Beyond Air (XAIR) Q2 2027 earnings summary

Executive summary

• Record quarterly revenue of $2.324M, up ~28% YoY and 31% QoQ, supported by first-generation LungFit PH adoption and international sales.

• The second-generation LungFit PH PMA supplement remains under FDA review; requested labeling would allow use during air and ground transport.

• CY2026 revenue guidance remains $8M; CY2027 guidance remains $16M–$18M, including anticipated second-generation sales pending FDA approval.

• H1 operating cash use was $10.5M; management expects additional funding within one year and cited substantial doubt about meeting obligations from cash on hand.

Financial highlights

• Quarterly revenue was $2.324M versus $1.818M; gross profit was $197K versus a $298K gross loss, with gross margin improving to ~8% from negative 16%.

• Operating expenses declined to $6.172M from $7.363M, narrowing operating loss to $5.975M from $7.661M.

• R&D fell to $1.581M from $2.450M as second-generation development neared completion; SG&A declined to $4.591M from $4.913M, partly offset by sales-team hiring.

• Other expense rose to $2.200M from $597K, mainly due to higher debt-related interest and a $567K obsolete-inventory charge.

• Net loss attributable to common stockholders was $7.818M, or $3.76/share, versus $7.940M, or $24.98/share.

Outlook and guidance

• CY2026 revenue guidance remains $8M, excluding second-generation LungFit PH; CY2027 guidance remains $16M–$18M, including anticipated second-generation revenue pending FDA approval.

• CY2027 guidance assumes no second-generation revenue in Q1 and revenue in Q2–Q4; management said it does not currently expect a launch-related pushout.

• Audit readiness is expected by mid-December, followed by FDA inspection and review; approval timing and outcome remain subject to the FDA.

• International distribution agreements cover more than 40 countries, with significant revenue contribution anticipated in FY2027 and beyond.

• Fiscal year-end transitions from March 31 to December 31 effective December 31, 2026; a nine-month transition-period Form 10-K/T is expected.