Beyond Air, Inc. (XAIR) Q2 2026 Earnings Call Transcript
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Overview
The earnings call summary indicates strong financial performance with a 128% YoY revenue increase, reduced gross losses, and significant cost reductions. The Q&A section reveals positive sentiment towards the second-gen LungFit PH, expected to drive further growth, despite supply chain challenges. The company's strategic international expansion and new business model also contribute positively. However, the vague management responses and updated guidance suggest some uncertainty, tempering the overall sentiment. Considering these factors, the stock price is likely to experience a positive movement, especially given the significant revenue growth and cost control.
Key Financial Performance
Revenue $1.8 million for the fiscal quarter ended September 30, 2025, representing a 128% year-over-year increase from $0.8 million for the same period last year. The increase was driven by the adoption of LungFit PH and international sales.
Gross Loss $0.3 million for the fiscal second quarter 2026, compared to a loss of $1.1 million for the same period last year. The improvement was primarily attributed to sales growth.
Operating Expenses $7.4 million for the second quarter of fiscal 2026, reduced from $11.7 million for the same period last year, marking a 37% year-over-year reduction. This was due to cost reduction initiatives in SG&A, R&D, and supply chain.
Research and Development Expenses $2.5 million for fiscal quarter 2026, compared to $4.6 million for the same period last year, a decrease of $2.1 million. Half of the decrease was due to reduced development costs for the Gen II device, and the other half was attributed to lower salaries and stock-based compensation costs.
SG&A Expenses $4.9 million for the quarter ended September 30, 2025, compared to $7.2 million for the same period last year, a decrease of $2.3 million. The reduction was primarily due to lower salaries and stock-based compensation costs.
Net Loss $7.9 million for the fiscal quarter ended September 30, 2025, compared to $13.4 million for the same period last year. This reflects a significant reduction in losses, attributed to increased revenue and cost control measures.
Net Cash Burn $4.7 million for the quarter, a 66% reduction compared to the same period last year. The improvement was due to revenue growth and cost control measures.
You have reached the limit. Sign up to access full content
Get started
Operating Highlights
LungFit PH adoption: Adoption is accelerating, contributing to a 128% year-over-year revenue increase in the fiscal second quarter, reaching $1.8 million.
Second-generation LungFit system: Planned for commercial launch in late 2026, pending FDA approval. It is smaller, lighter, and designed for air and ground transportation.
New sales model: Hospitals can now purchase LungFit PH systems outright, generating recurring revenue through disposables and service agreements.
Beyond Cancer's Phase Ia trial: Data shows median survival of 22 months for patients treated with ultra-high concentration nitric oxide (UNO).
NeuroNOS program: FDA granted Orphan Drug Designation to BA-101 for glioblastoma treatment and BA-102 for Phelan-McDermid syndrome.
International expansion: Added distribution partnerships in Japan, South Korea, Mexico, Costa Rica, Guatemala, Panama, and El Salvador, covering 35 countries with a combined population of 2.8 billion.
First international placement: LungFit PH placed in the first hospital outside the U.S. for commercial use.
Global distribution goal: Aiming to reach 60 countries under partnership by 2026.
Revenue growth: Revenue increased 128% year-over-year to $1.8 million, though sequential growth was flat.
Cost reductions: Operating expenses reduced by 37% year-over-year, with significant decreases in R&D and SG&A costs.
Financing agreements: Raised $12 million in debt and secured a $20 million equity line of credit with Streeterville Capital.
Leadership changes: Bob Goodman appointed as Interim Chief Commercial Officer.
Patent allowance: Design patent for second-generation LungFit PH granted, valid through 2040.
Group purchasing agreements: Secured agreements with Premier and Vizient, providing access to nearly 3,000 hospitals.
You have reached the limit. Sign up to access full content
Get started
Risk or Challenges
Sequential Revenue Growth: Sequential growth was flat compared to the prior quarter due to timing of hospital purchasing cycles and variability in international shipments, indicating potential challenges in maintaining consistent revenue growth.
Hospital Sales Cycles: The inherent complexity of hospital sales cycles in the U.S. and internationally, including extended lead times and institutional decision-making processes, has led to variability in quarterly sales performance.
Debt Financing: The company raised $12 million in debt with a 15% annual interest rate and entered into a $20 million equity line of credit, which could increase financial risk if revenue growth does not meet expectations.
Gross Margin: The company reported a gross loss of $0.3 million due to costs required to upgrade existing devices and provisions for excess inventory, highlighting challenges in achieving profitability.
Leadership Changes: The departure of the Chief Commercial Officer and appointment of an interim replacement could disrupt commercial strategy execution during a critical growth phase.
Regulatory Approvals: The commercial launch of the second-generation LungFit PH system is pending FDA approval, which poses a regulatory risk to the timeline and market expansion plans.
International Expansion: While international distribution agreements have been signed, the company faces challenges in converting these opportunities into active installations and sales, as well as navigating regulatory approvals in new markets.
R&D and Cost Management: Although R&D expenses have decreased, the company must balance cost reductions with the need to innovate and support new product launches, which could strain resources.
Cash Burn and Financial Sustainability: The company reported a net cash burn of $4.7 million for the quarter, and while recent financing agreements provide runway, there is a dependency on achieving revenue growth to sustain operations.
You have reached the limit. Sign up to access full content
Get started
Guidance & Outlook
Revenue Guidance: Updated fiscal year 2026 revenue guidance to $8 million to $10 million.
Second-Generation LungFit PH Launch: Anticipate commercial launch of the second-generation LungFit PH in the U.S. market in late calendar year 2026, pending FDA approval.
Global Distribution Expansion: Expect to reach partnerships in 60 countries by calendar 2026, expanding from the current 35 countries.
International Revenue Contribution: Anticipate international revenue contribution to build steadily through fiscal 2026 with momentum accelerating into fiscal 2027.
NeuroNOS Program: Expect IND submission for BA-102 for Phelan-McDermid syndrome by the end of calendar 2026.
Financial Position: Recent financing agreements provide sufficient cash and financial vehicles to support operations well into calendar 2027 and potentially to profitability, assuming revenue estimates are met and costs are controlled.
You have reached the limit. Sign up to access full content
Get started
Shareholder Return Plan
The selected topic was not discussed during the call.
You have reached the limit. Sign up to access full content
Get started
Key Q&A
Q:Can you comment on the expected growth drivers leading into the potential approval of the second-generation LungFit PH and the trajectory after its release?
A:The trajectory after the release of the second-generation LungFit PH is expected to be significantly steeper. Growth drivers prior to its approval include international expansion (currently in 35 countries), the introduction of a capital purchase model in the U.S., and winning hospitals outside the U.S. where competition is different. The new capital purchase model has already seen its first hospital purchase.
Q:Can you comment on the timeline for commercializing the second-gen LungFit PH and any delays with the FDA?
A:The company aims to commercialize the second-gen LungFit PH by the end of 2026. The timeline is not due to FDA delays but rather supply chain challenges and preparation for contract manufacturing inspections. Approval needs to occur earlier than December 2026 to meet the launch timeline.
Q:Can you compare the new second-generation model to the prior one and its benefits for market penetration?
A:The second-generation model is 60% smaller, approved for ground and air transportation, has an upgraded user interface based on customer feedback, and features longer maintenance intervals. These improvements aim to reduce disruptions and enhance usability, aiding market penetration.
Q:What are the benefits of the new business model (capital purchase) compared to the previous leasing model?
A:The capital purchase model allows hospitals to buy machines and disposables at a lower rate compared to leasing. This model was introduced after the Gen I machine reached a stable design. The company continues to offer both leasing and purchase options to meet hospital preferences.
Q:How should we think about modeling international deals and pricing compared to the U.S. market?
A:International deals involve selling machines and disposables to distributors, who then decide on the business model in their markets. Revenue from these deals is expected to grow significantly in fiscal 2027 and beyond, as regulatory approvals and hospital placements progress.
Q:What are your thoughts on the updated guidance of $8 million to $10 million and the sales cycle fluctuations?
A:The updated guidance reflects a transition in the Chief Commercial Officer role, which may cause temporary disruption. With $3.6 million already achieved in the first half, reaching the $8 million range is feasible.
Q:What is the pace of contract renewals, and are customers exiting contracts?
A:Contract renewals are strong, with many moving from 1-year to 3-year terms. Being on Premier and potentially HealthTrust GPOs helps solidify contracts. The business is described as 'sticky,' with no significant customer exits reported.
Q:Review of Unclear Management Responses
A:Management avoided directly addressing the specific fiscal 2027 guidance and provided vague language about the timing of the second-gen LungFit PH launch, citing supply chain and external factors without detailed timelines or solutions.
You have reached the limit. Sign up to access full content
Get started
Earnings Word Cloud
The most frequently occurring keywords in this quarter's earning call
Cancer Phase
Goodman Interim
Interim Chief
LungFit hospital
Officer departure
PMS
Phase Ia
SGA
Streeterville Capital
activity launch
adoption
agreement Streeterville
cost
cycle
development BA
equity line
foundation
human study
launch generation
line credit
lock
medication minimum
minimum maximum
model approach
month period
note
opportunity
patent
population
position
proposition
subject
survival
update
value
XAIR Transcript
Beyond Air, Inc. (XAIR) Q4 2026 Earnings Call Transcript
Neutral6-26
Beyond Air, Inc. (XAIR) Q3 2026 Earnings Call Transcript
Positive2-13
The earnings call indicates positive developments: significant reduction in SG&A expenses, improved net loss, and strong cash position. The Q&A reveals strategic efforts in market penetration and international expansion, with optimistic guidance for FDA approval and partnerships. Although some concerns remain about sales cycle length and SG&A impact, the overall sentiment is positive, especially with international growth and financial improvements. The stock is likely to see a 2% to 8% increase over the next two weeks.
Beyond Air, Inc. (XAIR) Q2 2026 Earnings Call Transcript
Positive11-10
The earnings call summary indicates strong financial performance with a 128% YoY revenue increase, reduced gross losses, and significant cost reductions. The Q&A section reveals positive sentiment towards the second-gen LungFit PH, expected to drive further growth, despite supply chain challenges. The company's strategic international expansion and new business model also contribute positively. However, the vague management responses and updated guidance suggest some uncertainty, tempering the overall sentiment. Considering these factors, the stock price is likely to experience a positive movement, especially given the significant revenue growth and cost control.
Beyond Air, Inc. (XAIR) Q1 2026 Earnings Call Transcript
Positive8-12
The earnings call presents strong revenue growth, optimistic guidance, international expansion, and reduced expenses. The Q&A section reveals confidence in achieving guidance, despite some uncertainties in hospital contracts and PMA filings. Cash reserves are solid, supporting operations well into 2026. The company's strategic moves, including the Premier agreement and international partnerships, are expected to drive growth. While management's lack of specific details could be a concern, the overall sentiment is positive, with potential for stock price appreciation in the coming weeks.
XAIR Report
Frequently Asked Questions
Where does this earnings call transcript come from?
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
How soon is the transcript available after the earnings call ends?
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
Is the transcript edited or altered in any way?
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
Why do some answers appear as “Unclear” or “Inaudible”?
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
Who creates the AI Summary and Key Q&A highlights shown above the transcript?
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
