sales do not materialize soon or if institutional customers remain cautious with capital budgets. Key watch points for investors going forward include supply chain performance in light of cost pressures, progress in processing insurance claims for personal-use devices, and further development of reimbursed product opportunities.

Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.

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