QT Imaging Holdings (QTI) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 2025 increased 105% year-over-year to $2.8 million, driven by higher sales of QT Breast Scanners under the amended NXC Distribution Agreement, with six scanners shipped and a 65% gross margin.

• Net loss for Q1 2025 was $11.1 million, significantly higher than the $0.6 million loss in Q1 2024, primarily due to non-cash expenses, debt extinguishment, and issuance costs.

• The company completed a $10.1 million senior secured term loan with Lynrock Lake, repaid prior debt, and raised additional capital through PIPE investments totaling $0.7 million.

• Entered a contract manufacturing agreement with Canon Medical Systems to scale production while retaining in-house manufacturing rights.

• The company expects current liquidity, new distribution agreements, and manufacturing partnerships to fund operations for at least the next 12 months.

Financial highlights

• Q1 2025 revenue: $2.8 million, up from $1.36 million in Q1 2024 and $0.8 million in Q4 2024, driven by six scanner shipments.

• Gross profit: $1.81 million in Q1 2025, with gross margin improving to 65% from 56% in Q1 2024 and 47% in Q4 2024.

• Operating expenses decreased 55% year-over-year to $2.85 million, mainly due to lower transaction and professional service costs.

• Net loss: $11.1 million in Q1 2025, including $2.0 million debt extinguishment, $6.6 million debt issuance, and $0.7 million interest expenses.

• Net cash used in operating activities was $3.5 million in Q1 2025, down from $6.0 million in Q1 2024.

Outlook and guidance

• Management expects the combination of new term loan proceeds, PIPE investments, and minimum order quantities from the NXC Distribution Agreement to support operations for at least the next year.

• 2025 revenue target of $18 million (40 scanners) and 2026 target of $27 million (60 scanners), aligned with distribution agreement MOQs.

• The company plans to continue investing in R&D and commercialization efforts, with ongoing losses expected until sufficient revenue is achieved.