Beyond Air, Inc. (XAIR): Results of Operations and Financial Condition
Beyond Air, Inc. (XAIR) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Beyond Air ® Reports Financial Results for the Quarter Ended June 30, 2026 and Provides Corporate Update Reports $1.8 million revenue for quarter ended June 30, 2026; reaffirms revenue guidance of $8 million for CY2026 and $16-$18 million for CY2027 PMA supplement fo
How this was made
The 30-second read
Why it matters
The 8-K provides fresh quarterly financials, reaffirms revenue guidance, and discloses a new financing package up to $30.1M, including proceeds tied to FDA approval, which can change the probability-weighted outlook for the 2H 2026 launch.
Market read
Traders get a new capital and guidance update tied to an FDA milestone, which can reprice launch timing and dilution expectations.
What to watch
Gross margin remains low (13% vs 9% prior year) and operating losses persist, so the market may focus on burn rate and commercialization traction rather than guidance alone.
Beyond Air reported $1.8 million revenue for the quarter ended June 30, 2026, reaffirmed calendar-year 2026 revenue guidance of $8 million and calendar-year 2027 guidance of $16-$18 million, and cited pending FDA review of its second-generation LungFit PH PMA supplement.
Revenue was unchanged year over year at $1.8 million and the company remained loss-making, while gross margin improved and research and development expense declined. The company reaffirmed its revenue outlook, but the anticipated second-generation LungFit PH launch remains contingent on FDA approval and the financing includes substantial potential warrant proceeds.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenueGAAP | $1.8 million | – | – |
| RevenuesGAAP | $1.768 million | – | – |
| Cost of revenuesGAAP | $1.543 million | – | – |
| Gross profitGAAP | $225 thousand | – | – |
| Gross marginGAAP | 13% | – | – |
| Research and development expensesGAAP | $2.0 million | – | – |
| Research and development expensesGAAP | $1.959 million | – | – |
| Selling, general and administrative expensesGAAP | $4.9 million | – | – |
| Selling, general and administrative expensesGAAP | $4.878 million | – | – |
| Total operating expensesGAAP | $6.837 million | – | – |
| Loss from operationsGAAP | $(6.612) million | – | – |
| Dividend/interest incomeGAAP | $103 thousand | – | – |
| Interest and finance expenseGAAP | $(1.492) million | – | – |
| Change in fair value of warrant liabilityGAAP | $1 thousand | – | – |
| Foreign exchange gain/(loss)GAAP | $40 thousand | – | – |
| Loss on extinguishment of debtGAAP | $(153) thousand | – | – |
| Loss on disposal of fixed assetsGAAP | $(52) thousand | – | – |
| Other incomeGAAP | $11 thousand | – | – |
| Total other expenseGAAP | $(1.542) million | – | – |
| Loss before income taxesGAAP | $(8.154) million | – | – |
| Provision for income taxesGAAP | - | – | – |
| Net lossGAAP | $(8.154) million | – | – |
| Net loss attributable to Beyond Air, Inc.GAAP | $(7.935) million | – | – |
| Net basic and diluted loss per share attributable to Beyond Air, Inc.GAAP | $(11.00) per share | – | – |
| Weighted average number of shares of common stock outstanding, basic and dilutedGAAP | 721,328 | – | – |
| Comprehensive loss attributable to Beyond Air, Inc.GAAP | $(7.956) million | – | – |
Calendar year 2026 and calendar year 2027 outlook
- Revenue$8 million for calendar year 2026; $16-$18 million for calendar year 2027
- NoteCalendar year 2026 revenue guidance does not include any revenue from the second-generation LungFit PH system.
- NoteCalendar year 2027 revenue guidance includes anticipated revenue from the second-generation LungFit PH system, pending regulatory approval.
- NoteCalendar year 2027 guidance represents more than 110% year-over-year growth at the midpoint compared with 2026 guidance.
- NoteFDA approval of the PMA supplement for the second-generation LungFit PH system is expected in 2H CY2026.
What drove it
- The company entered into a national group purchasing agreement with a leading U.S. group purchasing organization, its third major U.S. GPO engagement, expanding reach by nearly 2,000 U.S. hospitals and health systems.
- The global LungFit PH distribution network now covers more than 45 countries.
- Gross margin was 13%, compared with 9% for the same period last year.
- Research and development expense was $2.0 million, compared with $3.1 million for the same period last year.
- The PMA supplement for the second-generation LungFit PH system, submitted in June 2025, is under FDA review.
Concerns
- Revenue was $1.8 million for both the quarters ended June 30, 2026 and 2025.
- Net loss attributable to Beyond Air, Inc. was $7.9 million, compared with $7.7 million for the same period last year.
- Interest and finance expense was $(1.492) million, compared with $(548) thousand for the same period last year.
- The commercial launch and anticipated 2027 contribution from the second-generation LungFit PH system are pending regulatory approval.
- Up to $20.0 million of the recent financing depends on potential warrant exercises, including $10.0 million tied to FDA approval of the second-generation system.
- The company cited risks relating to dilution from securities issued in the financing and any warrant exercises.
- The company is transitioning its fiscal year end from March 31 to December 31, effective December 31, 2026.
What to watch
- FDA timing and outcome for the second-generation LungFit PH PMA supplement, for which approval is expected in 2H CY2026.
- Commercial execution toward the reaffirmed $8 million calendar-year 2026 revenue guidance, which excludes revenue from the second-generation system.
- Whether the company realizes anticipated second-generation LungFit PH revenue within its $16-$18 million calendar-year 2027 revenue guidance.
- Conversion of the expanded GPO access and distribution network spanning more than 45 countries into customer adoption and revenue.
- Potential exercise of the financing warrants and the availability of up to an additional $20.0 million in proceeds.
- The company's planned Form 10-K/T covering the nine-month transition period ending December 31, 2026.
Balance sheet and cash flow
- Cash, cash equivalents, restricted cash and marketable securities were $15.2 million as of June 30, 2026.
- Cash and cash equivalents were $5.509 million as of June 30, 2026, compared with $6.740 million as of March 31, 2026.
- Marketable securities were $4.303 million as of June 30, 2026, compared with $4.901 million as of March 31, 2026.
- Restricted cash was $5.405 million as of June 30, 2026, compared with $5.622 million as of March 31, 2026.
- Accounts receivable, net, were $1.140 million as of June 30, 2026, compared with $1.086 million as of March 31, 2026.
- Inventory, net, was $1.292 million as of June 30, 2026, compared with $1.406 million as of March 31, 2026.
- Total assets were $32.891 million as of June 30, 2026, compared with $35.385 million as of March 31, 2026.
- Long-term debt, net, was $22.167 million as of June 30, 2026, compared with $21.639 million as of March 31, 2026.
- Loans payable, current portion, were $231 thousand as of June 30, 2026, compared with $401 thousand as of March 31, 2026.
- Total liabilities were $30.052 million as of June 30, 2026, compared with $29.175 million as of March 31, 2026.
- Total stockholders' equity was $2.839 million as of June 30, 2026, compared with $6.210 million as of March 31, 2026.
- Subsequent to quarter-end, the company entered into an up to $30.1 million financing, consisting of $10.2 million in upfront gross proceeds and up to an additional $20.0 million from potential exercise of short- and long-term warrants, including $10.0 million tied to FDA approval of the second-generation LungFit PH system.
Analysis
Beyond Air reported revenue of $1.8 million for the quarter ended June 30, 2026, unchanged from $1.8 million in the prior-year period. The company pointed to a third major U.S. group purchasing organization engagement, expanding its reach by nearly 2,000 U.S. hospitals and health systems, and a global LungFit PH distribution network covering more than 45 countries. These commercial-access initiatives are central to management's stated plan for expanded adoption, but the reported quarter did not show year-over-year revenue growth.
Gross margin improved to 13% from 9%, with gross profit of $225 thousand compared with $156 thousand. Operating expenses were $6.837 million versus $7.773 million, as research and development expense declined to $1.959 million from $3.086 million, partially offset by selling, general and administrative expense of $4.878 million versus $4.687 million. The resulting loss from operations narrowed to $(6.612) million from $(7.617) million.
Below operating income, interest and finance expense increased to $(1.492) million from $(548) thousand, while the company also recorded a $(153) thousand loss on extinguishment of debt. Total other expense rose to $(1.542) million from $(461) thousand. Net loss attributable to Beyond Air, Inc. was $(7.935) million, compared with $(7.691) million, and basic and diluted loss per share was $(11.00) versus $(30.67). Prior-period per-share results were adjusted for the one-for-twenty stock split in July 2026.
Liquidity was $15.2 million in cash, cash equivalents, restricted cash and marketable securities at June 30, 2026. Subsequent to quarter-end, the company received $10.2 million in upfront gross proceeds in an up to $30.1 million financing; potential additional proceeds of up to $20.0 million depend on warrant exercises, with $10.0 million tied to FDA approval of the second-generation LungFit PH system. Long-term debt, net, was $22.167 million at quarter-end, while total stockholders' equity was $2.839 million.
The company reaffirmed $8 million of calendar-year 2026 revenue guidance, explicitly excluding revenue from the second-generation LungFit PH system. It also reaffirmed calendar-year 2027 revenue guidance of $16-$18 million, which includes anticipated revenue from that system pending regulatory approval. The PMA supplement was submitted in June 2025 and remains under FDA review, with approval expected in 2H CY2026. The regulatory decision, launch execution, warrant funding and conversion of GPO and distributor access into revenue are the principal reported milestones.
Management, verbatim
Over the past several months, we have been focused on strengthening every aspect of the business in advance of our next phase of commercial growth.
Robert Goodman, Chief Executive Officer of Beyond Air
We strengthened our balance sheet with an up to $30 million financing, and continued to build our commercial infrastructure, customer relationships and sales pipeline.
Robert Goodman, Chief Executive Officer of Beyond Air
We believe these efforts position us well for the anticipated launch of our second-generation LungFit PH system, pending FDA approval, and support our objective of expanding adoption of LungFit PH over the long term.
Robert Goodman, Chief Executive Officer of Beyond Air
Not in the filing
stated, not guessed- Prior-quarter revenue, gross margin, operating expenses, operating income or loss, net income or loss, and EPS
- Segment revenue and segment profitability disclosures
- Non-GAAP financial measures, including non-GAAP EPS
- Operating cash flow
- Free cash flow
- Capital expenditures
- Share repurchases
- Dividends
- Guidance for gross margin, operating expenses, tax rate, EPS, operating cash flow, or free cash flow
- Previous-quarter outlook document needed for prior-guidance comparisons
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Beyond Air is commercial-stage in LungFit PH and is awaiting FDA review of a PMA supplement for its second-generation system submitted in June 2025.
Ticker impact
Beyond Air reports Q2 results, reaffirms 2026 revenue guidance, and discloses up to $30.1M financing tied to FDA approval for its second-generation LungFit PH system.
Likely near-term volatility with a bias to the upside if investors view the financing as de-risking the FDA launch; downside risk if FDA timing slips or warrant-linked dilution concerns dominate.
New primary disclosures include Q2 financials, reaffirmed guidance, and a specific financing structure with $10.0M tied to FDA approval, which can reprice probability-weighted outcomes for the LungFit PH launch.
Market effects
Highlights how FDA review timelines and device PMA supplements can drive capital-market financing structures for commercial-stage medtech.
Limited direct regional impact; primarily affects US-listed small-cap biotech/medtech sentiment.
Mentions distribution coverage across 45+ countries, but near-term catalyst remains FDA approval for the US launch.
Counterpoint
The financing includes warrant exercise optionality and may still imply dilution; investors may discount the $10.0M FDA-linked tranche if approval probability is already priced.
Key entities
- companyBeyond Air, Inc.
NASDAQ-listed medical device and biopharmaceutical company focused on nitric oxide delivery via LungFit PH.
- productLungFit PH second-generation system
FDA-reviewed PMA supplement; approval expected in 2H 2026 and included in 2027 revenue guidance.
- regulatorFDA
Reviewing the PMA supplement submitted in June 2025, a key binary catalyst for launch timing.
