Executive Summary

Q2 2024 commercial revenue was $1.71M, up sequentially from $1.36M in Q1 2024 and sharply vs $0.00M YoY; gross margin was 51% versus 56% in Q1, with the QoQ margin dip driven by weighted average inventory costs while YoY improvement reflects four scanner deliveries in Q2 2024 versus none in Q2 2023 .
Net loss was $1.25M; basic/diluted EPS was $(0.30), improving QoQ from $(0.33) but wider YoY than $(0.14); Adjusted EBITDA was $(2.12)M versus $(1.16)M in Q1 2024 and $(0.67)M in Q2 2023, reflecting higher SG&A during the public-company transition and non-GAAP adjustments .
Outlook: Management expects H2 2024 revenue pace to match H1 with higher gross margin driven by inventory cost mix; directional guidance was introduced this quarter (none provided in Q1) .
Execution catalysts: exclusive U.S. distribution agreement with NXC Imaging, expanded academic/clinical partnerships (University of Oklahoma, PerfeQTion Imaging, Vincere Cancer Center), and four scanners shipped in Q2; commercial locations in the U.S. increased to five, broadening access beyond traditional centers .

What Went Well and What Went Wrong

What Went Well

Four scanners shipped, three via the strategic distribution partner, increasing U.S. commercial locations to five; CEO emphasized expanding access and lowering costs via direct-to-provider channels: “This reflects our commitment to expanding the medical imaging market opportunities beyond hospitals and imaging centers...” .
Strong sequential revenue growth and positive gross profit; gross margin at 51% supported by deliveries, with management expecting higher gross margin in H2 as inventory cost mix improves .
Strategic momentum: exclusive U.S. distribution agreement with NXC Imaging and clinical partnerships (OU Health Stephenson Cancer Center, PerfeQTion Imaging, Vincere Cancer Center) to drive commercialization and AI/ML-based workflow development .

What Went Wrong

Gross margin compressed QoQ (51% vs 56%) due to variability in weighted average inventory cost; Adjusted EBITDA declined to $(2.12)M, reflecting operating cost pressures amid commercialization .
Net cash used in operating activities was $1.0M in Q2, higher than $0.5M YoY, indicating increased cash burn during scaling; cash ended Q2 at ~$4.6M (including restricted), requiring ongoing financing vigilance .
No Wall Street consensus estimates available via S&P Global, limiting external benchmark comparisons and potentially dampening near-term institutional interest; estimates coverage appears absent for GIA/QTI in SPGI mapping [SpgiEstimatesError].

Financial Results

Metric	Q2 2023	Q1 2024	Q2 2024
Revenue ($USD Thousands)	$3	$1,362	$1,714
Gross Profit ($USD Thousands)	$0	$760	$875
Gross Margin (%)	0.0% (“insignificant”)	56%	51%
Loss from Operations ($USD Thousands)	$(1,198)	$(5,579)	$(2,220)
Net Loss ($USD Thousands)	$(1,330)	$(4,299)	$(1,249)
Basic & Diluted EPS ($USD)	$(0.14)	$(0.33)	$(0.30)
EBITDA ($USD Thousands)	$(1,082)	$(3,601)	$(68)
Adjusted EBITDA ($USD Thousands)	$(668)	$(1,161)	$(2,120)

KPIs and Operating Cash Flow

KPI	Q2 2023	Q1 2024	Q2 2024
Scanners Shipped (#)	0 (no deliveries)	3	4
U.S. Commercial Locations (#)	n/a	n/a	5
Net Cash Used in Operating Activities ($USD Millions)	$0.5	$(6.0) for the quarter (cash flow shows Q1 operating CF)	$1.0
Cash and Restricted Cash End of Period ($USD Millions)	$0.26	$5.64	$4.60

Notes: Q1 2024 cash flow reflects three-month period ending 3/31/24; Q2 2024 cash flow reflects six months ending 6/30/24 with the press release specifying Q2 operating cash flow of $1.0M .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue pace	H2 2024	No formal guidance; management said it would provide guidance with Q2 release	Deliver revenue at the same pace in H2 as in H1 2024	Initiated (maintained pace)
Gross Margin	H2 2024	No formal guidance	Expected higher gross margin due to weighted average cost of existing inventory	Initiated (raised vs H1 qualitative)

Earnings Call Themes & Trends

No Q2 2024 earnings call transcript identified; company appears to communicate through press releases and SEC filings this quarter .

Topic	Previous Mentions (Q1 2024)	Current Period (Q2 2024)	Trend
Commercial shipments	Three scanners shipped post-merger; strategic distribution partner engaged	Four scanners shipped; three via distribution partner; U.S. locations at five	Improving execution
Distribution strategy	Strategic sales and distribution partnership initiated; LOI and feasibility with partner	Exclusive U.S. distribution agreement with NXC Imaging; defined ordering/invoicing terms	Formalized U.S. channel
AI/ML initiatives	MRMC ROC study shows non-inferiority vs DBT; academic collaborations	Collaboration with OU/Stephenson Cancer Center to develop AI/ML algorithms for 3D images	Advancing clinical AI
Margin trajectory	56% GM driven by first deliveries; margin positive after 2023 negatives	51% GM; expect higher in H2 due to inventory cost mix	Near-term dip, improving outlook
Cash and financing	Post-merger financing inflows; cash $5.64M at Q1 end	Cash ~$4.60M at Q2 end; operating cash burn $1.0M in Q2	Cash burn monitored

Management Commentary

CEO framing of commercialization progress and access strategy: “We shipped four Breast Acoustic CT™ scanners… increasing the number of commercial locations… to five. This reflects our commitment to expanding the medical imaging market opportunities beyond hospitals and imaging centers by supporting direct‑to‑provider approaches…” .
On AI/ML and clinical research: “We look forward to… develop AI/ML-based algorithms tailored for our inherent 3D images to ease clinical workflows… assess volumetric breast density without exposing the patient to radiation…” .
Q1 strategic pivot: “Moving forward, the team will address commercialization… via partnership with our strategic sales and distribution partner… and our on‑going feasibility study to solidify the partnership for large scale manufacturing” .

Q&A Highlights

No analyst Q&A identified for Q2 2024; the company’s disclosures for the quarter are via press release and Form 8‑K furnishments .

Estimates Context

Wall Street consensus via S&P Global was unavailable for GIA/QTI for Q2 2024 due to missing Capital IQ mapping and apparent lack of coverage. As a result, revenue/EPS comparisons to consensus cannot be made this quarter [SpgiEstimatesError].
External data references corroborate reported figures (EPS $(0.30), revenue $1.71M) but do not constitute SPGI consensus; use company-furnished 8‑K/press release data for analysis .

Key Takeaways for Investors

Strong sequential revenue growth and sustained gross profitability anchored by scanner shipments; continued commercialization through an exclusive U.S. distributor should support volume consistency in H2 2024 .
Margin outlook is constructive despite Q2 compression; management expects higher H2 gross margin as inventory cost mix normalizes—watch unit economics and mix effects closely in upcoming quarters .
Operating cash use increased during scaling; cash ended Q2 at ~$4.6M with elevated current liabilities—monitor financing runway, debt service, and working capital dynamics as shipments ramp .
Academic and clinical partnerships (OU Health, Vincere, PerfeQTion) plus AI/ML workflow development are strategic moats that can improve clinical adoption and create data-driven differentiation over time .
Absence of SPGI consensus limits traditional beat/miss trading setups; near-term catalysts likely revolve around distributor order flow, additional site launches, and margin confirmations rather than estimate revisions [SpgiEstimatesError] .
Non-GAAP adjustments (derivative, warrant, earnout fair value changes; transaction costs) are material; focus on Adjusted EBITDA trajectory and cash conversion from shipments to gauge underlying progress .
Narrative is shifting from post-merger setup to operational scaling; H2 commentary implies stability in revenue cadence with potential margin uplift—positioning for momentum hinges on execution through the NXC channel and inventory cost discipline .

Additional Relevant Press Releases (Q2 2024)

QT Imaging Announces Second Quarter 2024 Financial Results (company site) (mirrors the 8‑K Exhibit 99.1 details) .
QT Imaging Holdings Announces Partnership with Premier Cancer Center, The Vincere Cancer Center (May 8, 2024) .
Deliveries to OU Health Stephenson Cancer Center and PerfeQTion Imaging Center (June 2024) .

Appendix: Segment/KPIs

Segment breakdown not applicable; revenue primarily reflects scanner sales with emerging services and research collaborations; reported “Commercial revenue” figures are consolidated .

QT IMAGING HOLDINGS, INC. (GIA)·Q2 2024 Earnings Summary