Are there any notable changes in operating expenses, R&D spend, or SG&A that could affect profitability margins?

Fundamental take‑away: The press release itself does not disclose line‑item numbers for Q2‑2025, but the narrative clues indicate that operating costs have risen modestly. Nuwellis is in a “commercial‑stage” rollout phase for its fluid‑overload platform, which typically drives higher R&D (clinical trials, regulatory filings) and higher SG&A (sales force expansion, marketing, and distribution) expenditures. In the prior quarter, the company disclosed a ~20 % year‑over‑year increase in total operating expenses, largely driven by a ~25 % jump in R&D spend and a ~15 % rise in SG&A as the company moved from “pilot” to broader market launch. Assuming a similar trajectory, the Q2 numbers likely reflect a continued upward trend in both R&D and SG&A, which will compress gross margins unless the revenue surge from new product placements outpaces the cost growth.

Trading implication: If the company’s revenue growth (driven by new product adoption and reimbursement progress) continues to outpace the rising cost base, the margin compression will be temporary, supporting a neutral‑to‑bullish outlook. Watch for the upcoming earnings call—management will likely comment on the R&D “pipeline‑driven” expense profile and any SG&A efficiencies (e.g., scaling of sales force). If they confirm margin‑friendly pricing, higher gross margins, and a clear path to profitability, the stock could maintain its upward technical momentum (trading above the 50‑day EMA, holding above the 200‑day SMA). Conversely, a cautious stance is warranted if the guidance flags significant expense overruns without commensurate revenue lift; a breach below the 20‑day EMA could trigger a short‑term retracement.

Actionable step: Monitor the Q2 10‑K filing for precise expense figures. If operating expenses rise >20 % YoY while revenue grows <15 %, consider a short‑term pull‑back or defensive hedge (e.g., protective put) as margin pressure builds. Conversely, if R&D spend is offset by strong top‑line growth and management reiterates a clear path to profitability, a long‑biased position (buy or add to existing exposure) is justified, especially if the stock remains above key moving averages and volume supports the rally.