CapsoVision, Inc. (NASDAQ: CV) reported financial results for the third quarter ended September 30, 2026, revealing total revenue of $3.6 million. This figure represents a slight increase from the $3.5 million reported in the same period of the prior year. The company noted that its average selling price remained stable year over year.
During the quarter, CapsoVision achieved a significant regulatory milestone with the FDA clearance of AI Highlights, an AI-assisted reading tool for its CapsoCam Plus capsule endoscope. The product launched commercially in the United States on November 2, 2026. The company anticipates that this addition will accelerate sales growth, with the full commercial impact expected in 2027.
In terms of financial performance, the company reported a gross profit of $1.8 million, resulting in a gross margin of 49%. This was a decrease from the 54% margin reported in the third quarter of 2025. The company attributed the decline to higher material costs associated with flash memory prices, a one-time inventory obsolescence charge, and increased stock-based compensation expense.
Operating expenses for the quarter decreased to $9.1 million from $9.9 million in the prior year, reflecting continued expense management. Despite this, the company recorded a net loss of $7.3 million, or $0.15 per share, compared to a net loss of $7.9 million, or $0.17 per share, in the third quarter of 2025.
CapsoVision also provided updates on its clinical trials. The company completed enrollment and data collection for its second-generation CapsoCam Colon study, with an FDA 510(k) submission planned for year-end 2026. Additionally, the company is expanding its clinical footprint for the CapsoCam UGI study focused on pancreatic cancer detection.
On the balance sheet, cash and cash equivalents totaled $21.8 million as of September 30, 2026. During September, the company completed an $18 million registered direct offering with existing shareholders, generating approximately $17.8 million in net proceeds. Furthermore, the company raised approximately $1.7 million in net proceeds through its at-the-market offering program during the quarter.
