Brain monitoring technology firm Ceribell announced its first-quarter financial results on Monday and raised its full-year revenue guidance to a range of $112 million to $116 million. A new CMS proposed rule, if finalized, could provide additional payments of up to approximately $2,171 per patient for its delirium monitoring solution.

First-quarter performance exceeded expectations, leading to an upward revision of the annual outlook. The financial report shows the company's first-quarter revenue reached $26.5 million, a 29% increase year-over-year, surpassing market expectations of $26.09 million. Product revenue was $20.2 million, and subscription revenue was $6.3 million, both reflecting a 29% year-over-year growth. The gross margin remained high at 87%.

Based on the strong first-quarter performance, the company has raised its full-year 2026 revenue guidance from the previous range of $111 million to $115 million to a new range of $112 million to $116 million, projecting year-over-year growth of 26% to 30%.

CMS New Rule: Potential Major Boost for Delirium Monitoring In its proposed rule for the fiscal year 2027 Inpatient Prospective Payment System, CMS has proposed granting Ceribell's delirium monitoring solution a New Technology Add-on Payment of up to approximately $2,171 per patient case. The final rule is expected to be announced in August 2026 and, if passed, would take effect on October 1.

Operational Progress: Expanded Customer Base, New Product Launch The company ended the quarter with 680 active hospital accounts, a net increase of 33 during the quarter, marking the highest quarterly net increase since its public listing. The neonatal and pediatric product has completed its pilot phase and has commenced full commercial rollout. The first sites for the delirium monitoring program were activated in April, signifying the company's entry into a potential new market valued at approximately $1 billion.

Financial Loss and Investment The company reported a first-quarter net loss of $19.7 million ($0.52 per share), higher than the $12.8 million loss in the same period last year. This was primarily due to increased sales and research and development investments, as well as $5.6 million in litigation-related expenses. Cash and marketable securities at the end of the quarter were approximately $141 million.