XAIR — Beyond Air, Inc.

Summary of XAIR Q3 2026 Earnings Call

1. Key Financial Results and Metrics:

• Revenue: Increased 105% year-over-year to $2.2 million, up 21% sequentially.
• Gross Profit: Improved to $300,000 from a gross loss of $200,000 year-over-year.
• Operating Expenses: Reduced to approximately $6.9 million, down 36% year-over-year, and over 60% from a peak of $17 million.
• Net Loss: $7.3 million, or $0.85 per share, compared to a net loss of $13 million, or $2.96 per share, in the prior year.
• Cash Position: As of December 31, 2025, the company had $17.8 million in cash and equivalents, with a net cash burn of $4.3 million for the quarter.

2. Strategic Updates and Business Highlights:

• Core Business Growth: The company has expanded its installed base of LungFit PH systems to over 45 hospitals, with customer retention exceeding 90%.
• FDA Submission: Anticipates FDA decision on the second-generation LungFit PH system by the end of calendar 2026.
• NeuroNOS Sale: Sold its NeuroNOS subsidiary to XTL Biopharmaceuticals for equity and up to $32.5 million in milestone payments, which is expected to enhance shareholder value.
• International Expansion: Expanded distribution agreements in multiple countries, increasing global coverage to 40 countries.

3. Forward Guidance and Outlook:

• Revenue Growth: Continued focus on scaling adoption of the first-generation LungFit PH system while preparing for the second-generation launch.
• Cost Management: Expectation of further reductions in cash burn as revenue grows and operational efficiencies are realized.
• Market Positioning: The second-generation system is designed to enhance service intervals and operational efficiency, potentially expanding the addressable market.

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

• Net Loss: Despite revenue growth, the company reported a significant net loss, raising concerns about profitability timelines.
• Sales Cycle: The sales cycle remains lengthy (6-9 months), which could impact revenue acceleration.
• Regulatory Risks: Although confident in the FDA submission process, any unforeseen regulatory hurdles could delay the launch of the second-generation system.

5. Notable Q&A Insights:

• Sales Strategy: The company is refining its targeting strategy to identify hospitals most likely to adopt their systems, emphasizing the importance of strong customer engagement.
• FDA Communication: Ongoing positive interactions with the FDA regarding the second-generation system, with no major hurdles anticipated.
• International Wins: Recent sales and reorder activity from international customers indicate growing market penetration.
• COGS Expectations: Long-term COGS projected to be around 60-70%, contingent on market pricing and scale.

Overall, Beyond Air is experiencing significant revenue growth and operational improvements, but it faces challenges related to profitability and the sales cycle. The strategic sale of NeuroNOS and international expansion efforts are positive developments, while regulatory risks and net losses remain areas of concern.