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Marpai, Inc. (MRAI)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 showed continued turnaround progress: net revenues fell to $5.42M (down 27% YoY) as management pruned low-margin accounts, but operating expenses dropped 33% YoY and operating loss improved 45% YoY; net loss improved 29% YoY to $(3.07)M .
  • Management reiterated a 2025 profitability and positive cash flow goal and said Q2 burn will “significantly” improve; Empara portal rollout remains on track for end of Q2 and MarpaiRx relaunch is slated for later in 2025, positioning incremental high-margin PBM revenue .
  • Liquidity remains tight with $0.73M unrestricted cash at quarter-end (restricted cash $10.78M), but operating cash burn improved sharply to $(0.12)M in Q1 vs $(3.59)M YoY; interest expense rose to $0.82M .
  • No S&P Global consensus EPS or revenue estimates were available for comparison; near-term stock catalysts include Empara go-live (Q2), off-cycle client wins ramping in H2 (including Texas school districts), and MarpaiRx updates later in the year .

What Went Well and What Went Wrong

  • What Went Well

    • “Double-digit success in cutting operating expenses” and bottom-line improvement; CEO called Q1 a “critical inflection point” and reiterated goal “to achieve profitability and positive cash flow by the end of 2025” .
    • Empara member portal consolidates multiple apps, uses AI to answer plan questions and lower call volumes; rollout “on track to be completed by the end of the second quarter” .
    • Sales execution improving with off-cycle wins and pipeline for H2 2025; signed “a couple of school districts” via TRS of Texas, starting Sept 1; management to provide fuller Jan 1 cycle update in mid‑November .

  • What Went Wrong

    • Revenue pressure persisted: net revenues $5.42M, down 27% YoY and down from $6.59M in Q4; management remains focused on exiting low-margin clients amid 20–30% industry turnover .
    • Liquidity tightness: $0.73M unrestricted cash at quarter-end and rising interest expense ($0.82M), despite improved operating cash flow .
    • Limited numeric guidance; profitability timeline depends on cost actions, pipeline conversion, and PBM ramp (MarpaiRx), which introduces execution risk through 2H25 .

Financial Results

MetricQ1 2024Q3 2024Q4 2024Q1 2025
Revenue ($)$7,385,000 $7,008,000 $6,591,000 $5,418,000
Total Costs & Expenses ($)$11,450,000 $10,068,000 $9,279,000 $7,668,000
Operating Loss ($)$(4,065,000) $(3,060,000) $(2,688,000) $(2,250,000)
Net Loss ($)$(4,346,000) $(3,560,000) $(1,156,000) $(3,069,000)
Diluted EPS ($)$(0.46) $(0.30) $(0.08) $(0.21)
Margin/EBITDAQ1 2024Q3 2024Q4 2024Q1 2025
EBITDA ($)n/a$(2,974,000)*$(1,987,000)*$(2,061,000)*
EBITDA Margin (%)n/a(42.44%)*(30.15%)*(38.04%)*
Gross Profit ($)n/a$1,975,000*$2,603,000*$1,934,000*
Gross Margin (%)n/a28.18%*39.49%*35.70%*

Values marked with * retrieved from S&P Global.

KPIs and Balance Sheet/Cash Flow

  • Unrestricted Cash ($): Q1 2024 $851k; Q1 2025 $729k .
  • Restricted Cash ($): Q1 2024 $12.76M; Q1 2025 $10.78M .
  • Net Cash Used in Operating Activities ($): Q1 2024 $(3.585)M; Q1 2025 $(0.115)M .
  • Interest Expense, net ($): Q1 2024 $(398)k; Q1 2025 $(819)k .
  • Weighted Avg Shares: Q1 2024 9,405,775; Q1 2025 14,770,867 .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
ProfitabilityFY 2025“Position Marpai for profitability in 2025” (Q4 release) “We will be cash flow positive this year” (2025) Maintained, stronger tone
Cash BurnQ2 2025n/a“Significant reduction in [cash] burn in the second quarter” New qualitative color
Empara Portal RolloutQ2 2025Announced in March; rollout underway “On track to be completed by end of second quarter” Maintained/timing reaffirmed
MarpaiRx (PBM)2H 2025Introduce high‑impact PBM products in 2H25 Relaunch “will be game changing”; more details later in the quarter Maintained; narrative reinforced
Sales Pipeline2H 2025/Jan-1 cycleRobust pipeline for 2025 Off‑cycle wins, school districts start Sept 1; full Jan‑1 update mid‑Nov Added specificity on timing/wins

Earnings Call Themes & Trends

TopicPrevious Mentions (Q3 2024, Q4 2024)Current Period (Q1 2025)Trend
Profitability/Cash FlowTurnaround actions; adjusted EBITDA improved in 2024; push toward profitability in 2025 Reiterates 2025 profitability and cash‑flow positive; expects Q2 burn to improve materially Confidence rising; nearer-term cash burn easing
Sales Pipeline/Off-cycle AddsRobust 2025 pipeline; targeted industry wins Off‑cycle wins; TRS Texas school districts signed, starting Sept 1; Jan‑1 pipeline clarity by mid‑Nov More specificity and timing
Empara Member Portal (AI)Collaboration announced; portal to reduce multiple apps On track to complete by end of Q2; AI-driven plan Q&A and call deflection Execution progressing
MarpaiRx (PBM)2H25 introduction; high-margin potential “Game changing”; compliance with transparency trends; expected margin uplift Strategic emphasis increasing
Cost Reductions/OperationsEliminated third‑party CS; KPIs improved (Q4); project to reduce TPA expenses >25% in Q1 2025 Continued vendor rationalization; redundancy reduction; better service as growth driver Ongoing efficiency drive
Liquidity/CapitalEnded 2024 with ~$0.8M cash; $5M financing support (JGB) Q1 cash $0.73M; operating cash burn near breakeven; interest expense elevated Liquidity tight but improving opex cash

Management Commentary

  • “Our consistent double-digit success in cutting operating expenses and improving our bottom line signals what we believe is a critical inflection point... Our unwavering goal is to achieve profitability and positive cash flow by the end of 2025.” — CEO Damien Lamendola .
  • “We’ve got a very strong [H2 2025] pipeline… signed a couple of school districts… they start September 1… full update for the January 1 sales pipeline after our third quarter call in mid-November.” — CFO Steve Johnson .
  • “Empara [portal]… world‑class application utilizing AI… reduces the number of calls… feeds prior info to the agent… improve efficiencies, reduce [call center] heads.” — CFO Steve Johnson .
  • Leadership addition: Dallas Scrip appointed COO and President of MarpaiRx to accelerate profitable growth and operational excellence .

Q&A Highlights

  • Sales/new business cadence: Management emphasized off-cycle wins in 2025 and greater January 1, 2026 clarity by mid‑November; lower‑margin clients continue to be pruned or repriced .
  • Cash burn/efficiencies: Further vendor rationalization and contract roll-offs expected; management guided to a “significant reduction” in Q2 cash burn and expects stronger H2 .
  • Empara value proposition: AI-driven portal consolidates legacy apps, automates plan Q&A, and improves call center efficiency via context handoff to agents .

Estimates Context

  • S&P Global consensus: No published consensus for Q1 2025 EPS or revenue was available for MRAI; S&P Global coverage appears limited for this microcap. Values retrieved from S&P Global.
  • Actuals used for comparison: Revenue $5.42M; EPS $(0.21); EBITDA $(2.06)M (EBITDA from S&P Global)* . Values marked with * retrieved from S&P Global.

Key Takeaways for Investors

  • The turnaround is progressing: steep opex cuts and improved operating loss despite revenue headwinds from pruning low‑margin clients .
  • Execution catalysts over the next two quarters: Empara portal go‑live by end‑Q2, off‑cycle client ramps in H2 (including TRS Texas school districts), and MarpaiRx updates later this year .
  • Watch liquidity: unrestricted cash of $0.73M and higher interest expense necessitate disciplined cash management and timely pipeline conversion; Q2 cash burn improvement is a key check‑point .
  • Margin mix potential: MarpaiRx could lift revenue and margins given industry PBM economics, but timing and execution (product launch, client adoption) are critical .
  • Limited Street coverage reduces estimate‑driven volatility, but also means narrative and execution milestones (portal deployment, new wins, PBM relaunch) will drive stock reaction .
  • Focus for the next call: evidence of Q2 burn reduction, signed/implemented client lives, early Empara KPIs (call deflection), and concrete PBM commercialization milestones .

References: Q1 2025 8‑K/press release and financials -; Q1 2025 call transcript - - -; prior quarters Q4 2024 and Q3 2024 filings and calls - - - - -. Values marked with * retrieved from S&P Global.