Executive Summary
Beyond Air reported QQ2 2025 results ended September 30, 2024, delivering a modest quarterly revenue of $0.80 million alongside a continued net loss of $13.36 million and negative gross margin of $1.08 million. The quarter reflected the company’s ongoing transition from a R&D-forward positioning toward commercial scale, driven by a hardened U.S. and international commercial push, new partnerships, and strategic financing that extended cash runway to approximately 18 months. Management highlighted meaningful commercial momentum, including a tracked 60% increase in hospital clients, and outlined a clear roadmap toward turning gross margins positive in the March 2025 quarter as the company scales production and expands international distribution. The combination of aggressive cost controls, balance-sheet actions, and a multi-pronged regulatory and product-development agenda (PMA supplements for next-generation LungFit PH and cardiac surgery indication, CE Mark progress, and international expansion) underpins the company’s forward-looking thesis; however, execution risk remains elevated given the small quarterly revenue base, ongoing losses, and dependency on capital market activity to fund operations and growth initiatives. The near-term investment thesis centers on monetizing LungFit PH deployments, executing international distribution through BAC and partners, and achieving mid-term gross margin expansion as upgrades and cost rationalizations mature.
Key Performance Indicators
QoQ: 16.84% | YoY:233.89%
QoQ: -225.53% | YoY:-461.66%
Key Insights
Revenue: $0.80m in Q2 FY2025 (YoY growth +233.89%; QoQ +16.84%). Gross Profit: -$1.084m (Gross margin -1.36%) versus prior-year loss of $0.2m; QoQ not disclosed for prior period margin. Operating Income: -$12.833m (Operating margin -16.08%). Net Income: -$13.358m (Net margin -16.74%), EPS -$0.14 (basic/diluted). EBITDA: -$12.156m (EBITDA margin -15.23%). Cash flow: Operating cash flow -$13.348m; Free cash flow -$14.523m. Cash and equivalents: $28.447m at period-end; pro forma cash (post-financin...
Financial Highlights
Revenue: $0.80m in Q2 FY2025 (YoY growth +233.89%; QoQ +16.84%). Gross Profit: -$1.084m (Gross margin -1.36%) versus prior-year loss of $0.2m; QoQ not disclosed for prior period margin. Operating Income: -$12.833m (Operating margin -16.08%). Net Income: -$13.358m (Net margin -16.74%), EPS -$0.14 (basic/diluted). EBITDA: -$12.156m (EBITDA margin -15.23%). Cash flow: Operating cash flow -$13.348m; Free cash flow -$14.523m. Cash and equivalents: $28.447m at period-end; pro forma cash (post-financing) $18.5m as of 9/30/2024. Total assets $53.010m; total liabilities $23.716m; stockholders’ equity $28.127m. Current ratio 5.76; Quick ratio 5.38; Cash ratio 4.31. Net debt: -$15.178m (net cash position). Notable balance-sheet actions: Private placement +$20.6m; extinguishment of Avenue loan; royalty financing of $11.5m with 15% rate.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
798.00K |
233.89% |
16.84% |
| Gross Profit |
-1.08M |
-461.66% |
-225.53% |
| Operating Income |
-12.83M |
26.81% |
5.50% |
| Net Income |
-13.36M |
17.64% |
-9.48% |
| EPS |
-0.14 |
45.10% |
-3.70% |
Key Financial Ratios
grossProfitMargin
-135.8%
operatingProfitMargin
-1608%
operatingCashFlowPerShare
$-0.14
freeCashFlowPerShare
$-0.15
Management Commentary
Theme: Commercial momentum and strategy execution
- Management indicated a meaningful commercial uplift, noting a 60% increase in hospital clients in the quarter and improved performance following recent machine upgrades and a new Chief Commercial Officer. The team expects this momentum to translate into accelerated top-line growth as initiatives mature. (Steve Lisi)
Theme: Partnerships and market expansion
- Announced collaborations with Healthcare Links, TrillaMed, and an international distributor BAC to accelerate ex-US adoption, including Europe, South America, Asia-Pacific, and the Gulf region. Management underscored the strategic importance of these partnerships to access new markets and improve NO delivery capabilities via LungFit PH.
Theme: Financing and liquidity
- The company executed a private placement for $20.6m, extinguished a senior secured term loan with Avenue Capital (removing ~$12m in payments through mid-2026), and secured an $11.5m royalty facility. Management framed these moves as critical to extending cash runway by roughly 18 months while the commercial ramp builds. (Steve Lisi)
Theme: Regulatory and product development milestones
- PMA supplement for LungFit PH expansion to cardiac surgery is under FDA review; a CE Mark decision is anticipated by year-end; the company plans to file a PMA supplement for a next-generation LungFit PH system before March 2025. These milestones are positioned to unlock broader adoption and new indications.
Theme: Projections and risk cautions
- Management emphasized uncertainty around regulatory timing and the potential for “chunky” quarterly revenue with a wide range of contract sizes. They also highlighted that gross margins are expected to turn positive by the March 2025 quarter, with gross-margin improvement driven by higher volumes, reduced depreciation per deployed unit, and more efficient international scale.
We increased our total number of hospital clients by over 60%.
— Steve Lisi
We expect gross margins to turn positive in the March 2025 quarter.
— Douglas Larson
Forward Guidance
Regulatory and product milestones: LungFit PH continued expansion via PMA supplement for cardiac surgery; EU CE Mark potential clearance by year-end; next-generation LungFit PH system PMA supplement anticipated by March 2025. Market expansion: International distribution arrangements via BAC, TrillaMed, and Healthcare Links indicate a deliberate push outside the U.S.; first shipments abroad expected in H1 2025 with 6–12 month ramp in ex-U.S. markets. Financial trajectory: The company projects gross margins turning positive in the March 2025 quarter, aided by one-time upgrade headwinds abating and depreciation drag decreasing as deployment scales increase. Balance sheet and liquidity: Cash runway extended to about 18 months thanks to a trio of financing transactions; pro forma cash of $18.5m as of 9/30/2024, with reported ending cash of $28.4m, and a net cash position of approximately -$15.2m in the period. Investment thesis: The primary drivers are (1) monetization of LungFit PH in U.S. and ex-U.S. hospitals through expanded partnerships, (2) regulatory approvals and CE Mark enabling broader international access, and (3) a next-generation LungFit system potentially delivering improved margins and higher ASPs. Key risks include execution risk in implementing new commercial partnerships, reliance on timely regulatory approvals, potential delays in international deployments, and the ability to achieve sustainable gross margins in a low-revenue base environment. Investors should monitor: (1) progress of PMA/CExMark timelines, (2) actual quarterly gross margin trajectory beginning in March 2025, (3) realization of ex-U.S. contracts and onboarding cadence, and (4) cash burn trajectory as the company scales its commercial footprint.