Pulmonx Corporation (LUNG): Business Model Canvas [Dec-2025 Updated]

You're looking at a fascinating case study in MedTech scaling: Pulmonx Corporation is driving a high-margin product, projecting about a 73% gross margin for fiscal 2025, yet they are burning through cash at a clip near $125 million in operating expenses for the same year. With revenue guidance landing around $89 million to $90 million and cash reserves at $76.5 million as of Q3 2025, the path to profitability hinges entirely on their commercial execution and adoption curve. Dive into the Business Model Canvas below to see exactly how this innovator plans to outrun that burn and secure its market position.

Pulmonx Corporation (LUNG) - Canvas Business Model: Key Partnerships

You're looking at how Pulmonx Corporation builds its value by leaning on external expertise and market reach, which is smart when you're scaling a specialized medical device like the Zephyr Valve. These alliances are critical for getting the product in front of the right patients and clinicians.

The relationship with the American Lung Association remains a key part of the educational outreach strategy. This partnership focuses on patient and provider education, which helps build awareness for innovative treatment options beyond standard medical management for severe COPD and emphysema. While specific 2025 financial metrics tied directly to this educational effort aren't public, the ongoing nature of the collaboration supports the broader market acceptance of the Zephyr Valve therapy.

A very recent, significant development is the strategic partnership with Jaeger Medical, announced in August 2025. This move is about embedding screening logic directly into diagnostic platforms. Here's the quick math on what that means: the integration of data qualification functionality into Jaeger Medical's SentrySuite™ platform is designed to streamline how clinicians interpret respiratory data, helping them more easily identify patients who qualify for the Zephyr Valve based on secondary findings like severe hyperinflation. This is next-generation data intelligence helping drive patient identification.

The commercial success of Pulmonx Corporation is heavily reliant on its global network of specialized hospital treatment centers and its international distributors. The Zephyr Valve is commercially available in more than 25 countries, which is a testament to the strength of these distribution channels and their inclusion in global treatment guidelines. International revenue is a major growth engine for the company, often outpacing U.S. growth.

To give you a concrete look at the financial impact of this global footprint, check out the recent international revenue performance:

The company's full-year 2025 revenue guidance, as revised, sits in the range of $90 million to $92 million, with the international segment showing robust growth rates like the 32% jump in Q2 2025. This growth underscores the importance of those international distributors in expanding market access beyond the U.S. market, where Q2 2025 revenue was $14.7 million.

These partnerships are clearly designed to tackle the core challenge: patient identification and access. The Jaeger integration directly addresses the 'Test' part of their Acquire, Test, and Treat strategy, while the international distributors handle the 'Treat' scale globally. If onboarding new centers in those 25+ countries takes longer than expected, revenue guidance adjustments, like the one seen in Q2 2025, become a near-term risk.

Finance: draft 13-week cash view by Friday.

Pulmonx Corporation (LUNG) - Canvas Business Model: Key Activities

You're looking at the core engine of Pulmonx Corporation (LUNG), the set of actions required to keep the Zephyr Valve ecosystem moving. This isn't just about making a device; it's about a complex, multi-step process from manufacturing to patient identification. The financial reality for late 2025 shows strong product economics but heavy investment in scaling that commercial engine.

Here's a quick look at the operational metrics that underpin these activities, based on the latest reported figures:

Manufacturing and quality control of Zephyr Valve and accessories.

The manufacturing activity is characterized by high unit economics, which is a major strength for Pulmonx Corporation. The company expects its full-year 2025 gross margin to be approximately 73%, which is significantly above the industry average gross margin of around 47.52%. To be fair, the actual Q3 2025 margin was slightly higher at 75%, showing consistent quality control and efficient production of the Zephyr Valve, which is commercially available in more than 25 countries.

Generating new clinical evidence and long-term data (e.g., IMPACT study).

Sustained clinical validation is a non-negotiable key activity here. While the IMPACT study reference points to historical data, the current investment reflects ongoing commitment. Operating expenses in the third quarter of 2025 were $30.4 million, up 4% from the prior year, with a stated reason being increases in clinical, development, and commercial investments. A critical pipeline activity is the AeriSeal CONVERT II Trial, which is ongoing and has enrolled over 200 patients globally, aiming to expand the addressable patient population for the Zephyr Valve treatment.

Commercial execution, including direct sales force management.

Commercial execution is clearly split between two geographies, showing different levels of traction. In the third quarter of 2025, U.S. revenue was $14.0 million, representing about 65.1% of total revenue, but this was only a 1% increase year-over-year. Conversely, international revenue was $7.5 million, a strong 15% increase year-over-year, making up the remaining 34.9% of the total. The company is actively trying to accelerate U.S. conversion, evidenced by Q2 2025 efforts where direct-to-patient advertising drove over 20,000 first-time patient engagements.

The commercial build requires significant resources; the company projects full-year 2025 operating expenses to land between $125 million and $126 million.

Physician training and certification for the bronchoscopic procedure.

Scaling the procedure requires a steady influx of trained specialists. You need to know the pace of this upskilling. For example, in the second quarter of 2025 alone, Pulmonx Corporation trained 26 new physicians, supporting the addition of 12 new U.S. treatment centers in that same quarter.

Key training and adoption metrics include:

• 26 new physicians trained in Q2 2025.
• 12 new U.S. treatment centers added in Q2 2025.
• The Zephyr Valve is included in global treatment guidelines.

Developing AI-powered patient identification tools like LungTraX Detect.

This activity focuses on improving the top of the funnel-finding the right patients efficiently. The LungTraX Detect tool is designed to prospectively analyze non-contrast chest CTs. Early pilot data showed that LungTraX Detect identified between 10.5% to 18% of lung cancer screening CT scans as having a high level of emphysema, indicating a large pool of potentially undiagnosed, valve-eligible patients. Management noted steady progress with this AI tool in Q2 2025, with a robust pipeline of hospitals lined up for adoption.

Pulmonx Corporation (LUNG) - Canvas Business Model: Key Resources

You're looking at the core assets that allow Pulmonx Corporation to operate and pursue growth in late 2025. These aren't just things they own; they are the foundation for their value proposition in treating severe emphysema.

Proprietary Zephyr® Endobronchial Valve technology (IP) represents a significant barrier to entry. The Zephyr Valve itself is an implantable device designed to occlude airways feeding the most diseased lung lobes in patients with severe emphysema. This technology has achieved the highest evidence rating possible under the Global Initiative for Chronic Obstructive Lung Disease (GOLD) standards for interventional therapy, which is Evidence A.

The regulatory and global acceptance of this core IP is a major resource:

• FDA pre-market approval was granted following its designation as a "breakthrough device".
• The Zephyr Valve is commercially available in more than 25 countries.
• It is included in global treatment guidelines and is widely considered a standard of care treatment option.

Financial liquidity remains a critical, though depleting, resource. As of September 30, 2025, Pulmonx Corporation held $76.5 million in cash and cash equivalents. This balance followed a total cash utilization of approximately $25 million through the first three quarters of 2025.

The diagnostic tools are integral to the treatment pathway, ensuring proper patient selection for the Zephyr Valve:

• Chartis® Pulmonary Assessment System: A proprietary balloon catheter and console used to assess the absence of collateral ventilation in specific lung lobes.
• StratX® Lung Analysis Reports: A cloud-based quantitative computed tomography (CT) analysis service that provides data on emphysema destruction, fissure completeness, and lobar volume to help identify target lobes.

The commercial and clinical infrastructure is lean but specialized, directly supporting the deployment of the technology. As of late 2025, Pulmonx Corporation reported a total employee count of 291. This team is responsible for generating the company's revenue streams, which are supported by strong unit economics, as evidenced by the Q3 2025 gross margin of 75%.

Here's a quick snapshot of the operational scale as of the end of Q3 2025 and the full-year guidance:

The company's investment in research and development, which was $4.8 million in Q3 2025, reflects a commitment to advancing clinical evidence, which is another intangible but vital resource for maintaining the standard of care status.

Pulmonx Corporation (LUNG) - Canvas Business Model: Value Propositions

Minimally invasive treatment for severe emphysema/COPD.

• Bronchoscopic treatment for patients with severe COPD/emphysema despite optimized medical therapy.
• Commercially available in more than 25 countries.
• The Zephyr Valve technology is validated by four randomized controlled trials.

Significant, durable improvement in lung function and quality of life.

Avoids the risks and recovery time of major lung surgery.

• The Zephyr Valve is a bronchoscopic treatment for severe COPD/emphysema without surgery and its associated risks.
• The quality of evidence for treatment with endobronchial valves has been graded "A" by the Global Initiative for Chronic Obstructive Lung Disease (GOLD).

High product gross margin, projected at approximately 73% for FY 2025.

Comprehensive patient selection tools for predictable outcomes.

• The product portfolio includes the Chartis Pulmonary Assessment System and the StratX Lung Analysis Platform.
• The Chartis System quantifies collateral ventilation in isolated lung compartments.
• The company identified that 15% of patients in hospital systems suffer from undiagnosed severe emphysema.
• Insurance coverage for the Zephyr Valve is strong, with over 95% of patients receiving commercial insurance coverage.
• New product development, like AERISEAL, showed a 77.6% conversion rate in initial trials to address collateral ventilation.

Pulmonx Corporation (LUNG) - Canvas Business Model: Customer Relationships

You're looking at how Pulmonx Corporation builds and maintains its connections with the medical community and potential patients. For a device like the Zephyr Valve, which requires specialized implantation, the relationship with the physician is everything. It's not just about selling a product; it's about building a clinical capability.

The foundation of the physician relationship rests on deep clinical validation. Pulmonx Corporation backs its technology with significant scientific proof. They have four randomized controlled trials supporting the Zephyr valves, alongside over 100 pieces of published scientific data. This data is crucial for establishing the technology as standard of care, which is what they aim for.

To drive patient flow into these specialized centers, Pulmonx deploys dedicated Therapy Awareness Specialists, or TAS. This role is key to their 'acquire, test, and treat' strategy, helping bridge the gap between initial awareness and actual procedures performed.

Direct-to-patient advertising is a major lever for generating demand, which then flows to the trained physicians. In the second quarter of 2025 alone, these targeted campaigns drove over 20,000 first-time patient engagements. The company has an expectation to exceed 70,000 first-time patient engagements for the full fiscal year 2025 through digital quizzes, calls, and connected TV advertising. To be fair, already one third of the patients treated in 2025 were engaged through these direct-to-patient efforts, showing this channel is driving measurable action.

For ongoing support, Pulmonx Corporation focuses on expanding its treatment footprint through continuous education. This is how they scale the use of the Zephyr Valve. For example, in the second quarter of 2025, they added 12 new Zephyr® Valve U.S. treatment centers and trained 26 new physicians. This hands-on approach is necessary to ensure consistent clinical results across the network.

Here's a quick look at the metrics supporting this relationship-driven commercial engine as of mid-2025:

The relationship strategy is clearly geared toward building a scalable ecosystem for patient identification and access, even as the company navigates the need to convert U.S. initiatives into revenue faster, which led to a revision in their full-year revenue guidance to the $89 million to $90 million range. The high gross margin of approximately 73% expected for FY 2025 suggests that once a center is onboarded and utilizing the technology, the unit economics are strong.

You can see the focus on physician enablement through their educational resources:

• Physician Education via PMX Education - Zephyr U for U.S. Physicians.
• CME Course: Endobronchial Valve Treatment for Patients with Advanced Chronic Obstructive Pulmonary Disease.
• Access to clinical education resources from leading medical societies and pulmonologists.
• Tools to locate a Zephyr Valve Trained Physician for patients.

Finance: draft the Q4 2025 cash flow projection incorporating the slower-than-anticipated U.S. revenue conversion by next Wednesday.

Pulmonx Corporation (LUNG) - Canvas Business Model: Channels

You're looking at how Pulmonx Corporation gets its Zephyr Valve and assessment systems into the hands of the right physicians and patients. The channel strategy clearly splits between direct control in core markets and leveraging partners elsewhere, all while building digital pathways.

Direct sales force in the U.S. and major European markets represents the primary revenue driver, where the company maintains tight control over the complex sales and training process for the Zephyr Endobronchial Valve.

• The U.S. market is the core engine, generating $14.0 million in revenue in the third quarter of 2025, which accounted for approximately 65.1% of total worldwide revenue for that period.
• The company actively expanded its physical footprint in the U.S. during the second quarter of 2025, adding 12 new Zephyr® Valve U.S. treatment centers.
• For the full fiscal year 2025, the company is guiding for total revenue between $89 million and $90 million.

For sales outside of these core areas, Pulmonx Corporation relies on international distributors for sales in smaller global markets. This structure allows for market penetration without the immediate, high fixed cost of building out a full direct sales team everywhere.

The international segment shows strong growth momentum, even if its revenue contribution is smaller than the U.S. segment. For instance, international revenue in the third quarter of 2025 was $7.5 million, representing 34.9% of the total revenue for that quarter. This compares to international revenue of $9.1 million in the second quarter of 2025, which saw a 32% year-over-year increase. The Zephyr Valve is commercially available in more than 25 countries, indicating a broad, if partner-reliant, global reach.

The channel success is directly tied to adoption within specialized hospital pulmonary centers and thoracic surgery departments. These centers are the physical locations where the assessment (using the Chartis® Pulmonary Assessment System) and the treatment (using the Zephyr® Valve) occur. The company's focus is clearly on increasing the number of centers capable of performing the procedure.

Here's a look at the geographic revenue contribution, which maps directly to where the sales channels are most established:

Finally, Pulmonx Corporation is actively developing digital platforms for patient education and physician referrals to supplement the physical sales force. These digital efforts aim to create alternative pathways to the treatment funnel, especially when traditional referral models face capacity constraints.

• In the second quarter of 2025, the company reported driving over 20,000 first time patient engagements specifically through targeted Direct-to-Patient advertising.
• The company is also rolling out the LungTrax Detect platform as part of its commercial initiatives to open up alternative pathways.

The reliance on digital outreach suggests a strategic move to scale patient awareness independent of the direct sales team's immediate bandwidth. If onboarding takes 14+ days, churn risk rises, so digital efficiency is key here.

Pulmonx Corporation (LUNG) - Canvas Business Model: Customer Segments

You're looking at the customer base for Pulmonx Corporation (LUNG) as of late 2025, and it's a mix of high-need patients, specialized clinicians, and the institutions that pay for the procedure. The financial results from the third quarter of 2025 clearly show where the commercial focus is landing right now.

Patients with severe emphysema/COPD who are symptomatic despite medical therapy.

This is the ultimate end-user, the patient population that drives the entire revenue model. While specific patient prevalence numbers aren't in the latest earnings reports, the company's commercial efforts are directly targeting this group. You can see the top-of-funnel interest, which is a key indicator for future procedure volume.

• Direct-to-patient advertising drove over 20,000 first-time patient engagements as of the second quarter of 2025.
• The core product, the Zephyr Endobronchial Valve, treats patients with severe emphysema/COPD who remain profoundly symptomatic despite medical management.

Interventional Pulmonologists and Thoracic Surgeons.

These are the physicians who actually perform the procedure, and their adoption rate is critical to Pulmonx Corporation's revenue realization. The company is actively working to expand this base, though the U.S. market conversion has been slower than hoped for, as seen in the latest revenue figures. Still, the international segment is showing robust growth, suggesting strong adoption in those markets.

• The company reported training 26 new physicians in the second quarter of 2025.
• Pulmonx added 12 new U.S. treatment centers in the second quarter of 2025.
• The company is committed to refining execution to expand Zephyr Valve treatment volumes, which directly relies on physician utilization.

Here's the quick math on where the revenue is actually coming from, which maps directly to the geographic distribution of these specialized centers and physicians:

Global hospital systems and specialized lung treatment centers.

These are the facilities where the procedures occur, and they are the direct purchasers of the devices. The slower 1% year-over-year growth in U.S. revenue in Q3 2025, compared to the strong 15% international growth, suggests that the rate of new center adoption or case volume per center is significantly different between the two geographies. The company is defintely focused on leveraging its operational foundation to expand treatment volumes within existing and new centers.

Payers/Reimbursement bodies providing coverage for the procedure.

Reimbursement is the gatekeeper for patient access and physician willingness to adopt. The high gross margin outlook for the full year 2025, projected around 73%, with Q3 2025 hitting 75%, signals that the pricing power and reimbursement structure for the Zephyr Valve are strong where it is covered. However, the slow U.S. revenue conversion hints at potential hurdles in securing or maximizing reimbursement coverage or navigating the administrative processes within the U.S. hospital systems, which impacts the overall financial picture, especially given the projected full-year operating expenses between $125 million and $126 million against revenue guidance of $89 million to $90 million.

Finance: draft 13-week cash view by Friday.

Pulmonx Corporation (LUNG) - Canvas Business Model: Cost Structure

You're looking at the cost side of the Pulmonx Corporation (LUNG) business, which is heavily weighted toward getting their specialized medical devices, like the Zephyr Endobronchial Valve, into the hands of physicians. For a commercial-stage MedTech company, this means significant ongoing investment in the people and trials needed to drive adoption.

The overall spending picture for the full fiscal year 2025 is quite clear based on the latest guidance. Pulmonx Corporation projects total operating expenses to fall within the range of $125 million and $126 million for FY 2025. This figure encapsulates the core costs of running the business, from sales efforts to research.

A notable portion of these operating expenses is non-cash, which you always need to factor out when looking at cash burn. The company anticipates non-cash stock-based compensation to be approximately $21 million for the full year 2025.

Here's a quick look at the key financial outlook numbers for the full year 2025:

When you break down the operating expenses, you see the dual focus on commercialization and innovation. For instance, in the third quarter of 2025, the costs were distributed across key areas. Sales, General, and Administrative (SG&A) expenses were $25.6 million in Q3 2025. This is the cost to support the sales force, marketing, and general corporate functions necessary to drive revenue from their devices.

The commitment to future products and expanding the use cases for existing technology shows up in Research and Development (R&D). R&D expenses for Q3 2025 were $4.8 million. This spending reflects high R&D costs for clinical trials and product development, which is typical for a company that has a breakthrough device designation and is looking to solidify its standard of care position. The increase in Q3 operating expenses, up 4% year-over-year to $30.4 million, was explicitly attributed to increases in clinical, development, and commercial investments.

The Cost of Goods Sold (COGS) structure is implied by the high gross margin Pulmonx Corporation targets. The projected full-year 2025 gross margin is approximately 73%. This high margin is characteristic of high-margin medical devices, meaning the direct cost to manufacture and deliver the Zephyr Valve and related systems is relatively low compared to the selling price.

To see how these costs translate in a single quarter, consider the Q3 2025 breakdown:

• Total Operating Expenses (Q3 2025): $30.4 million
• SG&A Expenses (Q3 2025): $25.6 million
• R&D Expenses (Q3 2025): $4.8 million
• Non-cash stock-based compensation (Q3 2025): $4.7 million

The continued investment in clinical activity is a major driver of R&D spend; for example, Q3 2025 R&D expenses were up 29% compared to the prior year period. Finance: draft 13-week cash view by Friday.

Pulmonx Corporation (LUNG) - Canvas Business Model: Revenue Streams

You're looking at the financial engine of Pulmonx Corporation (LUNG) as of late 2025, and the story is about device sales driving growth, even as the company focuses on operational refinement. Honestly, the core of the revenue stream is straightforward: it's about getting the Zephyr Endobronchial Valve into the hands of physicians treating severe emphysema patients.

Product sales, not service fees, are the core revenue engine for Pulmonx Corporation. The company generates revenue primarily through the sale of its medical devices to distributors and hospitals across its global footprint. This is a classic medical technology revenue model, where the upfront sale of the implantable device is the main financial event.

The company has provided a clear target for the year, showing management's current view on commercial traction. For the full fiscal year 2025, Pulmonx Corporation updated its total revenue guidance to a range of $89 million to $90 million. This guidance reflects a commitment to a more disciplined execution path following leadership changes.

The revenue generation is geographically split, and as of the third quarter of 2025, the U.S. market remains the larger contributor in absolute dollar terms, though international growth rates have been outpacing the U.S. lately. The growth in revenue reflects continued commercial execution and global adoption of Zephyr Valve procedures. Here's how the geographic split looked for the third quarter of 2025:

While the U.S. is larger based on Q3 figures, the international segment showed significant momentum, delivering $7.5 million in revenue, representing 15% year-over-year growth in that quarter. That international performance is a key area to watch for future scaling.

The revenue from the primary device is supported by the necessary assessment tools. These diagnostics are crucial because they help identify the right patients for the Zephyr Valve procedure, effectively feeding the main revenue pipeline. You can see the supporting revenue components here:

• Sale of Zephyr Endobronchial Valves to hospitals and clinics.
• Revenue from diagnostic tools, specifically the Chartis Pulmonary Assessment System.
• Revenue from the StratX Lung Analysis Reports.

The Zephyr Valve franchise is definitely the single most important driver of Pulmonx Corporation's financial health. The company's gross margin for the full year 2025 is expected to be approximately 73%, which is a strong indicator of the underlying product economics, even with the current operating expense structure.

Finance: draft 13-week cash view by Friday.