CeriBell, Inc.

Ladies and gentlemen, thank you for standing by. My name is Desiree and I will be your conference operator today. At this time, I would like to welcome everyone to Cerebell Q2 2026 earnings call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press the star one. I would now like to turn the call over to Brian Johnston of Gilmartin Group. You may begin.

Good afternoon, and thank you all for participating in today's call. Joining me from Cerebell are Jane Chao, co-founder and chief executive officer, and Scott Blumberg, chief financial officer. Earlier today, Cerebell issued a press release announcing financial results for the quarter ended June 30th, 2026. A copy of the press release is available on the investor relations section of the company's website. Before we begin, I'd like to remind you that management will make remarks during this call that include forward-looking statements within the meaning of federal securities laws and that these are being made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Any statements contained in this call that relate to expectations or predictions of future events, results, or performance are forward-looking statements. These statements involve material risks and uncertainties that could cause actual results or events to materially differ from those anticipated or implied by these forward-looking statements. Accordingly, you should not place undue reliance on these statements. For a list and description of the risks and uncertainties associated with our business, please refer to the Risk Factors section of our public filings with the Securities and Exchange Commission, including our annual report on Form 10-K filed with the SEC on February 24, 2026, and quarterly report on Form 10-Q for the quarter ended June 30th, 2026. This conference call contains time-sensitive information and is accurate only as of the live broadcast today, August 10th, 2026. TheraBell disclaims any intention or obligation, except as required by law, to update or revise any financial projections or forward-looking statements, whether because of new information, future events, or otherwise. And with that, I'll turn the call over to Jane.

Good afternoon and thank you for joining us for our second quarter 2026 earnings call. Q2 marked another strong quarter for Cerebell as we delivered revenue of $28.1 million, growing 33% year-over-year. This is an acceleration from the 29% year-over-year growth we reported in Q1. which reflects a particularly strong performance in same-store growth driven by our clinical account management team. We also increased our account base by 32 accounts to a total of 712 active accounts. While the increase is similar to what we delivered in recent quarters, Q2 growth relied less on VA accounts than previous quarters. Our sustained success in growing our account base is a result of the continued maturation and performance of our account acquisition team. While revenue and commercial acceleration get popularly, I do want to take a moment to focus on our growth margin. We delivered record growth margin of 92% in Q2. This number was positively impacted by a refund on previously paid tariffs. Even when excluding this refund, we delivered growth margin of 89%. This does not happen by accident. It is a direct result of our proactive efforts in supply chain optimization and manufacturing diversification. And growth margin is more than just a number. It generates the outsized growth profit we're reinvesting to fund our growth initiatives and R&D with the eye towards executing our mission. With 33 consecutive quarters of sequential revenue growth, we believe we have built a repeatable growth engine. By pointing that engine squarely at our defining objective, establishing Cerebell as the standard of care for seizure detection in the acute care setting. At the center of our growth strategy is our commercial infrastructure built with the dual purpose to acquire new customers and drive deeper adoption within our install base. Our account acquisition team continues to mature and is contributing in line with expectation. Their efforts are being supplemented by our newly added strategic account management team through top-down engagement of regional health systems. We have built a robust pipeline of prospects that gives us confidence in our ability to maintain an accelerated rate of new account additions in 2026 compared to 2025. While we continue to expand our account base, Our clinical account management team is driving revenue through headband utilization expansion. Our strong performance this quarter reflects execution of our established utilization playbook, provider engagement, department expansion, and patient population particularization. A robust and expanding body of clinical evidence validates our platform, our aim, is to make the case for Cerebell's clinical necessity by investing in high-quality evidence, demonstrating the clinical and economic value our system delivers. Adding to our established base of over 150 publications and abstracts, in Q2, a high-impact study was published in Critical Care Medicine, one of the leading journals in intensive care research. The study found that when our clarity algorithm reported a peak seizure burden of 90% or greater, patients were 3.6 times more likely to experience severe disability or death at discharge. Further, each additional hour of clarity-detected seizure activity was associated with nearly two-fold increase in that risk. The premise that longer seizure duration correlates with worse outcome is not new. What is new is that a device output can quantitatively report seizure burden at the bedside in real time, and that this burden reliably correlates with patient's outcome. These findings sharpen the clinical imperative for using the Cerebell solution, particularly clarity. to reduce seizure burden for patients. As the body of evidence compounds, we are increasingly confident that Cerebell's path to becoming the standard of care is not a question of if, but when. As we continue to deliver within our core seizure market, we remain encouraged by the traction in our emerging market opportunities. In Q2, we launched our Neonate and pediatric products and the commercial pilot of our delirium algorithm. We remain encouraged by the early commercial traction of our neonate and pediatric seizure line extensions. Customer interest remains high. The clinical conviction is translating into early commercial success as we secured purchase orders from both new and existing customers in Q2. With a robust and growing pipeline, we are well-positioned to translate our commercial efforts into revenue contribution as we move into 2027. We are also excited about the momentum of our first-of-its-kind Delirium monitoring solution, which received 510 clearance in December. Delirium represents an estimated $1 billion U.S. market for TerraBell and a strong addition to our platform. Despite being the most common neurological complication in the ICU, before Cerebell, there had been no commercially available tool to continuously monitor delirium. We launched our commercial pilot in April and are now live in multiple sites. The early feedback has been positive, with users praising improvements in clinical decision making. For example, based on the survey, 40% of the patients were difficult to assess under CAM-ICU, the current standard of care, that could still be monitored with the Cerebell solution. Beyond the clinical signal, we are also seeing a utilization effect. Existing Cerebell customers that have joined the delirium pilot are increasing advanced utilization. We believe this is a reflection of both the clinical value of the delirium detection algorithm and the incidence overlap and just scoring the synergistic value of our platform. We are also pleased to share that we just received a favorable final rule from CMS establishing a new technology add-on payment or NTEP for our delirium monitoring solution. The NTEP, which becomes effective October 1st, 2026, provides up to $2,171 in incremental reimbursement per qualified patient. This is a meaningful milestone. It will support adoption by adding favorable economics to the strong clinical interest we're already seeing in the field. Our launch strategy is coming into focus. And we now have the confidence that we will launch Delirium commercially this year. With the commercial and clinical updates covered, I'd like to turn to our vision for the future. We believe we are well on our way to establishing the Cerebell system as the standard of care for seizure management. At the same time, our longer term vision to establish EEG as a new vital sign is no longer theoretical. We have made material progress and believe we can begin translating this vision to reality in 2027. Underpinning this, is a two-pronged product strategy. We invested in algorithm and hardware enhancement to reach more patient populations while improving patient care and meeting physician needs. Our first prong is centered around developing novel algorithms to further improve clinical decision-making. Delirium and LVO are excellent examples of clinical expansion to new patient populations under this strategy. Through these advancements, we are delivering continuous objective brain monitoring to a set of underserved patient populations. We also apply algorithm development to improve care for patients we already serve. We are pleased to announce today the receipt of FDA 510 clearances for two new algorithms targeting our core seizure market. We believe each meaningfully adds to our platform clinical utility, strengthening the case for Cerebell as the standard of care. The first represents a significant enhancement to clarity's ability to identify and reduce EEG artifact signals. Artifact recognition has long been the leading challenge to EEG interpretation in the acute care environment. It's not uncommon for even neurologists to mistake electrical signal from various medical equipment as seizure activity. EEG is so sensitive that even the electrical signal from an IV drip's movement can create artifacts. Our new algorithm trained on a large artifact database created by Cerebell can differentiate between brain activity and artifact, adding a layer of AI-driven sophistication. The new algorithm significantly simplifies EEG interpretation for neurologists and improves the point of care experience. We anticipate rolling this out in the third quarter. The second clearance is for epileptiform abnormality detection. This algorithm targets abnormal brain activity in a gray zone between clear seizure and normal signals. This activity is clinically important but has historically been difficult to consistently measure. To our knowledge, Cerebell is the first software to be FDA cleared for the detection of both seizure and epileptic form abnormality. This is a capability that neurologists have specifically asked for, and we are proud to be the first one to deliver it. We expect to activate this algorithm by the end of the year. These new algorithms serve to strengthen the clinical benefit offered by our system. We believe that by widening the gap between the value offered by Cerebell System compared to conventional EMG, we create a clinical imperative to adopt our leading-edge technology. The second prong of our product strategy centers on enhancing and expanding our hardware platform. Over recent months, we have received FDA 510 clearances for several products that together form the foundation of our new hardware platform. This includes clearances for a recorder with video and ECG capability, compatibility to integrate with other vital sign measurements, and the ability to monitor continuously while plotting. We have also received clearances for two headband designs that provide optionality for formal touch and multiple-day continuous monitoring when needed. The features offered by our new platform serve to support our effort to make EEG a new vital sign. For example, delirium patients often require days in the ICU before resolution. and the new system can be even more seamless in supporting this new use case. And when we add LVO in the future, a bigger screen will be needed to monitor multiple disease states. Within our Corsage market, we believe our current product is optimized for the majority of patients in acute care setting. It is quick, simple and reliable in a care setting where these are the most important needs. However, With our hardware line extensions, clinicians no longer have to choose between the speed of point-of-care EEG and the comprehensiveness of conventional EEG for patients who need both. Cerebell can offer both with one device. We are continuing to test our products, refine the design, and scale our manufacturing with the target launch of our new hardware platform in 2027. We will share more details as we get closer to the product launch. As I step back, I'm struck by how much is converging at once. Our core business continues to perform, delivers 33% year over year growth and an acceleration compared to last quarter. We are the first and only point of care seizure platform indicated for use with patients of all ages. At the same time, the work we have been building towards for years is coming to a head. New algorithms, new hardware appearances, a delirium pilot tracking towards commercial launch, and a new end-tab. These advancements stand to meaningfully strengthen our value proposition while reinforcing our market leadership position with significant innovation-based barriers to entry. We see 2027 as a pivotal year with Neonate gaining more scale, Delirium commercially launched, our expanded hardware platform on the market, and an increasingly mature Salesforce delivering even greater impact. I'm more convinced than ever that we are building the right platform at the right moment. Our goal of creating a single brain monitoring solution for the acute care setting is within reach. With that, I will now turn the call over to Scott Blumberg, our CFO, to provide a review of the second quarter results and 2026 guidance.