Beyond Air, Inc. (XAIR) Q1 2026 Earnings Call Transcript
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Overview
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.
Key Financial Performance
Revenue Revenue for the fiscal quarter ended June 30, 2025, increased 157% to $1.8 million compared with $0.7 million for the fiscal quarter ended June 30, 2024. The increase was attributed to strong market adoption of LungFit PH and the implementation of a new sales strategy under the leadership of the Chief Commercial Officer.
Gross Profit Gross profit increased by $0.5 million to $0.2 million for the first fiscal quarter of 2026 compared to a loss of $0.3 million for the same period last year. The improvement was due to increasing revenues, partially offset by depreciation of additional LungFit devices.
Operating Expenses Operating expenses were reduced to just above $7.5 million in the June quarter from $13 million for the same period last year, representing a 40% reduction year-over-year. This was achieved through cost reductions in SG&A, R&D, and the supply chain.
Research and Development Expenses R&D expenses were $3.1 million for the fiscal quarter in 2026 compared with $6 million for the same period last year, a decrease of $2.9 million. The reduction was across salaries, stock-based compensation costs, clinical and pre-clinical expenses, professional fees, and Gen II device development costs.
SG&A Expenses SG&A expenses for the quarters ended June 30, 2025, and June 30, 2024, were $4.7 million and $7.2 million, respectively. The decrease of $2.5 million was attributed to reductions in salaries, stock-based compensation costs, marketing and advertising, and legal fees.
Net Loss Net loss attributed to common stockholders was $7.7 million or a loss of $1.53 per share basic and diluted, compared to a net loss of $12.2 million or a loss of $5.32 per share basic and diluted for the fiscal quarter ended June 30, 2024. The improvement was due to increased revenue and reduced operating expenses.
Net Cash Burn Net cash burn for the quarter was $4.7 million, more than 60% lower than the first quarter of last fiscal year. This decrease reflects reduced operating expenses and the completion of spending on the development of the next-generation LungFit device.
Cash, Cash Equivalents, and Marketable Securities As of June 30, 2025, the company reported $6.5 million in cash, cash equivalents, and marketable securities. This is expected to support current operating plans well into calendar 2026, provided internal revenue estimates are met and costs are controlled.
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Operating Highlights
LungFit PH: Achieved a 157% increase in revenue to $1.8 million compared to $700,000 in the same period last year. Sequentially, revenue increased by 50% over the previous quarter. The product is gaining strong market adoption, with a growing sales pipeline and increasing customer confidence.
LungFit PH II: Expected to launch in calendar year 2026, pending regulatory clearance. It is designed to overcome market barriers with features like smaller size and suitability for air and ground transportation.
LungFit GO: On track for a pre-IDE submission to FDA by year-end to discuss the clinical path forward.
International Expansion: Recorded first quarter of international revenues. Distribution network now covers over 30 countries, reaching more than 2 billion lives. Growth is expected to accelerate in fiscal 2027.
U.S. Market Access: Added to the Premier network, providing access to close to 3,000 hospitals. This complements the existing Vizient network, enhancing market penetration.
Cost Reduction: Achieved a 40% year-over-year reduction in operating expenses, from $13 million to $7.5 million. R&D expenses decreased by $2.9 million, and SG&A expenses reduced by $2.5 million.
Cash Burn: Net cash burn reduced by over 60% compared to the first quarter of the previous fiscal year, reflecting cost control and reduced development spending.
Strategic Partnerships: Awarded a national group purchasing agreement with Premier for therapeutic gases, streamlining the sales process for Premier hospital network members.
Beyond Cancer Program: Currently assessing the best path forward, with plans for a Phase Ib combination study with anti-PD-1 therapy.
NeuroNOS Program: No updates since the last call. FDA meeting planned later this year to discuss the path to human studies, expected to begin by the end of calendar 2026.
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Risk or Challenges
Regulatory Approval Delays: The company is awaiting FDA approval for its second-generation LungFit system, which is critical for penetrating larger hospitals and hospital systems. Any delays in regulatory clearance could impact market share and revenue growth.
Market Barriers: The company faces challenges in overcoming hospital networks and national purchasing groups, which are critical for expanding its market presence. Despite recent progress, these barriers could slow down adoption rates.
Supply Chain and Cost Management: While the company has reduced operating expenses significantly, any disruptions in the supply chain or unexpected cost increases could impact profitability and operational efficiency.
Financial Sustainability: The company reported a net loss of $7.7 million for the quarter and is relying on existing cash and financing vehicles to sustain operations into 2026. Failure to meet revenue estimates or control costs could jeopardize financial stability.
Competitive Pressures: The nitric oxide market is competitive, and the company’s ability to maintain and grow its market share depends on the successful adoption of its LungFit systems and the introduction of its second-generation device.
Clinical Development Risks: The company is still in the process of securing clinical trial sites for its Beyond Cancer program and awaiting FDA meetings for its NeuroNOS subsidiary. Delays or failures in these areas could impact future growth opportunities.
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Guidance & Outlook
Revenue Guidance: Reaffirmed revenue guidance of $12 million to $16 million for fiscal year 2026.
Market Expansion: Anticipates growth each quarter going forward with momentum picking up substantially in fiscal 2027. International revenues recorded for the first time, with access to over 30 countries and distribution partners covering more than 2 billion lives.
Product Development: Plans to introduce the second-generation LungFit PH II system in calendar year 2026, pending regulatory clearance. This system is expected to penetrate larger hospitals and hospital systems, significantly impacting market share and logistics.
FDA Approvals: Anticipates FDA approval of the second-generation LungFit system and subsequent introduction to the U.S. market, which is expected to have a major impact on market share and total NO volume.
Market Share Goals: Expects the introduction of LungFit PH II in fiscal 2027 to put the company on a path to take the majority of market share over time in a $1 billion global NO market.
Clinical Trials: Plans to begin human studies for NeuroNOS by the end of calendar 2026, pending FDA meeting later this year. LungFit GO program is on track for a pre-IDE submission to FDA prior to year-end to discuss the clinical path forward.
Operational Efficiency: Expects continued reduction in cash burn and operating expenses, with a potential path to profitability by calendar 2026, provided internal revenue estimates are met and costs are controlled.
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Shareholder Return Plan
The selected topic was not discussed during the call.
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Key Q&A
Q:How should we think about the various growth drivers coming together this year, including existing contracts like the Premier agreement?
A:The company needs more growth throughout the next 7 months of the fiscal year. Premier is a significant factor, but its impact on this fiscal year will be limited as it takes 4 to 12 months from the first contact with a hospital to see results. The company is confident in hitting its guidance range but acknowledges that it does not have the entire range secured yet.
Q:Are there certain countries we should be watching for opportunities for big tenders in the coming quarters?
A:Tenders take time, and initial sales to distribution partners are for demonstration and training purposes. Hospital wins are expected towards the end of this fiscal year or later. The company anticipates seeing benefits from current efforts towards the end of this fiscal year and into the next.
Q:How long does it take to go from an initial contact with a customer to closing a deal and sending off machines?
A:It takes anywhere from 4 to 12 months, depending on the hospital system and the process involved.
Q:How should we model SG&A OpEx expenses for the rest of the year?
A:Expenses will grow with revenue. September expenses will tick down from June, December expenses will be around September levels, and March expenses will increase with revenue growth. Commissions and other variable costs will contribute to this increase.
Q:How is the Premier agreement facilitating engagement efforts with hospitals?
A:The Premier agreement removes initial barriers, allowing free discussions with hospitals. Pricing is set in the contract, saving time and making it easier to contract with Premier hospitals.
Q:Do you have any insights or updates on sales so far this quarter?
A:The company is not providing quarterly estimates at this time but reiterated its fiscal year guidance, showing confidence in achieving it.
Q:How many hospitals have installed the LungFit PH?
A:The exact number is not provided, but it is described as 'dozens and dozens' of hospitals. The number is growing, and more hospitals are using LungFit PH.
Q:What is the current expectation for the two PMA filings (cardiac surgery and second-generation machine)?
A:The focus is on the second-generation machine, which is more important to the company than the cardiac indication. No specific timing is provided for the PMA filings.
Q:Can you provide more tangible details on achieving the guidance range, especially with the need for 50% quarter-over-quarter growth?
A:The company is partnered in over 30 countries and expects strong revenue from international partners. Domestic efforts include partnerships with TrillaMed, Premier, and Vizient, as well as momentum from the new Chief Commercial Officer. The company sees a strong pipeline and is confident in achieving its guidance.
Q:What is the attribution of international revenue in the guidance range, and are contract renewals contributing to the outlook?
A:International revenue is expected to be strong, with additional partners being signed. Contract renewals are not explicitly included in the forecast, but some hospitals are using more than expected and renegotiating contracts, which could contribute to revenue.
Q:Review of Unclear Management Responses
A:Management avoided providing specific numbers or timelines for certain questions, such as the exact number of hospitals using LungFit PH, the timing of PMA filings, and detailed quarterly sales updates. Responses were often general, emphasizing confidence without offering precise data or clarity.
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Earnings Word Cloud
The most frequently occurring keywords in this quarter's earning call
Advisors comment
Bednar Piper
Davis Lifesci
Jason
LLC Research
Lifesci Advisors
LungFit II
Nasdaq
NeuroNOS
Premier
Research Division
SGA
access
advantage
barrier
call
compliance
decrease reduction
distribution
fee
generation LungFit
group
hospital network
introduction
market share
member
path
period increase
program
purchasing agreement
quarter
reminder
result increase
salary stock
service
stock compensation
stock split
update
XAIR Transcript
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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
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