QT IMAGING HOLDINGS, INC. (QTIH)·Q3 2025 Earnings Summary

Executive Summary

• Q3 2025 revenue reached $4.19M, up 339% year-over-year and 15% sequentially; shipments were nine scanners in the quarter, with five additional shipped in October, reaffirming 2025 targets of $18M revenue and 40 scanners shipped .
• Gross margin fell to 43% (from 63% a year ago) on weighted-average inventory cost variability; Adjusted EBITDA improved to $(1.40)M vs $(2.16)M a year ago .
• Balance sheet actions strengthened liquidity: $18.18M gross proceeds via October PIPE, $5.0M Tranche B repaid on Oct 6, and $5.0M Yorkville warrant repurchase; company applied to relist on Nasdaq and effected a 3:1 reverse split .
• Saudi Arabia distribution agreement (MOQs of five scanners per quarter starting Q1’26) raised 2026 revenue outlook from $27M to $39M; strategic initiatives pivot to SaaS/biomarkers and AI/ML, with new Intelerad collaboration to deploy cloud PACS .
• Catalysts: Nasdaq relisting process, accelerating U.S. and KSA deployments under distribution agreements, and cloud SaaS ramp; risks: margin variability, high customer concentration (NXC 99% of Q3 revenue and AR), and warrant/earnout impacts on GAAP P&L .

What Went Well and What Went Wrong

What Went Well

• Record quarterly revenue and shipments; management highlighted convergence of quantitative ultrasound, AI/ML, and biomarker science as the platform strategy: “creating an intelligent, adaptive ecosystem for breast imaging” .
• Strategic expansion: exclusive KSA distribution (Gulf Medical) with MOQs (five scanners/quarter from Q1’26); Intelerad collaboration for cloud PACS integration; QTviewer v2.8 launch and image reconstruction SW 4.4.0 improving throughput (NVIDIA L40) .
• Capital and governance: $18.18M PIPE anchored by Sio Capital, repayment of Tranche B and $5.0M Yorkville warrant repurchase; CFO (Jay Jennings) and CCO (Satrajit Misra) appointments to bolster execution .

What Went Wrong

• Gross margin compression to 43% (vs 63% a year ago) from inventory cost variability; highlights need for cost curve reduction and manufacturing scale-up .
• GAAP net loss widened to $(4.56)M; non-cash earnout fair value increased by $2.23M tied to higher 2026 revenue expectations from KSA, elevating reported losses .
• Customer concentration risk: NXC accounted for 99% of Q3 revenue and 99% of AR; adverse changes at NXC could materially impact results .

Financial Results

Segment revenue breakdown (Q3):

KPIs:

Notes: Five additional scanners shipped in October post-quarter .

Guidance Changes

Earnings Call Themes & Trends

Note: A public transcript has not been filed in SEC systems for the Q3 2025 call; call was scheduled Nov 11, 2025 . An external paywalled transcript exists (GuruFocus), but content is not reproduced here .

Management Commentary

• “This quarter’s results both underscore the strength of our current scanner business and provide a solid foundation for our continued transformation into a scalable imaging platform through the convergence of quantitative ultrasound, AI/ML, and biomarker science” — CEO Dr. Raluca Dinu .
• “We look forward to [Jay Jennings and Satrajit Misra’s] contributions to our execution and growth” — CEO on CFO/CCO appointments .
• “The Agreement provides for minimum order quantities of five scanners per quarter...for a total minimum of 60 scanners and revenue of more than $33 million” — KSA press release .
• Nasdaq relisting plan and 3:1 reverse split announced to meet listing price criteria .

Q&A Highlights

A full SEC-filed transcript is not available. Based on the disclosed materials:

• Clarifications likely centered on gross margin variability (inventory cost weighting), shipment pace, and timing of KSA regulatory/process milestones; management noted margin drivers and reaffirmed shipment forecasts .
• Liquidity runway addressed through PIPE proceeds, Lynrock Lake facility status, and repaid Tranche B; intent to use proceeds for go-to-market and QTI Cloud deployment .
• Listing strategy: reverse split effective and relisting application submitted .

Estimates Context

Wall Street consensus through S&P Global (Capital IQ) was unavailable for EPS, revenue, EBITDA, and target price for Q3 2025 and Q4 2025; no estimate counts returned. Values retrieved from S&P Global.*

Key Takeaways for Investors

• Revenue momentum: 339% YoY and 15% QoQ growth on scanner shipments; next legs include KSA ramp and ongoing U.S. placements .
• Margin watch: 43% gross margin reflects inventory cost variability; scaling Canon manufacturing and BOM reduction efforts are key to restoring margins .
• Liquidity improved: $18.18M PIPE, repayment of Tranche B, and warrant repurchase; cash was $1.72M at quarter-end (pre-PIPE) with AR and inventory building for delivery .
• Customer concentration risk: NXC was 99% of Q3 revenue and AR; diversify channels (including KSA) to mitigate concentration .
• Corporate catalysts: 3:1 reverse split executed and Nasdaq relist application submitted; uplisting could broaden investor base and improve liquidity .
• Non-cash P&L effects: Earnout liability increased by $2.23M due to KSA agreement, negatively impacting GAAP net loss; investors should focus on underlying operating metrics and Adjusted EBITDA trajectory .
• Strategic pivot: SaaS/biomarker and AI/ML ecosystem (QTI Cloud Platform) opens recurring revenue opportunities; Intelerad collaboration supports deployment and integration .

Supporting Data (Additional Detail)

Revenue geography (Q3):

Balance sheet snapshot:

Non-GAAP reconciliation (Q3 snapshot): Adjusted EBITDA $(1.40)M vs $(2.16)M a year ago .

Forward-looking items (from releases):

• 2025 targets: $18M revenue, 40 scanners; 2026 raised to $39M revenue, 80 scanners with KSA .
• QTI Cloud SaaS tiers and pricing aimed at recurring revenue (Essentials, Pro, Enterprise) .

Footnotes:

• Values and metrics sourced from company filings and press releases cited above.
• Earnings call transcript not available in SEC document systems; external paywalled source referenced but not quoted .
• S&P Global consensus unavailable; table reflects absence of data. Values retrieved from S&P Global.*