Mobia Medical (NASDAQ:MOBI) reported second-quarter revenue of $13.5 million, up 102% from $6.7 million a year earlier, as adoption of its Vivistim paired vagus nerve stimulation therapy expanded across new and existing stroke-care programs.
The company, which completed its initial public offering in May and raised approximately $134 million in net proceeds, also initiated full-year 2026 revenue guidance of $54 million to $56 million. The outlook represents projected growth of approximately 69% to 75% from 2025.
Commercial Expansion Drives Revenue Growth
Vivistim is an FDA-approved therapy for chronic ischemic stroke survivors with moderate to severe upper-limb impairment. The system includes an implanted pulse generator and lead that delivers stimulation to the vagus nerve during upper-limb exercises. Mobia said the therapy is intended to support neuroplasticity and help patients create new neural connections and remodel motor pathways damaged by stroke.
The company sold approximately 367 units during the second quarter. Foust said unit growth reflected both greater utilization in existing territories and expansion into new territories and hospital programs.
Mobia reported 35.5 average active territories during the quarter, up 92% from 18.5 active territories a year earlier. The company defines an active territory as one in which a territory manager has been in place for at least nine months.
Management said its commercial model centers on stroke hospitals, with territory managers handling hospital logistics and relationships with healthcare professionals, while therapy development specialists—typically licensed occupational or physical therapists—support education, referral networks and patient identification.
“Every program that we open is easier than the next,” Foust said during the question-and-answer session, adding that the company has refined the process of establishing programs over its three years of commercialization.
Chief Financial Officer Bunker Curnes said the company expects a measured expansion pace in the second half. While Mobia does not provide quarterly territory guidance, Curnes said an approximate range of four to five active-territory additions in the back half of the year would be “a comfortable number” for the company.
Margins, Expenses and Cash Position
Second-quarter gross margin was 83.2%, compared with 82.3% a year earlier. Curnes said per-unit product costs remained relatively consistent, while freight and tariff costs recognized in cost of goods sold affected the period. Mobia expects gross margin to remain in the low-80% range.
- Selling, general and administrative expense rose 85% to $26.9 million.
- Research and development expense increased 61% to $2.3 million.
- Net loss totaled $21 million, or $1.10 per share, compared with a loss of $10.5 million, or $12.44 per share, in the prior-year quarter.
- Cash and cash equivalents were $177.1 million as of June 30.
Curnes attributed higher operating expenses primarily to greater commercial headcount, higher sales commissions, IPO-related audit, legal and professional-service costs, and marketing and clinical initiatives. The company also noted that approximately $3.5 million of IPO-related expenses were accrued during the second quarter but paid in the third quarter.
The second-quarter net loss included a $4 million non-cash charge tied to marking convertible notes to fair value immediately before their conversion, Curnes said. He added that the lower loss per share compared with the prior year primarily reflected the higher number of common shares outstanding after the IPO and conversion of preferred shares and notes.
Reimbursement and Evidence Development
Mobia said Vivistim has a Category I CPT code and that the Centers for Medicare & Medicaid Services assigned the code to New Technology APC 1580 for 2026 under the Hospital Outpatient Prospective Payment System, with Medicare reimbursement of approximately $45,000.
Foust told analysts that the New Technology APC designation is proposed for 2027 and will not be final until CMS issues its final rule, expected in November. Still, he said the proposal offers greater stability and predictability around payment.
On coverage, Foust said a number of insurers are currently paying claims, while broader coverage development will likely occur over years rather than quarter to quarter. He said real-world evidence and continued study follow-up are expected to support those efforts.
In July, Mobia announced publication in Neurology of two-year follow-up data from its VNS-REHAB pivotal trial. According to the company, the follow-up showed participants maintained statistically significant and clinically meaningful upper-limb gains for at least two years after treatment. A subset followed for three years showed similarly durable outcomes, while another subset showed further improvement between years one and two with ongoing self-directed Vivistim therapy.
IPO Funds Commercial Buildout
Management said the IPO proceeds are primarily being deployed toward the commercial organization, including hiring territory managers and therapy development specialists and increasing awareness of Vivistim therapy nationwide. Some investment will also support clinical development and evidence generation.
Mobia estimates its U.S. serviceable market at more than $30 billion, representing patients who are within the therapy’s approved indication and are strong candidates for treatment. Foust said the company is focused on expanding access within its current indication rather than pursuing a new indication.
“We have a commercial playbook that we feel comfortable that we understand,” Curnes said, describing the company’s approach as a scalable “rinse, wash, repeat” model. Management said it intends to continue balancing territory expansion with productivity in each active market.
About Mobia Medical (NASDAQ:MOBI)
Mobia Medical Inc is a commercial-stage medical device company redefining stroke recovery for survivors living with life-altering motor impairments. Mobia Medical Inc is based in AUSTIN, Texas.
