Stereotaxis Revenue Up 20% to $8.9M as GenesisX Debuts

Stereotaxis grew third-quarter revenue 20% year over year to $8.9 million, up from $7.5 million, as early sales of its GenesisX robotic system and Synchrony operating room technology offset a continuing catheter supply shortage. The net loss held flat at $6.5 million. The company paired the results with a convertible note financing worth $12 million upfront, plus an optional second $12 million tranche tied to a regulatory milestone.

Chairman and CEO David Fischel said Stereotaxis expects more consistent capital equipment sales and growing recurring revenue in coming quarters, supporting its goal of reaching profitability in 2027. That goal rests heavily on fixing a shortage of MAGiC catheters, which has limited procedures and left orders unfilled.

By Amara Osei

What drove the revenue increase?

System revenue rose to $3 million from $1.9 million a year earlier. CFO Kim Peery attributed the gain to partial revenue recognition on the first GenesisX system sold in the United States and the first Genesis system sold in China, along with the first full quarter of Synchrony sales.

Fischel said the company was prepared to install its first U.S. GenesisX system in November, with the first European installation expected soon afterward. Stereotaxis also has visibility to one additional installation in early 2027.

GenesisX installs in existing operating rooms without construction or purchase of a specific integrated X-ray system. In August, the FDA cleared an upgraded version compatible with non-modified, non-integrated X-rays. In October, Stereotaxis struck a collaboration with Canon covering compatibility and co-marketing; the first U.S. GenesisX installation will run alongside a Canon X-ray.

The GenesisX pipeline holds "a couple dozen" opportunities, Fischel said, though he cautioned the company must prove the system's performance in real-world use and convert interest into orders.

How large is the Synchrony opportunity?

For the digital operating room system, Fischel said near-term sales of approximately $1 million per quarter were a reasonable expectation. The pipeline includes roughly 50 systems over less than a year, and sales could eventually reach a couple million dollars in some quarters. Abbott Northwestern Hospital in Minneapolis has ordered five systems and installed four across its cardiology catheterization labs.

Why is the catheter shortage still biting?

Recurring revenue increased 6% year over year to $5.9 million but fell 4% from the second quarter. Peery said growth from newer robotically navigated catheters was offset by MAGiC shortages and the transition away from Johnson & Johnson's ecosystem.

Robotic catheter revenue rose more than 20% sequentially and more than 400% year over year, Fischel said, yet still fell short of expectations. Contract manufacturer Osypka did not increase MAGiC shipments from the second quarter. Stereotaxis entered the fourth quarter with roughly $1.9 million in disposable orders it could not convert to revenue.

To conserve MAGiC supply for the U.S. — where it remains the only available catheter for customers — the company shifted European commercial efforts to two alternative catheters distributed through exclusive partnerships. Fischel estimated that half or slightly more of the opening fourth-quarter backlog would be resolved during the quarter, and said Stereotaxis expects record recurring revenue even without higher Osypka shipments, primarily because of the European shift. Regulatory decisions expected in early 2027 could allow redundant supply to meet U.S. demand; he offered no current monthly production figure.

What does the financing and cost base look like?

Stereotaxis ended September with $4 million in cash and cash equivalents. Including the $12 million upfront note proceeds, the pro forma cash balance was $16 million, Peery said. The optional $12 million draw depends on a regulatory milestone related to the MAGiC constraint. The note converts at a 30% premium to the recent stock price, with interest due at its three-year maturity. Fischel said the financing should bridge the company to profitability within the next year.

Third-quarter operating expenses totaled $10.4 million, including $1.3 million in non-cash charges. Adjusted operating expenses rose to $9.1 million from $6.6 million a year earlier, reflecting one-time transaction costs and higher spending following the Robocath acquisition. Peery said approximately $8 million per quarter was a reasonable model for future adjusted operating expenses.

Gross margin came in at 45%, with system margin at 15% and recurring revenue margin at 59%. Peery expects margins to stay near those levels short term, with expansion possible in 2027 and 2028.

What comes after Robocath?

Following the acquisition, Stereotaxis is developing the next-generation R-Star mechanical robot, including engineering, supply chain work, and integration with its software and digital cockpit. Fischel said some pipeline innovations could have initial commercial impact in 2027, with all of them expected to land within two years.

Stereotaxis, listed on NYSE American under STXS, builds robotic technologies for minimally invasive endovascular procedures, focused on cardiac electrophysiology. Its systems use magnetic navigation and specialized software to help physicians steer guidewires and catheters when treating cardiac arrhythmias.