Executive Summary

Q2 results show aggressive cost takeout with operating expenses down ~70% YoY ($9.9M) and operating loss down 71% to $3.6M, while revenue declined to $4.656M (down ~$2.5M YoY); EPS improved to ($0.28) from ($1.23) YoY but worsened sequentially from ($0.21) in Q1 .
Management shifted profitability timing from “2025” to “Q1 2026,” added a planned “major infrastructure investment” in Q3, and highlighted a strong Jan 1, 2026 pipeline, reframing the near-term narrative toward build-out ahead of 2026 profitability .
Gross margin compressed sharply to ~16.0% vs ~35.7% in Q1 and ~28.0% in Q2 last year as cost of revenue stayed elevated versus a lower revenue base; improvements were driven by SG&A/opex reductions, not gross profit expansion .
No S&P Global consensus EPS or revenue estimates were available for Q2, limiting beat/miss framing; focus turns to execution on MarpaiRx relaunch (H2 2025) and Empara platform integration as revenue stabilizers into 2026 (profitability) .
Liquidity remains tight (cash $0.619M, restricted cash $7.661M) with stockholders’ deficit ($32.367M) and meaningful debt/interest expense, keeping financing and cash burn discipline in focus as catalysts/risks .

What Went Well and What Went Wrong

What Went Well
- Operating expenses reduced ~~70% YoY (~~$9.9M), driving operating loss improvement to ($3.607M) from ($12.273M) YoY; net loss improved to ($4.371M) from ($13.026M) YoY. CEO: “turnaround is real and accelerating… on track to deliver a profitable company in the first quarter of 2026.” .
- Strategic initiatives advancing: comprehensive relaunch of MarpaiRx (transparent PBM) to be actively offered H2 2025; Empara unified engagement platform targeted to be live by end of Q2 2025, aligning product roadmap with cost discipline .
- Continued operating discipline: sequential opex ex-COGS remained tight (~$4.35M in Q2 vs ~$4.18M in Q1), underscoring structural cost reset .
What Went Wrong
- Revenue pressure: Q2 revenue fell to $4.656M, down ~$2.5M YoY; sequential decline from $5.418M in Q1, reflecting “transitional impacts” cited by management .
- Gross margin compression: Gross margin fell to ~16.0% vs ~35.7% in Q1 and ~28.0% YoY, as cost of revenue stayed high relative to a smaller revenue base, muting P&L leverage despite opex cuts .
- Profitability timeline pushed: Earlier guidance implied 2025 profitability; management now targets Q1 2026, extending the path and introducing Q3 infrastructure investment that likely delays near-term margin expansion .

Financial Results

Quarterly trend (oldest → newest):

Metric	Q4 2024	Q1 2025	Q2 2025
Revenue ($USD Millions)	$6.591	$5.418	$4.656
Cost of Revenue ($USD Millions)	$3.988	$3.484	$3.910
Gross Profit ($USD Millions)	$2.603	$1.934	$0.746
Gross Margin %	39.5%	35.7%	16.0%
Operating Expenses ex-COGS ($USD Millions)	$4.643	$4.184	$4.353
Operating Loss ($USD Millions)	($2.688)	($2.250)	($3.607)
Net Loss ($USD Millions)	($1.156)	($3.069)	($4.371)
Diluted EPS ($)	($0.08)	($0.21)	($0.28)

Year-over-year comparison for Q2:

Metric	Q2 2024	Q2 2025	Change YoY
Revenue ($USD Millions)	$7.189	$4.656	-35.2%
Cost of Revenue ($USD Millions)	$5.174	$3.910	-24.5%
Gross Profit ($USD Millions)	$2.015	$0.746	-63.0%
Gross Margin %	28.0%	16.0%	-12.0 pp
Operating Expenses ex-COGS ($USD Millions)	$14.288	$4.353	-69.5%
Operating Loss ($USD Millions)	($12.273)	($3.607)	+70.6%
Net Loss ($USD Millions)	($13.026)	($4.371)	+66.4%
Diluted EPS ($)	($1.23)	($0.28)	+$0.95

Notes: Gross profit, gross margin %, and opex ex-COGS are calculated from the reported line items in the referenced filings .

Estimates vs actuals (Q2 2025):

Metric	Actual	S&P Global Consensus	Surprise
Revenue ($USD Millions)	$4.656	N/A*	N/A*
Diluted EPS ($)	($0.28)	N/A*	N/A*

*Values retrieved from S&P Global.

Balance sheet snapshot (quarter-end):

Cash and cash equivalents: $0.619M; Restricted cash: $7.661M; Total liabilities: $43.428M; Stockholders’ deficit: ($32.367M) .
Convertible debentures: $3.037M current, $7.311M long-term; Q2 net interest expense: $0.813M .

Segment breakdown and KPIs:

Marpai does not disclose reportable segments; no company-reported KPIs were provided in Q2 materials .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Profitability timing	Company-level	“Positioned for profitability in 2025” (Q4’24 PR); “goal… profitability and positive cash flow by end of 2025” (Q1’25 PR)	“On track to deliver a profitable company in Q1 2026”	Lowered/pushed out
Infrastructure investment	Q3 2025	Not previously specified	“Expect to make a major infrastructure investment in Q3 to improve efficiency and client service”	New disclosure
MarpaiRx rollout	H2 2025	“Plan to introduce high-impact PBM-based products in H2 2025”	Relaunch announced; to be actively offered H2 2025	Maintained/clarified
Empara platform	By end of Q2 2025	Empara member engagement portal announced (Q4’24); focus to complete launch in Q2	“Expecting to have the full platform live by end of Q2 2025” (pre-Q2 announcement)	Maintained
Revenue/margins	2025	Not provided	Not provided	No formal guidance

Earnings Call Themes & Trends

Note: No Q2 2025 earnings call transcript was available in our document set; narrative below references company press releases and filings (no transcript located).

Topic	Previous Mentions (Q-2 and Q-1)	Current Period (Q2 2025)	Trend
Profitability timeline	Q4’24: “profitability in 2025” ; Q1’25: “profitability and positive cash flow by end of 2025”	Shift to Q1 2026 profitability	Slower timeline
PBM/MarpaiRx	Q4’24: plan PBM products in H2’25 ; Q1’25: “advancements with MarpaiRx”	Comprehensive relaunch; active offering H2’25	Execution progressing
Member engagement platform (Empara)	Q4’24: announced Empara portal	“Expect full platform live by end of Q2 2025” (pre-Q2 PR)	Implementation/rollout
Cost structure	Ongoing cost reductions highlighted in Q4’24 and Q1’25	OpEx down ~70% YoY; operating loss down 71% YoY	Accelerating savings
Liquidity/capital	Q1’25 financing (convertible debentures); cash/restricted cash disclosed	Low cash ($0.619M) + restricted cash; ongoing interest expense	Monitor runway

Management Commentary

“We believe that our turnaround is real and accelerating… we are on track to deliver a profitable company in the first quarter of 2026… pipeline of new business for January 1st 2026 is strong… expect to make a major infrastructure investment in Q3 to further improve efficiency and client service.” — Damien Lamendola, CEO .
“Now, we’re propelling the Company towards growth and profitability… plan to introduce high-impact PBM-based products in the second half of 2025.” — Damien Lamendola (Q4’24 PR) .

Q&A Highlights

No Q2 2025 earnings call transcript was found; the company announced a webcast for Aug 14, 2025, but a transcript was not available in our corpus. As a result, no Q&A highlights or clarifications can be provided from a transcript source .

Estimates Context

S&P Global consensus for Q2 2025 EPS and revenue was not available; therefore, no beat/miss assessment versus Street is possible. The actuals reported were revenue $4.656M and EPS ($0.28) .
Implications: Absent consensus, investor focus will concentrate on sequential revenue stabilization, gross margin recovery path, and the credibility of the Q1’26 profitability target (opex discipline vs. gross profit rebuild).
Values retrieved from S&P Global.

Key Takeaways for Investors

Execution is delivering substantial opex savings (~70% YoY), materially shrinking losses; however, the path to profitability has been pushed to Q1’26 and will likely require revenue stabilization and gross margin recovery, not just SG&A cuts .
Gross margin compression to ~16% in Q2 is the key near-term watch item; demonstrate COGS normalization and revenue traction to re-establish operating leverage .
MarpaiRx relaunch (H2’25) and Empara platform rollout are the core revenue/retention levers into 2026; early client adoption data and case studies will be important catalysts .
Liquidity and cost of capital matter: low cash, continued interest expense, and stockholders’ deficit heighten financing risk; watch for balance sheet actions and working capital trends .
The planned Q3 infrastructure investment should come with measurable ROI (efficiency gains, client service metrics, churn, and margins); investors should demand milestones and KPIs to validate spend .
Without Street consensus, the stock may trade on qualitative updates and internal milestones (client wins for Jan 1, 2026, PBM ramp, margin recovery); near-term prints lacking revenue growth could cap multiple expansion .

Sources: Q2 2025 8-K and press release with full financials ; Q2 2025 press release -; webcast announcement ; MarpaiRx relaunch (PBM) -; Q1 2025 press release -; Q4 2024 press release -.

Marpai, Inc. (MRAI)·Q2 2025 Earnings Summary