Marpai Reports Third Quarter 2026 Financial Results

Rhea-AI Summary

Marpai (MRAI) reported third-quarter 2026 revenue of $4.4 million, returning to year-over-year and sequential growth for the first time since 2023. Revenue rose 9.6% year over year, while operating loss narrowed to $2.5 million from $2.8 million. Net loss attributable to common stockholders was $3.448 million, or $0.13 per share, versus $3.494 million, or $0.20 per share.

Nine-month revenue fell 7.6% to $13.0 million, reflecting earlier customer turnover; net loss widened to $11.052 million from $10.934 million. A $12.1 million convertible preferred financing closed July 31, with a $1.00 initial conversion price and 8% cumulative dividends payable in common shares. Of the proceeds, $2.45 million went to AXA. September 30 cash was $360 thousand, alongside $7.411 million restricted for client obligations. Nine-month operating cash use reached $11.557 million, versus $2.690 million a year earlier.

14 points · 1 major

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2 major · 11 points

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Positive

• Major point$12.1 million Series A financing closed July 31, 2026, helping fund business development and automation investments. 18% of market cap
• Moderate pointThird-quarter revenue rose 9.6% year over year to $4.4 million, driven primarily by ancillary services.
• Moderate pointThird-quarter operating loss narrowed to $2.506 million from $2.771 million year over year.
• Moderate point$2 million vendor financing advance provided funding during the first nine months of 2026. 3% of market cap
• Minor pointThird-quarter common-stockholder loss narrowed to $3.448 million from $3.494 million; loss per share improved to $0.13 from $0.20.

9 minor points

• Minor pointNine-month operating loss narrowed to $8.423 million from $8.627 million year over year.
• Minor pointInformation technology expense declined to $1.129 million from $1.245 million quarterly and $3.395 million from $3.927 million year-to-date.
• Minor pointSales and marketing expense declined to $149 thousand from $295 thousand quarterly and $514 thousand from $851 thousand year-to-date.
• Minor pointNine-month cost of revenue fell to $9.808 million from $10.357 million year over year.
• Minor pointDepreciation and amortization declined to zero from $107 thousand quarterly and $60 thousand from $321 thousand year-to-date.
• Minor pointFacilities expense fell to $116 thousand from $131 thousand quarterly and $345 thousand from $442 thousand year-to-date.
• Minor point. Forward-looking: it has not happened yet and may not happen.Claims automation investment is accelerating; Marpai targets more business without a corresponding increase in administrative expense.
• Minor pointCash and cash equivalents increased to $360 thousand at September 30, 2026, from $133 thousand at December 31, 2025.
• Minor pointStockholders’ deficit narrowed to $29.766 million from $32.563 million at December 31, 2025.

Negative

• Major pointNine-month operating cash use increased to $11.557 million from $2.690 million year over year.
• Major pointConvertible preferred shares carry a $1.00 initial conversion price and 8% cumulative, non-compounding dividends payable in common shares.
• Moderate pointNine-month revenue declined 7.6% to $13.0 million, primarily reflecting customer turnover earlier in the year.
• Moderate point$2.45 million of financing proceeds was paid to AXA in September under the amended Maestro Health purchase agreement. 3.7% of market cap
• Moderate pointThird-quarter cost of revenue increased 14.7% to $3.4 million, primarily due to a minimum network-access vendor payment.
• Moderate pointNet interest expense increased to $857 thousand from $797 thousand quarterly and $2.859 million from $2.430 million year-to-date.
• Moderate point$2 million vendor financing advance remained a current liability at September 30, 2026. 3% of market cap
• Moderate pointCommon shares outstanding increased to 26,879,834 at September 30, 2026, from 24,035,610 at December 31, 2025.

3 minor points

• Minor pointNine-month net loss widened to $11.052 million from $10.934 million year over year.
• Minor pointNine-month common-stockholder loss widened to $11.214 million from $10.934 million, despite per-share improvement to $0.43 from $0.69.
• Minor pointGeneral and administrative expense increased to $2.136 million from $2.067 million quarterly and $7.335 million from $6.833 million year-to-date.

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Marpai Returns to Revenue Growth in Third Quarter 2026, Achieving First Year-Over-Year and Sequential Increase Since 2023

Integrated TPA and PBM Offering and AI-Powered Claims Automation Position Company for Next Phase of Growth

$12.1 Million Series A Preferred Financing Funds Strategic Investments

TAMPA, Fla., Nov. 12, 2026 /PRNewswire/ -- Marpai, Inc. ("Marpai" or the "Company") (OTCQX: MRAI), a technology-driven provider of Third-Party Administration ("TPA"), Pharmacy Benefit Management ("PBM"), and integrated health plan services, today announced its financial and operational results for the three and nine months ended September 30, 2026.

Third Quarter 2026 Highlights

• Revenue increased 9.6% year-over-year from $4.0 million for the three months ended September 30, 2025, to $4.4 million for the three months ended September 30, 2026;
• Operating loss decreased by $0.3 million from $2.8 million for the three months ended September 30, 2025, to $2.5 million for the three months ended September 30, 2026.
• Net loss per common share improved by $0.07 from $(0.20) per share for the three months ended September 30, 2025, to $(0.13) per share for the three months ended September 30, 2026.
• Closed a $12.1 million Series A Convertible Preferred Stock financing in July 2026.
• Expanded TPA and PBM business development and accelerated AI-powered claims automation.

Management Commentary

Damien Lamendola, Chief Executive Officer of Marpai, commented:

"Over the past several quarters, we believe we have fundamentally repositioned Marpai, and we are beginning to see results. Third-quarter revenue grew both year-over-year and sequentially, the first time we have achieved growth on both measures since 2023."

Building Commercial Momentum Across TPA and PBM

Mr. Lamendola continued:

"We believe commercial momentum is building across our TPA and PBM businesses, including opportunities with larger employers, and we have strengthened our business development team. Importantly, we believe our ability to offer both TPA and PBM services provides an opportunity to deepen customer relationships, expand our addressable market, and deliver a more comprehensive solution to employers seeking lower healthcare costs and better care for their employees."

AI and Automation: Transforming the Operating Model

Mr. Lamendola continued:

"We are also modernizing our claims platform with artificial intelligence and AI agents, which already handle routine provider inquiries such as claim status and eligibility questions. Our goal is a more automated, scalable platform that can support significantly more business without a corresponding increase in administrative expense. Our $12.1 million Series A financing is helping fund these investments, and our priorities are clear: win new customers, grow our TPA and PBM businesses, accelerate automation, and move toward sustainable profitability."

Time to Transform Health Care

Mr. Lamendola continued:

"Health care is broken, and we all know it. Employers pay more every year, their employees too often get less, and the system runs on a complexity that serves almost everyone except the people it is meant to protect. We think that it is time to get a little crazy. It is time to remember that the people insured are the ones who count, it is time to provide better care, and we believe we can help save lives while saving them money. Some may see that ambition as unrealistic, since we believe that only a few in the industry are doing this. We believe the company willing to challenge how health care works is the one that will end up changing it. In short, it is time to transform the world of health care, and Marpai intends to help lead the way. We don't just think differently — we are different."

Third Quarter 2026 Financial Results

Revenue was $4.4 million for the three months ended September 30, 2026, up 9.6% from $4.0 million for the three months ended September 30, 2025, primarily due to growth in ancillary services revenue. Cost of revenue increased 14.7% from $3.0 million for the three months ended September 30, 2025 to $3.4 million for the three months ended September 30, 2026, primarily due to a minimum vendor payment for network access fees, while information technology expense declined 9.3% and sales and marketing expense declined 49.5%.

Operating loss narrowed to $2.5 million from $2.8 million year-over-year, and net loss improved to $3.3 million from $3.5 million year-over-year. After $162 thousand of cumulative preferred stock dividends, net loss attributable to common stockholders was $3.4 million, or $(0.13) per basic and diluted share, compared with $(0.20) per share in the third quarter of 2025.

Nine-Month 2026 Financial Results

For the nine months ended September 30, 2026, revenue was $13.0 million, compared with $14.1 million in the prior-year period, a decrease of 7.6%, primarily reflecting customer turnover earlier in the year. Operating loss narrowed to $8.4 million, compared with $8.6 million in the prior-year period. Net loss was $11.1 million, compared with $10.9 million in the prior-year period, and net loss attributable to common stockholders was $11.2 million, or $(0.43) per basic and diluted share, compared with $(0.69) per share in the prior-year period.

Series A Financing and Liquidity

On July 31, 2026, Marpai closed a $12.1 million Series A Convertible Preferred Stock financing. The shares are convertible into common stock at an initial conversion price of $1.00 per share and carry 8% cumulative, non-compounding dividends payable solely in shares of common stock. Of the proceeds, $2.45 million was paid to AXA in September 2026 under the amended Maestro Health purchase agreement. As of September 30, 2026, Marpai had cash and cash equivalents of approximately $360 thousand and restricted cash of approximately $7.4 million held in connection with fiduciary obligations to clients. Total stockholders' deficit improved to $29.8 million from $32.6 million at December 31, 2025.

About Marpai, Inc.

Marpai, Inc. (OTCQX: MRAI) is a technology-driven healthcare services company providing Third-Party Administration, Pharmacy Benefit Management, and value-oriented health plan services to employers that directly fund employee healthcare benefits. Operating nationwide, Marpai offers access to leading provider networks, including Aetna and Cigna. For more information, visit www.marpaihealth.com or http://ir.marpaihealth.com.  Information on the Company's website is not incorporated by reference into this press release.

Forward-Looking Statements

This press release contains forward-looking statements, as that term is defined in the Private Litigation Reform Act of 1995, that involve significant risks and uncertainties. Forward-looking statements can be identified through the use of words such as "anticipates," "expects," "intends," "plans," "believes," "seeks," "estimates," "guidance," "may," "can," "could", "will", "potential", "should," "goal" and variations of these words or similar expressions. For example, the Company is using forward-looking statements when it discusses statements regarding the Company's belief that commercial momentum is building across its TPA and PBM businesses, including opportunities with larger employers; its belief that its ability to offer both TPA and PBM services provides an opportunity to deepen customer relationships, expand its addressable market, and deliver a more comprehensive solution to employers seeking lower healthcare costs and better care for their employees; the Company's stated goals of a more automated, scalable platform that can support significantly more business without a corresponding increase in administrative expense and moving toward sustainable profitability; its belief that it is time to get a little crazy and that the Company intends to help lead the way to transform the world of health care. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect Marpai's current expectations and speak only as of the date of this release. Actual results may differ materially from Marpai's current expectations depending upon a number of factors. These factors include, among others, adverse changes in general economic and market conditions, competitive factors including but not limited to pricing pressures and new product introductions, uncertainty of customer acceptance of new product offerings and market changes, risks associated with managing the growth of the business. Except as required by law, Marpai does not undertake any responsibility to revise or update any forward-looking statements whether as a result of new information, future events or otherwise.

More detailed information about Marpai and the risk factors that may affect the realization of forward-looking statements is set forth in Marpai's filings with the Securities and Exchange Commission. Investors and security holders are urged to read these documents free of charge on the SEC's web site at http://www.sec.gov.

 

MARPAI, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(in thousands, except share and per share data)
		September 30, 2026		December 31, 2025
ASSETS:
Current assets:
Cash and cash equivalents		$                       360		$                             133
Restricted cash		7,411		8,818
Accounts receivable, net of allowance for credit losses of $86 and $21 as of September 30, 2026, and December 31, 2025, respectively		940		697
Unbilled receivables		1,313		280
Prepaid expenses and other current assets		347		408
Total current assets		10,371		10,336
Capitalized software, net		—		60
Operating lease right-of-use assets		179		218
Security deposits		227		229
Other long-term asset		35		61
Total assets		$                  10,812		$                        10,904
LIABILITIES AND STOCKHOLDERS'  DEFICIT
Current liabilities:
Accounts payable		$                    2,691		$                          3,668
Accrued expenses		1,606		2,115
Accrued fiduciary obligations		7,238		8,521
Deferred revenue		72		89
Current portion of operating lease liabilities		284		264
Current portion of convertible debentures, net		1,966		3,037
Other short-term liabilities		—		8,000
Vendor financing advance		2,000		—
Total current liabilities		15,857		25,694
Other long-term liabilities		18,788		11,450
Convertible debentures, net of current portion		5,620		5,795
Operating lease liabilities, net of current portion		313		528
Total liabilities		40,578		43,467
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' DEFICIT
Preferred stock, $0.0001 par value, 2,000,000 shares authorized; 12,100 and 0 shares issued and outstanding at September 30, 2026 and December 31, 2025, respectively		—		—
Common stock, $0.0001 par value, 227,791,050 shares authorized; 26,879,834 shares and 24,035,610 shares issued and outstanding at September 30, 2026, and December 31, 2025, respectively		3		2
Additional paid-in capital		96,677		82,829
Accumulated deficit		(126,446)		(115,394)
Total stockholders' deficit		(29,766)		(32,563)
Total liabilities and stockholders' deficit		$                  10,812		$                        10,904
		$                         —		$                               —
MARPAI, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(in thousands, except share and per share data)
		Three Months Ended				Nine Months Ended
		September 30, 2026		September 30, 2025		September 30, 2026		September 30, 2025
Revenue (including related party amounts of $317, $0, $500, and $0, respectively)		$                    4,424		$                          4,037		$         13,034		$         14,111
Costs and expenses
Cost of revenue (exclusive of depreciation and amortization    shown separately below)		3,400		2,963		9,808		10,357
General and administrative		2,136		2,067		7,335		6,833
Information technology		1,129		1,245		3,395		3,927
Sales and marketing		149		295		514		851
Research and development		—		—		—		7
Depreciation and amortization		—		107		60		321
Facilities		116		131		345		442
Total costs and expenses		6,930		6,808		21,457		22,738
Operating loss		(2,506)		(2,771)		(8,423)		(8,627)
Other income (expenses)
Other income, net		77		74		230		123
Interest expense, net		(857)		(797)		(2,859)		(2,430)
Loss before provision for income taxes		(3,286)		(3,494)		(11,052)		(10,934)
Income tax expense		—		—		—		—
Net loss		$                  (3,286)		$                        (3,494)		$       (11,052)		$       (10,934)
Cumulative preferred stock dividends		$                     (162)		$                               —		$            (162)		$                —
Net loss attributable to common stockholders		$                  (3,448)		$                        (3,494)		$       (11,214)		$       (10,934)
Net loss per share attributable to common stockholders, basic & fully diluted		$                    (0.13)		$                          (0.20)		$           (0.43)		$           (0.69)
Weighted average common shares outstanding, basic and    diluted		26,829,700		17,299,687		25,799,051		15,868,157
MARPAI, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(in thousands)
		Nine Months Ended
		September 30, 2026		September 30, 2025
Cash flows from operating activities:
Net loss		$                (11,052)		$                      (10,934)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		60		321
Share-based compensation		1,252		1,458
Shares issued to vendors in exchange for services		55		1,008
Amortization of right-of-use asset		39		45
Non-cash interest expense		1,813		1,362
Amortization of debt premium and debt issuance costs, net		154		(25)
Bad debt expense		217		—
Changes in operating assets and liabilities:
Accounts receivable and unbilled receivables		(1,493)		236
Prepaid expense and other assets		89		306
Accounts payable		(977)		1,302
Accrued expenses		(195)		(603)
Accrued fiduciary obligations		(1,283)		3,019
Operating lease liabilities		(195)		(183)
Other liabilities		(41)		(2)
Net cash used in operating activities		(11,557)		(2,690)
Cash flows from investing activities:
Proceeds from sale of business unit		—		500
Net cash provided by investing activities		—		500
Cash flows from financing activities:
Proceeds from issuance of related party promissory notes		660		—
Payments on related party promissory notes		(660)		—
Proceeds from vendor financing advance		2,000		—
Proceeds from related party advance		1,000		—
Payments for related party advance		(1,000)		—
Proceeds from issuance of convertible debentures		—		3,000
Payments of convertible debenture issuance costs		—		(162)
Payments on convertible debentures		(1,250)		(2,000)
Payments to seller for acquisition		(2,450)		(196)
Proceeds from issuance of common stock in a private offering, net		—		2,831
Proceeds from issuance of preferred stock in a private offering, net		12,077		—
Net cash provided by financing activities		10,377		3,473
Net (decrease) increase  in cash, cash equivalents and restricted cash		(1,180)		1,283
Cash, cash equivalents and restricted cash at beginning of period		8,951		9,232
Cash, cash equivalents and restricted cash at end of period		$                    7,771		$                        10,515
Reconciliation of cash, cash equivalents, and restricted cash reported in    the condensed consolidated balance sheet
Cash and cash equivalents		$                       360		$                             445
Restricted cash		7,411		10,070
Total cash, cash equivalents and restricted cash shown in the condensed    consolidated statement of cash flows		$                    7,771		$                        10,515
Supplemental disclosure of cash flow information
Cash paid for interest		$                       893		$                          1,133
Issuance of common stock upon conversion of debt in the current period		$                       150		$                               —
Restricted stock units issued to settle accrued bonus liabilities		$                       212		$                               —
Issuance of common stock relieving accrued settlement liabilities		$                       102		$                               —

 

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SOURCE Marpai

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Marpai’s third-quarter 2026 revenue and earnings results?

Marpai reported $4.4 million in revenue, up 9.6% year over year, and a $0.13 loss per common share versus $0.20 a year earlier. Operating loss narrowed to $2.506 million from $2.771 million.

What are the terms of Marpai’s July 2026 preferred financing?

Marpai closed a $12.1 million Series A Convertible Preferred Stock financing on July 31, 2026. The shares have an initial common-stock conversion price of $1.00 and carry 8% cumulative, non-compounding dividends payable solely in common shares.