QT Imaging — Q3 2026 Earnings Summary

Financial Performance:

• Q3 2026 revenue reached $7.3 million, a 75% increase year-over-year from $4.2 million in Q3 2025; year-to-date revenue was $21.3 million, approximately double the prior-year period.
• Gross profit was $3.0 million in Q3 2026 compared to $1.8 million in Q3 2025; gross margin was 41.3% in Q3 2026 versus 43.0% in the prior-year quarter.
• Total operating expenses were $5.5 million in Q3 2026, up from $3.5 million in Q3 2025, driven by higher R&D and SG&A costs.
• Operating loss was $2.4 million in Q3 2026 compared to $1.7 million in Q3 2025.
• Net loss was $0.3 million ($0.02 per share) in Q3 2026, a significant improvement from a net loss of $4.6 million ($0.47 per share) in Q3 2025; the Q3 2026 result included a noncash gain of $2.4 million from the change in fair value of the earnout liability.
• Cash, cash equivalents, and restricted cash totaled $8.4 million as of September 30, 2026, down from $11.0 million as of June 30, 2026.
• Accounts receivable were $7.3 million as of September 30, 2026, collected in full by the end of October.
• Inventory was $11.5 million as of September 30, 2026.
• Long-term debt was $11.4 million as of September 30, 2026, compared to $0.7 million as of December 31, 2025.
• Adjusted EBITDA for the nine months ended September 30, 2026, was $(4.8) million, compared to $(3.1) million in the prior-year period.

Guidance and Future Outlook:

• Full-year 2026 revenue guidance has been revised downward to approximately $34 million from a prior guidance of approximately $39 million.
• The revised guidance reflects shipment delays to distribution partners in Saudi Arabia and the UAE due to the ongoing war in the Middle East and disruptions to shipping routes, including the closure of the Strait of Hormuz.
• U.S. scanner shipment plans remain on schedule.
• The company intends to pursue international shipments when conditions permit.

Business Segments and Product Lines:

• Sold 15 Breast Acoustic CT scanners in Q3 2026 and 43 scanners year-to-date, compared to 23 scanners in the prior-year period.
• Secured its first major hospital order in the Gulf Cooperation Council region from American Hospital Dubai through local distributor Al Naghi Medical.
• Received regulatory authorization in Israel and Bahrain.
• Completed relocation to a new 22,000-square-foot headquarters and manufacturing facility in Petaluma, California, doubling manufacturing capacity.
• Advanced the Breast Acoustic CT platform with improvements in image reconstruction, quantitative analysis, the QTI-Olea Viewer, and QTI Precision Pathway™ cloud capabilities.
• Expanded radiologist training and continued clinical research focused on supplemental imaging for women with dense breasts and diagnostic applications for high-risk women.

Market and Competitive Landscape:

• CMS established a separate Medicare hospital outpatient payment for medically necessary diagnostic QTscan examinations, effective January 1, 2027.
• CMS assigned CPT Category III code 1079T to APC 5522 with payment status indicator S.
• A dedicated CPT code was implemented on October 1, 2026.
• The Medicare payment pathway applies to eligible, medically necessary diagnostic QTscan examinations but does not extend to routine breast cancer screening.
• Secured a national group purchasing agreement via NXC Imaging, providing access to Premier's network of nearly 4,400 hospitals and health systems.
• Recognized at Premier's Supplier Innovation Celebration.

Risks and Challenges:

• Ongoing armed conflict in the Middle East and effective closure of the Strait of Hormuz have caused shipment delays to Saudi Arabia and the UAE.
• A material weakness in internal controls over financial reporting exists, with a timeline to remediate identified.
• Forward-looking statements involve risks including the ability to sell and deploy scanners, commercialization success, competition, and changes in demand or purchasing volume.
• Risks include the ability to obtain financing, pay debt obligations, and the unpredictability of suppliers.

Management Commentary and Tone:

• CEO Dr. Raluca Dinu stated the company is moving "beyond building our commercial foundation to accelerating market adoption."
• Management described the CMS decision as a "major milestone" that removes significant reimbursement uncertainty and strengthens the ability to expand into U.S. hospitals and health systems.
• Management noted the company is positioning for "sustained growth and broader adoption of our technology" through differentiated technology, expanding commercial capabilities, and growing clinical partnerships.
• The company successfully completed its first routine FDA inspection with zero Form FDA 483 observations.

Other Key Points:

• The earnout liability was revalued, resulting in a $2.4 million noncash gain in Q3 2026; conditions for earnout consideration during the twelve months ended September 30, 2026, were not met, and no shares were issued.
• The company recorded a loss on debt extinguishment and modification of $8.3 million during the nine months ended September 30, 2026, due to a loan modification extending maturity to March 2029 and increasing the interest rate to 12%.
• Proceeds from the sale of common stock and warrants, net of issuance costs, were $9.0 million for the nine months ended September 30, 2026.
• Stock-based compensation was $1.8 million for the nine months ended September 30, 2026.
• The company hosts a conference call to discuss results and provide a business update.