Vicarious Surgical Inc. (RBOT) Q2 2025 Earnings Call Transcript
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Overview
The earnings call reveals challenges in resource allocation, financial constraints, and competitive risks in a nascent market. Despite reduced operating expenses, the company's cash position is concerning with a high burn rate. Management's inability to provide clear guidance on clinical milestones and timelines further contributes to uncertainty. The Q&A session did not alleviate these concerns, as management avoided specific answers, indicating potential delays and risks. These factors suggest a negative sentiment, likely leading to a stock price decline in the short term.
Key Financial Performance
Total Operating Expenses $13.5 million, a 24% decrease compared to $17.7 million in the second quarter of 2024. The decrease is due to reduced spending in various operational areas.
Research and Development Expenses $9.1 million compared to $10.9 million in the second quarter of 2024, reflecting a reduction in R&D spending.
General and Administrative Expenses $4.1 million compared to $5.6 million in the second quarter of 2024, indicating a decrease in administrative costs.
Sales and Marketing Expenses $300,000 compared to $1.2 million in the second quarter of 2024, showing a significant reduction in marketing expenditures.
GAAP Net Loss $13.2 million or $2.23 per share, compared to a net loss of $15.2 million or $2.59 per share in the second quarter of 2024. The improvement is due to lower operating expenses.
Non-GAAP Adjusted Net Loss $13.3 million or $2.23 per share, compared to $16.8 million or $2.86 per share in the second quarter of 2024, driven by reduced costs.
Cash, Cash Equivalents, and Short-term Investments $24 million at the end of the second quarter of 2025, with a cash burn rate of approximately $13.4 million for the quarter.
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Operating Highlights
System readiness and production equivalent system: The company is focusing on completing a fully integrated production equivalent system, enabling design lock and initiating full system verification and validation. This is prioritized over conducting trials with a nonproduction equivalent system.
Single-port robotic surgery market: The company believes it is well-positioned to advance its technology in the early-stage single-port robotic surgery market.
Operating expenses: Total operating expenses for Q2 2025 were $13.5 million, a 24% decrease from $17.7 million in Q2 2024.
Cash burn: The company reported a Q2 2025 cash burn rate of approximately $13.4 million and expects a full-year 2025 cash burn of $50 million.
Leadership transition: Stephen From has been appointed as the new CEO, with Adam Sachs transitioning to the role of President. The leadership change aims to align the company for long-term goals and strategic shifts.
Strategic focus shift: The company has shifted its focus from near-term clinical trials to finalizing a production-ready system, delaying the target for first clinical use (FCU) trials beyond 2025.
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Risk or Challenges
Leadership Transition: The company is undergoing a leadership transition with a new CEO, Stephen From, which could lead to potential disruptions or delays in strategic execution as the new leadership aligns with the company's goals and processes.
System Readiness and Development Delays: The company has shifted its focus to completing a fully integrated production equivalent system, delaying the near-term target of a First Clinical Use (FCU) by the end of 2025. This delay could impact the timing of future clinical trials and regulatory submissions, potentially affecting commercialization timelines.
Resource Allocation Challenges: The decision to prioritize system design and readiness over conducting a nonproduction equivalent system trial highlights resource constraints, which could limit the company's ability to pursue parallel development activities.
Financial Constraints: The company reported a cash burn rate of $13.4 million for Q2 2025 and expects a full-year cash burn of $50 million, with $24 million in cash and equivalents remaining. This raises concerns about the sufficiency of financial resources to sustain operations and achieve strategic objectives without additional funding.
Market and Competitive Risks: The single-port robotic surgery market is in its early stages, and the company faces competitive pressures to establish its technology as a differentiated and viable solution in a nascent but competitive market.
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Guidance & Outlook
System readiness and clinical trial timelines: The company is focusing on completing a fully integrated production-equivalent system, enabling design lock and initiating full system verification and validation. This will be prioritized over conducting trials with a nonproduction-equivalent system. The near-term target of an FCU (First Clinical Use) by the end of 2025 has been removed. Instead, efforts will concentrate on finalizing system design and readiness for full verification. A deep dive into the development status and readiness will take approximately 4 to 6 weeks, after which greater clarity on timelines is expected.
Future clinical trial milestones and de novo filing: The timing of future clinical trial milestones, including the submission of a de novo filing, will depend on the timing of the FCU. The company plans to refine timelines and evaluate progress across development programs.
Capital strategy and resource allocation: The company will engage with its Board and investor base to evaluate the capital strategy needed to support its objectives. Disciplined capital allocation remains a priority, with a full-year 2025 cash burn expected to be approximately $50 million.
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Shareholder Return Plan
The selected topic was not discussed during the call.
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Key Q&A
Q:How has the company prioritized its efforts and managed timelines around clinical trials?
A:Stephen From explained that the company is conducting an exercise to fully understand what is required to achieve a full production equivalent system. He emphasized the importance of ensuring the system is ready for clinical trials and commercialization, rather than rushing forward with incomplete testing. Minimal cash has been spent on clinical trial preparation, as most groundwork involves labor rather than financial resources.
Q:What was anticipated to be spent on clinical trials, and how does it affect cash burn guidance?
A:Sarah Romano stated that the budgeted costs for clinical trials are not overly material to the company's budget and will not significantly impact the 2025 budget. However, this may change as evaluations continue.
Q:What development and system milestones can investors expect by the end of the year?
A:Stephen From stated that it is too early to provide specific milestones or dates. He emphasized the importance of completing the current exercise to gain clarity and provide reliable guidance to investors.
Q:How does the company feel about its ability to fund development and other work with its current cash and investments?
A:Stephen From expressed confidence in the company's ability to fund development, citing the significant progress already made and the unique value of the system being developed. He emphasized the importance of providing investors with confidence in the company's ability to deliver.
Q:What led to the conclusion that the system is not ready for first-in-human trials?
A:Adam David Sachs explained that while the system could technically proceed to clinical trials, addressing certain issues (e.g., excessive emissions from ergonomic stages) would require significant effort and resources. Stephen From emphasized focusing on achieving a production equivalent system rather than rushing into clinical trials.
Q:What is the potential timeline for first-in-human trials?
A:Stephen From stated that he cannot provide a timeline until the current assessment is completed. He acknowledged the possibility of a shift in timelines but emphasized the need for a thorough evaluation to determine the extent of any delays.
Q:Review of Unclear Management Responses
A:Management avoided providing specific timelines or milestones for first-in-human trials and other development goals, citing the need for further assessment and clarity. They also refrained from giving detailed guidance on the potential impact of delays on the company's overall timeline.
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Earnings Word Cloud
The most frequently occurring keywords in this quarter's earning call
BTIG LLC
Benjamin Zimmerman
Bych Gilmartin
CEO Director
CFO Treasurer
CFO financials
Carl Maeder
Co Research
Cowen Research
Director CFO
Director Carl
FCU
Form
Founder President
Gilmartin Group
Research Division
Sachs Co
clarity
day
design lock
foundation
goal
journey
line
platform
point
product development
production system
program
readiness
resource
system design
system verification
team
timing trial
update
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RBOT Transcript
Vicarious Surgical Inc. (RBOT) Q3 2025 Earnings Call Transcript
Unknown11-12
The earnings call reveals a mixed outlook. The company shows significant cost reductions and improved system performance, which are positives. However, the delay in clinical trial timelines and lack of clear guidance on disruptions due to outsourcing create uncertainties. The cash position is concerning despite recent fundraising. The Q&A highlights management's evasive responses on costs and timeline impacts, raising concerns. Overall, the balance of positive and negative factors suggests a neutral sentiment.
Vicarious Surgical Inc. (RBOT) Q2 2025 Earnings Call Transcript
Unknown8-12
The earnings call reveals challenges in resource allocation, financial constraints, and competitive risks in a nascent market. Despite reduced operating expenses, the company's cash position is concerning with a high burn rate. Management's inability to provide clear guidance on clinical milestones and timelines further contributes to uncertainty. The Q&A session did not alleviate these concerns, as management avoided specific answers, indicating potential delays and risks. These factors suggest a negative sentiment, likely leading to a stock price decline in the short term.
Earnings call transcript: Vicarious Surgical outlines Q1 2025 progress and challenges
Unknown5-12
The earnings call highlighted several concerns, such as regulatory approval risks, financial sustainability issues with a high cash burn rate, and vague responses in the Q&A session. Although there are positive elements like effective supply chain management and partnerships with hospitals, the overall sentiment is negative due to financial and regulatory uncertainties. The adjusted net loss and cash burn rate raise concerns about funding operations without additional financing. The lack of clarity in management's responses further contributes to a negative outlook, likely leading to a stock price decline in the short term.
Vicarious Surgical Inc. (RBOT) Q1 2025 Earnings Call Transcript
Unknown5-12
The earnings call summary presents a mixed picture: positive strategic partnerships and clinical milestones are offset by significant regulatory and financial risks. The Q&A section reveals management's lack of clarity on regulatory timelines, which may concern investors. The decrease in operating expenses and steady cash management are positives, but the high cash burn and competitive pressures are notable negatives. Without a strong positive catalyst or clear guidance, the stock's reaction is likely neutral.
RBOT Report
Frequently Asked Questions
Where does this earnings call transcript come from?
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
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Why do some answers appear as “Unclear” or “Inaudible”?
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They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
