Stereotaxis, Inc. reported financial results for the third quarter ended September 30, 2026, and announced a convertible note financing agreement. For the third quarter of 2026, the company reported total revenue of $8.9 million, a 20% increase compared to $7.5 million in the prior year and a 16% increase sequentially.
Revenue was comprised of $3.0 million in system revenue, which increased from $1.9 million in the prior year, driven by partial revenue recognition from the first GenesisX system in the United States, the first Genesis system in China, and the first full quarter of Synchrony system sales. Recurring revenue of $5.9 million increased 6% compared to the prior year third quarter. The company noted that recurring revenue reflects increasing contributions from its portfolio of robotically-navigated catheters, offset by general procedural pressure due to limited catheter supply.
Gross margin for the third quarter was 45% of revenue, with recurring revenue gross margin at 59% and system gross margin at 15%. Operating expenses for the quarter totaled $10.4 million, which included $1.3 million in non-cash charges for stock compensation, mark-to-market adjustments, and amortization. Excluding these non-cash items, adjusted operating expenses were $9.1 million. The company reported an operating loss of $6.5 million and a net loss of $6.5 million for the quarter.
At September 30, 2026, Stereotaxis had cash and cash equivalents of $4.0 million. Concurrent with the financial results, the company entered into a Note Purchase Agreement with accredited investors, including entities affiliated with board members, for a convertible note financing of up to $24.0 million. The initial closing of the financing occurred on November 9, 2026, generating gross proceeds of $12.0 million. The company may access an additional $12.0 million in up to two future closings, subject to regulatory milestones.
The notes bear interest at a rate of 10.0% per annum and mature on the third anniversary of the initial closing date. Interest payments are deferred to maturity and paid in-kind by adding the interest to the principal amount. The notes are convertible into common stock at a conversion price of $1.21, representing a 30% premium to the 10-day VWAP prior to the initial closing. The company intends to use the net proceeds from the financing for working capital, to accelerate product commercialization, research and development, and other general corporate purposes.
