Marpai(MRAI) - 2025 Q2 - Quarterly Results

Press Release Highlights Marpai's Q2 2025 press release details significant financial improvements, management's positive outlook towards Q1 2026 profitability, and standard forward-looking statements Second Quarter 2025 Financial Results Overview Marpai reported significant year-over-year improvements in Q2 2025, drastically cutting operating expenses by 70% and reducing net loss by 66%, signaling a decisive step in its turnaround strategy despite a decrease in net revenues - Marpai slashed losses by two-thirds in Q2 2025, paving the way to profitability, with operating expenses cut by 70%[1] Q2 2025 Key Financial Improvements (Year-over-Year) | Metric | Change | Improvement/Decrease | | :-------------------------------- | :-------------------------------- | :------------------- | | Operating expenses | Down 70% | $9.9 million savings | | Operating loss | Reduced by 71% | $8.7 million improvement (to $3.6 million) | | Net loss | Reduced by 66% | $8.7 million improvement (to $4.4 million) | | Net loss per share | Improved by $0.95 | | | Net revenues | Down $2.5 million | (to $4.7 million) | Management Outlook and Strategic Initiatives CEO Damien Lamendola expressed confidence in the accelerating turnaround, attributing progress to cost control and operational discipline. The company anticipates achieving profitability in Q1 2026 and plans a major infrastructure investment in Q3 2025 to enhance efficiency and client service - CEO Damien Lamendola believes the turnaround is 'real and accelerating' due to strengthened financial position from cost cutting and streamlined operations[2] - Marpai estimates it is on track to deliver a profitable company in the first quarter of 2026[2] - A major infrastructure investment is expected in Q3 2025 to further improve efficiency and client service[2] - The CEO continues to invest personal capital in the company, signaling deep belief in Marpai's future[2] Company Information and Forward-Looking Statements Marpai, Inc. is a technology platform company providing TPA and value-oriented health plan services to self-funded employers, operating nationwide with access to leading provider networks. The report includes a standard disclaimer regarding forward-looking statements, highlighting inherent risks and uncertainties that could cause actual results to differ from expectations - Marpai, Inc. is a technology platform company operating subsidiaries that provide TPA and value-oriented health plan services to self-funded employers[5] - The company competes in the $150 billion TPA sector, serving self-funded employer health plans representing over $1.5 trillion in annual claims[5] - The press release contains forward-looking statements, and readers are cautioned not to place undue reliance on them due to significant risks and uncertainties[6] - Actual results may differ materially from current expectations due to factors such as adverse economic conditions, competitive pressures, and risks associated with business growth[6] Condensed Consolidated Financial Statements This section provides Marpai's condensed consolidated balance sheets, statements of operations, and cash flows, detailing financial position and performance for the periods presented Condensed Consolidated Balance Sheets As of June 30, 2025, Marpai's total assets decreased compared to December 31, 2024, primarily due to reductions in cash and restricted cash. Total liabilities increased, leading to an expanded stockholders' deficit Condensed Consolidated Balance Sheet Highlights (in thousands) | Metric | June 30, 2025 (Unaudited) | December 31, 2024 | | :-------------------------------- | :-------------------------- | :---------------- | | Cash and cash equivalents | $619 | $764 | | Restricted cash | $7,661 | $8,468 | | Total current assets | $10,332 | $11,897 | | Total assets | $11,061 | $12,878 | | Total current liabilities | $19,734 | $18,982 | | Total liabilities | $43,428 | $40,587 | | Total stockholders' deficit | $(32,367) | $(27,709) | Condensed Consolidated Statements of Operations For the three months ended June 30, 2025, Marpai significantly reduced its net loss to $4.371 million from $13.026 million in the prior year, primarily driven by a substantial decrease in total costs and expenses, including the absence of goodwill impairment, despite a decline in revenue Condensed Consolidated Statements of Operations Highlights (in thousands, except per share data) | Metric | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenue | $4,656 | $7,189 | $10,074 | $14,574 | | Total costs and expenses | $8,263 | $19,462 | $15,930 | $30,912 | | Operating loss | $(3,607) | $(12,273) | $(5,856) | $(16,338) | | Net loss | $(4,371) | $(13,026) | $(7,440) | $(17,372) | | Net loss per share, basic and fully diluted | $(0.28) | $(1.23) | $(0.49) | $(1.73) | | Impairment of goodwill and intangible assets | $— | $7,588 | $— | $7,588 | Condensed Consolidated Statements of Cash Flows For the six months ended June 30, 2025, net cash used in operating activities significantly decreased. The company generated cash from investing activities through the sale of a business unit, while financing activities saw proceeds from convertible debentures and common stock issuance, though overall cash and restricted cash decreased Condensed Consolidated Statements of Cash Flows Highlights (in thousands) | Metric | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :-------------------------------- | :----------------------------- | :----------------------------- | | Net cash used in operating activities | $(3,324) | $(6,705) | | Net cash provided by investing activities | $500 | $— | | Net cash provided by financing activities | $1,872 | $7,268 | | Net (decrease) increase in cash, cash equivalents and restricted cash | $(952) | $563 | | Cash, cash equivalents and restricted cash at end of period | $8,280 | $14,055 | | Proceeds from sale of business unit | $500 | $— | | Proceeds from issuance of convertible debentures | $3,000 | $5,978 |