Vicarious Surgical Inc. (RBOT) Q3 2025 Earnings Call Transcript
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Overview
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.
Key Financial Performance
Total Operating Expenses $11.5 million, a 35% decrease year-over-year from $17.8 million in Q3 2024. The decrease is attributed to cost reduction measures and restructuring efforts.
Research and Development Expenses $8 million, down from $10.8 million in Q3 2024. The reduction is due to targeted outsourcing and structural changes to improve capital efficiency.
General and Administrative Expenses $3.2 million, compared to $5.7 million in Q3 2024. This decrease is a result of internal team restructuring and cost-saving initiatives.
Sales and Marketing Expenses $350,000, a significant drop from $1.2 million in Q3 2024. The reduction is due to a strategic focus on core innovation and reduced spending in non-core areas.
GAAP Net Loss $11.1 million or $1.86 per share, compared to $17.1 million or $2.90 per share in Q3 2024. The improvement is due to overall cost reduction efforts.
Non-GAAP Adjusted Net Loss $11.3 million or $1.91 per share, compared to $17 million or $2.87 per share in Q3 2024. This reflects the impact of cost-saving measures.
Cash, Cash Equivalents, and Short-term Investments $13.4 million at the end of Q3 2025. This represents a cash burn rate of approximately $10.5 million for the quarter, with additional funds of $5.2 million raised post-quarter through a registered direct offering.
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Operating Highlights
Design Freeze of Production-Equivalent System: Targeting completion by year-end 2026, which is foundational for clinical entry and commercialization.
Communication and Transparency: Initiating updates on platform development via LinkedIn and Investor Relations website to enhance investor and partner engagement.
Burn Reduction: Implemented measures to lower spending, including targeted outsourcing and structural changes, while preserving engineering progress.
Cost Management: Reduced operating expenses by 35% year-over-year in Q3 2025, with significant cuts in R&D, G&A, and sales and marketing expenses.
Outsourcing Strategy: Engaged a consulting firm to identify outsourcing opportunities for non-core elements, aiming to improve capital efficiency while protecting core innovations.
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Risk or Challenges
Design Freeze Timeline: The company faces challenges in achieving the design freeze of its production-equivalent system by the targeted year-end 2026. This milestone is critical for clinical entry and commercialization, and delays could impact the company's strategic objectives.
Cash Burn and Financial Sustainability: The company is actively working to reduce its cash burn, which was approximately $10.5 million in Q3 2025, with a full-year expectation of $50 million. Despite recent fundraising efforts, financial sustainability remains a challenge, and further reductions in spending are necessary to extend the operational runway.
Outsourcing and Structural Changes: Efforts to reduce costs include targeted outsourcing and restructuring, which involve risks such as potential delays, quality issues, and loss of control over critical components of the technology.
Regulatory Approvals: The company is working towards obtaining FDA approval for its surgical system. Delays or challenges in the regulatory process could significantly impact commercialization timelines and market entry.
Market and Competitive Pressures: The company operates in a competitive market for surgical robotics. Failure to differentiate its technology or delays in commercialization could result in loss of market share or inability to capture market opportunities.
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Guidance & Outlook
Approval for Vicarious Surgical System: The company is targeting obtaining approval for the Vicarious Surgical System, with timing for such approval being a key focus.
Design Freeze Timeline: The company aims to achieve design freeze of the production-equivalent system by year-end 2026, which is critical for clinical entry and commercialization.
Cash Burn Reduction: The company is actively working to reduce cash burn, with a focus on maintaining the design freeze timeline. Full-year 2025 cash burn is expected to be approximately $50 million, with material reductions planned for 2026.
Outsourcing and Structural Changes: The company is evaluating targeted outsourcing opportunities and structural changes to preserve engineering progress while improving capital efficiency. Recommendations and proposals for outsourcing partners are expected by the end of November 2025.
Financial Position: The company ended Q3 2025 with $13.4 million in cash and added $5.2 million in net proceeds from a registered direct offering. Further opportunities to bolster the balance sheet are being explored.
Communication and Transparency: The company plans to provide frequent updates on progress toward design freeze through posts and videos on LinkedIn and its Investor Relations website, starting November 13, 2025.
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Shareholder Return Plan
The selected topic was not discussed during the call.
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Key Q&A
Q:What is the timeline for system build to the standard for regulatory testing and clinical use, and how is it impacted by the outsourcing initiative?
A:The timeline for system build to the standard for regulatory testing and clinical use is still mid-2026, with design freeze expected towards the end of 2026. While outsourcing may cause some disruption, the company is working to mitigate issues and communicate any disruptions in a timely manner. A consulting firm, PA Consulting, has been engaged to assist with the outsourcing plan, which should be completed by the end of the month.
Q:Will the outsourcing initiative result in a restart of the system build?
A:No, the outsourcing initiative will not result in a restart of the system build. The company is continuously improving upon previous builds, moving from pre-DV1 to pre-DV2 systems, and working towards a final product with all features and specifications needed for commercialization.
Q:Have there been any cadaver labs or internal testing with surgeons on the development builds?
A:Yes, the company has conducted cadaver labs and internal testing with surgeons in their in-house operating room. Surgeons, including those unfamiliar with the system, have tested the builds. Recent tests have shown improvements in system stability and reliability, with a significant reduction in suturing time for IPOM ventral hernia procedures from 40 minutes to 14 minutes.
Q:Can you provide examples of improvements in the system's performance?
A:One example is the reduction in suturing time for IPOM ventral hernia procedures, which dropped from an average of 40 minutes to 14 minutes, demonstrating significant improvements in system stability and reliability.
Q:How long will the consulting engagement with PA Consulting take, and what is the cost?
A:The consulting engagement with PA Consulting is a short-term project expected to be completed by the end of the month. The cost was described as a fixed fee and reasonable, but the exact amount was not disclosed.
Q:What steps are being taken to preserve cash while reaching the design freeze by year-end 2026?
A:To preserve cash, the company has engaged in outsourcing to lower costs, conducted a small layoff of about 15% of employees, and is working on a request for proposals to finalize outsourcing plans by the end of Q1. These measures aim to materially lower the budget for 2026 and 2027.
Q:What is the status of relationships with hospital and health system partners?
A:The relationships with hospital and health system partners remain strong. Surgeons from these systems frequently visit the company to test the system and provide feedback. Recently, a surgeon unfamiliar with the system successfully performed an IPOM surgery on the same day of testing, demonstrating the system's usability and effectiveness.
Q:Review of Unclear Management Responses
A:Management avoided providing specific details on the cost of the consulting engagement with PA Consulting, only stating that it was a fixed fee and reasonably priced. Additionally, while discussing the potential impact of outsourcing on the timeline, the response lacked clarity on the extent of possible disruptions and how they would be managed.
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Earnings Word Cloud
The most frequently occurring keywords in this quarter's earning call
Form
Group statement
LinkedIn page
Officer remark
Relations website
Research development
action work
afternoon month
analysis recommendation
approach core
area focus
area technology
assessment focus
assumption risk
build quality
burn cash
burn feedback
burn material
burn momentum
burn opportunity
camera system
capital efficiency
challenge robot
change engineering
close offering
commercialization completion
communication transparency
completion end
consulting firm
control
design freeze
exercise
feature
goal
outsourcing
proceeds
reduction
sheet cash
step
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
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