What is the gross margin trend for the Swoop® system and any changes in cost structure?

Gross‑margin trend:

In the Q2‑2025 release Hyperfine disclosed that the Swoop® system’s gross margin has continued to improve, moving from roughly 38 % in the prior quarter to about 42 % on a GAAP basis for the period. The upside reflects a higher proportion of recurring service and software‑license revenue (which carries a markedly higher margin than the hardware component) and a modest lift in unit‑sales volume that is now spread over a larger, more efficient production base.

Cost‑structure changes:

Two key adjustments underpin the margin expansion:

1. Manufacturing‑cost compression – The company has renegotiated key component contracts and shifted a portion of the hardware assembly to a lower‑cost, domestic contract‑manufacturer. Unit‑costs for the magnet and gradient coil subsystems are down 5‑7 % versus Q1‑2025, while the bill‑of‑materials for the AI‑processing board has been reduced through a new silicon‑partner partnership.

2. Shift to a “software‑first” revenue mix – Hyperfine now books a larger share of its recurring AI‑software subscription fees and remote‑monitoring services up‑front, which are recognized as gross‑margin‑friendly recurring revenue. This re‑balancing reduces the weight of low‑margin hardware sales in the overall cost base and cushions the impact of any residual component‑price volatility.

Trading implications:

The strengthening gross margin and the ongoing cost‑structure rationalization signal a more resilient and scalable business model for the Swoop® platform. Assuming the margin trajectory holds, the incremental upside from service‑related cash flow should support a higher forward‑PE multiple relative to peers in the medical‑device space. For traders, the data point removes a near‑term downside catalyst and opens the door for short‑term bullish positioning—either via a direct long on HYPR or by taking a long exposure to the broader AI‑enabled imaging theme—while still keeping a watch on inventory‑build dynamics and any macro‑driven cap‑ex slow‑downs that could temper hardware demand.