William Blair analyst Brandon Vazquez reiterated an Outperform rating on CVRx Inc (NASDAQ: CVRX)

The analyst commented, "This morning, CVRx announced preliminary first-quarter results. The company expects 1) sales in the range of $14.7 million to $14.8 million (roughly 5% above the Street), 2) gross margin of approximately 87% (vs. our estimate of 84%), 3) total operating expenses of roughly $25 million, and 4) cash balance of $72.3 million. Overall, we view preliminary results as another positive step in the right direction for the company as it continues to show the benefits of a revamped commercial strategy focused on accounts that can drive durable growth. We view utilization as a key metric to understand the success of the company’s commercial efforts, and our math suggests utilization was better than expected, despite 1) the seasonally weaker first quarter and 2) lower net account adds compared to our estimate (5 vs. our estimate of 8). On the latter, we remind investors that this number is on a net-basis, and we expect it was lower given a higher number of smaller, lower-utilizing Barostim center closures, which should decrease as we move through the year. The company is seeing early benefits from its category 1 code implemented on January 1 and also activated its first site for the BENEFIT-HF trial, both of which we expect to be tailwinds for the company throughout 2026. Lastly, with over $70 million in cash, management continues to believe it has sufficient access to capital for the next two years. With shares trading at 3 times our 2026 sales estimate, we reiterate our Outperform rating."

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Shares of CVRx Inc closed at $7.15 yesterday.