XAIR — Beyond Air, Inc.

Summary of Beyond Air Earnings Call (Q4 2026)

1. Key Financial Results and Metrics:

• Revenue: Increased by 107% year-over-year to $7.7 million for the fiscal year ending March 31, 2026, compared to $3.7 million in FY 2025.
• Gross Profit: Improved by $300,000, marking a significant turnaround from a loss of $1.7 million in the prior year.
• Operating Expenses:
  • R&D expenses decreased by 39% to $10.2 million.
  • SG&A expenses fell by 27% to $19.1 million.
• Net Loss: Reduced to $33.2 million, or $4.01 per share, from a loss of $46.6 million, or $13.77 per share, in FY 2025.
• Cash Position: As of March 31, 2026, the company reported $17.3 million in cash equivalents and marketable securities, with total long-term debt of $21.6 million.

2. Strategic Updates and Business Highlights:

• Product Development: The second-generation LungFit PH system is under FDA review, with expectations for approval in the second half of 2026. This new system aims to address transport needs, potentially expanding the U.S. addressable market to approximately $400 million and the global market to over $1 billion.
• Customer Retention: The company reported a high customer renewal rate of approximately 90%, indicating strong satisfaction with the current LungFit PH system.
• Market Expansion: Beyond Air has secured a national purchasing agreement with a major group purchasing organization (GPO), enhancing access to the U.S. market. The company now has regulatory clearance in over 45 countries.

3. Forward Guidance and Outlook:

• Revenue Guidance: For calendar year 2026, Beyond Air projects revenues of $8 million, reflecting a 15% increase over 2025. For 2027, guidance is set at $16 million to $18 million, assuming FDA approval and launch of the Gen 2 system.
• Growth Expectations: The company anticipates that the Gen 2 system will contribute significantly to revenue in 2027, potentially representing over half of U.S. revenue.

4. Challenges and Points of Concern:

• Regulatory Risks: The timing and outcome of the FDA review for the Gen 2 system remain uncertain, which could impact the projected revenue growth.
• Market Competition: While the company is optimistic about its product offerings, it faces competition from existing alternatives in the market, particularly regarding transport capabilities and operational efficiency.
• Financial Health: Despite improvements, the company continues to report substantial net losses, and its cash burn rate, while reduced, remains a concern.

5. Notable Q&A Insights:

• FDA Review Process: CEO Robert Goodman indicated that the company is on track with the FDA review, having conducted extensive testing as requested. Communication with the FDA has been positive.
• Revenue Composition: CFO Dan Moorhead clarified that the 2026 revenue guidance includes $1.9 million from the first quarter, with no contributions expected from the Gen 2 system until 2027.
• Importance of GPOs: The recent GPO agreements are critical for expanding market access and are expected to facilitate evaluations and pilot programs with large hospital systems.

Overall, Beyond Air is positioned for growth with its strategic focus on the LungFit PH system and the anticipated launch of its Gen 2 device, although it must navigate regulatory hurdles and competitive pressures.