QT IMAGING HOLDINGS, INC. (QTIH)·Q4 2024 Earnings Summary

Executive Summary

• Q4 2024 delivered material year-over-year scaling: revenue rose to $0.847M from $0.005M in Q4 2023 on initial commercialization of the QT Breast Acoustic CT Scanner; gross margin turned positive at 47% versus negative last year, though sequential revenue declined from $1.0M in Q3 2024 and margin compressed to 47% from 63% due to inventory cost variability .
• Net loss was $3.49M, including $1.35M net interest expense and $0.37M other expense, with EPS of $(0.15); Adjusted EBITDA was $(1.886)M versus $(0.828)M in Q4 2023, reflecting higher SG&A to support commercialization .
• Execution catalysts: 12 scanners shipped in 2024; U.S. exclusive distribution with NXC Imaging; Canon Medical manufacturing agreement; deleveraging via repayment of Yorkville/Cable Car notes funded by $10.1M Lynrock Lake term loan, leaving ~$5.4M net for working capital .
• 2025/2026 outlook reiterated: revenue targets of $18M (40 scanners) and $27M (60 scanners), supported by minimum order quantities under the Amended NXC agreement; consensus estimates from S&P Global were unavailable for Q4 2024 and FY 2025 (note explicitly) .

What Went Well and What Went Wrong

What Went Well

• Commercial launch momentum: Q4 commercial revenue reached $0.847M, full-year commercial revenue $4.879M, with 12 scanners shipped in 2024 (none in 2023), driving a 54% full-year gross margin .
• Strategic platform solidification: signed Canon Medical Systems manufacturing agreement to scale production and maintained U.S. exclusive distribution with NXC Imaging including minimum quarterly order quantities for 2025/2026 .
• Management conviction: “Our business model is…strategically built for scale…We are confident in our ability to deliver…$18 million and $27 million [in] 2025 and 2026” – CEO Dr. Raluca Dinu .

What Went Wrong

• Sequential softness and margin compression: Q4 revenue of $0.847M declined vs Q3’s $1.0M and gross margin fell to 47% from 63% due to weighted-average inventory cost variability; adjusted EBITDA loss widened sequentially .
• Elevated operating spend and losses: Q4 SG&A was $1.677M and R&D $0.774M, with net loss of $3.49M and net cash used in operating activities of $1.2M in Q4; FY operating cash use was $10.0M .
• Listing headwind: Nasdaq delisting in January 2025 and transition to OTCQB, highlighting capital markets execution risk despite subsequent financing and debt extinguishment .

Financial Results

Notes: “NM” = Not meaningful given de minimis revenue in Q4 2023 and management’s caution on comparability .

KPIs

Balance Sheet (Selected Items)

Cash Flow (FY)

Guidance Changes

Earnings Call Themes & Trends

Note: No Q4 2024 earnings call transcript available in the document set; themes reflect press release disclosures.

Management Commentary

• CEO: “Our business model is not only foundationally solid, but it is strategically built for scale…we are confident in our ability to deliver…a minimum of $18 million and $27 million [for] 2025 and 2026…We remain committed to introducing…a safe, high resolution, true 3D breast imaging modality.” – Dr. Raluca Dinu .
• Strategic outlook: Company reiterates 2025/2026 revenue targets supported by NXC distribution MOQs and Canon manufacturing scale-up; balance sheet strengthened by term loan and debt extinguishment, positioning for execution .

Q&A Highlights

• No earnings call transcript available for Q4 2024 within the documents set; no Q&A themes to report [Result: zero earnings-call-transcript documents].

Estimates Context

• Wall Street consensus via S&P Global was unavailable for Q4 2024 and FY 2025 for QTIH; therefore, no estimate comparisons can be presented. Values retrieved from S&P Global.*
• Implication: In absence of formal consensus, investors should anchor on company-provided 2025/2026 revenue targets and MOQs while monitoring execution (shipments, conversion cycles, installation timing) .

Key Takeaways for Investors

• Commercial traction is real: 12 scanners shipped in 2024 and $4.879M full-year revenue with 54% gross margin demonstrate initial product-market fit; sequential Q4 softness likely reflects timing and inventory cost mix rather than demand deterioration .
• 2025/2026 revenue visibility strengthened by contractual MOQs and Canon manufacturing partnership; watch quarterly shipment fulfillment vs MOQs and backlog conversion as near-term stock catalysts .
• Balance sheet de-risking through term loan and extinguishment of convertible notes reduces dilution risk and stabilizes operations; ~$5.4M net proceeds earmarked for working capital is supportive of near-term execution .
• Operating leverage remains ahead: SG&A and R&D investment elevated to support scale, but as deliveries ramp across the NXC channel, gross margin stabilization and opex productivity are the key drivers for reducing Adjusted EBITDA losses .
• Listing overhang: Nasdaq delisting and OTCQB trading may constrain institutional ownership and liquidity; successful execution against MOQs and re-listing progress could be material sentiment catalysts .
• Monitoring priorities: quarterly shipments and installations, margin mix (inventory WAC impacts), opex discipline, cash burn trajectory, and any updates to NXC MOQs or Canon ramp timelines .
• Without consensus estimates, near-term trading likely keys off delivery cadence and contract execution; any beat on shipment timing or gross margin normalization vs Q3 levels would be perceived positively .

* S&P Global consensus estimates for QTIH were queried but returned no available data.