Spectral AI (MDAI) Financials

Spectral AI’s Q2 2026 results show a company with meaningful revenue but continued heavy cash consumption. Revenue was $3.5 million, down from $4.0 million in Q1 2026 and $5.1 million in the restated Q2 2025 period. Gross profit fell to $1.1 million, producing a gross margin of approximately 31.6%, compared with 50.8% in Q1 2026 and 45.2% in Q2 2025.

Profitability remains the primary concern. Operating expenses rose to $5.4 million in Q2 from $4.0 million in Q1, led by $3.1 million of selling, general and administrative expense, $1.7 million of research and development, and $653,000 of marketing. The company reported a $4.2 million net loss, or $(0.13) per share, compared with a $3.4 million loss in Q1. Spectral AI has reported net losses in nearly every period provided, aside from Q1 and Q4 2025, when reported earnings benefited substantially from volatile other-income items.

Cash increased to $14.0 million at June 30, 2026, helped by $6.5 million of new debt financing and a $2.3 million quarterly increase in cash. However, operating cash flow was negative $4.1 million, and total debt reached approximately $14.9 million. The company’s negative shareholders’ equity and reliance on external financing remain important risks for investors.

• Cash and equivalents increased 20% sequentially to $14.0 million in Q2 2026, providing additional liquidity compared with the $11.7 million balance at the end of Q1.
• The company raised $6.5 million through debt issuance during Q2, which more than offset its $4.1 million operating cash burn and supported a $2.3 million increase in cash.
• Q2 2026 revenue of $3.5 million remained above the $3.4 million reported in Q3 2025, suggesting that the business continues to generate recurring commercial activity despite recent sequential declines.
• Operating cash flow improved modestly from negative $5.4 million in Q2 2024 and negative $5.0 million in Q3 2025, although it remained significantly negative in the latest quarter.
• The company continues to invest heavily in research and development, with Q2 R&D expense of $1.7 million. This spending could support future product expansion, but the financial benefit has not yet appeared in operating results.
• Q2 2026 included $701,000 of net other income, partially offsetting operating losses. Results in prior periods were also affected by large and volatile other-income or other-expense items, making reported earnings less representative of underlying operations.
• Revenue declined approximately 12% sequentially and 30% year over year from the restated Q2 2025 figure, while gross margin compressed to 31.6% from 50.8% in Q1 2026.
• Operating expenses substantially exceeded gross profit, resulting in a $4.3 million operating loss in Q2. The company’s net loss widened from $3.4 million in Q1 to $4.2 million in Q2.
• Spectral AI reported negative shareholders’ equity of $12.1 million at June 30, 2026. Total liabilities of $31.5 million exceeded total assets of $19.4 million, and current liabilities of $19.9 million exceeded current assets of $17.8 million.
• The company remains dependent on outside capital. Q2 operating cash burn of $4.1 million equates to less than four quarters of cash coverage using the latest-quarter burn rate, before considering debt repayments, interest costs, or changes in working capital.

Investors should also note that the Q1 and Q2 2025 income statement data were restated in later filings. Comparisons with those periods may therefore differ from previously published results. The broader trend remains challenging: revenue has generally declined from 2024 levels, losses have persisted, debt has increased, and the weighted-average share count rose from 17.6 million in Q2 2024 to 32.1 million in Q2 2026, creating dilution risk for existing shareholders.