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Beyond Air, Inc. (XAIR)·Q1 2026 Earnings Summary

Executive Summary

  • Revenue rose 157% year over year to $1.76M and 53% sequentially, modestly above consensus; EPS was a larger loss than expected as depreciation and financing costs weighed on results *.
  • Guidance reaffirmed: FY 2026 revenue $12–$16M; management expects sustained double‑digit sequential growth, supported by U.S. hospital adds, Premier GPO access, and the first quarter of international revenues .
  • Commercial momentum: multi‑year contracts exceed 55%, two new U.S. starts and three renewals, and over 30 ex‑U.S. countries covered; Vanderbilt named first luminary site .
  • Catalysts: Premier GPO (barrier removal for ~3,000 hospitals), PMA supplement filed for second‑gen LungFit PH2 (transport‑ready), ex‑U.S. tenders and distributor rollouts; financing runway supported by cost reductions and a warrant exercise in September 2025 .

What Went Well and What Went Wrong

What Went Well

  • Strong adoption drove revenue up 157% YoY to $1.76M; gross profit swung to +$0.16M from a loss, reflecting scale and improving unit economics .
  • Commercial expansion: “We are driving strong market adoption of LungFit PH…expect sustained double‑digit sequential revenue growth and reaffirm our FY 2026 revenue guidance of $12 to $16 million.” — Steve Lisi, CEO .
  • Structural access wins: Premier national GPO agreement “removes the big initial barrier” and streamlines pricing for member hospitals; multi‑year contracts now >55% .

What Went Wrong

  • EPS missed Street expectations as other expense flipped from prior‑year income to a $0.5M expense, and device depreciation remained a headwind; net loss was ($7.69M), EPS ($1.53) .
  • International revenue contribution still early; tenders and hospital placements take multiple quarters, delaying larger OUS impact until later in FY26/FY27 .
  • Cash burn, while improved, remained $4.7M; liquidity at quarter‑end was $6.5M cash and equivalents with $11.6M long‑term debt (payments begin Oct 2026) .

Financial Results

Consolidated P&L trends (quarters in chronological order)

MetricQ3 2025 (Dec 31, 2024)Q4 2025 (Mar 31, 2025)Q1 2026 (Jun 30, 2025)
Revenue ($USD)$1.072M $1.152M $1.760M
Gross Profit/Loss ($USD)-$0.215M -$0.032M $0.156M
Gross Margin %-20.0% -2.8% 8.9%
R&D ($USD)$3.005M $3.258M $3.086M
SG&A ($USD)$7.732M $3.884M $4.687M
Net Loss ($USD)($13.333M) ($8.064M) ($8.078M)
EPS (Basic & Diluted)($0.15) ($0.09) (pre‑split) ($1.53) (post‑split)

Note: Q1 2026 EPS reflects 1‑for‑20 reverse split; Q4 2025 EPS as reported prior to split .

Balance sheet and liquidity

MetricQ4 2025 (Mar 31, 2025)Q1 2026 (Jun 30, 2025)
Cash & Equivalents + Marketable Securities ($USD)$6.9M $6.5M
Total Long‑Term Debt ($USD)$12.2M $11.6M
Net Cash Burn (Quarter) ($USD)N/A$4.7M

KPIs and commercial progress

KPIQ3 2025Q4 2025Q1 2026
U.S. new hospital starts6 starts 3 starts; 3 renewals 2 starts; 3 renewals
Installed/regular‑use hospitals (U.S.)N/A>45 hospitals “Dozens and dozens,” growing references
Contract structureN/AN/A>55% multi‑year contracts
International footprintCE Mark; APAC authorization; 2 Middle East distributors >25 countries signed; >2B lives; >12 units shipped First quarter of international revenues recorded; >30 countries; >2B lives

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Revenue ($USD)FY 2026 (ending Mar 31, 2026)$12–$16M (initiated Jun 17, 2025) $12–$16M (reaffirmed Aug 12, 2025) Maintained
Operating expensesFY 2026 trajectoryTrough expected around Jun/Sep quarter; grow in proportion to revenue Same framing reiterated; December roughly around September; March up with revenue Maintained qualitative view
Product milestonesCalendar 2026PMA supplement submitted for LungFit PH2 Focus regulatory interactions on Gen 2; approval timing not guided Maintained focus, no date

Earnings Call Themes & Trends

TopicQ-2 (Q3 2025)Q-1 (Q4 2025)Current (Q1 2026)Trend
Product performance (LungFit PH)Sequential growth; 6 new starts; upgraded system traction >45 hospitals; luminary site at Vanderbilt; shipments ex‑U.S. 50% sequential growth; multi‑year contracts >55% Strengthening adoption
GPO/accessBuilding relationships; HCL/TrillaMed support Ongoing progress; VUMC luminary Premier GPO awarded; removes barriers, pricing streamlined Access improved
International/RegulatoryCE Mark; APAC authorization; Middle East distributors >25 countries signed; >12 units shipped >30 countries; first international revenue; tenders underway Ramping; impact later FY26/FY27
R&D execution/costsCost reductions; PMA prep for transport system 58% opex reduction over 6 qtrs; trough by Jun/Sep Expenses to scale with revenue; cash burn to drop again in Q2 Efficiency gained
Tariffs/macroN/AN/ATariff impact low single‑digit % of COGS; minimal outbound tariffs seen Manageable headwind
Regulatory (PH2; cardiac)PMA supplement prep (transport) PH2 PMA supplement submitted; cardiac label ongoing dialogue Focus FDA on Gen 2; avoid timing guidance Focused progression

Management Commentary

  • “We are driving strong market adoption of LungFit PH…Looking ahead, we expect the trajectory of our sales to support sustained double‑digit sequential revenue growth and reaffirm our FY 2026 revenue guidance of $12 to $16 million.” — Steve Lisi, CEO (press release) .
  • “More than 55% of our contracts are multi‑year…This was the first quarter of international revenues being recorded…we now have access to over 30 countries, distribution partners covering more than 2,000,000,000 lives.” — Steve Lisi (prepared remarks) .
  • “Over the 2025, we reduced total operating expenses…40% reduction year over year and greater than 55% reduction from a high of $17,000,000 at its peak. We believe a trough in our operating expenses will be in the current quarter.” — Douglas Larson, CFO .
  • “Having [Premier] will help streamline the sales process for Premier Hospital network members…this is a big barrier removed.” — Steve Lisi (Q&A) .

Q&A Highlights

  • Growth bridge to guidance: Analysts probed whether 50% sequential revenue growth was needed to reach the midpoint; management cited ex‑U.S. distributor training revenues, early tenders, and U.S. pipeline visibility as tangible drivers while avoiding specific pacing commitments .
  • Contracting cycle and renewals: Typical sales cycle 4–12 months; some renewals at higher hour commitments as usage exceeds expectations; model does not assume better renewal economics .
  • Expense modeling: September expenses tick down from June; December roughly around September; March (fiscal Q4) moves up with revenue due to commissions and scaling service .
  • Regulatory timing: PH2 PMA supplement filed; management declined timing guidance; focus is on Gen 2 rather than cardiac indication in near term .
  • Premier GPO impact: Removes initial barriers, provides pre‑negotiated pricing and speeds discussions, with stronger impact in next fiscal year as cycles play out .

Estimates Context

MetricQ1 2026 ActualQ1 2026 Consensus MeanSurprise
Revenue ($USD)$1,760,000 $1,748,250*+$11,750 (+0.7%) — slight beat
Primary EPS ($)($1.53) ($1.32)*-$0.21 — miss

Forward consensus snapshot (for context):

MetricQ2 2026Q3 2026Q4 2026Q1 2027
Revenue Consensus Mean ($USD)$2,536,330*$2,264,750*$2,728,750*$3,789,330*
Primary EPS Consensus Mean ($)($0.79)*($0.70)*($0.58)*($0.443)*
Primary EPS – # of Estimates3*4*4*3*

Values marked with * retrieved from S&P Global.

Key Takeaways for Investors

  • Commercial inflection continues: sustained double‑digit sequential growth is underpinned by U.S. hospital adds/renewals, Premier GPO access, and first OUS revenue contributions; expect tenders and placements to build into late FY26/FY27 .
  • Revenue beat was modest, but EPS missed on depreciation and financing cost dynamics; watch gross margin progression as device fleet scales and depreciation mix normalizes .
  • Guidance reaffirmed at $12–$16M; near‑term upside hinges on faster OUS tenders, larger U.S. IDN wins, or earlier PH2 approval; management sees multiple paths to the upper range .
  • Premier GPO is a structural catalyst that removes procurement friction and should accelerate U.S. adoption over the next fiscal year; combine with Visient engagement for broader access .
  • Regulatory progress on LungFit PH2 (transport‑ready) is a key medium‑term driver; approval opens emergency/transport use and expands TAM globally .
  • Balance sheet: quarter‑end liquidity of $6.5M and cash burn reduction trend support runway into calendar 2026; debt repayments begin October 2026; warrant exercise added ~$3.25M gross in September .
  • Trading setup: narrative focuses on access wins (GPOs), international scale‑up, and PH2 approval trajectory; near‑term prints likely evaluated on sequential revenue growth and gross margin expansion versus Street’s path.
All document-based numbers and statements are cited inline. Values marked with * are retrieved from S&P Global (analyst consensus/estimates).