CapsoVision (NASDAQ:CV) Posts Quarterly Earnings Results, Hits Estimates

CapsoVision (NASDAQ:CV) released its quarterly earnings data on Thursday. The company reported ($0.15) EPS for the quarter, meeting analysts’ consensus estimates of ($0.15), Zacks reports. CapsoVision had a negative return on equity of 177.85% and a negative net margin of 214.74%. The business had revenue of $3.57 million for the quarter. During the same quarter in the previous year, the company posted ($0.17) EPS.

Here are the key takeaways from CapsoVision’s conference call:

• AI Highlights received FDA clearance and launched in the U.S. on November 2. Management cited encouraging early physician feedback and believes the software can improve review speed and accuracy, though the U.S. launch is still too recent to assess its commercial impact.
• CapsoVision completed enrollment and data collection for the CapsoCam Colon clinical study and remains on track to submit to the FDA before year-end 2026. The company said a statistician is analyzing the data, so key results have not yet been reported.
• Third-quarter revenue increased just 1% year over year to $3.6 million, while gross margin fell to 49% from 54%, reflecting higher flash-memory costs, an inventory obsolescence charge, and stock-based compensation. Shipments rose slightly and the company added 34 accounts, but management also cited a competitive U.S. pricing environment.
• Operating expenses declined to $9.1 million from $9.9 million, and net loss narrowed to $7.3 million from $7.9 million. Management expects clinical expenses tied to the now-completed colon study to decrease, though continued pipeline investment remains a cost.
• CapsoVision ended September with $21.8 million in cash, including approximately $17.8 million in net proceeds from an $18 million offering, which management said extends its cash runway. It also raised $1.7 million through its ATM facility, which may provide flexibility but involves issuing additional shares.

CapsoVision Price Performance

Shares of CV remained flat at $6.27 during midday trading on Thursday. The stock had a trading volume of 91,319 shares, compared to its average volume of 231,788. CapsoVision has a twelve month low of $4.50 and a twelve month high of $15.37. The stock has a market cap of $313.81 million, a P/E ratio of -13.34 and a beta of -2.34. The firm has a fifty day simple moving average of $6.52 and a 200-day simple moving average of $6.35.

Wall Street Analyst Weigh In

Several brokerages have recently weighed in on CV. Roth Capital started coverage on CapsoVision in a research report on Friday, August 28th. They set a “buy” rating and a $9.00 target price on the stock. Benchmark reaffirmed a “speculative buy” rating on shares of CapsoVision in a report on Friday, August 14th. Weiss Ratings reiterated a “sell (d-)” rating on shares of CapsoVision in a research note on Friday, September 25th. Finally, Zacks Research upgraded shares of CapsoVision to a “hold” rating in a research report on Monday, August 31st. Two equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus target price of $9.50.

Insider Transactions at CapsoVision

In other news, major shareholder Ching Hang Shen bought 878,734 shares of the firm’s stock in a transaction that occurred on Tuesday, September 15th. The stock was purchased at an average cost of $5.69 per share, with a total value of $4,999,996.46. Following the transaction, the insider directly owned 2,926,655 shares in the company, valued at $16,652,666.95. This trade represents a 42.91% increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, major shareholder Eliyahou Et Al Harari purchased 1,757,469 shares of the company’s stock in a transaction that occurred on Friday, September 18th. The shares were purchased at an average price of $5.69 per share, for a total transaction of $9,999,998.61. Following the purchase, the insider directly owned 1,396,494 shares in the company, valued at $7,946,050.86. The trade was a -486.87% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. 2.30% of the stock is owned by corporate insiders.

CapsoVision Company Profile

CapsoVision develops medical technology for capsule endoscopy, a method of examining the digestive tract using a swallowable camera. Its products are designed to help clinicians visualize the small intestine as part of diagnostic evaluation. The company’s CapsoCam Plus system uses a swallowable capsule with multiple cameras to capture panoramic images as it moves through the small intestine. Images are stored in the capsule and later retrieved for review using the company’s supporting hardware and software.