Beyond Air reported a strong start to fiscal year 2026 (quarter ended June 30, 2025), highlighted by a 157% year-over-year revenue increase to $1.8 million and a 50% sequential uplift versus the prior quarter. Management attributed the acceleration to the broadened US commercial organization, expanded distribution, and growing hospital adoption of LungFit PH, with international revenue recognized for the first time and exposure to 30+ countries via distribution partners. Despite the top-line momentum, the company remains in a transitionary profitability phase, evidenced by a quarterly net loss of $7.69 million and an 8.9% gross margin.
The company has materially sharpened its expense structure, delivering a 40% YoY reduction in operating expenses in the first half of calendar 2025 and guiding toward a trough in the current quarter (September 2025). Management reaffirmed FY2026 revenue guidance of $12–$16 million, anchored by domestic pipeline progress, Premier and Vizient GPO coverage (near 3,000 hospitals), and the anticipated contribution from international tenders. A pivotal strategic event is the planned introduction of LungFit PH II in calendar year 2026, which is expected to broaden hospital applicability and market reach. This is accompanied by ongoing work toward FDA interactions (Gen II) and related PMA discussions, with Gen II positioned as a central driver of future market share and logistics efficiency.
Key risks to watch include the pace of hospital conversions, tender cycles in international markets, regulatory approval timing for Gen II and related PMAs, and the ability to sustain cost discipline while scaling commercial and clinical activity. If revenue expands in line with management’s plan and cost controls hold, the path to profitability could become clearer into calendar 2026 and beyond.