Spectral AI Announces 2026 First Quarter Financial Results
Development Work for DeepView® Systems Continues with Support of Recently Awarded
$31.7 Million of Funding from BARDA
Reiterates Annual Revenues Guidance
DALLAS, May 12, 2026 (GLOBE NEWSWIRE) — Spectral AI, Inc. (Nasdaq: MDAI) (“Spectral AI” or the “Company”), an artificial intelligence company focused on medical diagnostics for faster and more accurate treatment decisions in wound care, today announced financial results for the first quarter ended March 31, 2026.
“Our results for the 2026 first quarter reflected the progress we have made in developing our DeepView® System for burn indication under the base phase of our Project BioShield Contract with BARDA,” said Vincent Capone, Chief Executive Officer of Spectral AI. “The work we have completed under this base phase – which was ongoing in last year’s first quarter – allowed us to submit our De Novo 510(k) application to the U.S. Food and Drug Administration (“FDA”) for the DeepView System in June 2025. As we await determination on market authorization from the FDA, we are furthering the development of the DeepView System under an accelerated second phase of our contract with BARDA that includes $31.7 million of advanced, non-dilutive funding.”
Mr. Capone concluded, “Our financial condition remains strong, and we continue to make investments that align with our strategic priorities and in advance of planned commercialization activities. One such priority was to strengthen our leadership team, and I am happy to once again welcome David McGuire as the Company’s Chief Financial Officer. David brings a wealth of relevant public company experience to his role at Spectral AI and his appointment helps bolster our leadership team for the next exciting phase of our growth.”
2026 FIRST QUARTER (“Q1 2026”) FINANCIAL RESULTS OVERVIEW
All comparisons to Q1 2026 are to the comparable period ended March 31, 2025 unless otherwise stated.
Research & Development Revenue
Research & Development revenue for Q1 2026 was $4.0 million compared to $6.7 million, reflecting the anticipated decline in completed work under the base phase of the Company’s Project BioShield (PBS) contract with the Biomedical Advanced Research and Development Authority (BARDA). This was partially offset by an increase in revenue from awards and work performed under the Company’s other U.S. government contracts, primarily related to work on the Company’s handheld device.
Gross Margin
Gross margin for Q1 2026 was 50.8% compared to 47.2%, due primarily to an increased concentration of direct labor as a component of overall revenue.
General & Administrative Expense
General and administrative expenses in Q1 2026 were $4.0 million, down from $4.1 million reflecting an overall decrease in administrative expense offset by an increase in non-revenue generating R&D activities, primarily related to salaries and related costs and consulting fees.
Toal Other (Expense) / Income
Total other expense in Q1 2026 was $(1.5) million compared to other income of $3.9 million. This was due largely to a change in fair value of warrant liability, which was an expense of $(1.0) million in Q1 2026 as compared to a benefit of $4.3 million.
Net (Loss) Income
Net loss for Q1 2026 was $(3.4) million, or $(0.11) per diluted share, compared to net income of $2.9 million, or $0.11 per diluted share primarily related to a change in the fair value of the Company’s warrant liability.
Financial Condition
As of March 31, 2026, cash was $11.7 million compared to $15.4 million as of December 31, 2025.
2026 Guidance
The Company is forecasting revenue of approximately $18.5 million for the year ending December 31, 2026, primarily reflecting the continued development of the Company’s DeepView System through the BARDA PBS Contract. This guidance does not include any material contributions from the sale of the DeepView System for the burn indication.
CONFERENCE CALL
The Company will host a conference call today at 5:00 pm Eastern Time to discuss these results. Investors interested in participating in the live call can dial:
- 833-890-6620 – U.S.
- 412-564-3789 – International
A simultaneous webcast of the call may be accessed online from the Events section of the Investor Relations page of the Company’s website at https://investors.spectral-ai.com/news-events/events.
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 System. The DeepView System is being developed as a predictive diagnostic device to offer clinicians an objective and immediate assessment of a burn wound’s healing potential prior to treatment or other medical intervention. With algorithm-driven results and a goal of exceeding the current standard of care in the future, the DeepView System is expected to provide fast and accurate treatment insight towards value care by improving patient outcomes and reducing healthcare costs. Spectral AI has been named to TIME’s list of World’s Top HealthTech companies 2025. For more information about the DeepView System, visit www.spectral-ai.com.
Forward-Looking Statements
Certain statements made in this release are “forward looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995, including statements regarding the Company’s strategy, plans, objectives, initiatives and financial outlook. When used in this press release, the words “estimates,” “projected,” “expects,” “anticipates,” “forecasts,” “plans,” “intends,” “believes,” “seeks,” “may,” “will,” “should,” “future,” “propose” and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside Company’s control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. As such, readers are cautioned not to place undue reliance on any forward-looking statements.
Investors should carefully consider the foregoing factors, and the other risks and uncertainties described in the “Risk Factors” sections of the Company’s filings with the SEC, including the Registration Statement and the other documents filed by the Company. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements.
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| Spectral AI, Inc. Unaudited Condensed Consolidated Balance Sheets (in thousands, except share and per share data) | ||||||||
| March 31, | December 31, | |||||||
| 2026 | 2025 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash | $ | 11,655 | $ | 15,394 | ||||
| Accounts receivable, net | 1,185 | 1,267 | ||||||
| Inventory | 831 | 838 | ||||||
| Prepaid expenses | 738 | 821 | ||||||
| Other current assets | 1,577 | 1,133 | ||||||
| Total current assets | 15,986 | 19,453 | ||||||
| Non-current assets: | ||||||||
| Property and equipment, net | 228 | 258 | ||||||
| Right-of-use assets | 1,260 | 1,407 | ||||||
| Other assets | 260 | 287 | ||||||
| Total Assets | $ | 17,734 | $ | 21,405 | ||||
| Commitments and contingencies (Note 7) | ||||||||
| Liabilities and Stockholders’ Equity (Deficit) | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 1,422 | $ | 3,010 | ||||
| Accrued expenses | 2,649 | 2,341 | ||||||
| Deferred revenue | – | 154 | ||||||
| Lease liabilities, short-term | 755 | 734 | ||||||
| Notes payable | 3,912 | 2,854 | ||||||
| Warrant liabilities | 12,535 | 11,533 | ||||||
| Total current liabilities | 21,273 | 20,626 | ||||||
| Notes payable, long-term | 4,502 | 5,538 | ||||||
| Lease liabilities, long-term | 769 | 968 | ||||||
| Total Liabilities | 26,544 | 27,132 | ||||||
| Stockholders’ Deficit | ||||||||
| Preferred stock ($0.0001 par value); 1,000,000 shares authorized; no shares issued and outstanding as of March 31, 2026 and December 31, 2025, respectively | – | – | ||||||
| Common stock ($0.0001 par value); 80,000,000 shares authorized; 31,823,895 and 30,688,895 shares issued and outstanding as of March 31, 2026 and December 31, 2025, respectively | 3 | 3 | ||||||
| Additional paid-in capital | 50,369 | 50,030 | ||||||
| Accumulated other comprehensive income | 30 | 40 | ||||||
| Accumulated deficit | (59,212 | ) | (55,800 | ) | ||||
| Total Stockholders’ Deficit | (8,810 | ) | (5,727 | ) | ||||
| Total Liabilities and Stockholders’ Deficit | $ | 17,734 | $ | 21,405 | ||||
| Spectral AI, Inc. Unaudited Condensed Consolidated Statements of Operations (in thousands, except share and per share data) | ||||||||
| Three Months Ended March 31, | ||||||||
| 2026 | 2025 | |||||||
| Research and development revenue | $ | 3,991 | $ | 6,707 | ||||
| Cost of revenue | (1,964 | ) | (3,539 | ) | ||||
| Gross profit | 2,027 | 3,168 | ||||||
| Operating costs and expenses: | ||||||||
| General and administrative | 3,998 | 4,064 | ||||||
| Total operating costs and expenses | 3,998 | 4,064 | ||||||
| Operating loss | (1,971 | ) | (896 | ) | ||||
| Other income (expense): | ||||||||
| Net interest (expense) income | (258 | ) | (20 | ) | ||||
| Financing related costs | (7 | ) | (581 | ) | ||||
| Amortization of debt discount | (179 | ) | – | |||||
| Change in fair value of warrant liability | (1,002 | ) | 4,253 | |||||
| Change in fair value of notes payable | – | 220 | ||||||
| Foreign exchange transaction loss, net | (5 | ) | (8 | ) | ||||
| Other income (expense), including transaction costs | – | – | ||||||
| Total other income (expense), net | (1,451 | ) | 3,864 | |||||
| Income (loss) before income taxes | (3,422 | ) | 2,968 | |||||
| Income tax provision | 10 | (71 | ) | |||||
| Net income (loss) | $ | (3,412 | ) | $ | 2,897 | |||
| Net income (loss) per share of common stock | ||||||||
| Basic | $ | (0.11 | ) | $ | 0.13 | |||
| Diluted | $ | (0.11 | ) | $ | 0.11 | |||
| Weighted-average common shares outstanding | ||||||||
| Basic | 31,756,649 | 22,986,350 | ||||||
| Diluted | 31,756,649 | 24,030,518 | ||||||
| Other comprehensive income (loss): | ||||||||
| Foreign currency translation adjustments | $ | (10 | ) | $ | 17 | |||
| Total comprehensive income (loss) | $ | (3,422 | ) | $ | 2,914 | |||
| Spectral AI, Inc. Unaudited Condensed Consolidated Statements of Cash Flows (in thousands, except share and per share data) | ||||||||
| Three Months Ended March 31, | ||||||||
| 2026 | 2025 | |||||||
| Cash flows from operating activities: | ||||||||
| Net income (loss) | $ | (3,412 | ) | $ | 2,897 | |||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Depreciation expense | 30 | 2 | ||||||
| Amortization of debt issuance costs | 179 | – | ||||||
| Stock-based compensation | 183 | 200 | ||||||
| Amortization of right-of-use assets | 147 | 141 | ||||||
| Change in fair value of warrant liabilities | 1,001 | (4,253 | ) | |||||
| Change in fair value of notes payable | – | (220 | ) | |||||
| Issuances of shares for borrowing related costs | – | 241 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | 82 | 402 | ||||||
| Inventory | 7 | (12 | ) | |||||
| Prepaid expenses | 110 | 2 | ||||||
| Other assets | (444 | ) | (94 | ) | ||||
| Accounts payable | (1,587 | ) | (947 | ) | ||||
| Accrued expenses | 308 | 502 | ||||||
| Deferred revenue | (154 | ) | (297 | ) | ||||
| Lease liabilities | (178 | ) | (69 | ) | ||||
| Net cash used in operating activities | (3,728 | ) | (1,505 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Proceeds from issuance of common stock and warrants | – | 3,080 | ||||||
| Proceeds from notes payable | – | 8,285 | ||||||
| Payments for notes payable | (157 | ) | (1,131 | ) | ||||
| Stock option exercises | 156 | 158 | ||||||
| Net cash provided by financing activities | (1 | ) | 10,392 | |||||
| Effect of exchange rate changes on cash | (10 | ) | 17 | |||||
| Net increase in cash | (3,739 | ) | 8,904 | |||||
| Cash, beginning of period | 15,394 | 5,157 | ||||||
| Cash, end of period | $ | 11,655 | $ | 14,061 | ||||
| Supplemental cash flow information: | ||||||||
| Cash paid for interest | $ | 278 | $ | 11 | ||||
| Cash paid for taxes | $ | 5 | $ | 11 | ||||
| Noncash investing and financing activities disclosure: | ||||||||
| Tenant improvement allowance payments made by the lessor directly to a third party | $ | – | $ | 164 | ||||
| Issuance of common stock to settle notes payable | $ | – | $ | 1,192 | ||||
| Capitalized and unpaid debt issuance costs | $ | – | $ | (25 | ) | |||
