XAIR — Beyond Air, Inc.

Summary of Beyond Air Earnings Call (Q2 2026)

1. Key Financial Results and Metrics:

• Revenue: Q2 revenue increased 128% year-over-year to $1.8 million, up from $0.8 million. However, sequential growth was flat compared to the previous quarter.
• Gross Loss: Reported a gross loss of $0.3 million, improved from a loss of $1.1 million in the same quarter last year.
• Operating Expenses: Total operating expenses reduced to $7.4 million from $11.7 million year-over-year, a 37% decrease.
• Net Loss: Net loss attributed to common stockholders was $7.9 million, or $1.25 per share, compared to a loss of $13.4 million, or $5.67 per share, in the prior year.
• Cash Position: As of September 30, 2025, cash, cash equivalents, and marketable securities totaled $10.7 million. Net cash burn for the quarter was $4.7 million, a 66% reduction compared to the previous year.

2. Strategic Updates and Business Highlights:

• Product Adoption: Positive feedback from hospitals using LungFit PH, with significant acceleration in adoption.
• New Financing: Raised $12 million in debt and plans to file for a $20 million equity line of credit to support growth and prepare for the launch of the second-generation LungFit system.
• International Expansion: Entered new distribution partnerships in several countries, achieving the first international commercial placement of LungFit PH.
• Sales Model: Introduced a capital purchase model for hospitals, allowing outright purchases of LungFit PH systems, complementing the existing leasing model.
• Clinical Trials: Data from Beyond Cancer's Phase Ia trial showed median survival at 22 months for patients treated with ultra-high concentration nitric oxide.

3. Forward Guidance and Outlook:

• Fiscal Year 2026 Guidance: Updated revenue guidance to $8 million to $10 million for the fiscal year. This reflects a cautious outlook due to sales cycle fluctuations and leadership transition.
• Growth Drivers: Anticipated growth from international expansion and the new capital purchase model, with expectations for significant revenue acceleration post-launch of the second-generation LungFit PH in late 2026.

4. Bad News, Challenges, or Points of Concern:

• Flat Sequential Growth: Despite strong year-over-year growth, sequential revenue growth was flat, attributed to hospital purchasing cycles and variability in international shipments.
• Leadership Transition: The departure of the Chief Commercial Officer may lead to short-term disruptions in sales momentum.
• Regulatory and Supply Chain Risks: Concerns about supply chain challenges affecting the timeline for the second-generation product launch and potential delays in FDA approval.

5. Notable Q&A Insights:

• Growth Trajectory: Management expressed confidence in a steeper growth trajectory following the launch of the second-generation LungFit PH, with expectations for increased international sales.
• Contract Renewals: Strong renewal rates for existing contracts, with many hospitals extending agreements to multi-year terms, indicating customer satisfaction and loyalty.
• Market Dynamics: The new capital purchase model is expected to cater to hospital preferences for outright purchases, potentially enhancing market penetration and revenue predictability.

Overall, Beyond Air demonstrated strong year-over-year revenue growth and strategic advancements, although challenges remain in the form of flat sequential growth and leadership transitions. The company is optimistic about future growth driven by product launches and international expansion.