Ekso Bionics Reports 10% Revenue Decline, Improved Net Loss and Operating Expenses in Q3 2024

Ekso Bionics Holdings, Inc. reported its financial results for the third quarter and the nine months ended September 30, 2024, revealing a decline in revenue but improvements in net loss and operating expenses compared to the previous fiscal period.

For the three months ended September 30, 2024, Ekso Bionics generated total revenue of $4,129,000, a decrease of 10% from $4,607,000 in the same period of 2023. The decline was attributed to a $300,000 drop in revenue from the EksoHealth segment, primarily due to reduced shipments of Enterprise Health devices and lower subscriptions for EksoNR, partially offset by increased shipments of the Ekso Indego Personal device. The EksoWorks segment also saw a $200,000 decrease in revenue, mainly from lower EVO shipments. Gross profit for the quarter was $2,209,000, down from $2,456,000, although gross margin improved slightly to 53.5% due to cost savings in the supply chain.

For the nine months ended September 30, 2024, total revenue was $12,835,000, a 4% decrease from $13,432,000 in the prior year. However, gross profit increased to $6,797,000 from $6,710,000, reflecting a gross margin increase to 53% from 50%. The company reported a net loss of $(7,917,000) for the nine months, a significant improvement from $(11,984,000) in the same period of 2023. This reduction in net loss was accompanied by a decrease in total operating expenses, which fell by 18% to $15,027,000.

The company’s total current assets increased to $21,066,000 as of September 30, 2024, compared to $20,208,000 at the end of 2023, while total liabilities decreased from $8,117,000 to $7,506,000. Total stockholders’ equity rose to $14,870,000 from $12,606,000, driven by an increase in additional paid-in capital.

In terms of strategic developments, Ekso Bionics completed a public offering in September 2024, generating net proceeds of approximately $5 million, which will be allocated to general corporate purposes, including growth in the EksoHealth segment and research and development. The company continues to face challenges, including the need for adequate financing and the successful marketing of its products, particularly in light of ongoing efforts to secure Medicare reimbursement for its devices.

As of September 30, 2024, the company held $8.3 million in cash, with $2 million classified as restricted, resulting in approximately $6.3 million of effective unrestricted cash. Management has expressed substantial doubt about the company's ability to meet cash requirements over the next twelve months, indicating a reliance on external financing to support operations.