Picard Medical / SynCardia Reports First Quarter 2026 Financial Results

Rhea-AI Summary

Picard Medical (NYSE American: PMI) reported Q1 2026 revenue of $1.2 million, up 85% year over year, driven by greater SynCardia Total Artificial Heart utilization and Freedom Driver rentals. Gross profit turned positive at $0.3 million with 24% margin, while net loss reached $7.6 million.

The company repaid or settled over $10 million of debt, cut its Senior Secured Note balance to about $1.3 million, raised $5.0 million in a May 2026 offering, and simplified its warrant structure. Picard Medical received NYSE American deficiency notices tied to stockholders’ equity and is preparing a compliance plan.

Positive

• Revenue grew 85% year over year to $1.2 million in Q1 2026
• Product revenue rose 54% to $0.9 million; Freedom rentals reached $0.2 million
• Gross profit improved to $0.3 million with a 24% gross margin
• Approximately $7.4 million of Senior Secured Note principal repaid in cash
• $2.1 million of Senior Secured Note settled via 1.4 million common shares
• Public offering raised $5.0 million in gross proceeds in May 2026

Negative

• Net loss was $7.6 million in the first quarter of 2026
• Reported stockholders’ deficit of approximately $(1.4) million as of March 31, 2026
• Non-compliance notices from NYSE American Sections 1003(a)(i) and 1003(a)(ii)
• Equity dilution from issuing 1.4 million shares to settle debt
• Warrant exchange created 10.0 million new warrants at a $0.35 exercise price
• Remaining Senior Secured Note balance about $1.3 million after reductions

News Market Reaction – PMI

-8.44%

8 alerts

-8.44% Session close to close

+13.5% Peak Tracked

-6.1% Trough Tracked

$14.22M Market Cap

0.2x Rel. Volume

In the May 21 session, PMI declined 8.44%, reflecting a notable negative market reaction. Argus tracked a peak move of +13.5% during that session. Argus tracked a trough of -6.1% from its starting point during tracking. Our momentum scanner triggered 8 alerts that day, indicating moderate trading interest and price volatility.

Data tracked by StockTitan Argus on the day of publication.

Market Context

The stock moved -8.4% in the session following this news. A negative reaction despite operational im...

Analysis

The stock moved -8.4% in the session following this news. A negative reaction despite operational improvements would fit concerns highlighted in recent filings, including a stockholders’ deficit of about $(1.4) million and notice of NYSE American non-compliance. While Q1 2026 delivered strong revenue growth and positive gross margin, investors may focus on continuing net losses, capital-structure complexity, and recent dilutive financings. Historically, earnings news produced gains, so a sharp selloff could mark a break from that pattern.

Key Figures

Q1 2026 revenue: $1.2 million Product revenue: $0.9 million Freedom Driver rental: $0.2 million +5 more

8 metrics

Q1 2026 revenue $1.2 million First quarter 2026, up 85% from $0.6M in Q1 2025

Product revenue $0.9 million Q1 2026, up 54% year-over-year

Freedom Driver rental $0.2 million Q1 2026 rental revenue, up from $7,000 in prior-year quarter

Gross profit $0.3 million (24% margin) Q1 2026 vs $0.4M gross loss and -58% margin in Q1 2025

Net loss $7.6 million Q1 2026, includes non-cash debt settlement and fair value charges

Senior note cash repayment $7.4 million Principal repaid in cash on senior secured note due 2028

Equity-for-debt swap $2.1 million for 1.4M shares Senior secured note principal settled in common stock

Stockholders’ deficit $(1.4) million As of March 31, 2026, triggering NYSE American deficiency notice

Previous Earnings Reports

4 past events · Latest: Apr 22 (Positive)

Same Type Pattern 4 events

Date	Event	Sentiment	24h Move	Catalyst
Apr 22	Q1 2026 prelim	Positive	+6.9%	Preliminary Q1 2026 revenue up sharply year over year with higher utilization.
Mar 25	FY 2025 results	Positive	+3.0%	Full-year 2025 results showed revenue growth and improved operating performance.
Nov 14	Q3 2025 results	Positive	+10.7%	Q3 2025 revenue growth, narrowed gross loss, and IPO proceeds deployment.
Sep 15	Q2 2025 results	Positive	+6.3%	Q2 2025 revenue up 207% with recent IPO funding operations into 2026.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Earnings-related announcements have consistently seen positive next-day moves, suggesting investors historically rewarded financial updates and growth signals.

Recent Company History

Over the past year, Picard’s earnings releases have highlighted revenue growth, balance sheet repair, and ongoing investment in SynCardia and the Emperor Total Artificial Heart. Prior updates included strong Q2 and Q3 2025 growth, an IPO raising $19.5M gross, and preliminary Q1 2026 revenue of $1.1M. These events were followed by positive price reactions, indicating a pattern of constructive responses to financial progress, against a backdrop of continued net losses and capital-raising needs that frame today’s detailed Q1 2026 results.

Key Terms

total artificial heart, gross margin, warrant liability, warrants, +4 more

8 terms

total artificial heart medical

"maker of the world’s first total artificial heart approved by both the U.S. FDA"

A total artificial heart is a surgically implanted mechanical device that replaces the heart’s two main pumping chambers and takes over circulation, acting like a continuous pump that keeps blood moving through the body. Investors care because it is a high-cost, high-stakes medical product whose commercial success depends on clinical trial results, regulatory approvals, hospital adoption, reimbursement rules and long-term patient outcomes — factors that drive revenue potential and risk.

gross margin financial

"we improved gross margin performance, reduced outstanding debt obligations"

Gross margin is the difference between how much money a company makes from selling its products and how much it costs to produce them, expressed as a percentage of sales. It shows how efficiently a company is turning sales into profit before other expenses like marketing or salaries. Higher gross margin means the company keeps more money from each sale, which is a good sign of financial health.

View in glossary

warrant liability financial

"The warrant liability decreased from approximately $7.8 million to approximately $4.7 million"

Warrant liability is the financial obligation a company records when it grants warrants—special options giving the holder the right to buy company shares at a set price in the future. It matters to investors because changes in this liability can affect a company's reported earnings and overall financial health, similar to how a pending contract can influence a company's future value.

warrants financial

"replacing 7.0 million existing warrants at a $2.675 exercise price with 10.0 million new warrants"

Warrants are special documents that give you the right to buy a company's stock at a set price before a certain date. They are often used as a way for companies to attract investors or raise money, and their value can increase if the company's stock price goes up.

View in glossary

stockholders' equity financial

"requires listed companies to maintain stockholders' equity of at least $4.0 million"

Stockholders' equity is the portion of a company's assets that belongs to its owners after all debts and obligations are paid; think of it as the value left for shareholders if the company sold everything and paid off what it owes. Investors watch it because it shows the company's net worth, indicates how much of growth is funded by owners versus debt, and helps assess financial health and the potential for future dividends or stock value increases — like the equity in a house after the mortgage is settled.

NYSE American regulatory

"the Company received a written notice from the NYSE American LLC"

NYSE American is a stock exchange where companies can list their shares to be bought and sold by investors. It functions like a marketplace, helping businesses raise money and providing investors with opportunities to buy ownership in these companies. Its role is important because it facilitates the trading of smaller or emerging companies, offering investors access to a broader range of investment options.

Medical Device Single Audit Program regulatory

"regulatory compliance, and Medical Device Single Audit Program readiness"

A medical device single audit program is an international system where one comprehensive inspection of a device maker’s quality and safety processes is accepted by multiple national regulators instead of separate audits for each country. Think of it like one thorough health inspection for a restaurant chain that satisfies several city inspectors at once; for investors, it can cut compliance costs, speed access to markets and reduce the risk of regulatory holds that could delay sales or add unexpected expenses.

bridge to transplant medical

"Total Artificial Heart used as a bridge to transplant for end stage biventricular failure"

A bridge to transplant is a temporary medical treatment or device used to keep a patient stable and alive while they wait for an organ transplant, such as a heart, lung, or liver. For investors, it signals a defined market for products and services that sustain patients during the waiting period—similar to a rental car keeping someone moving until their new car arrives—affecting demand, pricing, reimbursement and regulatory risk for related companies.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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– Gross profit turns positive; Company executes significant debt reduction –

-- Responds to NYSE American continued listing notice -

TUCSON, Ariz., May 21, 2026 (GLOBE NEWSWIRE) -- Picard Medical, Inc. (NYSE American: PMI) (“Picard Medical” or the “Company”), parent company of SynCardia Systems, LLC, (“SynCardia”) maker of the world’s first total artificial heart approved by both the U.S. FDA and Health Canada, reported financial results for the first quarter ended March 31, 2026.

“We continue to make progress across both our commercial and strategic priorities,” said Patrick NJ Schnegelsberg, Chief Executive Officer of Picard Medical Inc. “During and the quarter, we improved gross margin performance, reduced outstanding debt obligations, strengthened our capital structure, and continued advancing development of the Emperor Total Artificial Heart alongside expansion of our SynCardia commercial activities.”

Mr. Schnegelsberg added, “The quarter was highlighted by year-over-year revenue growth, a return to positive gross profit, and strengthening the Company’s balance sheet through significant debt reduction, while the Company continued to invest in research and development, manufacturing, and clinical support initiatives across its Total Artificial Heart platform.”

First Quarter 2026 Financial Highlights

Revenue grew 85% to $1.2 million for the first quarter of 2026 compared to $0.6 million in the first quarter of 2025, reflecting increased utilization of the SynCardia Total Artificial Heart and continued growth in U.S. commercial activity. Product revenue increased 54% to $0.9 million, while Freedom Driver rental revenue grew to $0.2 million from $7,000 in the prior year period. Gross profit improved to $0.3 million, reflecting a gross margin of 24%, compared to a gross loss of $0.4 million and a negative 58% margin in Q1 2025. Net loss was $7.6 million, including significant non-cash charges related to debt settlement and fair value adjustments.

Balance Sheet and Capital Structure

During the quarter, the Company took several actions to reduce leverage and strengthen its capital structure. The Company repaid approximately $7.4 million of a senior secured note due 2028 (the “Senior Secured Note”) principal in cash, settled an additional $2.1 million of principal of the Senior Secured Note through the issuance of 1.4 million shares of the Company’s common stock (the “Common Stock”), and repaid approximately $0.9 million of related-party debt. The warrant liability decreased from approximately $7.8 million to approximately $4.7 million, reflecting a reduction in the fair value of outstanding warrants driven by fluctuating changes in the Company's stock price and volatility during the quarter.

Subsequent to quarter end, the Company completed a public offering in May 2026, raising gross proceeds of $5.0 million. The Company also entered into a warrant exchange agreement replacing 7.0 million existing warrants at a $2.675 exercise price with 10.0 million new warrants at a $0.35 exercise price, eliminating the prior ratchet provisions and simplifying the capital structure. The remaining Senior Secured Note balance was substantially reduced through a combination of cash payments, equity settlements, and a cashless transaction to approximately $1.3 million.

NYSE American Listing Standards Notices

As previously disclosed on a Current Report on Form 8-K, filed with the Securities and Exchange Commission on May 11, 2026, on May 8, 2026 the Company received a written notice from the NYSE American LLC (the “NYSE American”) notifying it of non-compliance with Section 1003(a)(ii) of the NYSE American Company Guide (the “Company Guide”), which requires listed companies to maintain stockholders' equity of at least $4.0 million if losses from continuing operations and/or net losses have been reported in three of the four most recent fiscal years. The determination was based on reported stockholders' equity of approximately $3.8 million as of December 31, 2025, and losses from continuing operations and/or net losses in three of its four most recent fiscal years.

On May 15, 2026, the Company received a second written notice from NYSE American, notifying it of non-compliance with Section 1003(a)(i) of the Company Guide, which requires stockholders' equity of at least $2.0 million if such losses have been reported in two of the three most recent fiscal years. The determination was based on a reported stockholders' deficit of approximately $(1.4) million as of March 31, 2026, and losses in two of the three most recent fiscal years.

Pursuant to Section 1009 of the Company Guide, the Company has until June 7, 2026 to submit a compliance plan outlining steps to regain compliance by November 8, 2027 (the “Plan”). The Company is actively preparing the Plan with its financial and legal advisors and intends to submit the Plan by the deadline.

The notices do not have an immediate effect on the listing or trading of the Common Stock on NYSE American. In accordance with NYSE American procedures, a “.BC” indicator has been appended to the Company’s trading symbol to indicate the status of the Common Stock as “below compliance.”

Operational and Strategic Update

During the first quarter of 2026, the Company advanced execution across its core operational priorities.

Commercial activity remained focused on expanding patient access to the SynCardia Total Artificial Heart at transplant centers across the United States. Utilization of the Freedom Driver rental program increased meaningfully during the quarter, contributing to rental revenue growth and expanding the Company's recurring revenue base. Clinical support and training initiatives continued across certified U.S. transplant centers, with targeted engagement at high-volume accounts to support procedural readiness and patient outcomes.

On the product development front, the Company continued investment in next-generation driver technologies and the Emperor Total Artificial Heart, its fully implantable, driverless artificial heart currently in development and targeting a 2028 clinical study launch.

The Company also continued strengthening quality systems and operational infrastructure to support scalability, regulatory compliance, and Medical Device Single Audit Program readiness.

Outlook

The Company remains focused on expanding utilization of the SynCardia Total Artificial Heart, advancing development of the Emperor Total Artificial Heart, its next generation fully implantable artificial heart, targeting a 2028 clinical study launch, improving manufacturing efficiency, and strengthening its commercial and financial position.

About Picard Medical and SynCardia

Picard Medical, Inc. is the parent company of SynCardia Systems, LLC (“SynCardia”), the Tucson, Arizona–based leader with the only commercially available total artificial heart technology for patients with end-stage heart failure. SynCardia develops, manufactures, and commercializes the SynCardia Total Artificial Heart (“STAH”), an implantable system that assumes the full functions of a failing or failed human heart. It is the first artificial heart approved by both the FDA and Health Canada, and it remains the only commercially available artificial heart in the United States and Canada. With more than 2,100 implants performed at hospitals across 27 countries, the STAH is the most widely used and extensively studied artificial heart in the world. For additional information about Picard Medical, please visit www.picardmedical.com or review the Company’s filings with the U.S. Securities and Exchange Commission (the “SEC”) at www.sec.gov.

Forward-Looking Statements

This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are based on management’s current expectations, assumptions and beliefs that involve risks and uncertainties. Forward-looking statements are statements that are not historical facts.  Forward-looking statements can often be identified by words such as “continue,” “remain,” “expand,” “advance,” “target,” “intend” and similar expressions, and variations or negatives of these words. These statements include, but are not limited to, statements regarding the Company’s financial condition, future operating results, expectations for expanding utilization of the SynCardia Total Artificial Heart and expanding patient access at transplant centers across the United States; advancing development of the Emperor Total Artificial Heart and targeting a 2028 clinical study launch; improving manufacturing efficiency; strengthening the Company's commercial and financial position and capital structure; continued investment in next-generation driver technologies; the Company's intent to submit a compliance plan to NYSE American by the applicable deadline; and the Company's ability to regain compliance with NYSE American listing standards.  Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ from the forward-looking statements. The Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company’s expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based. Additional information about the Company, including risk factors that may affect the Company’s business, financial condition, and results of operations, is contained in the Company's filings with the SEC, including the Company’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, which are available free of charge on the SEC’s website at http://www.sec.gov and on the Company's investor relations website at https://picardmedical.com/.

Contact:

Investors

Eric Ribner

Managing Director

LifeSci Advisors LLC eric@lifesciadvisors.com

Picard Medical, Inc./SynCardia Systems, LLC IR@picardmedical.com

General/Media

Brittany Lanza blanza@syncardia.com

FAQ

How did Picard Medical (PMI) perform financially in Q1 2026?

Picard Medical reported Q1 2026 revenue of $1.2 million, up 85% year over year. According to Picard Medical, gross profit reached $0.3 million with a 24% margin, while net loss totaled $7.6 million, including significant non-cash debt-related charges.

What drove Picard Medical’s revenue growth for Q1 2026?

Revenue growth was mainly driven by higher SynCardia Total Artificial Heart utilization and Freedom Driver rentals. According to Picard Medical, product revenue increased 54% to $0.9 million, and Freedom Driver rental revenue grew to $0.2 million from $7,000 in the prior-year quarter.

How much debt did Picard Medical reduce in the first quarter of 2026?

Picard Medical significantly reduced its Senior Secured Note and related-party debt in Q1 2026. According to Picard Medical, it repaid about $7.4 million in cash, settled $2.1 million in principal with 1.4 million shares, and repaid approximately $0.9 million of related-party debt.

What NYSE American listing issues is Picard Medical (PMI) facing in 2026?

Picard Medical received NYSE American notices for not meeting stockholders’ equity thresholds under Sections 1003(a)(i) and 1003(a)(ii). According to Picard Medical, it must submit a compliance plan by June 7, 2026, targeting regained compliance by November 8, 2027, while trading continues with a “.BC” indicator.

How did Picard Medical’s capital structure change after the May 2026 offering and warrant exchange?

The company raised $5.0 million in gross proceeds and restructured its warrants. According to Picard Medical, 7.0 million existing warrants at a $2.675 exercise price were replaced with 10.0 million new warrants at $0.35, removing ratchet provisions and simplifying its capital structure.

What is the status of Picard Medical’s Emperor Total Artificial Heart development?

Picard Medical continues investing in the Emperor Total Artificial Heart, a fully implantable, driverless artificial heart. According to Picard Medical, the program remains in development with a targeted clinical study launch in 2028, alongside ongoing work on next-generation driver technologies and quality systems.