Executive Summary
Modular Medical (MODD) reported a continued pre-revenue profile in QQ3 2025, with the company incurring substantial R&D and operating expenses against no disclosed quarterly revenue. For the quarter, R&D and SG&A combined totaled $4.854 million, yielding an EBITDA of -$4.523 million and an operating income of -$4.854 million. Net income came in at -$4.804 million with basic/diluted EPS of -$0.13, reflecting ongoing development costs aligned with the company’s strategy to advance insulin pump technology toward commercialization. Notably, cash burn remained elevated, with operating cash flow of -$4.096 million and free cash flow of -$4.638 million, while financing activities provided a material cash inflow of $7.731 million, resulting in a net cash increase of $3.093 million and an ending cash balance of $6.986 million.
From a liquidity and balance-sheet perspective, Modular Medical remains structurally capital-light on leverage (current ratio 5.30; debt-to-equity near 0.09) with total assets of $12.15 million and net cash position aided by financing activity. The company carried no material long-term debt and a conservative liability base, which provides runway for continued R&D and regulatory activities as it pursues commercialization. However, the lack of revenue in QQ3 2025 underscores the development-stage risk: sustained negative earnings and the need for external funding to reach meaningful top-line and potential product milestones.
Compared with publicly available industry peers in the medical devices and digital health space that are also navigating pre-revenue or early-commercial phases, MODD’s gross margin in the prior year’s Q4 showed a meaningful margin when revenue was recognized (gross margin of 74.5% on $902k revenue), suggesting the potential for high gross margins once revenue scales amid fixed R&D costs. The near-term investment thesis rests on successful product development, regulatory progression, and potential partnerships or licensing that could unlock commercialization and reduce the reliance on frequent external financings. Investors should monitor regulatory milestones, clinical trial progress, manufacturing scalability, and any strategic financing events that could impact dilution and cap table dynamics.
Key Performance Indicators
Key Insights
Revenue: No disclosed quarterly revenue in QQ3 2025; historical quarterly revenue appeared only in 2024 Q4 ($902k) with gross profit of $672k (gross margin 74.5%).
Operating Income: -$4.854 million in QQ3 2025, with YoY improvement of 7.88% and QoQ improvement of 2.84% in reported metric context.
Net Income: -$4.804 million in QQ3 2025; YoY change shown as 8.83% and QoQ change as 3.07% in the provided figures.
EPS: -$0.13 for QQ3 2025; YoY improvement of 43.48% and QoQ improvement of 7.14%.
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Financial Highlights
Revenue: No disclosed quarterly revenue in QQ3 2025; historical quarterly revenue appeared only in 2024 Q4 ($902k) with gross profit of $672k (gross margin 74.5%).
Operating Income: -$4.854 million in QQ3 2025, with YoY improvement of 7.88% and QoQ improvement of 2.84% in reported metric context.
Net Income: -$4.804 million in QQ3 2025; YoY change shown as 8.83% and QoQ change as 3.07% in the provided figures.
EPS: -$0.13 for QQ3 2025; YoY improvement of 43.48% and QoQ improvement of 7.14%.
EBITDA: -$4.523 million; EBITDA margin not disclosed due to nil revenue in the period; ongoing high burn driven by R&D and SG&A.
Cash Flow and Liquidity: Operating cash flow -$4.096 million; capex -$0.542 million; free cash flow -$4.638 million; net change in cash +$3.093 million; cash at end of period $6.986 million; net cash provided by financing activities $7.731 million; cash from financing largely funded the quarter’s negative operating cash flow.
Balance Sheet: Total assets $12.149 million; total liabilities $1.887 million; total stockholders’ equity $10.262 million; cash and cash equivalents $6.986 million; total debt $0.914 million; net debt negative $6.072 million; current ratio 5.30; debt to equity 0.0891; return on assets (ROA) -0.395; return on equity (ROE) -0.468.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Operating Income |
-4.85M |
7.88% |
2.84% |
| Net Income |
-4.80M |
8.83% |
3.07% |
| EPS |
-0.13 |
43.48% |
7.14% |
Key Financial Ratios
operatingCashFlowPerShare
$-0.11
freeCashFlowPerShare
$-0.12
Management Commentary
No earnings call transcript data or management quotes were provided in the dataset for QQ3 2025. Therefore, there are no transcript highlights to extract. If newer transcript data is supplied, this section should summarize management themes by category (e.g., strategy, operations, market conditions) and include direct quotes with context and implications.
Forward Guidance
MODD remains in a pre-commercial stage with substantial R&D expenditure and no visible quarterly revenue in QQ3 2025. Management commentary is not provided in the dataset, so formal forward guidance is not reproducible here. Based on the quarterly trajectory, the key near-term catalysts would likely include: (1) regulatory milestones or FDA interactions related to insulin pump development and potential candidacy for subsidies/coverage, (2) strategic partnerships or licensing agreements that could accelerate commercialization and reduce cash burn, and (3) additional financing arrangements to sustain product development and capex tied to manufacturing scale-up. Given the current cash runway and burn rate (~$4.6 million per quarter on an FCF basis, excluding financing), an external financing event or successful milestone-driven partnerships will be pivotal to extending the runway beyond the next several quarters. Investors should monitor any updates on clinical validation, safety data, manufacturing readiness, and reimbursement discussions, as these will be key drivers of multiple expansion and strategic value realization if milestones align with a cost-optimized commercialization plan.