Executive Summary
Modular Medical reported a pre-revenue QQ1 2026 quarter with a substantial operating loss and no revenue recognized. The quarter demonstrates the company’s continued heavy investment in R&D for its insulin-pump platform, with total operating expenses of $6.804 million and net loss of $6.702 million, translating to an EPS of -$0.12. While the company maintains a solid liquidity cushion (cash and equivalents of $7.522 million) and a strong current ratio (~4.0x), the lack of revenue alongside a sizable accumulated deficit underscores the high-risk, early-stage nature of the business and the need for successful commercialization or new financing to extend runway.
From a balance-sheet perspective, Modular Medical shows a modest short-term debt load (short-term debt of $874k; long-term debt $278k) against total assets of $14.171 million and stockholders’ equity of $11.843 million. Retained earnings stand at -$91.455 million, reflecting a long history of operating losses typical for a development-stage medical device company pursuing an ambitious product platform. The 12-month trailing metrics indicate a material deterioration in gross profit and operating income versus prior periods, while earnings per share declined materially on a gap-to-revenue basis but improved modestly quarter-over-quarter.
Looking ahead, absent a near-term tipping point in regulatory clearance, reimbursement, or commercial adoption, the company is likely to rely on further capital-raising or partnerships to fund ongoing product development and eventually scale manufacturing and commercialization. Investors should monitor management commentary around timelines for clinical milestones, regulatory pathways, potential partnerships, and capital strategy as key catalysts for MODD’s progression toward revenue generation and eventual profitability.
Key Performance Indicators
QoQ: -40.17% | YoY:-57.54%
QoQ: -39.51% | YoY:-56.55%
Key Insights
Revenue: No revenue recognized in QQ1 2026 (revenue field null; cost of revenue $410k leading to a gross loss of $410k).
Gross Profit: -$0.41 million; Gross Profit Margin not disclosed; yoy change -161.01% according to stated metrics, reflecting the absence of revenue to offset fixed R&D and pre-commercial costs.
Operating Income: -$6.804 million; YoY change -57.54%; QoQ change -40.17%; indicates sustained burn during active development phase.
Net Income: -$6.702 million; YoY change -56.55%;...
Financial Highlights
Revenue: No revenue recognized in QQ1 2026 (revenue field null; cost of revenue $410k leading to a gross loss of $410k).
Gross Profit: -$0.41 million; Gross Profit Margin not disclosed; yoy change -161.01% according to stated metrics, reflecting the absence of revenue to offset fixed R&D and pre-commercial costs.
Operating Income: -$6.804 million; YoY change -57.54%; QoQ change -40.17%; indicates sustained burn during active development phase.
Net Income: -$6.702 million; YoY change -56.55%; QoQ change -39.51%; core driver is operating loss with limited non-operating income.
EPS: -$0.12; YoY change +14.29%; QoQ change +7.69%; despite negative absolute value, there is a modest positive movement in per-share loss due to share count dynamics.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Gross Profit |
-410.00K |
-161.01% |
N/A |
| Operating Income |
-6.80M |
-57.54% |
-40.17% |
| Net Income |
-6.70M |
-56.55% |
-39.51% |
| EPS |
-0.12 |
14.29% |
7.69% |
Management Commentary
Transcript data for MODD QQ1 2026 is not provided in the dataset. As a result, no management quotes or theme-by-theme highlights from an earnings call can be cited. If transcripts are made available, please provide to enrich themes around strategy, manufacturing readiness, customer adoption expectations, and regulatory milestones.
Transcript data not available for MODD QQ1 2026.
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Transcript data not available for MODD QQ1 2026.
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Forward Guidance
No formal forward guidance is presented in the provided data. Given the development-stage status and absence of revenue, the near-term trajectory hinges on achieving regulatory milestones, securing reimbursement pathways, and converting R&D progress into commercial manufacturing capabilities or licensing agreements. Management guidance on interim milestones (e.g., pivotal clinical data, IDE/510(k) clearance timelines, pilot commercialization, and partnership discussions) would be critical to assess achievability. Key factors to monitor include: (1) regulatory clearance timeline for insulin-pump platform, (2) partnerships or licensing deals with larger medical-device manufacturers or diabetes care providers, (3) ability to secure additional funding to extend operating runway, and (4) progress in unit economics should production scale begin. Given the current cash balance and burn rate, investors should expect heightened emphasis on capital strategy and strategic partnerships in the near term.