Beyond Air (NASDAQ:XAIR) executives highlighted accelerating commercial traction for its LungFit PH nitric oxide system, a sharper cost structure, and balance sheet actions designed to fund operations through key milestones during the company’s fiscal third-quarter earnings call for the period ended December 31, 2025.
Commercial momentum for LungFit PH
Chief Executive Officer Steve Lisi said quarterly revenue rose 105% year-over-year to $2.2 million, reflecting what management described as continued scaling of adoption and awareness for the company’s first-generation LungFit PH system. Beyond Air said it now supports more than 45 hospitals in the U.S. and internationally that have adopted the first-generation system.
Chief Commercial Officer Bob Goodman, who took the role in October after previously serving on the board, emphasized customer response to system performance and support. Goodman said Beyond Air has group purchasing organization agreements with Premier and Vizient, which together provide access to nearly 3,000 hospitals in the U.S., and he said the company expects additional opportunities at the GPO and integrated delivery network level in 2026 as awareness grows.
Goodman also announced Beyond Air’s first commercial sale to a VA Medical Center, completed with partner Trilumed. In response to an analyst question, Goodman said the company’s product is offered through the VA’s ECAT catalog, which he said allows hospitals to purchase outside of an RFP process while still being able to compete for other RFP opportunities.
On sales execution, Goodman described efforts to refine targeting using prospecting tools, CRM discipline, and “pipeline discipline,” alongside field support from clinical teams. He said the sales cycle can be as short as four to five months in favorable circumstances, but generally runs about six to nine months and can be longer depending on timing and customer contracting.
Gen 2 expectations and FDA process
Management reiterated expectations for an FDA decision on its second-generation LungFit PH system before the end of calendar 2026, subject to regulatory review and clearance. Lisi said the company has had “fairly constant communication” with the FDA and that management is “very happy with the interaction,” adding that it does not see major hurdles and intends to provide what the agency requests.
Lisi identified work with the contract manufacturer and readiness for inspection as the primary gating factor for timing. On the post-clearance ramp, CFO Dan Moorhead said he expects cash burn to improve as revenue grows, but noted the company anticipates burn will worsen when it begins building inventory in preparation for a Gen 2 launch.
Executives again outlined anticipated Gen 2 enhancements versus Gen 1, including reduced size and weight, simplified operation, extended service intervals, improved backup system functionality, and compatibility with both air and ground transport. In the Q&A, Lisi provided additional detail on service intervals, stating the current Gen 1 system requires service every 1,000 hours. He said Beyond Air expects Gen 2 service intervals to extend to at least 3,000 hours, with ongoing reliability testing potentially supporting longer intervals. Lisi said the FDA reliability hurdle has already been met and that further testing is intended to guide service practices rather than serve as a gating factor for approval.
Goodman also addressed concerns that customers might delay purchases to wait for Gen 2. He said the commercial team is focused on Gen 1 for non-transport use cases today, while recognizing transport requirements as “a later on Gen 2 conversation.”
International expansion and early reorders
Internationally, Goodman said Beyond Air expanded its global distribution network with new agreements in Canada, Germany, Brazil, Austria, the Netherlands, and Sri Lanka, bringing total international coverage to 40 countries. He said the company is live in a few hospitals abroad and has begun to see repeat orders for accessories, including filter reorders, which he described as evidence of product deployment and “stickiness.”
Beyond Cancer update and Neuronas transaction
On its Beyond Cancer initiative, Lisi said the company’s abstract was selected for the 2026 AACR Annual Meeting in April. He reiterated details previously disclosed: the study enrolled 10 heavily pretreated metastatic cancer subjects receiving 25,000 or 50,000 parts per million of nitric oxide gas delivered intratumorally over five minutes. Lisi said the safety profile observed to date has been acceptable. He added that updated overall survival data will be presented, and that median survival had not been reached as of October 1, 2025. Lisi said Beyond Air remains dedicated to pursuing a Phase 1B combination study with anti-PD-1 therapy, but did not provide a start timeline. In Q&A, he said the company’s balance sheet is currently focused on commercial operations and suggested a study of that nature may not be something Beyond Air would fully fund until it is more comfortable with its path to profitability.
Regarding Neuronas, Beyond Air’s neurology-focused subsidiary, Lisi referenced a January 13, 2026 announcement by XTL Biopharmaceuticals of a binding letter of intent to acquire Neuronas. Consideration includes a 19.9% stake in XTL, $1 million in cash, and milestone-based contingent payments totaling up to $31.5 million. Lisi said Beyond Air would not comment beyond public disclosures while the transaction remains pending. In Q&A, he said XTL was attracted by Neuronas’ science and a “clear path to human studies,” while acknowledging that translating efficacy from rodents to humans remains uncertain.
Financial results, margins, and cash runway
Moorhead, who joined as CFO roughly seven weeks before the call, detailed the quarter’s financial performance:
- Revenue: $2.2 million, up 105% year-over-year and up 21% sequentially.
- Gross profit: $300,000, compared with a gross loss of $200,000 in the prior-year period and a gross loss of $300,000 in the prior quarter.
- Total operating expenses: approximately $6.9 million, down from $10.7 million a year earlier, which Moorhead said represented a 36% reduction year-over-year and more than 60% down from a $17 million peak.
- R&D expense: $2.4 million versus $3.0 million a year earlier, primarily due to lower Gen 2 development costs following PMA filing and lower headcount-related costs.
- SG&A expense: $4.5 million versus $7.7 million a year earlier, driven largely by lower employee-related costs.
- Other expense: $1.0 million versus $2.4 million a year earlier, which management attributed primarily to the prior-year period’s loss on extinguishment of debt.
- Net loss: $7.3 million, or $0.85 per share, compared with $13.0 million, or $2.96 per share, with both periods reflecting the company’s 1-for-20 reverse stock split effective July 14, 2025.
- Net cash burn: $4.3 million for the quarter, which Moorhead said was more than 40% lower than a year ago.
As of December 31, 2025, Beyond Air reported cash, cash equivalents, restricted cash, and marketable securities of $17.8 million. Moorhead said the company subsequently completed a $4.5 million equity financing net of issuance costs. Management said this capital, together with a $5 million financing completed in January 2026 and previously announced Streeterville Capital arrangements—including a promissory note and an equity line of credit for up to $32 million—supports commercial execution and readiness for Gen 2.
Moorhead said the company believes its capital provides runway into calendar 2027 and “potentially to profitability,” contingent on achieving its revenue estimates and continuing to control costs.
On longer-term margins, Moorhead said the company expects cost of goods sold dynamics to improve with scale, citing a long-term view of gross margins in the “60% range” and moving toward “70” with Gen 2. Lisi added that margin outcomes will also depend on market pricing, characterizing 70% as a target for Gen 2 and suggesting Gen 1 may ultimately be more in the 50% range.
About Beyond Air (NASDAQ:XAIR)
Beyond Air, Inc is a clinical-stage medical technology company focused on the development and commercialization of inhaled nitric oxide (NO) therapy for pulmonary and respiratory diseases. The company’s proprietary LungFit® platform delivers pulsed, low-dose nitric oxide gas through compact, portable devices designed to support treatments in both inpatient and outpatient settings. Beyond Air’s approach leverages NO’s antimicrobial, vasodilatory and anti-inflammatory properties to address a range of unmet needs in respiratory medicine.
The company’s lead candidate, LungFit® PH, is under investigation for the treatment of pulmonary hypertension, with ongoing clinical studies assessing its impact on pulmonary arterial pressure and exercise capacity.
