ASX small-cap stock EBR Systems Inc (ASX: EBR) is in focus after it released a quarterly update yesterday.
EBR Systems is engaged in treatment for patients suffering from cardiac rhythm diseases by developing therapies using wireless cardiac stimulation. The company's Wise CRT System uses proprietary wireless technology to deliver pacing stimulation directly inside the left ventricle of the heart.
Image source: Getty Images
What did the company announce?
Yesterday, the company released a Quarterly Cash Flow Report for the quarter ended 31 December 2025.
Key highlights included:
- Successful A$79.5m capital raise completed in Q2 2025, with EBR well-capitalised through to in initial commercialisation.
- 4Q25 revenue of approximately US$1.6m (ahead of estimates from Bell Potter).
- Gross margin of approximately 30%, supported by lower-cost legacy R&D inventory.
John McCutcheon, EBR Systems' President & Chief Executive Officer said:
2025 marked a defining year for EBR as we successfully transitioned from a development-stage company to a commercial medical device business. Achieving FDA approval for the WiSE® CRT System in April and initiating our U.S. commercial launch were transformational milestones that position EBR at the forefront of leadless cardiac resynchronisation therapy.
The company has seen its share price tumble more than 20% this year, however investors will be hoping yesterday's announcement could be the beginning of a turnaround, after the share price climbed 1.45% during Thursday.
What did Bell Potter have to say?
Following the report, the team at Bell Potter issued updated guidance on this ASX small-cap.
The broker said operating metrics are trending well.
The 4Q25 data showed implants doubled to 18 and 30 for FY25. Data released to February, suggests implant volume could double again.
Bell Potter said hospital contracts and physician training are ahead of schedule, with 21 contracts signed in FY25 (28 quarter-to-date) and 33 physicians trained in FY25 (46 QTD), indicating strong future demand as physician readiness is outpacing hospital onboarding.
While progress is solid, short-term growth is being modestly constrained by early-stage challenges such as sales team ramp-up and hospitals learning to administer and code the WiSE procedure, which appear to be temporary during this limited market release phase.
Buy recommendation in tact
Bell Potter maintained its buy recommendation but lowered its price target to $2.00 (previously $2.43).
Reflecting on training and hospital administration issues, we have adjusted our estimates across the forecast period. We have reduced our unit volume estimates by c.32.8% / c.37.5% / c.33.5% for FY26e-FY28e.
From yesterday's closing price of $0.70, the broker sees an estimated upside of 186% on this ASX small-cap stock.
