Spectral AI R&D Revenue Falls 24.7% in Q3 to $2.9 Million
Key Facts
Spectral AI reported its third-quarter 2026 results after the market closed on November 10, posting R&D revenue of $2.9 million, down 24.7% from $3.8 million in the same period a year earlier. In its results statement, the company said BARDA revenue was $2.7 million, compared with $3.4 million a year earlier. It attributed part of the decline to the cost-sharing structure in the current phase of the contract. Under this structure, the company funds part of the subsequent development costs for the DeepView AI system. The system received FDA De Novo authorization in May 2026, according to the company.
Revenue from other U.S. government programs fell to $0.1 million from $0.4 million in the third quarter of 2025. The company said most of this revenue was tied to MTEC's mobile device program, which has been completed. Gross margin fell to 27.2% from 42.7% a year earlier. The company attributed this mainly to its share of development costs under the BARDA cost-sharing arrangement. These items show that government revenue tied to the system's development and programs was a central part of the quarter's performance.
Net loss was $3.7 million, or $0.11 per share, compared with a loss of $3.6 million and $0.13 per share in the third quarter of 2025. Net loss therefore widened, while the loss per share narrowed compared with the same period. Cash and cash equivalents were $11.2 million on September 30, 2026, down from $15.4 million on December 31, 2025. The balances compare two different measurement dates, one at quarter-end and the other at the end of the prior year. The information provided included no further details on cash movements during the period.
Spectral AI cut its 2026 R&D revenue outlook to about $13.0 million from a previous forecast of about $18.5 million. The company linked the revision to the completion of the MTEC program and the timing of reimbursable activities under the BARDA contract. In its annual results, it said R&D revenue fell to $19.7 million in 2025 from $29.6 million in 2024. At the time, it attributed the decline to lower reimbursable costs under the BARDA contract after filing the De Novo application with the FDA. In March 2026, the company announced an additional $31.7 million in BARDA funding to accelerate development of additional system features, with the company committed to covering $9.7 million of the total development costs associated with those features.
The chief executive said the company had begun manufacturing its first 30 DeepView AI devices ahead of their deployment, supported by BARDA, at U.S. burn centers. The company is targeting delivery of the initial devices by year-end, he added. For clinical expansion, the company completed site initiation visits at four burn centers in the United Kingdom and enrolled ten patients in a study aimed at supporting an expansion of the system's label to include burns to the head, hands and feet. The company presented these steps in manufacturing and study expansion among the operational developments accompanying the results. The information provided did not specify an initial delivery date other than year-end.
The company is awaiting a CMS decision on its application for NTAP payments and expects it by August 2027. It said approval could allow hospitals to receive additional Medicare reimbursement when using the system. MDAI shares closed at $1.53 on November 9, 2026. That close preceded the results announcement, which came after the market closed on November 10. The cited closing price therefore does not reflect the stock's reaction to the results.