Pulmonx Corporation (LUNG): History, Ownership, Mission, How It Works & Makes Money

When you look at a medical technology company like Pulmonx Corporation (LUNG), are you seeing a niche player or a global leader revolutionizing severe emphysema treatment? This company is on track to deliver full-year 2025 revenue in the range of $89 million to $90 million, driven by the continued global adoption of its core product, the Zephyr Endobronchial Valve, which is a minimally invasive treatment for chronic obstructive pulmonary disease (COPD). Considering their Q3 2025 worldwide revenue hit $21.5 million with a strong 75% gross margin, understanding Pulmonx's history, ownership structure, and precise revenue model is defintely crucial for mapping the future of pulmonary care and its financial trajectory.

Pulmonx Corporation (LUNG) History

You're looking for the foundational story of Pulmonx Corporation, the company that pioneered a non-surgical option for severe emphysema. The direct takeaway is this: Pulmonx spent its first two decades focused on clinical proof and regulatory clearance in Europe before the massive U.S. market opened up in 2018, a strategic patience that paid off with a successful 2020 IPO.

Given Company's Founding Timeline

The company's origin story is rooted in a clear, unmet need: a less invasive alternative to lung volume reduction surgery (LVRS) for severe emphysema patients. This focus on a single, high-impact solution-the Zephyr Endobronchial Valve-has been the core of its trajectory since the mid-90s.

Year established

The company was initially incorporated in the State of California in December 1995, though some records cite 1998 as the founding year. [cite: 10 from previous search, 7 from previous search]

Original location

The original and current principal executive offices are located in Redwood City, California.

Founding team members

Key individuals involved in the company's early formation include:

• Mike Connolly (Co-Founder)
• Rodney Perkins (Founder)

Initial capital/funding

Pulmonx raised substantial capital in venture rounds over two decades before going public. The company has historically secured over $281 million in total funding prior to its Initial Public Offering (IPO). [cite: 7 from previous search]

Given Company's Evolution Milestones

The company's history is a masterclass in methodical, clinical-first market development. They secured European approval (CE Mark) for the Zephyr Valve in 2003, a full 15 years before getting U.S. FDA approval. That's a long, defintely disciplined haul.

Given Company's Transformative Moments

Two key decisions fundamentally changed the company's risk profile and growth trajectory. First, the commitment to rigorous, multi-center, randomized controlled trials (RCTs) like STELVIO and LIBERATE was crucial; this clinical evidence is what ultimately convinced the FDA and secured broad reimbursement, making the Zephyr Valve a standard of care. Second, the IPO provided the fuel for a global commercial engine.

Here's the quick math on the IPO: they sold 11,500,000 shares at $19.00 per share, including the full exercise of the underwriters' option, totaling $218.5 million. That capital allowed them to shift from a development-stage company to a commercial-stage one, rapidly expanding their U.S. footprint.

The most recent transformative moment is a leadership change in late 2025. In October 2025, the Board reappointed Glen French as President and CEO, and appointed Derrick Sung as COO and CFO, replacing Steve Williamson and Mehul Joshi. [cite: 18 from previous search] This management transition is a clear signal of the board's focus on operational execution for the next phase of growth.

Looking at the near-term financial picture, the company is guiding for full-year 2025 total revenue between $89 million and $90 million, with an expected gross margin of approximately 73%. [cite: 1, 2, 6 from previous search] They are still investing heavily, with operating expenses projected to be $125 million to $126 million for the year, showing the continued push for market penetration. Cash and cash equivalents stood at $76.5 million as of September 30, 2025. [cite: 1, 2 from previous search]

For a deeper dive into who is buying and selling this stock, you can check out Exploring Pulmonx Corporation (LUNG) Investor Profile: Who's Buying and Why?

Pulmonx Corporation (LUNG) Ownership Structure

Pulmonx Corporation's ownership structure is heavily weighted toward institutional investors, a common feature for an established, publicly-traded medical device company, which gives them substantial control over strategic decisions.

Pulmonx Corporation's Current Status

Pulmonx Corporation trades publicly on the Nasdaq Global Select Market under the ticker symbol LUNG. This status means its shares are freely bought and sold, but a high concentration of institutional holdings effectively governs the company's direction.

As of November 18, 2025, the stock was trading at approximately $1.40 per share. The company's management recently revised its full-year 2025 revenue guidance downward, projecting between $89 million and $90 million, down from the earlier $90 million to $92 million range. This shift is a key indicator of near-term risk you need to defintely factor in when assessing their current valuation.

Pulmonx Corporation's Ownership Breakdown

The company is overwhelmingly controlled by large financial institutions, which hold nearly nine out of every ten shares. This means that major shareholders like PRIMECAP Management Company and BlackRock, Inc. are the primary drivers of long-term strategy and voting power. Here's the quick math on the share distribution as of early November 2025:

For a deeper dive into who is buying and selling these shares, you should read Exploring Pulmonx Corporation (LUNG) Investor Profile: Who's Buying and Why?

Pulmonx Corporation's Leadership

The leadership team saw a significant, sudden transition in late October 2025, which is a critical factor for near-term stability and strategy execution. The Board reappointed a former CEO to steer the company, signaling a return to proven leadership during a challenging period.

The current core executive team, effective as of November 2025, includes:

• Glen French: President and Chief Executive Officer (reappointed October 27, 2025, bringing over 30 years of medical device experience).
• Derrick Sung, Ph.D.: Chief Operating Officer (COO) and Chief Financial Officer (CFO) (appointed November 3, 2025, previously served as CFO from 2018 to 2023).
• David Lehman: General Counsel & Secretary.
• Geoffrey Rose: Chief Commercial Officer.

The average tenure of the management team is approximately 2.7 years, which suggests a mix of historical knowledge and new perspective, but the recent CEO/CFO change means the top-level tenure is effectively less than a month. This is a situation where you need to watch their first 2026 earnings call closely; the new leadership needs to quickly articulate a clear path to profitability.

Pulmonx Corporation (LUNG) Mission and Values

Pulmonx Corporation's mission is fundamentally about patient transformation, aiming to move individuals with severe lung disease from profound breathlessness back to an active life. This patient-first approach is the cultural DNA that guides their investment decisions, even as the company works toward profitability, evidenced by a projected full-year 2025 gross margin of approximately 73%.

You're looking at a medtech company whose core purpose is literally to help people breathe. That's a powerful driver, and honestly, it's what keeps the team focused when the financials show a Q3 2025 net loss of $14.0 million. They have to balance that clinical imperative with the need for operating leverage.

Pulmonx Corporation's Core Purpose

The company's purpose extends beyond selling the Zephyr Endobronchial Valve (a minimally invasive treatment for emphysema). It's about establishing a new standard of care (standard of care is the treatment widely accepted by medical experts as appropriate for a certain type of patient, condition, or stage of illness) that significantly improves a patient's quality of life.

Official Mission Statement

The formal mission statement provides a clear mandate for their strategic direction and product development pipeline.

• To be the global leader and trusted partner in assessment and treatment of severe lung disease by innovating and commercializing evidence-based solutions to improve patients' breathing and quality of life.

This isn't just a feel-good statement; it's a commitment to a global market, which is why their full-year 2025 total revenue is expected to be in the range of $89 million to $90 million, with international markets driving significant growth.

Vision Statement

Pulmonx's vision is an ambitious roadmap that defines their long-term market position and impact.

• Establish their minimally invasive solutions as the global standard of care for severe lung diseases, especially emphysema.

To achieve this, the company must defintely continue to invest heavily in clinical data and product enhancements. For instance, their cash and cash equivalents stood at $76.5 million as of September 30, 2025, which they are using to fund these key growth initiatives.

Core Values

Their values clarify how the company operates, guiding everything from R&D spending to commercial execution. They are the filter for every strategic decision.

• Patient focus: Put the best interest of patients at the center of decisions.
• Innovation: Adapt quickly and continuously seek new ways to create value for customers, employees, and shareholders.
• Science: Take a data-driven approach to decision making, clinical strategy, and commercial execution.

Here's the quick math: a 75% gross margin in Q3 2025 shows the underlying product economics are strong, but the investment in innovation and commercial infrastructure (part of the 'Innovation' and 'Patient focus' values) is what drives the current operating loss. You can't transform a standard of care without spending money.

Pulmonx Corporation Slogan/Tagline

While they don't use a single, snappy tagline in the traditional sense, their core patient-facing message is a clear, actionable summary of their mission.

• Helping Patients Breathe Easier, Do More & Enjoy Life.

This is the human outcome they are selling, not just a medical device. You can explore more about this focus here: Mission Statement, Vision, & Core Values of Pulmonx Corporation (LUNG).

Pulmonx Corporation (LUNG) How It Works

Pulmonx Corporation operates by offering a minimally invasive, bronchoscopic treatment system for severe emphysema, a debilitating form of chronic obstructive pulmonary disease (COPD). The company creates value by providing a mechanical solution-the Zephyr Valve-that directly addresses the root cause of breathlessness: hyperinflation of the lungs.

Honestly, this technology gives patients a new lease on life when standard medications have stopped working. The company expects full year 2025 total revenue to fall in the range of $89 million to $90 million, underscoring the growing adoption of this specialized medical device.

Pulmonx Corporation's Product/Service Portfolio

Pulmonx Corporation's Operational Framework

The company's operational process is a tightly integrated system, moving from patient identification to post-procedure care, which is how they ensure treatment success and drive adoption. The entire process is centered on the Zephyr Valve, but the diagnostic and planning tools are what make the procedure predictable and effective.

• Patient Selection: Physicians use the StratX Lung Analysis Platform to review a patient's CT scan, mapping the disease distribution and identifying the most hyperinflated lobe.
• Collateral Ventilation Assessment: The Chartis Pulmonary Assessment System is then used during a diagnostic bronchoscopy to confirm the absence of collateral ventilation (air flow around the targeted lobe), which is a critical predictor of a positive outcome.
• Minimally Invasive Treatment: The one-way Zephyr Valves are placed in the airways of the targeted lobe via a short, typically one-hour, bronchoscopic procedure, meaning there is no surgical incision.
• Value Realization: The valve allows trapped air to exit the diseased lobe during exhalation but prevents new air from entering, causing the lobe to deflate and reducing the pressure on the diaphragm. This is the core value proposition: reducing hyperinflation to let healthier lung tissue expand.
• Commercial Execution: Pulmonx generates revenue by selling these products to distributors and hospitals across the U.S. and over 25 international countries. For the third quarter of 2025, worldwide revenue was $21.5 million, with U.S. revenue at $14.0 million and international revenue at $7.5 million.

Pulmonx Corporation's Strategic Advantages

Pulmonx's competitive edge is built on clinical validation and market position in a niche where few effective, less-invasive options exist. They defintely own the patient stratification process, which is key to repeatable success.

• Regulatory and Clinical Moat: The Zephyr Valve received FDA pre-market approval as a "breakthrough device," a designation that signals a significant clinical advantage over existing options. This status helps solidify its inclusion in global treatment guidelines as a standard of care.
• Proprietary Diagnostic Tools: The Chartis and StratX systems create a procedural ecosystem, effectively locking in the use of the Zephyr Valve because these tools are optimized to select the best candidates for their specific valve technology.
• High Gross Margin: The full year 2025 gross margin is expected to be approximately 73%, which reflects the high-value nature of their specialized medical device and its strong pricing power.
• Targeted Focus: By focusing solely on severe emphysema, they have built deep expertise and a focused sales channel, differentiating them from larger, more diversified medical device conglomerates. You can learn more about what drives this focus here: Mission Statement, Vision, & Core Values of Pulmonx Corporation (LUNG).

What this estimate hides is the cash burn; Pulmonx ended Q3 2025 with $76.5 million in cash and equivalents, but the full year 2025 operating expenses are projected to be in the range of $125 million to $126 million, so capital discipline is paramount for them right now.

Pulmonx Corporation (LUNG) How It Makes Money

Pulmonx Corporation generates its revenue primarily through the sale of its medical devices, most notably the Zephyr Endobronchial Valve (EBV), which provides a minimally invasive treatment for patients suffering from severe emphysema, a form of chronic obstructive pulmonary disease (COPD). The company operates on a razor/razor-blade model, where the single-use valves and enabling technologies like the Chartis Pulmonary Assessment System are sold to hospitals and distributors globally.

Pulmonx Corporation's Revenue Breakdown

The most telling breakdown of Pulmonx's revenue comes from its geographic segments, reflecting different stages of market adoption and reimbursement. Based on the third quarter of 2025 (Q3 2025) results, total worldwide revenue was $21.5 million.

Business Economics

The core economics of Pulmonx are defined by a high-margin, device-based business model that is still deep in the investment phase for market creation. The company's ability to maintain a high gross margin is a clear indicator of its pricing power, driven by the Zephyr Valve's designation as a breakthrough device and its inclusion in global treatment guidelines.

• Pricing Power: The full-year 2025 gross margin is projected to be approximately 73%, which is a premium margin for the medical device sector. This high margin reflects the value-based pricing strategy tied to the clinical benefit of the Zephyr Valve for severe emphysema patients.
• High Fixed Costs: The main drag on profitability is the massive investment in commercial and clinical infrastructure. Full-year 2025 operating expenses are guided to be between $125 million and $126 million. Here's the quick math: this expense level is about 140% of the midpoint of the company's 2025 revenue guidance, a ratio far exceeding what you'd see in a mature medical device business.
• Reimbursement as the Gate: The slow growth in the U.S. (+1% in Q3 2025) compared to international markets (+15%) shows that revenue conversion hinges on securing and streamlining reimbursement pathways and physician adoption in new centers. The company is defintely still in the market-building phase.

Pulmonx Corporation's Financial Performance

As of the end of Q3 2025, the company's financial profile is typical of a high-growth, pre-profit medical technology firm that is aggressively investing to capture a large, underserved market. The focus remains on scaling revenue and improving operating leverage, not near-term net income.

• Revenue Outlook: Pulmonx updated its full-year 2025 total revenue guidance to a range of $89 million to $90 million, a slight downward revision from earlier forecasts due to slower-than-expected U.S. revenue conversion.
• Profitability Metrics: The company continues to operate at a loss, posting a net loss of $14.0 million in Q3 2025. The Adjusted EBITDA loss for the same quarter was $8.2 million. The path to profitability depends entirely on revenue growth outpacing the high operating expense base.
• Cash Position: The balance sheet remains solid enough for the near term, with cash and cash equivalents totaling $76.5 million as of September 30, 2025. This cash buffer is crucial for funding the high operating burn rate while the company focuses on expanding its commercial footprint.

For a deeper dive into the metrics that will drive the stock, you should read Breaking Down Pulmonx Corporation (LUNG) Financial Health: Key Insights for Investors.

Pulmonx Corporation (LUNG) Market Position & Future Outlook

Pulmonx Corporation is positioned as the market leader in the niche, high-growth Endobronchial Valve (EBV) segment, but its future hinges on translating its global clinical dominance into sustainable profitability, especially with full-year 2025 revenue guidance of only $89 million to $90 million. You need to watch the pace of US adoption and the new management team's ability to rein in high operating expenses.

Competitive Landscape

The Endobronchial Valve market is a highly consolidated duopoly, meaning most of the market share is held by Pulmonx Corporation and its primary competitor, Olympus America. While a direct 2025 market share breakdown is not public, the competition centers on valve design and integrated patient selection tools. CVRx, though not a direct EBV competitor, represents the broader landscape of innovative, high-cost medical devices targeting chronic cardiopulmonary conditions.

Opportunities & Challenges

The company is defintely pushing hard on global expansion, and that's where the near-term revenue growth is coming from, but the US market remains a challenge.

Industry Position

Pulmonx Corporation holds a leading position in the bronchoscopic lung volume reduction (BLVR) market, largely due to its FDA Breakthrough Device status and the integrated nature of its Zephyr Endobronchial Valve, Chartis Pulmonary Assessment System, and StratX Lung Analysis Platform.

The company's focus is on expanding the use of its technology in the severe emphysema patient population, a segment with high unmet needs. Exploring Pulmonx Corporation (LUNG) Investor Profile: Who's Buying and Why?

While the projected 2025 gross margin of approximately 73% is strong, signaling product pricing power, the significant operating loss-with expenses far exceeding revenue-means the company is still firmly in a high-growth, cash-burn phase. This scale-up strategy requires flawless execution to justify the valuation, especially with only $76.5 million in cash and equivalents as of September 30, 2025.

• Maintain market leadership by leveraging the 2025 GOLD report inclusion to drive broader clinical adoption.
• Focus commercial efforts on higher-growth international markets to offset the slower U.S. conversion rate.
• New management must clearly articulate a path to moderating the operating expenses relative to revenue growth to ease investor concerns about profitability.