Greetings and welcome to ClearPoint Neuro Q3 2026 Financial Results Conference Call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference call is being recorded. Comments made on this call may include statements that are forward-looking within the meeting of the securities laws. These forward-looking statements may include, without limitation, statements related to anticipated industry trends, the company's plans, prospects, and strategies, both preliminary and projected, the size of total addressable markets, or the market opportunity for the company's products and services, the company's expectation for future development, Regulatory approval, timing, commercialization, and the market for cell and gene therapies, and the anticipated adoption of the company's products and services for use in the delivery of gene and cell therapies, and management's expectations, beliefs, estimates, or projections regarding future revenue and results of operations. We are cautioned not to place undue reliance on forward-looking statements which speak only as of the date The company undertakes no obligation to revise forward-looking statements for new information or future events. For more information about the company's risks and uncertainties, please refer to the company's filings with the SEC, including the company's recent filings on Form 8K, Form 10K, and Form 10Q. All the company's filings may be obtained from the SEC or the company's website at www.ClearPointNeuro.com. I would now like to turn the conference over to your host, Mr. Joe Burnett, Chief Executive Officer. Thank you. You may begin.

Thank you, Rob. And good evening to all the investors, analysts, and partners joining us for today's ClearPoint Neuro third quarter earnings call. Our company remains dedicated to developing therapies that can help restore function and improve outcomes for millions of patients worldwide living with serious neurological disorders. We are thrilled to have your continued interest and support as a part of this journey. In the third quarter, we continued to make substantial progress with our neuro drug delivery strategy, focused on establishing ClearPoint as the gold standard for cell and gene therapy delivery. We have spent more than a decade building a leadership position in this market, and we are committed to maintaining and expanding that lead. This strategic progress includes pipeline development for our comprehensive and uniquely positioned drug delivery ecosystem, including AI segmentation and modeling tools, periprocedural navigation software and frames, surgical robotics, laser therapy and access drills, cannulas and new routes of administration, Focus Ultrasound, and Confirmatory Drug Infusion Software. In addition to our investment in this product portfolio, we continue to expand our ClearPoint Advanced Laboratories Drug Discovery Facility in Torrey Pines, California, adding capacity, new capabilities, and services. We also stand ready to support our more than 60 active biopharma partners who continue to announce both data readouts and global clinical trial initiations including multiple phase three studies that are either enrolling or expected to initiate in 2027. We look forward to the next regulatory milestones for our partner, Unicure's BLA submission to the FDA for AMT130 to treat Huntington's disease during the weeks and months ahead, which could result in the very first FDA approved gene therapy for this terrible disease. To complement the strategic progress, we have made financial progress as well in the quarter, growing overall revenue by 36% compared to operating expenses, which grew 23%, a result that reflects the scalability. This result was possible due to our continued integration activities post the IRIS acquisition and the reorganization of our clinical field team to get ready for phase three trials and eventual drug delivery commercialization. In order to fund these hiring activities in support of our clinical field team expansion and the startup costs of our Cal expansion, we used our existing ATM facility for the first time, generating net proceeds of $22 million and ended the quarter with cash and cash equivalents of $46.2 million. This gives us the balance sheet flexibility to continue advancing our comprehensive drug delivery ecosystem, including robotics and focused ultrasound, and to prepare our field team for new commercial product launches that we expect in 2027. I will now turn the call over to Danilo D'Alessandro to discuss our financial results, after which I will provide a bit more detail on our four pillar growth strategy. Danilo?

Thank you, Joe. And thank you all for joining us today. Looking at the third quarter 2026 results, total revenue was $12.1 million for the three months ended September 30th, 2026, and $8.9 million for the three months ended September 30th, 2025, which represents 36% growth versus the third quarter of 2025. Our revenue is made up of three components, biologics and drug delivery, neurosurgery, navigation and therapy, and capital equipment and software. Biologics and drug delivery revenue includes sales of disposable products and services related to customer-sponsored preclinical and clinical trials. Biologics and drug delivery revenue increased 11% to $4.9 million in the third quarter, up from $4.4 million for the same period in 2025. This increase is primarily attributable to higher service revenue performed at ClearPoint Advanced Laboratories. Neurosurgery navigation revenue consists of commercial sales of disposable products related to cases utilizing the ClearPoint system, the PRISM laser system, and Aeroflow. This revenue grew 59% to $5.4 million in the third quarter of 2026, from $3.4 million for the same period in 2025, driven primarily by additional revenues due to sales of the Aeroflow product, which we acquired in connection with our acquisition of ERAS in the fourth quarter of 2025, and in conjunction with growth of our legacy neurosurgery products. Capital equipment and software revenue consisting of sales of our reusable hardware and software and related services increased 68% to $1.7 million in the quarter from $1 million for the same period in 2025 due to an increase in the placements of ClearPoint navigation systems, PRISM laser units and ERA flow control units. The gross margin for Q3 2026 was 58%, a decrease of 5 percentage points compared to 63% in Q3 2025, primarily due to overhead costs at the new Cal facility and additional amortization expense of acquired intangible assets, partially offset by a decrease in other costs of revenue. Research and development costs were $4 million for the three months ended September 30th, 2026, compared to $3.5 million for the same period in 2025, an increase of $0.6 million or 16%. That increase was due primarily to higher personal cost of $0.6 million. Sales and marketing expenses were $5.5 million for Q3, compared to $3.8 million for the same period in 2025, an increase of $1.7 million or 44%. This increase was due primarily to additional personnel cost of $1.2 million, an increase in travel cost of $0.2 million resulting from the expansion of our clinical and sales team, and additional amortization expense of acquired intangible assets of $0.2 million. General and administrative expenses were $3.8 million for the third quarter, an increase of $0.3 million or 7%. This increase was due primarily to increases in occupancy costs of $0.5 million, information, technology, and software costs of $0.2 million, and general corporate costs of $0.1 million. These were partially offset by a decrease in VAT at expense of $0.6 million. In the aggregate, our operating expenses in Q3 were $13.4 million, a meaningful decrease from the nearly $17 million in OPEX last quarter. As of September 30th, 2026, we had cash and cash equivalents totaling $46.2 million as compared to $45.9 million at December 31st, 2025. The cash increase was primarily due to the net proceeds of $22 million from the aftermarket equity offering program, partially offset by the operational cash burn of $20.1 million through Q3 2026. I'd like now to turn the call back to Joe.

Thank you, Danilo. I will now provide some further details organized by our continued four-pillar growth strategy. Starting with pillar number one, biologics and drug delivery, the most noteworthy headline has been the BLA regulatory submission by one of our partners, Unicure, for their AMT 130 program to treat Huntington's disease. We continue to support Unicure on the device-related aspects of the submission, and our device documentation is now on file with the agency. Subject to the FDA's review, we expect the next two regulatory steps would be, first, that the FDA would formally accept the AMT-130 submission for review, and second, that ClearPoint would submit a companion 510K for our product to address its specific use with AMT-130. This is the same pathway we pursued for Cability, the only other neuro gene therapy that has received FDA approval for administration directly to the brain. The duration of these two regulatory pathways would likely take place in parallel with the goal of a simultaneous approval of both the drug and for our device that enables the delivery of the drug. In addition, we expect continued enrollment as well as the initiation of multiple phase three partner trials in the next year. As a reminder, phase three and confirmatory trials are often substantially larger from a site initiation and patient enrollment perspective. While Phase I studies may take place in under 15 patients and only at a handful of sites, these larger randomized trials may include up to 200 patients and around 20 sites. As previously mentioned, we have reorganized and invested in a strong clinical support commercial organization, which we are training to be ready for this increase in cell and gene therapy patients. As I will mention later, demand for our navigation systems and capital equipment increased during the quarter, reflecting the growing recognition among neurosurgery departments that ClearPoint is a critical enabling technology for participation in the rapidly expanding cell and gene therapy clinical trial market. Revenue and services directly performed at the Cal facility continue to expand, launching new capabilities through both equipment and the hiring of talent, including PET and SPECT tracers, as well as radiopharmaceuticals. We will continue adding equipment and capabilities this year and next as we build a boutique yet comprehensive neuro-focused drug delivery program, which also includes potential BCI partners that we have worked with in prior years. Our goal is to offer a set of neuro-focused services that is differentiated in North America once the build-out is complete. For pillar number two, neurosurgery navigation, we saw our largest capital sales quarter in our history. We believe this highlights both the demand by large academic centers to get access to ClearPoint in preparation of drug delivery trials and commercialization, as well as interest in our ICT operating room solution that is more practical for routine DBS and biopsy cases. Early experience with our ICT solution was recently published in the Journal of Stereotactic and Functional Neurosurgery and demonstrated both procedural efficiency and targeting accuracy. These findings suggest that with ClearPoint in the operating room, physicians do not need to trade one objective for the other. You can have both speed and accuracy, particularly in bilateral procedures, including DBS and drug delivery. We also continued development of our robotic platform and are increasingly confident in the need for a company like ClearPoint to deliver a dedicated cranial robot where both hardware and software decisions are driven by the requirements of cranial neurosurgical procedures rather than broader surgical applications. We will continue to work closely with both neurosurgeon teams and our biopharma partners to build a system with all the functionality required for fast, accurate, multi-trajectory cases. This also includes unique disposable accessories like bolts and Z-axis adjusters that are specifically designed for the required flexibility during the infusion itself. For pillar number three, laser therapy and access, I will focus on one exciting milestone, which we just announced in our press release earlier today. ClearPoint is an industry partner in a five-year competitively awarded NCI R1 grant led by Dartmouth Health to advance MR-guided laser therapy for spinal metastasis. This program runs from benchtop through large preclinical subject validation and into a clinical trial using the ClearPoint PRISM system. ClearPoint contributes technical, software development, and procedural expertise to the program. This is early stage research that supports our spine laser therapy roadmap. We believe SpineLIT could represent a meaningful new opportunity for ClearPoint, potentially addressing more than 10,000 patients globally who today may require highly invasive open surgery before radiation. The standard of care open procedure can involve substantial blood loss, reconstruction, and a prolonged recovery that may delay systemic cancer therapy. A minimally invasive MR-guided approach could significantly reduce that procedural burden. PRISM, while not currently available for spinal use, may be particularly well suited for this application with longer 15 and 25 millimeter ablation windows, a non-cooled platform that simplifies workflow, and rapid imaging updates for real-time monitoring and control near this very critical anatomy. While our PRISM laser therapy system is third to market for cranial applications, spying could be a very different story where we may have first mover advantage. If successful, we believe our unique product features will provide a compelling competitive advantage enabling us to capture a leadership position in this emerging spinal tumor market. We believe the spinal lit market represents a substantial long-term opportunity and over time could rival the size of cranial tumor and epilepsy markets for our PRISM platform. Finally, pillar number four, our intracranial fluid management. We are now more confident than ever that the Eraflow product is well positioned to become an important advancement in neurocritical care. We are targeting five key product and clinical milestones in 2027. These include launching our Shoreline software, our DART catheter, and our next-generation forward tunneling catheter, as well as presenting results from the randomized ARCH trial and pursuing a specific on-label FDA indication for subdural hematoma, one of the largest potential indications for the Aeroflow product. We believe this broader portfolio and supporting evidence will justify the continued measured expansion of our clinical account manager and specialist teams so that these company representatives will be ready and productive by the time these new products and data are released. In addition to the positive direction of our four pillar growth strategy overall, the company made financial progress compared to the second quarter growth as well. Revenue grew 36% year over year compared to the operating expense growth of 23%, which reflects progress towards our additional scale. The primary drivers of this improvement versus last quarter are number one, the results of the commercial reorganization, which now prioritizes clinical case support and is reflected in a more than 15% reduction in sales and marketing expenses compared to the second quarter. and number two, the continued integration of the Earflow product and team as the synergies start to materialize into our P&L. As Danilo mentioned, we accessed our existing ATM facility for the first time in Q3 and we ended the quarter with $46.2 million in cash and cash equivalents. We believe the time was appropriate to use our ATM for a few reasons. First, the startup cost to get the Cal facility operational requires some front-loaded investment in construction, equipment, and hiring. These investments will start to recover once we launch our full scope of services in the months ahead. Second, the continued integration and expansion investment of the Eraflow product portfolio, including the five new product and clinical milestones that we now expect to deliver in 2027, which will unlock significant value. The time to bring these programs to completion was in parallel, not in series, so we wanted to make the investment now to fuel this portfolio growth in 2027 and beyond. And third, the potential of both our robotic and focused ultrasound systems, which this new capital will allow us to invest simultaneously and not have to choose one over the other. As we have said previously, our priority is to maintain our leadership position in neuro drug delivery, which is unwavering. and multiple market factors and opportunities require this investment now. The cell and gene therapy market has become exceptionally dynamic with new BLA submissions, confirmatory and phase three clinical trials, significant program consolidation and continued acquisitions by large, well-capitalized partners and has created a timely opportunity to strengthen our advantage. I will now open the call to any questions from our analyst team.

At this time we'll be conducting a question and answer session. If you'd like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star 2 if you'd like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment please while we poll for questions. Our first question comes from Frank Taken with Lake Street Capital Market. Your line is now live.

Great. Thank you for taking the questions. I've got two. I'm going to ask them both up front and then hop in queue as I'm on a few calls. Joe, maybe on the first one, obviously you've got a lot of partners with different assets and development on different timelines. I was hoping maybe you could help us kind of stack and rank some of those upcoming catalysts. I'm sure it's a conversation for a longer call, but maybe thinking through kind of like first half 27, second half 27, what are the important milestones that we should be watching for from your partners to better track the biologic and drug delivery opportunity? And then as my second question, you've talked about in the past kind of some front loaded investment expected from the field in anticipation of some of these drugs getting to market. Can you maybe talk through if any of that has started to materialize or if you're starting to hear anything in the market about some of those investments? And thanks again for taking the questions.

Yeah, absolutely, Frank. Thanks for the question as well. So I'll start with the first one. I do want to provide an important caveat here is that ClearPoint, the way that we work with our partners, we take our confidential information very, very seriously as well. So we really don't want to be the primary resource. for folks to get an understanding of where our partners happen to be in their regulatory process or their development process. It puts us in a position where we are then tracking 60 different companies and have to figure out private, public, disclosed, undisclosed, what information that we want to share. So our primary reference is always going to be pointing just right to our partner to simply say, hey, whether it's on their website or If the information is in some sort of public document or a press release, that's always going to be the go-to for us. What I would tell you to your question about what's happening in the near term and what we sort of are expecting here, there's two buckets, I'd say, that really materialize the most. The first one is, again, the Unicure BLA submission, which took place almost two months ago at this point. and there have been a number of clinical updates that have taken place since then. You know, we do still expect a decision to be made by the FDA at some point, you know, here in the next month or so, where they would either formally accept or reject or in some fashion delay that VLA submission. If on a best case scenario, the VLA would be accepted, as we mentioned at that point, we would submit our companion 510 . If you look to the limited experience we have with the FDA and these neuro gene therapies, the expectation would be a final formal decision sometime six to eight months after the acceptance of that BLA, again, if everything went perfectly. That would put a potential approval for the very first neuro gene therapy to treat Huntington's disease sometime middle to second half of next year, again, if everything went according to plan. So that would obviously be an incredible milestone, I think, for the entire gene therapy space, the Huntington's community, certainly for Unicure, certainly for ClearPoint as well. And as we mentioned, we have resources that we are hiring and training now to prepare for such an event. whether the product is commercially approved next year and we're supporting those cases or if there's some delay to that timeline as I mentioned there you know putting us in a position where that same clinical team is supporting potentially a Unicure parallel confirmatory study which they've announced could be up to 200 patients all the way to supporting all of the other phase three trials that are either enrolling today or we're expecting to enroll in the future so that's really the The second bucket I would consider, Frank, is that independent of a commercial drug delivery of a large population gene therapy like AMT-130, there's also numerous partners that have either started or will start initiating their phase three trials in the next 12 to 15 months. What's important about a phase three trial is, again, you're going from maybe three to five sites up to 15 to 20 sites. And it's interesting, we have a number of different partners I'll use Parkinson's as an indication. I think epilepsy would be another one where, you know, that's a very, very large underserved patient community that's looking for a better treatment than is what is available today. They, if you're a hospital, you know, a leading clinical trialist center, you can't accept clinical trials for five or 10 different Parkinson's studies. It puts you in a situation where now any Parkinson's patient that comes in As a hospital, you have to start playing favorites as to which one of these trials you're going to enroll them in. So some of our partners are now looking for many new sites from which to install ClearPoint, get access to the technology, and use that new site as an enrolling center for their Phase 3 trial. So that's one of the things that, you know, we have very clear examples in our program. Our capital sales results in the third quarter, as well as our capital sales funnel that we expect in Q4 and for the duration of 2027, where it is these new sites that have realized, hey, I probably need ClearPoint to participate in some of these existing studies. And it's no longer just the functional neurosurgeon reaching out to ClearPoint. It could be the chair of neurosurgery. In some cases, it could even be the C-suite that's helping to move the process along. So the big picture for us is we're We never want to be the bottleneck with the advancement of this technology. So we're hiring, we're investing now so that our installed base grows and we have a great clinical specialist support team out there that's trained not just in navigation but also in drug delivery broadly so that in any circumstance that the site needs ClearPoint's help, we can support not just the partner but the hospital itself. So sort of sort of long answer for the first question, but I'll move on to the second one, which is some of the investments that we're seeing. And part of it is really tied to, I'll give one example anyway that's tied to what I was just discussing in drug delivery, and that has to do with robotics. If you go to a hospital today, it's very common you would walk through the hallway and you might see two or three different neurosurgery robotics that are there that are used possibly for different indications or at different times or sometimes and many times just very underutilized today. If we were just developing another neurosurgical robot, We wouldn't be as excited as we are for the ClearPoint version that we're in development right now. And the reason for that is a couple different points. The first one is that we are focused pretty much 100% on cranial workflows, meaning things that are done in the skull itself versus many of what I would say our future competitors focus seems to be on is spinal applications. So there are absolutely concrete decisions you would make if you're building a cranial robot versus a do-it-all neurosurgery robot, including spine. And because spine historically has been the largest part of a neurosurgery budget, it's natural that some of these large robotics companies would maybe do a new software release that's 90% improvements for spine and 10% improvements for cranial. We've sort of flipped the script there where we are making all of our design decisions on exactly what our pharma partners would need to do to speed up these multi-trajectory cases, preload them with trajectories that are specific to some of our workflows, complement them with multiple accessories, as I mentioned, Z-axis adjusters, different bolts to provide flexibility during the infusion so that we would actually have a unique solution that is available Thank you very much. The second one I would point to is on focused ultrasound, which is a combination with our robotic platform. Our goal here is to move drug delivery for using focused ultrasound and blood-brain barrier disruption out of the MRI suite entirely and into the operating room and to an infusion clinics. To do that, we need to manipulate our transducer in a way that's very different than other focused ultrasound systems that are available today. and our robotic platform is the mechanism for software navigation, targeted movement, you know, anything you need to operate within the CT space. So, you know, this one investment we believe is not only going to unlock faster, simpler, scalable procedures for drug delivery, but it's also going to unlock focused ultrasound for us, which, you know, these things we can in fact start to monetize pre-clinically at the Cal. well before we ever get FDA clearance for these things. So if you think about preloading investment, that's an example of one I can at least share with you today, Frank.

Okay, that's great. Thanks, guys. Sure thing.

Our next question comes from Matthew Blackman with TD Cowan. Your line is now live.

Good afternoon, everybody. Can you hear me okay?

Yeah, I got you, Matthew.

Great. Hey, Joe. Hey, Danilo. I'll start with a question for Danilo. Put a little bit finer point to the extent you're able to share. Obviously, healthier balance sheet, you've got a lot of stuff to invest in. Can you just give us a sense of how we should, in at least general terms, think about sort of the burn trajectory over the next 12 months, even if not an absolute number, maybe just sort of relative to what your traditional burn has been? And then I've got one follow-up question for Joe.

Yeah, no, I think, Matt, so we obviously have some of these investments that Joe laid out. There is going to be in the coming 12 months more related to something that we didn't have in the past, which was a little bit tied to CapEx. So there will be some capital expenditures related to the Cal that we expect in the coming 12 months and that will land. In terms of the operational burn, like also Joe mentioned earlier, we're targeting now to continue on the path of operating leverage where we see that the revenue outstrips the growth of the OPEX so that we can continue to gradually reduce The burn in the coming four to six quarters. I'd say when you look at, in particular, the first half of this year, it was a little heavier than usual, just given the activities related to the ERIS integration, which were, in many cases, one-offs. and all of those kind of things where we were just working to get the synergies in place. And already in the third quarter, we see that our OPEX has been reducing meaningfully compared to the OPEX in Q1 and Q2 of 2026.

Okay, so I, and these are my words I'm hearing, you know, maybe a little bit more burned than what you've done historically over the last, the next 12 months, but certainly nothing of significant magnitude. You're not going out like drunken sailors is kind of the message I'm hearing.

Yes, yeah, we don't drink.

Good. And then, Joe, I was intrigued by the Spine Lit update. I was hoping maybe just... you know 10,000 cases worldwide can you just remind us what the revenue per case as we think about however far down the road this may be what the the revenue opportunity for ClearPoint could be and then on the regulatory side to get a label I would assume you would need a label to commercialize can you use any of the data from the the NCI study to support a label is that something you'd have to do independently just any sort of help on sort of the The pathway to get a label for spine metastases. Thank you for spine tumors.

Yeah, sure thing. You know, just to highlight, you know, what makes the procedure challenging today is, you know, remember, if you're doing a cranial laser procedure inside the brain, what you're using is you're superheating the tip of the catheter, the cannula, where the laser energy is being delivered. and then you're interpreting that heat transfer using MRI thermometry, which tells you importantly how hot the tissue has gotten. You know, have you inflated and destroyed the tissue that you want to? And then similarly, are you making sure you're in a safety zone for the other ones and you're not burning in a spot that you don't want to? In cranial procedures, that's relatively simple because there's no motion whatsoever. The skull is actually pinned. The brain is not really vibrating outside of a little bit of a heartbeat phenomenon, that kind of thing. But it's something that's a lot more predictable. When you're doing that same type of procedure in the spine, you're dealing with the patient breathing. So up and down, up and down, up and down, which throws thermometry off significantly. What makes our system pretty unique for this procedure is that you can, in fact, do a very, very large and necessary ablation very quickly because it's not cooled all of the energy is delivered directly to the tumor itself and if the patient you know if you were to hold the breath of the patient for maybe 60 seconds ago you could get a pretty clear pretty clear example and that's what we've seen in the existing pre-clinical data that was submitted as a part of this grant itself so so again you know if you compare this type of product to the other ones that are available today on the market there are some very substantial and meaningful differentiators on on why making this investment both on our own and now with the government's help to go ahead and see this take place all the way to market. I don't see any reason that this data would not be used for future clinical evidence. And it kind of remains to be seen exactly what the label would say itself. And I say that because if you read our current label for our device It's designed for all neurosurgery procedures, which spine is one of them. So whereas we are going to do software development of new products, we might have a few accessories that we develop as part of this development process that could highlight new specific indications for this tumor. We're not quite sure at this point exactly what the regulatory pathway would be. We are still focused primarily on making sure it works for these preclinical subjects and then the first patients in the clinical trial itself.

Great. And then any color on revenue per procedure? I just forget. Oh, sorry. Yeah.

No, it was a lot of questions. Yeah, I know. If you think about our current, you know, our current revenue, which I would expect, you know, it's somewhere between $13,000 and $20,000 per procedure is what I would expect, both from the laser and some of the accessories and software that might be used during the procedure.

Got it. Thanks, guys.

Yeah, if I'm modeling it, I think of it probably as $15,000 would be a non-noisy assumption.

Even I could do that math. All right. Appreciate it.

Yeah, Matt, just to build on your question for Danilo as well, just a couple of the thoughts. We have a mix of some sort of established technology, growing technology, and startup technology within the ClearPoint portfolio. So if you think about using... MRI Navigation for Deep Brain Stimulation. That is a pretty mature market that we don't really expect to grow that much, right? So that's probably a profitable business if you looked at it that way. We're not spending a ton on the development of those frames. You know, that's something that's more in a harvest stage. It's definitely the smallest opportunity that we have, but it's also one that's, you know, not demanding a lot of investment at this point. You look at Prism for cranial, Prism for, you know, Prism for cranial. You look at Eraflow and all of the different applications that it's currently indicated for today. You know, those are growth technologies where we can absolutely grow with our existing portfolio. We can open new sites. We can take share. We can transition people away from older technology to new technology. And then you've got these startup investments like Spine, like we were just talking about for laser tumors, like the... The Cal facility, you know, like subdural hematoma indication for Iroflow, like commercial drug delivery where, you know, we haven't even gotten started yet. You know, those are the ones that are demanding a little front-loaded investment before we catch up. And when we think about cash burn, we... It's hard to think about it just in the totality. We're thinking about it opportunity by opportunity. And, you know, in this particular quarter, we had two or three of these opportunities screaming at us and saying, hey, you got to go faster. You got to make this happen, which really led us to, you know, to raise a little bit more capital. You know, a concrete example of what we're talking about as it relates to the Cal is that one of the technologies that we want to have access to to deliver as a service to our partners is is histology, right? There's a ton of benefits to be able to do the preclinical studies and the histology at the same site to not have to store the tissue, to not have to transport it, you know, you name it. To enable histology, there's equipment that you need to buy, there's technicians that you need to hire, and you need to do all of that three to six months before you could ever do your first study. So you think of the Cal as a series of those investments that have to take place We're not going to get any histology revenue in the next six months, but we're building that capability so that we offer it as a service and we win that business down the road. So it's really just the magic is finding this balance between which investments we're making in our growth campaigns and which ones are true new to ClearPoint technologies or new to world technologies that we have to invest in that we might not recoup for six plus months. So hopefully that gives a little more context.

Yeah, no, really appreciate it. Thanks, guys. Sure.

As a reminder, if you'd like to ask a question, please press star 1 on your telephone keypad. One moment, please, while we poll for questions. Our next question comes from Tom Steffen with Stifel. Your line is now live.

Great. Hey, guys. Thanks for taking the questions. A couple on revenue, and I'll start near term with the 2026 revenue guidance. For 4Q, Joe, maybe for you, pretty decent step up, I believe, versus 3Q in the implied guide relative to typical 4Q seasonality, I think, when I look at that $49 million midpoint. So Joe, can you talk a bit to the drivers of that uptick, and more importantly, just Your level of confidence that that 49 million midpoint is achievable or hopefully conservative? And then I have a follow up.

Yeah, yeah. So I mean, so to put things in context, you know, we think that the three buckets of revenue that Danilo reports on could all be contributing to that growth. So it's not that There's one of those buckets that by itself would be responsible for that million dollar plus step up that you just described. You know, I think they can all contribute. Capital equipment, we mentioned we just had our record quarter in capital sales. But the reality is, is that our funnel is larger than it's ever been as well, particularly when you start to add in era flow pumps. New Prism potential customers, the demand for our navigation system for drug delivery trials and the demand for our ICT navigation system for, you know, more practical, faster, simpler procedures in the operating room. So, you know, we have four different capital contributors there, each of which have, I would say, the healthiest funnel that we've ever had. So you can never guarantee exactly when these deals close. Again, we recognize revenue when we deliver the equipment, you know, install and put it into use, if you will. So, you know, if that happens December 31st or January 1st, it can be these choppy swings. But, you know, if you think about the next six to nine months and the totality of that capital opportunity, you know, it's pretty significant. And like I said, healthier than it's ever been for the company. So that's that's one thing to think about. The second thing to think about has to do with the disposables themselves, which is the neurosurgery navigation, which, again, with Eroflow already grew 50 plus 59 percent, I think, in the quarter. The underlying organic disposables also grew in the quarter too. It's not even chicken or egg, it's follow the leader, I guess is the right way to say. There's no reason to believe that all of these capital units and new customers that we opened up and placed in Q3 are not going to turn into disposable users in Q4 and beyond. So, you know, there's no way someone would, you know, spend, I think, the $1.7 million, $1.8 million that we were talking about in the quarter on new equipment just to use it as a paperweight and not put it into use right afterwards. So, you know, at the very least, even if our current business is not growing, and that's not even true because we certainly expect it to grow, these new placements should contribute to meaningful disposable growth, including new orders, new users, et cetera, right? So that's another... and sort of another combination I would add on there. And that's highlighted also globally because as we mentioned earlier, especially with Eraflow, we canceled a lot of the traditional or legacy is the better word, legacy distributor contracts. And in some places we're going direct. So in some cases, we've started to burn through the old inventory that was on the shelf and expect new orders, new purchases to take place through our direct channel there. So that's kind of the second bucket, I would say. and then the third one is the Cal itself. If you think behind the scenes, we've had three quarters in a row where revenue at the Cal has grown sequentially one after the other. Based on the studies that we're already performing in the first month of October, we think that growth will continue here in Q4 as well. So capital, disposables and Cal services, all three of those things I think could be contributing here and sort of spread spread the responsibility of that step up.

Got it. That's great. Really helpful, Joe. And, you know, I think a good segue, you know, from that kind of 4Q momentum commentary into my second question on 27. And apologies in advance if any of this has been asked or addressed, topping between calls. But, yeah, Joe, would love, I guess, any early view on base business growth next year You know, previously, I think you guys have talked about growth in the teens, maybe the high teens. I look at street consensus is that around low to mid teens, year over year revenue growth, although I'm not sure how much is base business versus other. But yeah, any comment, you know, early look on 2027 revenue growth, particularly given the commercial organization changes? The Changing Priorities, and obviously sort of how growth is trending in the back half of this year. Would be great to, you know, kind of right size our models as we exit this year and enter next year. Thanks again, guys.

Yeah, sure thing, Tom. Yeah, I mean, I think we still feel good from a base standpoint about that kind of mid-teens growth for 2027. You know, we haven't given official guidance, I would say. And the reason for that is that I think we're going to learn quite a bit here in the next couple months, both from the initiation of some of these phase three trials, the progress of ANT 130, and how the FDA responds to the BLA submission that's currently underway. and then similarly in our own portfolio, the speed of installation of some of our equipment at the Cal and the regulatory progress of those five era flow programs that I mentioned earlier on the call as well. So, you know, where I think a safe place for us to be right now is in that mean teens, you know, mid-teens. I think we're going to learn a lot in the next two months and likely be in a position come fall We have reached the end of the question and answer session. I'd like to turn the call back over to your host, Mr. Joe Burnett, for closing remarks. Well, thanks again for joining our call today. Our team is confident that we have built an incredible foundation across our four pillars today to support the future of global commercial drug delivery. Our goal is to make advanced neurological therapies available to as many patients as possible who suffer from serious and debilitating neurological diseases to improve their quality of life. We are thrilled to have you alongside as we execute on this vision and continue building for the future. Thank you for your support and good night, everyone.

This concludes today's conference. You may disconnect your lines at this time and we thank you for your participation.