📊 LUNG Key Takeaways
Is Pulmonx Corp (LUNG) a Good Investment?
Pulmonx demonstrates excellent gross margins (77.9%) indicating strong product viability, but operates at massive losses with negative operating cash flow (-$10.1M), unsustainable operating margin (-62.9%), and insufficient revenue growth (8% YoY) to offset burn. While the $61.6M cash position provides ~6-year runway, the company has not demonstrated a viable path to profitability and will likely require additional capital raises.
Pulmonx shows respectable revenue growth and strong gross margins, indicating the underlying product economics have potential. However, the business remains deeply unprofitable at the operating and net level, with materially negative free cash flow and weak returns on capital, which makes the current growth quality less attractive. The balance sheet provides near-term liquidity support, but fundamentals still point to a company that must prove it can scale without sustained heavy losses.
Why Buy Pulmonx Corp Stock? LUNG Key Strengths
- Exceptional gross margin of 77.9% demonstrates strong pricing power and product economics
- Fortress balance sheet with $61.6M cash (51% of total assets) providing substantial operational runway
- Strong liquidity metrics (4.91x current ratio, 4.04x quick ratio) eliminate near-term solvency concerns
- Moderate leverage (0.82x debt-to-equity) provides financial flexibility
- 8% revenue growth YoY shows incremental market traction despite losses
- High gross margin of 74.2% suggests strong product-level economics
- Revenue grew 8.0% year over year, showing continued commercial demand
- Strong liquidity with $69.75M in cash and a 5.07x current ratio supports near-term operations
LUNG Stock Risks: Pulmonx Corp Investment Risks
- Deeply unprofitable with -$13.7M net income on only $20.6M revenue (-66.3% net margin)
- Negative operating cash flow of -$10.1M annually indicates unsustainable business model at current scale
- Cannot cover interest expense from operations (negative interest coverage ratio of -14.7x)
- Burn rate of ~$10M annually requires external funding within 6 years even with current cash reserves
- Revenue growth of 8% is far below the rate needed to achieve profitability given current cost structure
- Operating margin of -59.3% and net margin of -59.7% show the business model is not yet scaled profitably
- Free cash flow of -$32.83M and negative operating cash flow indicate ongoing cash burn
- ROE of -99.8% and ROA of -41.8% reflect very weak capital efficiency
Key Metrics to Watch
- Operating cash flow trajectory (must turn positive for viability)
- Path to operating profitability and timeline to positive operating margin
- Revenue growth acceleration (must exceed 20-30% annually to justify burn rate)
- Cash runway and likelihood of dilutive financing requirements
- Gross margin sustainability as revenue scales
- Operating loss and free cash flow burn relative to revenue growth
- Gross margin stability and progress toward operating margin improvement
Pulmonx Corp (LUNG) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 4.91x current ratio provides a solid financial cushion.
LUNG Profit Margin, ROE & Profitability Analysis
LUNG vs Healthcare Sector: How Pulmonx Corp Compares
How Pulmonx Corp compares to Healthcare sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Pulmonx Corp Stock Overvalued? LUNG Valuation Analysis 2026
Based on fundamental analysis, Pulmonx Corp shows some fundamental concerns relative to the Healthcare sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Pulmonx Corp Balance Sheet: LUNG Debt, Cash & Liquidity
LUNG Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Pulmonx Corp's revenue has grown significantly by 87% over the 5-year period, indicating strong business expansion. The most recent EPS of $-1.44 indicates the company is currently unprofitable.
LUNG Revenue Growth, EPS Growth & YoY Performance
LUNG Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $20.6M | -$13.7M | $-0.33 |
| Q3 2025 | $20.4M | -$13.7M | $-0.34 |
| Q2 2025 | $20.8M | -$13.7M | $-0.38 |
| Q1 2025 | $18.9M | -$13.7M | $-0.36 |
| Q3 2024 | $17.7M | -$13.7M | $-0.36 |
| Q2 2024 | $17.2M | -$13.7M | $-0.39 |
| Q1 2024 | $14.5M | -$13.7M | $-0.36 |
| Q3 2023 | $13.5M | -$14.2M | $-0.38 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Pulmonx Corp Dividends, Buybacks & Capital Allocation
LUNG SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Pulmonx Corp (CIK: 0001127537)
📋 Recent SEC Filings
❓ Frequently Asked Questions about LUNG
What is the AI rating for LUNG?
Pulmonx Corp (LUNG) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (SELL) with 80% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are LUNG's key strengths?
Claude: Exceptional gross margin of 77.9% demonstrates strong pricing power and product economics. Fortress balance sheet with $61.6M cash (51% of total assets) providing substantial operational runway. ChatGPT: High gross margin of 74.2% suggests strong product-level economics. Revenue grew 8.0% year over year, showing continued commercial demand.
What are the risks of investing in LUNG?
Claude: Deeply unprofitable with -$13.7M net income on only $20.6M revenue (-66.3% net margin). Negative operating cash flow of -$10.1M annually indicates unsustainable business model at current scale. ChatGPT: Operating margin of -59.3% and net margin of -59.7% show the business model is not yet scaled profitably. Free cash flow of -$32.83M and negative operating cash flow indicate ongoing cash burn.
What is LUNG's revenue and growth?
Pulmonx Corp reported revenue of $20.6M.
Does LUNG pay dividends?
Pulmonx Corp does not currently pay dividends.
Where can I find LUNG SEC filings?
Official SEC filings for Pulmonx Corp (CIK: 0001127537) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is LUNG's EPS?
Pulmonx Corp has a diluted EPS of $-0.33.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is LUNG a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Pulmonx Corp has a SELL rating with 80% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is LUNG stock overvalued or undervalued?
Valuation metrics for LUNG: ROE of -29.8% (sector avg: 15%), net margin of -66.3% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy LUNG stock in 2026?
Our dual AI analysis gives Pulmonx Corp a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is LUNG's free cash flow?
Pulmonx Corp's operating cash flow is $-10.1M, with capital expenditures of $9.0K. FCF margin is -49.1%.
How does LUNG compare to other Healthcare stocks?
Vs Healthcare sector averages: Net margin -66.3% (avg: 12%), ROE -29.8% (avg: 15%), current ratio 4.91 (avg: 2).