Spectral AI Announces 2026 Third Quarter Financial Results
The BARDA contract’s current cost-sharing phase requires Spectral AI to fund part of follow-on development expenses.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Summary
Spectral AI (MDAI) reported lower third-quarter research and development revenue and cut its full-year revenue outlook while preparing initial commercial deployments. Q3 2026 revenue fell 24.7% year over year to $2.856 million, while gross margin declined to 27.2% from 42.7%. Net loss widened to $3.656 million from $3.552 million, although loss per share narrowed to $0.11 from $0.13.
The company now expects 2026 research and development revenue of approximately $13.0 million, versus approximately $18.5 million previously, reflecting MTEC program completion and the timing of BARDA-reimbursed work. Cash totaled $11.230 million at September 30, versus $15.394 million at December 31, 2025. Manufacturing has begun on the first 30 DeepView AI Systems for BARDA-supported deployments. Spectral AI expects its first U.S. commercial placement in Q4 2026. A Medicare add-on payment application remains pending, with a determination expected by August 2027.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Major pointDeepView AI received FDA De Novo clearance in May 2026.
- Moderate point. Forward-looking: it has not happened yet and may not happen.Manufacturing began on 30 DeepView AI Systems; initial deliveries remain expected by year-end 2026.
- Moderate point. Forward-looking: it has not happened yet and may not happen.Medicare add-on payment application submitted; approval would provide hospitals additional reimbursement for DeepView use.
- Minor pointUK label-expansion study completed initiation visits at four burn centers and enrolled ten patients.
- Minor pointQ3 general and administrative expense fell to $2.341 million from $3.064 million year over year.
2 minor points
- Minor pointQ3 warrant-liability fair-value gain increased to $825,000 from $264,000 year over year.
- Minor pointQ3 income taxes included a $78,000 benefit, versus a $2,000 provision a year earlier.
Negative
- Major point. Forward-looking: it has not happened yet and may not happen.2026 research and development revenue guidance cut to approximately $13.0 million from approximately $18.5 million.
- Moderate pointQ3 research and development revenue fell 24.7% year over year to $2.856 million from $3.792 million.
- Moderate pointCurrent BARDA contract phase requires company funding of part of follow-on development expenses.
- Moderate pointQ3 gross margin declined to 27.2% from 42.7%, primarily reflecting BARDA development cost-sharing.
- Moderate pointCash declined to $11.230 million at September 30, 2026 from $15.394 million at December 31, 2025.
- Moderate pointCurrent notes payable rose to $8.026 million from $2.854 million at December 31, 2025.
- Moderate pointLong-term notes payable rose to $7.440 million from $5.538 million at December 31, 2025.
- Moderate pointStockholders’ deficit widened to $15.428 million from $5.727 million at December 31, 2025.
- Moderate pointOutstanding common shares increased to 32,184,928 from 30,688,895 at December 31, 2025, diluting existing holders.
- Moderate pointQ3 research and development expense increased to $1.989 million from $1.531 million year over year.
- Moderate pointNine-month net loss widened to $11.244 million from $8.623 million; per-share loss increased to $0.35 from $0.34.
- Moderate pointNine-month adjusted EBITDA loss widened to $8.905 million from $5.446 million year over year.
- Moderate point. Forward-looking: it has not happened yet and may not happen.Medicare add-on payment approval remains pending, with a determination expected by August 2027.
7 minor points
- Minor pointQ3 BARDA revenue declined to $2.7 million from $3.4 million under the contract’s cost-sharing structure.
- Minor pointOther U.S. government revenue fell to $0.1 million from $0.4 million as MTEC completed.
- Minor pointQ3 net loss widened to $3.656 million from $3.552 million; per-share loss narrowed to $0.11 from $0.13.
- Minor pointQ3 adjusted EBITDA loss, a non-GAAP measure, widened to $3.660 million from $3.050 million.
- Minor pointQ3 selling and marketing expense increased to $414,000 from $367,000 year over year.
- Minor pointQ3 net interest expense increased to $586,000 from $464,000 year over year.
- Minor pointNine-month research and development revenue declined to $10.371 million from $15.564 million year over year.
News Explained
At September 30, cash was $11,230 thousand, alongside $8,026 thousand of current and $7,440 thousand of long-term notes payable.
Spectral AI has reported Q3 results; its
The balance sheet also shows
Key Figures
- Q3 R&D revenue
- $2.9M vs. $3.8M; down 24.7%
- Q3 2026 vs. Q3 2025
- Gross margin
- 27.2% vs. 42.7%
- Q3 2026 vs. Q3 2025
- Net loss
- $(3.7)M vs. $(3.6)M
- Q3 2026 vs. Q3 2025
- Cash and cash equivalents
- $11.2M vs. $15.4M
- September 30, 2026 vs. December 31, 2025
- 2026 R&D revenue guidance
- $13.0M vs. previous guidance of $18.5M
- Year ending December 31, 2026
- Systems in initial manufacturing
- 30 systems
- For BARDA-supported deployment at U.S. burn centers; initial deliveries targeted by year-end
- Patients enrolled
- 10 patients
- UK study supporting potential label expansion to burns involving the head, hands and feet
- Expected NTAP determination
- August 2027
- CMS application for the DeepView AI System
Previous Earnings,AI Reports
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R&D revenue and gross margin declined; the company reiterated its 2026 revenue guidance.
-
R&D revenue declined and the quarter recorded a net loss.
-
The release introduced 2026 revenue guidance of $18.5 million alongside a full-year net loss.
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Q3 R&D revenue declined, and full-year revenue guidance was lowered.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
new technology add-on payment regulatory
de novo clearance regulatory
adjusted ebitda financial
warrant liabilities financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Remains on Track for First U.S. Commercial Placement of the DeepView AI System in the Fourth Quarter of 2026
DALLAS, Nov. 10, 2026 (GLOBE NEWSWIRE) -- Spectral AI, Inc. (Nasdaq: MDAI) (“Spectral AI” or the “Company”), an artificial intelligence (AI) company focused on medical diagnostics for faster and more accurate treatment decisions in wound care, today reported financial results for the third quarter ended September 30, 2026 (“Q3 2026”). The Company expects to file its Quarterly Report on Form 10-Q for the quarter ended September 30, 2026 on or before November 16, 2026.
“Our third-quarter results reflect our continued transition from a research and development organization into a commercial enterprise,” said Vincent Capone, Chief Executive Officer. “We have begun manufacturing the first 30 DeepView AI Systems for BARDA-supported deployment at U.S. burn centers and remain on track for initial deliveries by year-end. While executing on our near-term priorities, we are taking a long-term view of the DeepView AI System, looking beyond early deployments to build the capabilities that will support broader adoption and establish a repeatable clinical model. These include clinician education, pursuing expanded reimbursement for physicians and hospital systems, and exploring label expansion opportunities. We are encouraged by the response from the clinical community thus far, including at the Southern Regional Burn Conference, where leading burn surgeons presented new study results using DeepView AI, and at the American College of Emergency Physicians’ annual conference in October.”
“During the third quarter, we reduced operating expenses by
Third Quarter and Recent Business Highlights
- Presented the DeepView AI System at the Southern Regional Burn Conference, including presentations on physician accuracy in identifying non-healing burns and on the repeatability and reproducibility of the AI analysis.
- Completed all Site Initiation Visits with four burn centers in the United Kingdom and have enrolled ten patients in our clinical study designed to support a label expansion of the DeepView AI System to include burns involving the head, hands and feet.
- Submitted a New Technology Add-On Payment (NTAP) application to the Centers for Medicare & Medicaid Services (CMS) for the DeepView AI System which, if approved, would provide hospitals with additional Medicare reimbursement for use of the DeepView AI System. A determination is expected by August 2027.
- Showcased the DeepView AI System for burn indication at the American College of Emergency Physicians (ACEP) Scientific Assembly in Chicago, October 5–8, 2026.
Third Quarter 2026 Financial Results
All comparisons are to the third quarter ended September 30, 2025 (“Q3 2025”), unless otherwise noted
Research and development revenue was
Revenue from other U.S. government programs, principally the MTEC handheld device program, was
Gross margin was
Operating expenses were
Other income was
Net loss was
Adjusted EBITDA, a non-GAAP measure, was
Balance Sheet and Liquidity
Cash and cash equivalents were
2026 Guidance
The Company is updating its guidance for the year ending December 31, 2026, and now expects research and development revenue of approximately
This updated guidance does not include revenue from sales of the DeepView AI System, the first of which the Company expects to place by year-end 2026, or any new or extended government awards.
Conference Call
Spectral AI will host a conference call today at 5:00 p.m. Eastern Time to discuss its third quarter 2026 financial results. Investors may dial 833-890-6620 (U.S.) or 412-564-3789 (international). A simultaneous webcast will be available in the Events section of the Investor Relations page of the Company’s website at https://investors.spectral-ai.com/news-events/events, and a replay will be available following the call.
About Spectral AI
Spectral AI, Inc. is a Dallas-based predictive AI company focused on medical diagnostics for faster and more accurate treatment decisions in wound care, with initial applications involving patients with burns. The Company is working to revolutionize the management of wound care by “Seeing the Unknown®” with its DeepView AI System. The DeepView AI System is a predictive diagnostic device that offers physicians an objective and immediate assessment of a wound’s healing potential prior to treatment or other medical intervention. With algorithm-driven results and a goal to exceed the current standard of care, the DeepView AI System provides fast and accurate treatment insights to improve patient outcomes and reduce healthcare costs. For more information about the DeepView AI System, visit www.spectral-ai.com.
The Company’s contract with the Biomedical Advanced Research and Development Authority (“BARDA”) is held and performed through its wholly owned subsidiary, Spectral MD. References to the contract, associated awards, related revenue, business opportunities, obligations, and other relevant factors should be understood to refer to Spectral MD as the contracting party unless otherwise indicated.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, among others, statements regarding the Company’s updated 2026 revenue guidance, the expected timing of first commercial sales of the DeepView AI System, the timing and outcome of the Company’s NTAP application, the continued funding and exercise of options under the BARDA contract, and the Company’s liquidity, capital requirements and ability to meet its debt obligations. Actual results may differ materially from those indicated by these statements as a result of various factors, including those described under “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 and its subsequent Quarterly Reports on Form 10-Q. The Company undertakes no obligation to update any forward-looking statement, except as required by law.
Non-GAAP Financial Measures
This press release includes Adjusted EBITDA, a financial measure not calculated in accordance with U.S. generally accepted accounting principles (“GAAP”). The Company defines Adjusted EBITDA as net loss before income taxes, depreciation and net interest expense, further adjusted to exclude stock-based compensation, financing related costs, changes in the fair value of warrant liabilities and notes payable, foreign exchange transaction gains and losses, and transaction costs. Management uses Adjusted EBITDA to evaluate the Company’s operating performance and believes it provides useful information to investors. Adjusted EBITDA has limitations as an analytical tool: it does not reflect recurring interest expense, stock-based compensation, income taxes, capital expenditures or working capital needs, and it should not be considered in isolation or as a substitute for net loss or other measures prepared in accordance with GAAP. A reconciliation of net loss to Adjusted EBITDA is included below.
Investor Contacts
The Equity Group
Devin Sullivan, Managing Director, (212) 836-9608, Devin.Sullivan@theequitygroup.com
Conor Rodriguez, Associate, (212) 836-9628, Conor.Rodriguez@theequitygroup.com
Spectral AI, Inc.
ir@spectral-ai.com | +1 972 499-4934 | 2515 McKinney Avenue, Suite 1000, Dallas, Texas 75201
| SPECTRAL AI, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except share data) | ||||
| September 30, 2026 | December 31, 2025 | |||
| (unaudited) | ||||
| Assets | ||||
| Current assets: | ||||
| Cash and cash equivalents | 11,230 | 15,394 | ||
| Accounts receivable, net | 1,313 | 1,267 | ||
| Inventory | 932 | 838 | ||
| Prepaid expenses | 890 | 821 | ||
| Other current assets | 761 | 1,133 | ||
| Total current assets | 15,126 | 19,453 | ||
| Non-current assets: | ||||
| Property and equipment, net | 168 | 258 | ||
| Right-of-use assets | 955 | 1,407 | ||
| Other assets | 310 | 287 | ||
| Total assets | 16,559 | 21,405 | ||
| Liabilities and Stockholders’ Deficit | ||||
| Current liabilities: | ||||
| Accounts payable | 1,551 | 3,010 | ||
| Accrued expenses | 2,287 | 2,341 | ||
| Deferred revenue | 570 | 154 | ||
| Lease liabilities, short-term | 798 | 734 | ||
| Notes payable | 8,026 | 2,854 | ||
| Warrant liabilities | 10,956 | 11,533 | ||
| Total current liabilities | 24,188 | 20,626 | ||
| Notes payable, long-term | 7,440 | 5,538 | ||
| Lease liabilities, long-term | 359 | 968 | ||
| Total liabilities | 31,987 | 27,132 | ||
| Commitments and contingencies | ||||
| Stockholders’ deficit: | ||||
| Preferred stock ( | — | — | ||
| Common stock ( | 3 | 3 | ||
| Additional paid-in capital | 51,578 | 50,030 | ||
| Accumulated other comprehensive income | 35 | 40 | ||
| Accumulated deficit | (67,044 | ) | (55,800 | ) |
| Total stockholders’ deficit | (15,428 | ) | (5,727 | ) |
| Total liabilities and stockholders’ deficit | 16,559 | 21,405 | ||
| SPECTRAL AI, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited; in thousands, except share and per share data) | ||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||
| 2026 | 2025 | 2026 | 2025 | |||||
| Research and development revenue | 2,856 | 3,792 | 10,371 | 15,564 | ||||
| Cost of revenue | (2,078 | ) | (2,171 | ) | (6,453 | ) | (8,485 | ) |
| Gross profit | 778 | 1,621 | 3,918 | 7,079 | ||||
| Operating expenses: | ||||||||
| Research and development | 1,989 | 1,531 | 5,247 | 4,301 | ||||
| General and administrative | 2,341 | 3,064 | 7,657 | 8,124 | ||||
| Selling and marketing | 414 | 367 | 1,275 | 1,014 | ||||
| Total operating expenses | 4,744 | 4,962 | 14,179 | 13,439 | ||||
| Operating loss | (3,966 | ) | (3,341 | ) | (10,261 | ) | (6,360 | ) |
| Other income (expense): | ||||||||
| Net interest expense | (586 | ) | (464 | ) | (1,401 | ) | (881 | ) |
| Financing related costs | (1 | ) | — | (13 | ) | (585 | ) | |
| Change in fair value of warrant liability | 825 | 264 | 534 | (932 | ) | |||
| Change in fair value of notes payable | — | — | — | 220 | ||||
| Foreign exchange transaction loss, net | (6 | ) | (9 | ) | (21 | ) | (31 | ) |
| Total other income (expense), net | 232 | (209 | ) | (901 | ) | (2,209 | ) | |
| Loss before income taxes | (3,734 | ) | (3,550 | ) | (11,162 | ) | (8,569 | ) |
| Income tax provision | 78 | (2 | ) | (82 | ) | (54 | ) | |
| Net loss | (3,656 | ) | (3,552 | ) | (11,244 | ) | (8,623 | ) |
| Net loss per share, basic and diluted | (0.11 | ) | (0.13 | ) | (0.35 | ) | (0.34 | ) |
| Weighted-average common shares outstanding, basic and diluted | 32,184,928 | 26,318,624 | 32,010,910 | 25,147,179 | ||||
| SPECTRAL AI, INC. AND SUBSIDIARIES RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA (NON-GAAP) (unaudited; in thousands) | ||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||
| 2026 | 2025 | 2026 | 2025 | |||||
| Net loss | (3,656 | ) | (3,552 | ) | (11,244 | ) | (8,623 | ) |
| Adjust: | ||||||||
| Depreciation expense | 30 | 30 | 90 | 42 | ||||
| Provision for income taxes | (78 | ) | 2 | 82 | 54 | |||
| Net interest expense | 586 | 464 | 1,401 | 881 | ||||
| EBITDA | (3,118 | ) | (3,056 | ) | (9,671 | ) | (7,646 | ) |
| Additional adjustments: | ||||||||
| Stock-based compensation | 276 | 261 | 1,266 | 872 | ||||
| Financing related costs | 1 | — | 13 | 585 | ||||
| Change in fair value of warrant liability | (825 | ) | (264 | ) | (534 | ) | 932 | |
| Change in fair value of notes payable | — | — | — | (220 | ) | |||
| Foreign exchange transaction loss, net | 6 | 9 | 21 | 31 | ||||
| Adjusted EBITDA | (3,660 | ) | (3,050 | ) | (8,905 | ) | (5,446 | ) |
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were Spectral AI’s Q3 2026 financial results?
Spectral AI reported $2.856 million in research and development revenue and a $3.656 million net loss for Q3 2026. Revenue declined 24.7% year over year. The loss per share was $0.11, compared with $0.13 a year earlier, while gross margin declined to 27.2% from 42.7%.
When does Spectral AI expect its first U.S. commercial DeepView placement?
Spectral AI expects its first U.S. commercial DeepView AI System placement in the fourth quarter of 2026. Manufacturing has begun on the first 30 systems for BARDA-supported deployment at U.S. burn centers, with initial deliveries expected by year-end.
Does Spectral AI’s updated 2026 revenue guidance include DeepView sales?
The updated guidance excludes DeepView AI System sales and any new or extended government awards. Spectral AI expects approximately $13.0 million in research and development revenue. The reduction reflects completion of MTEC without additional contracting opportunities in 2026 and BARDA-reimbursed activities shifting revenue into future periods within the existing contract term.
What label expansion is Spectral AI studying for DeepView?
The UK clinical study is designed to support expanding DeepView’s label to include burns involving the head, hands and feet. All site initiation visits at four UK burn centers have been completed, and ten patients have enrolled.