Pulmonx Corporation

Good day and thank you for standing by. Welcome to the Pulmonix Q3 2026 earnings conference call. At this time, all participants are in a listen-only mode. To ask a question during our Q&A session, you will need to press star 11 on your telephone. You will then hear an automated message advising that your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to turn the conference over to your first speaker, Webb Campbell of Investor Relations. Please go ahead.

Good afternoon and thank you all for participating in today's call. Joining me from Palmonix are Glen French, President and Chief Executive Officer, and Derrick Sung, Chief Operating Officer and Chief Financial Officer. Earlier today, Palmonix issued a press release announcing its financial results for the quarter ended September 30th, 2026. A copy of the press release is available on the Palmodix website. Before we begin, I'd like to remind you that management will make statements during this call that include forward-looking statements within the meaning of federal securities laws, which are made pursuant to the safe harbor provision 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. all forward-looking statements, including without limitation, those relating to our operating trends, commercial strategies, and future financial performance, including long-term outlook and full-year 2026 guidance, the timing and results of clinical trials, physician engagement, expense management, market opportunity, guidance for revenue, gross margin, operating expense, cash usage, commercial expansion, and product demand Adoption and pipeline development are based upon our current estimates and various assumptions. 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 filings with the Securities and Exchange Commission, including our quarterly report on Form 10-Q filed with the SEC on August 4th, 2026. Also during this call, we will discuss certain non-GAAP financial measures. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are provided in the press release, which is posted on the investor relations website. These non-GAAP measures are not intended to be a substitute for our GAAP results. This conference call contains time-sensitive information and is accurate only as of the live broadcast today, October 27th, 2026. Palmonix 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 will turn the call over to Glen.

Thank you, Webb. Good afternoon, everyone, and welcome to our third quarter 2026 earnings call. Here with me is Derrick Sung, our Chief Operating Officer and Chief Financial Officer. I am very pleased to report that Pulmonix delivered total worldwide revenue of $22.8 million in the third quarter of 2026, marking our organization's return to revenue growth with a 6% increase over the prior year period. This milestone is evidence of our strategy in action. Our continued progress built on consistent execution leaves us increasingly confident in our ability to achieve our previously communicated revenue guidance of $90 million to $92 million for the full year 2026. Beyond returning to growth, we continue to deliver on our commitment to significantly improve operating leverage by reducing our year over year adjusted EBITDA loss by nearly 60% to $3.5 million. Derrick will provide further details on this later in the call. I will focus my remarks today on our priorities for re-accelerating sales growth and advancing our market expanding clinical initiatives. Our organization wide emphasis on disciplined execution of the highest impact selling activities consistent with the near to far framework for market development we've outlined previously continues to drive success for our commercial team and is responsible for the 7% year over year growth that we delivered this quarter in the US. To reiterate, this means setting up high quality and efficient valve programs engaging with and educating physicians who treat COPD and who are aligned with hospital systems offering Zephyr valves, concentrating our direct-to-patient efforts specifically on geographies with established treating centers that have the capacity to accommodate interested patients, and finally, continuing to work together with our champions to educate service line administrators ensuring that their programs are properly resourced and can provide a high quality patient experience. 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. At the start of the year, our focus was on rebuilding our sales leadership team and filling open territories. We have been finding great talent and have presently filled substantially all open US sales positions. Since the start of the year, we have seen broad-based increases in activity within our accounts that are associated with long-term growth, such as regular reviews of patients being considered, dedicated valve program coordinators and systematic reviews of pulmonary function test results to identify potential patients. In our digital advertising, we have been able to reduce our cost per patient engagement and are seeing increased yield of those engagements to successful treatment. All of these are markers of progress on our near-to-far strategy that we believe are contributing to our improved growth trajectory in the US. We have seen strong engagement in recent specialty society meetings. At the European Respiratory Society Congress in Barcelona, there was significant scientific focus on bronchoscopic lung volume reduction, including a panel symposium and 19 poster presentations with particular interest in the patient pathway, patient experience, and multidisciplinary approaches to severe COPD management. At the American Association of Bronchoscopy and Interventional Pulmonology meeting in Denver, the five-year follow-up data from our Liberate Pivotal Trial was presented, and there were multiple sessions focused on emerging uses of endobronchial valves. Shifting gears, we also remain centrally focused on expanding our addressable market through AeroSeal. Enrollment in our Convert2 IDE trial continues to progress and we remain on track to complete enrollment in the back half of next year. We believe that AeroSeal represents a TAM expansion tool and a further revenue contributor with the ability to expand our addressable market by roughly 20% globally. In closing, the third quarter marked an important milestone for Pulmonix as we return to year-over-year revenue growth in both our US and international businesses. While 2026 remains a year of execution and transition, we're very pleased with our pace of progress and we have greater conviction in our strategy to refine execution and further penetrate the substantial market opportunity for our products. The organization remains aligned and focused on our top priorities. We're confident in the underlying strength of this business and the opportunity in front of us and in our ability to deliver growth and operating leverage as our year-over-year trends continue to strengthen. With that, I will turn the call over to Derrick to provide more detailed review of our third quarter results.