CapsoVision (NASDAQ:CV) Issues Earnings Results

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

CapsoVision stock remained flat at $6.27 during mid-day trading on Thursday. The company had a trading volume of 91,319 shares, compared to its average volume of 231,788. The firm’s 50 day moving average is $6.52 and its 200-day moving average is $6.35. The firm has a market cap of $313.81 million, a PE ratio of -13.34 and a beta of -2.34. CapsoVision has a fifty-two week low of $4.50 and a fifty-two week high of $15.37.

Wall Street Analysts Forecast Growth

CV has been the subject of a number of research analyst reports. Roth Capital initiated coverage on shares of CapsoVision in a research note on Friday, August 28th. They issued a “buy” rating and a $9.00 target price for the company. Weiss Ratings reissued a “sell (d-)” rating on shares of CapsoVision in a research note on Friday, September 25th. Benchmark reissued a “speculative buy” rating on shares of CapsoVision in a research note on Friday, August 14th. Finally, Zacks Research raised shares of CapsoVision to a “hold” rating in a report on Monday, August 31st. Two analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, CapsoVision presently has an average rating of “Hold” and an average target price of $9.50.

Insider Activity

In other CapsoVision news, major shareholder Ching Hang Shen bought 878,734 shares of CapsoVision stock in a transaction dated Tuesday, September 15th. The shares were bought at an average price of $5.69 per share, with a total value of $4,999,996.46. Following the purchase, the insider owned 2,926,655 shares of the company’s stock, 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 filing with the SEC, which is available at this link. Also, major shareholder Eliyahou Et Al Harari bought 1,757,469 shares of CapsoVision stock in a transaction dated Friday, September 18th. The stock was acquired at an average cost 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 approximately $7,946,050.86. The trade was a -486.87% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders own 2.30% of the company’s stock.

About CapsoVision

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.