Beyond Air ((XAIR)) has held its Q3 earnings call. Read on for the main highlights of the call.
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Beyond Air’s recent earnings call painted a picture of a company experiencing strong growth and strategic expansion, albeit with ongoing challenges. The sentiment throughout the discussion was positive, with focus on sequential revenue growth and international market entry. However, concerns over gross profit loss, net losses, and regulatory uncertainties were also highlighted.
Sequential Quarterly Revenue Growth
Beyond Air reported a notable revenue increase for the fiscal third quarter of 2025, reaching $1.1 million compared to $0.4 million the previous year. This growth has been driven by new hospital signings and the onboarding of the LungFit PH system, showcasing the company’s successful market penetration.
Expansion in International Markets
The company’s LungFit PH system received CE Mark approval, allowing it to be marketed in the European Union and other regions. This achievement led to a $1 million milestone payment from Getz Healthcare and facilitated the signing of two new contracts in the Middle East, marking a significant step in Beyond Air’s global expansion strategy.
Reduced Operating Expenses
Beyond Air reported a decrease in research and development expenses from $6.8 million to $3 million, along with a reduction in SG&A expenses from $9.8 million to $7.7 million. These cost savings were achieved through reductions in salaries and stock-based compensation, reflecting efforts to streamline operations.
Cash Burn Reduction
The company successfully reduced its net cash burn by over 30% to $7.6 million in the quarter. This improvement resulted from strategic cost-cutting measures, including office closures and a 30% reduction in staff, enhancing financial sustainability.
Partnerships and Marketing Efforts
Beyond Air has formed strategic partnerships with Healthcare Links and TrillaMed to bolster distribution efforts. Enhanced marketing initiatives have also contributed to increased sales activities, supporting the company’s growth objectives.
Gross Profit Loss
Despite reporting a gross profit loss of $0.2 million for the fiscal third quarter of 2025, Beyond Air made progress compared to the $0.4 million loss in the same period last year. This improvement highlights ongoing efforts to optimize their operational efficiency.
Net Loss
The company announced a net loss of $13 million, or $0.15 per share, for the quarter, showing improvement from the $16.2 million, or $0.50 per share, net loss in the previous year. This reduction in net loss indicates positive trends in cost management.
Onetime Costs and Depreciation
Beyond Air’s cost of revenue exceeded revenue due to $0.3 million in onetime costs for device upgrades and $0.5 million in noncash headwinds related to depreciation, which impacted financial performance.
Regulatory Uncertainty
Concerns were raised regarding regulatory uncertainty with the FDA approval process for the PMA supplement for the LungFit PH label expansion and next-generation system. Potential staff changes at the FDA have contributed to this uncertainty.
Guidance and Future Outlook
Looking forward, Beyond Air’s CEO Steve Lisi expressed optimism about the company’s growth trajectory, highlighting the anticipated continued sequential quarterly revenue growth. The rollout of the upgraded LungFit PH system and international expansion following CE Mark approval are expected to support this trend. The company plans to provide fiscal 2026 revenue guidance in their June call, demonstrating confidence in their strategic direction. Additionally, cash reserves are projected to sustain operations through spring 2026.
In summary, Beyond Air’s earnings call reflected a positive sentiment driven by strong revenue growth and strategic international expansion. While challenges such as gross profit loss and regulatory uncertainties persist, the company has made significant strides in reducing expenses and cash burn. The forward-looking guidance suggests a promising future, backed by strategic initiatives and solid financial management.
