Beyond Air, Inc. Q3 2026 Earnings Call Summary

Beyond Air, Inc. Q3 2026 Earnings Call Summary Moby Intelligence Sat, February 14, 2026 at 5:32 AM GMT+8 3 min read In this article:

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Beyond Air, Inc. Q3 2026 Earnings Call Summary - Moby

Strategic Execution and Operational Scaling

• Revenue grew 105% year-over-year to $2.2 million, driven by expanded adoption of the first-generation LungFit PH system across more than 45 hospitals.

• Customer retention exceeds 90% with over half of the current customer base secured under multiyear agreements, providing a stable foundation for future Gen II conversion.

• The commercial strategy has shifted toward high-priority hospitals that are likely to adopt Gen I immediately and expand usage once the transport-compatible Gen II system is approved.

• The divestiture of the NeuroNOS subsidiary to XTL Biopharmaceuticals allows the company to focus resources on core commercial operations while retaining a 19.9% equity stake and up to $31.5 million in milestones.

• Operating expenses were reduced by 36% year-over-year, reflecting disciplined cost-cutting in SG&A and the completion of major R&D spending for the Gen II regulatory filing.

• International expansion reached 40 countries, with management noting a transition from initial device placement to recurring revenue from accessory reorders.

Regulatory Timeline and Commercial Readiness

• FDA decision for the second-generation LungFit PH system is expected before the end of calendar 2026, subject to regulatory review and contract manufacturer inspections.

• The Gen II system is designed to expand the addressable market by introducing compatibility with air and ground transport, a key feature requested by clinicians.

• Management anticipates that overall cash burn will continue to decline as revenue grows, though inventory building for the Gen II launch may temporarily impact cash flow.

• Current capital resources, including recent equity financing and credit lines, are projected to provide a cash runway into calendar year 2027 and potentially to profitability.

• Phase Ib oncology studies for Beyond Cancer remain a strategic priority, but full funding commitment is contingent on reaching a more comfortable path to profitability.

Strategic Transactions and Structural Improvements

• Completed a $5 million financing in January 2026 and secured a $32 million equity line of credit to support commercial readiness.

• Achieved the first commercial sale to a VA Medical Center via partner TrillaMed, establishing a foothold in the largest U.S. healthcare network.

• Gen II system reliability testing has surpassed the 3,000-hour mark, which is expected to triple the service interval compared to Gen I and improve long-term gross margins.

• The 1-for-20 reverse stock split effective July 14, 2025, is reflected in the reported net loss of $0.85 per share.

Story Continues

Q&A Session Highlights

Penetration strategy for large federal healthcare systems like the VA

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• Management clarified that products are offered through the ECAD catalog, allowing direct access for VA customers outside of traditional RFP processes.

• The initial sale to a single VA hospital serves as a critical entry point for broader adoption across the entire federal network.

Sales cycle duration and potential for Gen II product cannibalization

• The typical sales cycle remains 6 to 9 months, though highly organized hospitals can complete evaluations in 4 to 5 months.

• Management is mitigating 'wait-and-see' behavior by focusing Gen I sales on non-transport clinical settings, while positioning Gen II specifically for transport-heavy requirements.

Long-term gross margin targets for Gen I and Gen II

• Management expects the Gen II system to improve gross margins, driven by significantly lower service requirements as the service interval increases from 10 months to at least 30 months.

• Gen I margins are expected to stabilize in the 50% to 60% range, depending on final market pricing dynamics.

Gating factors for FDA approval of the Gen II system

• The primary gating factor is the completion of work at the contract manufacturer to allow for a final FDA inspection.

• Management expressed high confidence in the timeline, stating there are no major regulatory hurdles and all reliability testing requirements have already been met.

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