CapsoVision, Inc.

Second quarter revenue was $3.6 million, up approximately 10% from $3.3 million in Q2 2025. Gross profit was $1.9 million versus $1.8 million a year ago, and gross margin was 51% compared with 55% in Q2 2025. CapsoCam Plus capsules shipped increased 13% year over year to 8,845, while the average selling price declined about 3%. Operating expenses rose to $9.5 million from $6.5 million, and the company ended the quarter with $9.1 million in cash and cash equivalents. Management said revenue in the second half of 2026 is expected to be higher than the first half, with Q4 typically the strongest quarter.

Johnny Wang framed the quarter as steady progress, pointing to broader adoption across hospital systems and GI networks, more renewals, and encouraging utilization trends in the installed base. He highlighted AI Highlights as an important platform milestone, saying the integrated AI, imaging, and cloud workflow is a competitive differentiator and should be a catalyst once cleared in the U.S. He also emphasized that the company is building an integrated capsule endoscopy platform for multiple GI diseases, not just small bowel imaging.

David Garcia emphasized stronger commercial momentum, citing more than 176,000 patients imaged worldwide, up from more than 143,000 at the end of Q2 2025, and 8,845 capsules shipped in the quarter. He explained that gross margin compression to 51% was mainly due to pricing pressure against one competitor and higher inbound tariff costs. On liquidity, he noted $9.1 million in cash, the prior $14 million private placement, and a new ATM program of up to $100 million to provide flexibility for sales, development, and clinical investment.

Analysts focused on the causes of pricing pressure and tariffs, and management said the pricing pressure came from competition with one particular competitor, while the tariff impact was inbound raw materials. On seasonality, management said Q4 tends to be the strongest quarter and the second half should be much stronger than the first half. Questions on AI Highlights centered on early feedback and U.S. launch timing; management said feedback has been encouraging, the international launch will build real-world experience, and U.S. launch is expected after FDA clearance by the end of Q3, though they cautioned that FDA approval cannot be guaranteed. For CapsoCam Colon, management said the submission slipped to Q4 because more positive subjects with significant polyps were needed based on FDA discussions.