Beyond Air — Q2 2026 Earnings Summary

Financial Performance

• Reported revenue of $1.8 million for the quarter ended June 30, 2026, compared to $1.8 million for the same period in 2025.
• Gross margin improved to 13% for the quarter, up from 9% in the prior year period.
• Research and development expenses were $2.0 million, a decrease from $3.1 million in the same period last year.
• Selling, general and administrative expenses were $4.9 million, an increase from $4.7 million in the same period last year.
• Other expense was $1.5 million, compared to $0.5 million in the prior year period.
• Net loss attributable to common stockholders was $7.9 million, or $11.00 per basic and diluted share, compared to a net loss of $7.7 million, or $30.67 per share, in the prior year period.
• As of June 30, 2026, cash, cash equivalents, restricted cash, and marketable securities totaled $15.2 million.
• Subsequent to quarter-end, the company secured up to $30.1 million in financing, consisting of $10.2 million in upfront gross proceeds and up to $20.0 million from potential warrant exercises.
• Total liabilities as of June 30, 2026, were $30.052 million, with long-term debt, net, at $22.167 million.
• Total stockholders' equity attributable to Beyond Air, Inc. was $1.997 million as of June 30, 2026, down from $6.126 million as of March 31, 2026.

Guidance and Future Outlook

• Reaffirmed revenue guidance of $8 million for calendar year 2026, excluding revenue from the second-generation LungFit PH system.
• Reaffirmed revenue guidance of $16-$18 million for calendar year 2027, representing over 110% year-over-year growth at the midpoint compared to 2026 guidance and including anticipated revenue from the second-generation LungFit PH system pending regulatory approval.
• Anticipates entering a new phase of commercial execution and a potential inflection point for revenue growth driven by expanding market access, customer adoption, international expansion, and a larger addressable market.

Business Segments and Product Lines

• Entered a national group purchasing agreement with a leading U.S. GPO, the third major U.S. GPO engagement, expanding reach by nearly 2,000 U.S. hospitals and health systems.
• Continued expansion of the global distribution network for LungFit PH, now covering more than 45 countries.
• Second-generation LungFit PH system PMA supplement is under FDA review, with approval expected in the second half of calendar year 2026.
• International submissions for LungFit PH remain on track with local partners.
• The company is transitioning its fiscal year-end from March 31 to December 31, effective December 31, 2026.

Market and Competitive Landscape

• Regained compliance with Nasdaq's minimum bid price requirement.
• The company positions itself to expand adoption of LungFit PH over the long term pending the commercial launch of the second-generation system.

Risks and Challenges

• Commercial launch of the second-generation LungFit PH system is pending FDA approval.
• Financing proceeds include up to $20.0 million contingent on the potential exercise of warrants, including $10.0 million tied to FDA approval of the second-generation system.
• Risks include the ability to maintain Nasdaq compliance, complete fiscal year-end transition, and successfully execute commercial strategy.
• Potential dilution to existing stockholders from the issuance of securities in the financing and any warrant exercises.

Management Commentary and Tone

• CEO Robert Goodman stated the company has strengthened its balance sheet and commercial infrastructure in advance of the next phase of commercial growth.
• Management believes current efforts position the company well for the anticipated launch of the second-generation LungFit PH system and support long-term adoption goals.

Other Key Points

• Recent financing led by institutional healthcare investors with participation from directors and executive officers.
• The company is a commercial-stage medical device and biopharmaceutical company focused on nitric oxide therapy for respiratory illnesses, neurological disorders, and solid tumors.
• LungFit PH is approved for commercial use in the U.S., EU, and other countries for the treatment of term and near-term neonates with hypoxic respiratory failure.
• The second-generation LungFit PH system is designed to replace large NO cylinders, offering operational benefits such as reduced inventory and improved safety.
• A webcast of the conference call is available on the company's website with a replay available one hour after the call.