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    XAIR
    Earnings call· Jun 2026(Q1 FY27)

    Beyond Air Q1 FY27 earnings call XAIR

    Aug 13, 2026 Source

    Executive summary

    Beyond Air Q1 FY27 — Strengthening Foundation for Gen 2 LungFit PH Launch

    Beyond Air is positioning for its next growth phase, strengthening its financial foundation and expanding commercial reach ahead of the anticipated FDA approval and launch of its second-generation LungFit PH system. While Q1 FY27 revenue remained flat, the company reported improved gross margins and significant progress in market access and pipeline development, reaffirming its full-year revenue guidance.

    Highlights

    5

    • Strengthened balance sheet with up to $30 million financing, including $10 million in upfront gross proceeds.

    • Regained compliance with NASDAQ's listing requirements.

    • Gross margin improved to 13% for Q1 FY27, up from 9% in the prior year, marking the third consecutive quarter of positive gross profit.

    • Entered into a national group purchasing agreement with a third major U.S. GPO, expanding market access.

    • Commercial pipeline doubled over the last five to six months.

    Concerns

    2

    • Revenue for Q1 FY27 was $1.8 million, effectively flat compared to the prior quarter.

    • Net loss attributable to common stockholders was $7.9 million, or $11 per basic and diluted share, compared to $7.7 million or $30.67 per share in the prior year.

    Guidance & targets

    3
    CategoryTargetConfidence
    Calendar Year 2026 Revenue
    $8 million
    high materiality
    High
    Calendar Year 2027 Revenue
    $16 million to $18 million
    high materiality
    High
    Gen 2 LungFit PH FDA Approval
    Second half of calendar year 2026
    high materiality
    Medium

    Operational metrics

    8
    Gross margin
    13%vs 9% in Q1 FY26
    Q1 FY27

    Gross margin for the quarter ended June 30th, 2026 was 13% compared with gross margin of 9% for the same period last year.

    Research and development expenses
    $2 millionvs $3.1 million in Q1 FY26
    Q1 FY27

    Research and development expenses for the quarters ended June 30, 2026 were $2 million compared to $3.1 million for the same period last year.

    Selling, general and administrative expenses
    $4.9 millionvs $4.7 million in Q1 FY26
    Q1 FY27

    Selling general and administrative expenses for the quarter ended June 30, 2026 were $4.9 million, compared with $4.7 million for the same period last year.

    Other expense
    $1.5 millionvs $0.5 million in Q1 FY26
    Q1 FY27

    Other expense for the quarter ended June 30th, 2026 was $1.5 million compared with $500,000 for the same period last year.

    Cash, cash equivalents, restricted cash and marketable securities
    $15.2 million
    As of June 30, 2026

    As of June 30th, 2026, we reported cash, cash equivalents, restricted cash and marketable securities of 15.2 million. This total does not include the recent financing.

    Financing proceeds
    $10 million
    Recent

    We recently announced a financing for up to $30 million, which provided $10 million in upfront gross proceeds and the potential for up to an additional $20 million upon the exercise of short and long-term warrants.

    Commercial pipeline
    Doubled
    Last 5-6 months

    Pipelines actually doubled over the last five or six months.

    Fiscal year end change
    —From March 31st
    Effective December 31st, 2026

    On our last quarterly call, we announced the change in our fiscal year end from March 31st to December 31st. We will move to calendar year reporting with the SEC subsequent to our December 31st, 2026 filing.

    Industry KPIs

    4
    MetricValueDetails
    New product launch rampPreparing for commercial launch
    FCF conversion leverage guidance$8 millionUSD
    Sales force commercial capacity buildDoubled
    Pivotal trial clinical evidence milestonesPMA supplement submitted

    Deals & partnerships

    2
    Leading U.S. GPONational group purchasing agreement

    This is the third major national GPO to partner with Beyond Air, alongside existing agreements with Premier and Vizion, expanding commercial reach for LungFit PH.

    Multiple international partnersGlobal distribution network expansion

    Beyond Air is expanding its international distribution network through new and existing commercial partnerships, supported by its strengthened financial position.

    Risks & headwinds

    1
    FDA approval timing and outcome for Gen 2 LungFit PHSecond half of calendar year 2026

    Timing and outcome of the review remain subject to the FDA approval process.

    Mitigation: Ongoing positive interactions with the FDA, submission of required paperwork, and preparation for commercial launch.

    What to watch in Q2 FY27

    4

    Gen 2 LungFit PH FDA Approval

    Q4 CY2026
    CurrentUnder review, on track for H2 CY2026
    TargetApproval decision

    Why it matters

    FDA approval is the most important near-term catalyst for the company, enabling the commercial launch of the second-generation system and driving significant future revenue growth.

    We continue to believe this to be the most important near-term catalyst for the company. We submitted our PMA supplement to the FDA in June of 2025, and based off of our interactions with the FDA to date, we continue to believe we are on track for a potential approval in the second half of this calendar year, although the timing and outcome of the review remain subject to the FDA approval process.

    Q&A highlights

    5

    Can you provide more detail on how the recent financing capital will be used, specifically for the Gen 2 LungFit PH launch and commercial rollout, and where the biggest investments will be?

    The capital will primarily be used for operations, including building pilot devices for the Gen 2 system and scaling up device production upon FDA clearance for commercial launch in 2027 and beyond. It will also absorb some of the company's cash burn during this period.

    “It really is a lot for operations. So what we have going right now is we have the pilots, which are being built on the Gen 2 device, in the near term and then upon FDA clearance, we'd be building a lot more devices and gaining commercial steam for 2027 and beyond.”

    asked by Jillian Weiss · answered by Daniel Moorhead

    2 min read6 chapters

    Detailed Narrative

    01

    Financial Strengthening and NASDAQ Compliance

    Beyond Air has significantly strengthened its financial position through a recent financing of up to $30 million, securing $10 million in upfront gross proceeds. This capital infusion has also enabled the company to regain compliance with NASDAQ's listing requirements, providing greater financial flexibility for future operations and strategic initiatives, particularly the planned commercial launch of the second-generation LungFit PH system.

    02

    Commercial Expansion and Market Access

    The company continues to expand its commercial footprint by deepening relationships with hospitals and health systems. During the quarter, Beyond Air secured a national group purchasing agreement with a third major U.S. GPO, complementing existing agreements with Premier and Vizion. These partnerships collectively provide access to a substantial portion of U.S. hospitals, forming a critical component of the commercial strategy for LungFit PH.

    03

    International Distribution Network Growth

    Beyond Air is actively expanding its global distribution network, with partnerships already in place covering over 40 countries. The strengthened financial position from the recent equity raise is expected to better support these international partners in bringing LungFit PH to market in various regions. This international expansion is identified as a key growth center for the company.

    04

    Second-Generation LungFit PH FDA Review Progress

    The second-generation LungFit PH system remains under review by the FDA, with the PMA supplement submitted in June 2025. Management reports positive and frequent interactions with the FDA, indicating that the review process is on track for a potential approval in the second half of calendar year 2026. The company is actively preparing for a commercial launch pending this critical regulatory milestone.

    05

    Disciplined Capital Allocation and Operational Focus

    Beyond Air maintains a disciplined approach to capital allocation, primarily dedicating resources to the LungFit PH program. The recent financing is earmarked to support operations, including the building of pilot devices for the Gen 2 system and covering cash burn during the pre-launch phase. This strategic investment aims to ensure a robust commercial rollout post-FDA clearance.

    06

    Confidence in H2 2026 Revenue Growth

    Despite flat revenue in Q1 FY27, management expressed strong confidence in achieving its reaffirmed $8 million revenue guidance for calendar year 2026, implying significant growth in the second half. This confidence is attributed to a doubled commercial pipeline, recent wins in the current quarter, and immediate revenue recognition from international tenders, which are expected to contribute meaningfully to H2 numbers.

    AI-generated summary of the company’s earnings call. Not investment advice.