Stereotaxis NYSEAMERICAN: STXS reported second-quarter 2026 revenue of $7.7 million, as growth in sales of its robotic catheter portfolio helped lift recurring revenue to a multiyear high despite lower system revenue and continued supply constraints.
Revenue declined from the prior-year quarter because the company did not deliver a robotic system during the period, Chief Financial Officer Kim Peery said. However, revenue increased sequentially from the first quarter, driven by higher catheter sales following the U.S. launch of the MAGiC catheter after first-quarter FDA clearance.
System revenue was $1.5 million, compared with $3 million a year earlier, while recurring revenue rose to $6.2 million from $5.8 million. Recurring revenue included more than $1 million of robotic catheter revenue, Chairman and Chief Executive Officer David Fischel said.
Catheter Adoption Drives Recurring Revenue
Fischel said robotic catheter revenue grew nearly 300% sequentially from the first quarter and 270% sequentially according to Peery’s financial commentary. The company said approximately a dozen U.S. sites received hospital approval to buy MAGiC and began procedures during the second quarter.
The CEO said early physician feedback on MAGiC had been positive, citing comments that the catheter improved targeting, ablation effectiveness and procedural efficiency. Stereotaxis is working through hospital approvals and launches across its U.S. and European installed base, and Fischel said the company expects the “vast majority” of customers to transition from their historical dependence on Johnson & Johnson catheters to Stereotaxis catheters within the next year.
Sales remain limited by available supply, however. The company has a backlog of catheter orders and is receiving more customer orders than it can supply through contract manufacturer Osypka AG, Fischel said. Management said it is making progress in raising production and establishing redundant supply sources.
Stereotaxis expects catheter revenue to increase by approximately $1 million in each of the next couple quarters, with a larger opportunity anticipated in 2027. In response to an analyst question, Fischel said U.S. disposable revenue per robotic procedure has been consistently in the range of $5,000 to more than $8,000, including the company’s QuikCAS device and MAGiC catheter, with potential additions from mapping or diagnostic catheters.
Synchrony Shipments and GenesisX Installations
The company also highlighted progress with Synchrony, its digital surgery platform designed to provide workflow, remote-connectivity and artificial-intelligence capabilities. Synchrony can serve as a control platform for Stereotaxis robots and has a separate potential application in non-robotic operating rooms.
After receiving FDA clearance during the second quarter, Stereotaxis received orders for multiple Synchrony systems from several hospitals and shipped its first systems during the quarter. Additional systems shipped in the third quarter, and several are already in daily clinical use, Fischel said.
Management expects Synchrony to generate more than $1 million of system revenue per quarter over the next several quarters, without a significant dedicated sales effort. The company said some hospitals are planning or considering standardizing catheter labs on Synchrony and SynX. Those installations could eventually generate service-contract and software-as-a-service recurring revenue.
On its GenesisX robotic system, Stereotaxis announced its first U.S. purchase from an academic medical center. The system is expected to be installed this fall alongside a non-modified X-ray system from a major manufacturer. Following that installation, the company expects to declare formal compatibility with that manufacturer’s X-ray platform.
GenesisX is intended to reduce adoption barriers by allowing the robot to work alongside standard X-ray systems rather than requiring a specific modified X-ray installation. Stereotaxis previously announced a GenesisX sale in Europe, where installation is expected before year-end as construction on a new hospital wing resumes.
Fischel said the company expects to have GenesisX working with two X-ray systems by the end of 2026, one in Europe and one in the U.S. It is also pursuing several additional sales or lease agreements, including a potential ambulatory surgery center installation. He said the company hopes to have between two and five GenesisX systems installed by year-end.
Margins, Losses and Outlook
Second-quarter gross margin was 58%, including a 66% recurring-revenue gross margin and a 29% system gross margin. Peery said margins were affected by low manufacturing volumes and are expected to remain near current levels over the next several quarters. Management sees an opportunity for margin expansion in 2027 and 2028, and Fischel said recurring gross margins could reach the mid-70% range as catheter volume grows.
Operating expenses totaled $9.1 million, including $2.5 million of non-cash charges related to stock compensation, acquisition-related contingent earn-out adjustments and amortization of acquired intangible assets. Adjusted operating expenses, excluding those charges, were $6.6 million.
- Operating loss was $4.6 million, compared with $4 million in the prior-year quarter.
- Net loss was $4.5 million, compared with $3.8 million a year earlier.
- Adjusted operating loss was $2.1 million, and adjusted net loss was $2 million.
- Negative free cash flow was $3.7 million, consistent with the prior year.
- Cash and cash equivalents totaled $10.5 million as of June 30, with no debt.
For the second half, Stereotaxis expects recurring revenue of approximately $7 million in the third quarter and $8 million in the fourth quarter. System revenue is projected at about $3 million in each of those quarters, supported by Synchrony shipments and one robotic-system revenue recognition in each quarter.
Fischel said the company is modeling for cash-flow profitability in the first half of 2027, based primarily on catheter adoption and relatively modest assumptions for capital sales. He said Stereotaxis intends to maintain a lean operating budget while continuing product launches, manufacturing expansion, research and development, and commercialization efforts.
Pipeline Development
Beyond its current launches, Stereotaxis said it is advancing a wireless, battery-operated and mobile future version of GenesisX; a portfolio of electrophysiology catheter innovations; and products for interventional cardiology and neurointerventional markets.
The company expects first human procedures using MAGiC with pulse field ablation before the end of 2026. It is also advancing regulatory submissions and reviews for the EMAGIN magnetic guide catheter and guidewire family.
In July, Stereotaxis closed its previously announced acquisition of Robocath, which develops a separate robotic system for endovascular device navigation. Fischel said the company sees the combined technologies as part of an ecosystem intended to support remote, automated and robotic treatment of stroke and cardiovascular disease.
About Stereotaxis (NYSEAMERICAN:STXS)
Stereotaxis, Inc is a medical device company that develops and commercializes robotic magnetic navigation systems for use in electrophysiology procedures. Its core technology leverages precisely controlled magnetic fields to guide ultra-thin, magnetically enabled catheters through the vascular system, allowing physicians to perform complex cardiac ablation and diagnostic procedures with enhanced precision and stability. This platform aims to reduce procedure times and radiation exposure for both patients and clinical staff.
The company's flagship offering, the Niobe Magnetic Navigation System, integrates with a variety of catheter types and electrophysiology mapping systems to support treatment of arrhythmias such as atrial fibrillation and ventricular tachycardia.
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