Beyond Air (XAIR) Q4 2026 Earnings Call Transcript

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DATE

Friday, June 26, 2026 at 8:00 a.m. ET

CALL PARTICIPANTS

• Chief Executive Officer - Robert Goodman
• Chief Financial Officer - Dan Moorhead

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TAKEAWAYS

• Revenue -- $7.7 million for fiscal year 2026, representing an increase of 107% driven by new hospital adoption and strong customer retention.
• Q4 Revenue -- $1.9 million for the quarter ended March 31, 2026, an increase of 66% reflecting higher demand in domestic and international markets.
• Customer Renewal Rate -- approximately 90%, which management attributed to the clinical value of the technology and operational support.
• CY 2026 Revenue Guidance -- $8 million, representing roughly 15% growth over calendar year 2025 as the company transitions to a calendar fiscal year.
• CY 2027 Revenue Guidance -- $16 million to $18 million, representing over 110% growth at the midpoint assuming the commercial launch of the second-generation system.
• Gross Profit -- $300,000 for fiscal year 2026, compared to a loss of $1.7 million in the prior year, driven by operating leverage as revenue scaled.
• R&D Expenses -- $10.2 million for fiscal year 2026, a 39% decrease resulting from restructuring and lower costs following the PMA supplement submission.
• SG&A Expenses -- $19.1 million for fiscal year 2026, a 27% decrease due to reduced employee-related costs from prior restructuring.
• Operating Results Improvement -- $15.5 million or 35% improvement in total, reflecting revenue growth and significant cost structure reductions.
• Net Loss Attributable to Common Stockholders -- $33.2 million, or $4.01 per share, for fiscal year 2026, representing an improvement from the $46.6 million loss in the prior year.
• Net Cash Burn -- $19.1 million for fiscal year 2026, representing a 56% reduction from the previous fiscal year.
• Cash and Marketable Securities -- $17.3 million as of March 31, 2026, which the company uses to fund ongoing commercial operations.
• Total Long-Term Debt -- $21.6 million as of March 31, 2026, reflecting the company's existing financing arrangements.
• Equity Line of Credit -- $18.2 million remaining available for use, providing additional liquidity for future operations.
• Global Total Addressable Market -- more than $1 billion, which management expects to reach if the second-generation system is approved for transport use.
• U.S. Addressable Market -- approximately $400 million, representing a four-fold increase due to the expected inclusion of air and ground transport in FDA labeling.
• International Regulatory Clearance -- more than 45 countries, following the expansion of the global distribution network during the fiscal year.
• GPO Market Access -- three major national purchasing agreements, including one signed April 1, 2026, providing access to approximately 7,000 U.S. hospitals.
• Account Growth Projection -- 50%-70% increase in total accounts anticipated by management to meet calendar year 2027 revenue targets.
• Gen 2 Maintenance Interval -- approximately four times longer before service is required compared to the first-generation system, reducing cost of goods.
• Reverse Stock Split -- 1-for-20, approved by the board to regain compliance with the Nasdaq minimum bid price requirement by July 31, 2026.
• U.S. GPO Coverage -- access to nearly 2,000 hospitals via the most recent agreement, enabling immediate evaluations with flagship hospital systems.

SUMMARY

Management reported a transition in commercial strategy and fiscal reporting periods to align with future growth targets. Beyond Air is concentrating resources on its core nitric oxide delivery platform, specifically the LungFit PH system, while implementing cost-reduction measures and organizational restructuring. The company expects the pending regulatory approval of its second-generation technology to significantly broaden its market access to include transport services, which was identified as a critical requirement for larger hospital systems. Additionally, the company is leveraging new and existing group purchasing organization agreements to facilitate hospital evaluations and product adoption across integrated delivery networks.

• CEO Goodman characterized the second-generation PMA supplement as "the most important near-term catalyst for the company."
• Goodman indicated that evaluations are focusing on "flagship hospital systems" to "knock out incumbents" through the latest national purchasing agreement.
• Management noted that one current evaluation involves an integrated delivery network responsible for 200 hospitals, with initial pilots spanning regions of 10 to 22 facilities.
• Goodman stated the Gen 2 device offers "approximately four times longer before any maintenance is needed," which he identified as a "big difference for cost of goods and for customers."
• Goodman highlighted that both current and next-generation systems provide "unlimited nitric oxide from room air" and are the "fastest as far as speed to treatment" because they can be started and stopped quickly at the bedside.
• Goodman stated the board-approved 1-for-20 reverse split "positions the company to regain compliance with the bid requirement by the July 31st deadline."
• Management confirmed the company will focus its resources "almost exclusively" on the LungFit PH system to prioritize commercial growth and the Gen 2 launch.

INDUSTRY GLOSSARY

• GPO: A group purchasing organization that leverages the collective buying power of healthcare providers to obtain discounts from vendors.
• IDN: An integrated delivery network of healthcare facilities and providers that offer a continuum of care to a specific population.
• LungFit PH: A medical device that generates and delivers inhaled nitric oxide from ambient air for the treatment of persistent pulmonary hypertension in infants.
• Nitric Oxide: A gas molecule used in medical settings to treat hypoxic respiratory failure by relaxing vascular smooth muscle in the lungs.
• PMA: Premarket approval is the FDA process of scientific and regulatory review to evaluate the safety and effectiveness of Class III medical devices.
• TAM: Total addressable market, representing the total revenue opportunity available for a product or service if 100% market share is achieved.

Full Conference Call Transcript

Operator: Morning everyone, and welcome to the Beyond Air financial results call for fiscal year ended March 31st, 2026. I'd like to turn the call over to Garth Russell with LifeSci Advisors.

Garth Russell: Thank you, operator. Good morning, everyone, and thank you for joining us. Earlier today, we issued a press release announcing the operational highlights and financial results for Beyond Air's fiscal year ended March 31st, 2026. A copy of this press release can be found on our website, www.beyondair.net. Before we begin, I would like to remind everyone that we will be making forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. Beyond Air cautions that these forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those indicated. We encourage everyone to review the company's filings with the Securities and Exchange Commission.

This conference call is accurate only as of the date of the live broadcast, June 26, 2026. With that, I'll now turn the call over to Robert Goodman, Chief Executive Officer of Beyond Air.

Robert Goodman: Thanks, Garth, and good morning to everyone. Also here with me today is Dan Moorhead, our Chief Financial Officer. This is my first earnings call as Chief Executive Officer, and I'm excited to lead Beyond Air during what I believe is a pivotal moment for the company. Over the last several months, I've spent a lot of time with our customers, commercial organization, distribution partners, and board, and those discussions have only strengthened my conviction that LungFit PH represents a significant commercial opportunity to establish Beyond Air as a leader in the nitric oxide market.

As a leadership team, we've become increasingly focused on aligning our commercial strategy, R&D efforts, and operating expenses across our core business, particularly as we move closer to regulatory approval of our second-generation LungFit system. With our Gen 2 system, if approved, we expect to be more competitive and offer a more attractive solution for a broader range of hospital systems with external transport needs. As a result, we see the potential to immediately expand our total addressable market to over $1 billion globally.

Our strategy is very straightforward — we are allocating our resources with discipline toward the opportunities we believe can create the greatest near and long-term value, including adoption of our current commercial LungFit system and preparing for the launch of our Gen 2 system. Fiscal 2026 displayed meaningful progress toward this goal. Revenue increased more than 107% year-over-year to $7.7 million, driven by strong retention among our existing customer base and continued new hospital adoption. Importantly, our customer renewal rate was approximately 90%, which reflects the value LungFit PH is delivering in clinical practice and the confidence our customers have in our technology and operational service support.

This high level of customer satisfaction should be directly transposable to the Gen 2 device, and we continue to receive consistent feedback from prospective customers that they're waiting for our next generation platform to help meet all of their comprehensive INO requirements, including their transport needs. As a reminder, the current label for LungFit PH does not include transport use outside of the hospital. If approved, the Gen 2 product is intended to address this limitation through a broader label that would include transport use. We believe this will increase the total U.S. addressable market approximately four-fold to approximately $400 million and expand the worldwide opportunity to more than $1 billion. We've made meaningful progress expanding our commercial reach.

We recently announced a national purchasing agreement with one of the top three U.S. group purchasing organizations for inhaled nitric oxide therapy — the third major GPO to engage Beyond Air and another important milestone in expanding access to LungFit PH. Combined with our existing agreements with Premier and Vizient, we now have access to a substantial portion of the U.S. market. Additionally, we continued to broaden our global distribution network throughout the year and now have regulatory clearance in over 45 countries. As it relates to our Gen 2 LungFit PH system, which is under review at the FDA, we believe this to be the most important near-term catalyst for the company.

We submitted our PMA supplement to the FDA in June 2025 and continue to work through the review process at the expected pace. Based on our interactions with the FDA and the progress of the review process to date, we continue to believe we are on track for potential approval in the second half of the calendar year, although the timing and outcome remains subject to the FDA's discretion. We continue to prepare for a potential commercial launch by the end of 2026.

We continue to hear from prospective customers that the anticipated features of the Gen 2 platform — including a smaller footprint, reduced weight, simplified operation, longer service intervals, and ground and air transport availability — may address needs that are not fully met by currently available alternatives. In terms of other programs outside of our core LungFit PH business, our priority is clear. The Beyond Air team and its resources are focused on the success and growth of the commercial activities around the LungFit PH system, and we will continue to allocate our resources almost exclusively to that system.

With fiscal 2026 complete, we are transitioning from a March 31 to December 31 year-end and begin operating on a calendar year-end. As a result, we're providing revenue guidance for the first time for calendar year 2026 of $8 million, equating to approximately 15% growth over calendar year 2025. Our first-time guidance for calendar year 2027 is $16 million to $18 million, which would represent over 110% year-over-year growth at the midpoint and assumes FDA approval and commercial launch of the Gen 2 system during 2027 in accordance with our current planning assumptions. With that, I'll turn the call over to Dan for review of the financial results.

Dan Moorhead: Thanks, Bob, and good morning, everyone. I'll walk through our full-year financial results for fiscal year 2026, which ended March 31st, 2026. Revenues for the fiscal year ended March 31st, 2026, increased 107% to $7.7 million, compared with $3.7 million for fiscal year 2025. This growth was driven by increased demand for LungFit PH in both U.S. and international markets. Gross profit for fiscal year 2026 improved $300,000 compared with a loss of $1.7 million in the prior year — a $2 million swing to profitability, which is a meaningful milestone and reflects the operating leverage we are beginning to see as revenue scales.

R&D expenses for fiscal year 2026 decreased 39% to $10.2 million, compared with $16.9 million for fiscal year 2025. The reduction was primarily driven by decreased employee expenses as a result of prior restructuring activities and lower development costs associated with our Gen 2 device and PMA supplement, which was submitted to the FDA in June 2025. SG&A expenses for fiscal year 2026 were $19.1 million compared with $26 million for fiscal year 2025, a decrease of 27% or approximately $7 million, primarily driven by lower employee-related costs from prior restructuring initiatives. In total, we reduced our cost structure significantly year-over-year, which, in combination with revenue growth, drove a 35%, or $15.5 million, improvement in operating results.

Other expense for fiscal year 2026 was $5.3 million compared with $3.9 million for fiscal year 2025. Net loss attributable to common stockholders for fiscal year 2026 was $33.2 million, or a loss of $4.01 per basic and diluted share, compared with $46.6 million or $13.77 per share for fiscal year 2025. Net cash burn, excluding inflows from financing activities, was $19.1 million, down 56% compared to fiscal year 2025. As of March 31st, 2026, we reported cash equivalents, restricted cash, and marketable securities of $17.3 million. Total long-term debt outstanding was $21.6 million. With that, I'll hand the call back to Bob.

Robert Goodman: Thanks, Dan. Before we open the call for questions, I want to briefly address our Nasdaq listing. Earlier this month, we announced that the Nasdaq hearings panel granted our request to continue listing on the Nasdaq stock market, subject to our regaining compliance with Nasdaq's minimum bid price requirement by July 31st, 2026. Following stockholder approval at the special meeting held on June 18th, our board approved a one-for-20 reverse split. As a result, we expect the reverse split positions the company to regain compliance with the bid requirement by the July 31st deadline. With that, we'll now open the call for questions.

Operator: Our first question comes from the line of Yale Jen with Laidlaw & Company.

Yale Jen: Two questions. First, on the second-gen PMA supplement — can you give any color on what level of questions has been asked and the responses you already have?

Robert Goodman: With the second-generation supplement, we're completely on track. We've done all types of testing around our software, ventilator testing, cybersecurity, EMC testing, bootloader testing, altitude testing — all as asked by the FDA as part of this supplement. The supplement was put in a year ago and we're expecting to have our scientific letter with all the I's dotted and T's crossed momentarily. From there, the next step is getting into additional communication with the FDA. Along the way, they've been incredibly communicative, getting back to us really quickly. All this information has been passed back and forth, which is helping us know where we stand in the process.

We're looking forward to doing our audits in the upcoming couple of months and taking things from there.

Yale Jen: On the $8 million guidance for 2026 — does that include the $1.9 million top line from calendar Q1, and what do you call that period?

Dan Moorhead: When we're talking about the $8 million for calendar 2026, that would include the $1.9 million we just reported for January through March, plus the calendar quarters ending June 30, September 30, and December 31. The $8 million is a pure calendar year 2026 number, including the quarter we just reported. The Gen 2 launch isn't supposed to happen till late in the year, so we're not counting any Gen 2 revenue in calendar 2026. We expect to see the majority of that coming in beginning in calendar 2027.

Operator: Our next question comes from the line of Michael King with Rodman & Renshaw.

Mike King: A couple of things on the 2027 guidance. What proportion do you think Gen 2 might represent? And how critical are the group purchasing agreements to executing against that guidance as opposed to conquering individual accounts?

Dan Moorhead: On the 2027 revenue, since Gen 2 wouldn't be sold internationally to begin with, if we look at just the U.S. portion, it ends up being about half or maybe a little more than half of U.S. revenue. We have a lot of business that's pretty sticky with good renewal rates, and contracts carry over year to year. The Gen 2 stuff starting to come in during 2027 makes up around half of U.S. revenue for 2027.

Mike King: In terms of account conquest needed to make those numbers?

Dan Moorhead: It varies. We're moving from a smaller TAM right now — without the transportability, we're dealing with smaller hospitals. We expect deal size to increase. If we're doubling revenue in the U.S., it's going to be probably 50% to 70% more accounts rather than having to double the number of accounts.

Mike King: Does Gen 2 have the same capacity as the current generation despite its smaller footprint?

Robert Goodman: Both products provide unlimited nitric oxide from room air and both are the fastest as far as speed to treatment — you can start them up, stop them, start them again, which is very important at the bedside. The major differentiator with the Gen 2 once approved is that it'll be fully designed for transport, with air and ground capability, opening up the larger total addressable market. The other major difference is a change in the predictability of duration between starts for a device going into the field — approximately four times longer before any maintenance is needed. That's a big difference for cost of goods and for customers managing the product.

Much easier to use, no storage issues compared to competitors, and the transport capability. Very excited about those pieces.

Mike King: On the GPOs and their criticality to the guidance —

Robert Goodman: The most recent GPO that we signed on April 1st is up and running, and we're already doing evaluations. Part of our contracting was to make sure we could get in front of flagship hospital systems immediately to start evaluations, get product in the hospitals, and knock out incumbents. This is happening now. There are already accounts coming on board based on that. There are three major GPOs in the U.S. that cover roughly around 7,000 hospitals, and all the different integrated delivery networks underneath them. With the most recent GPO, there's almost 2,000 hospitals. One of the evaluations we're working with is responsible for 200 hospitals.

The pilots and evals we're doing are with regions — groups of 10, 17, and 22 hospitals within the IDNs — and it just spider webs out from there. We're approaching the evaluation process at the appropriate pace and it's going great.

Operator: At this time, we're showing no further questions. I'd now like to turn the call back over to Robert Goodman for any closing remarks.

Robert Goodman: We appreciate everybody coming on the call today, and we look forward to providing future guidance and delivering for our shareholders. Everybody have a nice day. Thank you.

Operator: Thank you. This concludes today's conference call. You may disconnect your lines at this time. Thank you for your participation.

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