Executive Summary
Executive summary highlights: Beyond Air reported a modest quarterly revenue gain in QQ3 2025, with revenue of $1.072 million, up sequentially and year over year as commercial execution accelerates. The quarter featured six new hospital starts and two contract renewals in the U.S., signaling progress in hospital adoption of LungFit PH amidst a ramp of commercial capabilities and partnerships. However, profitability remains a challenge near term, as gross profit was negative by $0.215 million and the company posted a net loss of $13.03 million for the quarter, driven by ongoing R&D and SG&A investments plus one-time costs associated with upgrading devices and preparing PMA submissions. Management outlined a constructive outlook driven by CE Mark-enabled ex-U.S. expansion, continued U.S. market share gains, and the next-generation LungFit PH system targeting FDA submission. The company asserted cash runway through spring 2026 provided internal revenue milestones hold and cost discipline is maintained.
Key catalysts include: (1) CE Mark normalization in EU and other markets with milestone payments (Getz Healthcare), (2) US PMA submission for the transport-capable LungFit PH, (3) continued commercial momentum with new hospital signings and distributor partnerships, and (4) Beyond Cancer and NeuroNOS programs that could diversify long-term growth. While management remains optimistic about multi-quarter revenue growth, the near-term path to profitability hinges on successful FDA interactions, continued revenue ramp, and expense discipline. The June guidance update for fiscal 2026 will be a critical read on the trajectory toward profitability and scale.
Key Performance Indicators
QoQ: 34.34% | YoY:174.17%
Key Insights
Revenue: QQ3 2025 revenue of $1.072 million, up from $0.798 million in QQ2 2025 and $0.391 million in QQ3 2024. YoY revenue growth of 174.17% and QoQ revenue growth of 34.34% (per ratiosInfo).
Gross profit: QQ3 2025 gross profit of -$0.215 million, gross margin of -20.06% (grossProfitMargin -0.201).
Operating expense and profitability: R&D $3.005 million; SG&A $7.732 million (sellingGeneralAndAdministrativeExpense) for QQ3 2025, totaling operating expenses of $10.737 million and cost o...
Financial Highlights
Revenue: QQ3 2025 revenue of $1.072 million, up from $0.798 million in QQ2 2025 and $0.391 million in QQ3 2024. YoY revenue growth of 174.17% and QoQ revenue growth of 34.34% (per ratiosInfo).
Gross profit: QQ3 2025 gross profit of -$0.215 million, gross margin of -20.06% (grossProfitMargin -0.201).
Operating expense and profitability: R&D $3.005 million; SG&A $7.732 million (sellingGeneralAndAdministrativeExpense) for QQ3 2025, totaling operating expenses of $10.737 million and cost of revenue + other measures bringing total expenses to $12.024 million. EBIT/EBITDA remained negative at -$10.952 million (EBITDA) and -$11.929 million (EBITDA with rounded adjustments) with an operating loss of -$10.952 million and net loss of -$13.030 million for QQ3 2025. EPS is -$0.15.
Cash flow and liquidity: Net cash provided by operating activities -$7.733 million. Free cash flow (FCF) -$8.27 million. Net cash used in investing activities -$6.937 million and financing activities -$9.214 million, leading to a net cash decrease of -$23.844 million in the period. Cash at end of period: $4.833 million; cash and cash equivalents plus marketable securities: $10.95 million (per balance sheet and CFO commentary).
Balance sheet and leverage: Total assets $34.144 million; total liabilities $15.763 million; total stockholders’ equity $17.644 million. Net debt reported as -$2.593 million (net cash position) reflecting cash and short-term investments exceeding total debt. Current ratio 3.56, quick ratio 3.12, gross margin negative, and operating margin -10.22% headline metrics reflect near-term profitability challenges as the company scales.
Segment and quarter trailing metrics: Four-quarters revenue total around $3.02 million, with QQ3 2025 contributing $1.072 million and QQ2 2025 at $0.798 million, indicating a ramp in quarterly performance as commercialization accelerates. YoY revenue growth and improvements in onboarding and hospital starts indicate progress toward scale, albeit from a low base.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
1.07M |
174.17% |
34.34% |
| Gross Profit |
-215.00K |
68.54% |
80.17% |
| Operating Income |
-10.95M |
35.44% |
14.66% |
| Net Income |
-13.03M |
19.65% |
2.44% |
| EPS |
-0.15 |
40.00% |
-7.14% |
Key Financial Ratios
operatingProfitMargin
-1022%
operatingCashFlowPerShare
$-0.09
freeCashFlowPerShare
$-0.09
Management Commentary
Key management themes from the earnings call:
- Commercial momentum and onboarding: Steve Lisi emphasized ongoing revenue growth driven by new hospital starts and contract renewals, noting six new starts and two renewals in QQ3 2025 and describing a strengthened customer engagement process. Quote: “the sequential quarterly revenue growth we are seeing… six new hospital starts and two hospitals renew their contracts.”
- CE Mark and international expansion: Lisi highlighted CE Mark approval in December and a trajectory toward ex-US shipments, with Getz Healthcare milestone payments and distributor interest in Europe, Asia Pacific, and the Middle East. Quote: “CE Mark approval… Getz is already ahead of schedule securing market authorization in Australia.”
- PMA and next-generation LungFit PH: The PMA supplement for label expansion to cardiac surgery is ongoing; the next-generation LungFit PH transport-capable system is expected to be submitted to FDA soon, with a strong market signal from the AARC demonstration. Quote: “We will be submitting to the FDA… the next generation LungFit PH transport capable system.”
- Near-term profitability timeline and costs: CFO Doug Larson discussed one-time upgrade costs and noncash headwinds that pressured gross margins but also highlighted cost reductions that reduced cash burn vs prior quarter. Quote: “Net cash burn in the quarter was $7.6 million, which was more than 30% lower than the prior quarter.”
- Strategic long-term catalysts: Steve Lisi and the team discussed Beyond Cancer UNO and NeuroNOS as long-term growth vectors, underscoring a multi-indication pathway for nitric oxide therapies. Quote: “Top line data from this Phase 1b study are anticipated around the end of calendar 2025.”
"The inflection point is happening now in the U.S. thanks to the system performance and our new and improved commercial infrastructure."
— Steve Lisi
"CE Mark triggered a $1 million milestone payment from Getz Healthcare, our Asia Pacific distribution partner."
— Steve Lisi
Forward Guidance
Guidance posture: Management stated that revenue guidance for fiscal 2026 would be provided on the fiscal year-end conference call in June 2025, indicating an intent to establish a formal trajectory for 2026 once more quarterly data and the PMA/CE Mark progress are visible. They expect continued sequential revenue growth into 2026, supported by: (1) U.S. LungFit PH market inflection as updated systems gain traction and commercial infrastructure matures; (2) ex-U.S. expansion following CE Mark, including distributor channels (Getz Healthcare and Business Asia consultants) and new contracts in the Middle East; (3) anticipated revenues from CE Mark milestone payments and royalties from Getz Healthcare, with early ex-U.S. shipments anticipated in the back half of fiscal 2026 and beyond; (4) the next-generation LungFit PH system potentially accelerating adoption once FDA submission is completed and feedback is managed. Risks include FDA regulatory timelines, potential variability in international regulatory pace, hospital procurement cycles, and the ability to sustain cost reductions while deploying scale. Key factors for investors to monitor: FDA submission feedback and timing, ex-U.S. regulatory clearance timelines, new contract signings and hospital onboarding cadence, progress of PMA for the next-gen device, and the impact of CE Mark-driven shipments on quarterly revenue in 2026.