-- Responds to NYSE American continued listing notice -
TUCSON, Ariz., May 21, 2026 (GLOBE NEWSWIRE) -- Picard Medical, Inc. (NYSE: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 ...
