Executive Summary
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.
Key Performance Indicators
QoQ: 64.18% | YoY:274.47%
QoQ: 172.56% | YoY:130.41%
QoQ: -920.00% | YoY:-750.00%
Key Insights
Revenue: $1.76–1.80M in Q1 FY2026, up 157% YoY and 50% QoQ. YoY revenue growth: 274.5%; QoQ growth: 64.2%.
Gross Profit: $0.156M, gross margin 8.86%; YoY gross profit up ~130.4%; QoQ up ~172.6%.
Operating Income: −$7.62M; operating margin −4.33%.
Net Income: −$7.69M; net margin −4.37%; EPS −$1.53.
EBITDA/EBITDAR: EBITDA −$7.62M; EBITDAR mirrors operating loss given depreciation, stock-based comp, and other items not fully disclosed in the quarterly GAAP data presented.
R&D/Sale...
Financial Highlights
Revenue: $1.76–1.80M in Q1 FY2026, up 157% YoY and 50% QoQ. YoY revenue growth: 274.5%; QoQ growth: 64.2%.
Gross Profit: $0.156M, gross margin 8.86%; YoY gross profit up ~130.4%; QoQ up ~172.6%.
Operating Income: −$7.62M; operating margin −4.33%.
Net Income: −$7.69M; net margin −4.37%; EPS −$1.53.
EBITDA/EBITDAR: EBITDA −$7.62M; EBITDAR mirrors operating loss given depreciation, stock-based comp, and other items not fully disclosed in the quarterly GAAP data presented.
R&D/Sales/SG&A: R&D $3.11M; SG&A excluding unknown line items $4.70M; total operating expenses $7.77M (company guidance indicates ongoing cost discipline).
Cash Flow: Net cash used in operating activities −$4.53M; capex −$0.198M; free cash flow −$4.72M; cash and equivalents $4.98M; total cash and short-term investments $6.46M; net debt at period end: −$2.91M (cash exceeds debt).
Balance Sheet: Total assets $28.11M; total liabilities $17.71M; total stockholders’ equity $9.93M; cash cycles and liquidity modest but improving; no long-term debt beyond $1.42M; multiyear backlog and multiyear contracts >55% of customers.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
1.76M |
274.47% |
64.18% |
| Gross Profit |
156.00K |
130.41% |
172.56% |
| Operating Income |
-7.62M |
39.71% |
30.45% |
| Net Income |
-7.69M |
43.89% |
40.98% |
| EPS |
-1.53 |
-750.00% |
-920.00% |
Management Commentary
Key insights from management:
- Strategy and growth trajectory: LungFit PH adoption is accelerating, with a 157% revenue uplift in Q1 FY2026 and a 50% sequential increase; the company emphasizes a broader US and international distribution network and a focus on hospital relationships. Quote: We are reaffirming our revenue guidance of $12–16 million for fiscal year 2026, reflecting confidence in the pipeline and backlog.
- Strategic leverage of Premier and Vizient: Management notes Premier adds access to ~3,000 hospitals and reduces contracting friction, enhancing commercial execution. Quote: Premier network provides access to close to 3,000 hospitals; it removes the big initial barrier to contract with Premier hospitals.
- Gen II roadmap and regulatory focus: Attention is squarely on Gen II LungFit PH for broader hospital usage and potential logistics advantages; the team signals continued FDA engagement with Gen II prioritized over other indications. Quote: Our focus is on the second-generation machine; we want to keep FDA focused on what’s important to us, Gen II.
- International expansion and tender dynamics: Revenue in international markets is materializing later in the fiscal year as distribution partners and tenders align with local processes; expect wins toward the end of FY2026 and into FY2027. Quote: We anticipate some of these wins on hospitals coming towards the end of this fiscal year, getting hospitals signed up in the June quarter would put us a couple of quarters later before we start winning hospitals.
- Cost discipline and runway to profitability: The company highlights significant cost reductions (SG&A and R&D) vs. year-ago levels and asserts cash runway into calendar 2026; management cautions that profitability is contingent on revenue realization and cost control. Quote: We reduced total operating expenses to just above $7.5 million in the June quarter from $13 million a year ago; trough in operating expenses expected in the current quarter.
We reaffirming our revenue guidance of $12 million to $16 million for fiscal year 2026.
— Steven Adam Lisi
Premier network provides access to close to 3,000 hospitals.
— Steven Adam Lisi
Forward Guidance
Management reaffirmed FY2026 revenue guidance of $12–$16 million, implying a substantial step-up from Q1 annualized revenue and contingent on ongoing commercial acceleration in the US and growth in international markets. The company expects: (1) continued adoption of LungFit PH in the US with multi-year contracts and expansion via Premier/Vizient; (2) incremental international revenue as distribution networks mature, with 30+ countries in scope; and (3) new product momentum from Gen II LungFit PH II in calendar 2026, believed to be a meaningful step toward broader market penetration and potential profitability. Risks to watch include: duration of tender cycles, regulatory approval timelines for Gen II PMAs, and the ability to scale after the Premier/Vizient onboarding phase. The company also notes that Premier will reduce sales cycle friction but acknowledges that timing to hospital conversion can range from 4 to 12 months. Key indicators investors should monitor include: quarterly progression of international bookings, number of hospital installations and elective uptake within Premier/Vizient networks, status of Gen II regulatory approvals, and quarterly operating expenses aligned with revenue growth.