
Successful turnaround leads to lower operating costs and improved gross margin; debt restructuring and subsequent financing strengthen capital structure
TAMPA, Fla., Aug. 13, 2026 /PRNewswire/ -- Marpai, Inc. ("Marpai" or the "Company") (OTCQX: MRAI), a leader in innovative healthcare technology, Third-Party Administration (TPA), and Pharmacy Benefit Management ("PBM") services, announced its financial and operational results for the three and six months ended June 30, 2026.
SECOND QUARTER 2026 FINANCIAL HIGHLIGHTS
The second quarter marked the successful continuation of Marpai's turnaround.
Metric |
Q2 2026 |
Q2 2025 |
Year-over-year |
Revenue |
$4.2 million |
$4.7 million |
10.5% decrease |
Cost of revenue |
$3.2 million |
$3.9 million |
19.0% decrease |
Gross profit |
$1.0 million |
$0.7 million |
33.6% improvement |
Gross margin |
23.9 % |
16.0 % |
Improved by 7.9 |
Total costs and |
$7.6 million |
$8.3 million |
8.0% decrease |
Operating loss |
$(3.4) million |
$(3.6) million |
4.8% improvement |
Net loss |
$(4.6) million |
$(4.4) million |
4.9% increase |
Revenue declined primarily due to turnover and continued customer pruning. Cost of revenue decreased faster than revenue due to a reduction in claims processing expense, resulting in higher gross profit and gross margin. Total costs and expenses also declined, reflecting lower cost of revenue, information technology, sales and marketing, depreciation and amortization, and facilities expense, partially offset by higher general and administrative expense.
OPERATING AND STRATEGIC UPDATE
We continue to prune and adjust our customer base while adjusting our cost base to reflect our growing use of artificial intelligence ("AI") and other technological solutions to improve our efficiency and generate better returns.
Marpai continued to streamline its operating model during the quarter. Information technology expenses decreased to $1.1 million from $1.3 million in for the six months ended June 30, 2025, while sales and marketing expenses decreased to $136 thousand from $312 thousand for the six months ended June 30, 2025. Facilities expenses declined to $116 thousand from $160 thousand for the six months ended June 30, 2025.
Debt Restructuring:
As previously disclosed, in May 2026, the Company amended its senior secured convertible debentures, extending their maturity to April 15, 2028, and revising the amortization schedule. In July 2026, the Company amended its AXA notes extending their maturity to 2029 and revising the amortization schedule and repayment schedules.
Capital raise:
Subsequent to the end of the second quarter of 2026, on July 31, 2026, the Company priced a private placement offering of newly designated Series A Preferred Stock, generating aggregate gross proceeds of $12.1 million to the Company. The financing is expected to support the Company's operations and strategic priorities.
Management Commentary
"We believe that our second-quarter results demonstrate continued progress in revamping our cost structure to support the expected growth of the business by deploying AI and other technological solutions to improve our efficiency and increase our margins," said Damien Lamendola, Chief Executive Officer of Marpai. "While revenue continued to reflect lingering customer pruning and turnover, our lower cost of revenue and disciplined investments in process improvements and technology improved gross margin and reduced our operating loss. The debt amendments and subsequent financing improved our capital structure as we focus on growing our customer base profitably, improving client services, and building a more scalable platform."
SIX-MONTH 2026 RESULTS
For the six months ended June 30, 2026, revenue was $8.6 million, compared with $10.1 million for the six months ended June 30, 2025. Total costs and expenses were $14.5 million, compared with $15.9 million for the six months ended June 30, 2025. Operating loss was $5.9 million, compared with $5.9 million for the six months ended June 30, 2025, and net loss was $7.8 million, or $(0.31) per basic and diluted share, compared with $7.4 million, or $(0.49) per basic and diluted for the six months ended June 30, 2025.
Net cash used in operating activities was $4.6 million for the first six months of 2026. As of June 30, 2026, unrestricted cash and cash equivalents were $138 thousand. These balances do not include the $12.1 million of gross proceeds from the private placement completed after quarter-end, as disclosed above.
About Marpai, Inc.
Marpai, Inc. (OTCQX: MRAI) is a technology platform company which operates subsidiaries that provide TPA, PBM and value-oriented health plan services to employers that directly pay for employee health benefits. Marpai works to deliver the healthiest member population for the health plan budget through its Marpai Saves initiative. Operating nationwide, Marpai offers access to leading provider networks including Aetna and Cigna. For more information, visit www.marpaihealth.com, the content of which is not incorporated by reference into this press release. Investors are invited to visit https://ir.marpaihealth.com.
Forward-Looking Statement Disclaimer
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 continued adjustments to its customer base while adjusting is cost base to reflect growing use of artificial intelligence and other technological solutions to improve efficiency and generate better returns; the Company's expectation that the capital raise through a private placement offering will support its operations and strategic priorities; the Company's belief that its second-quarter results demonstrate continued progress in revamping its cost structure to support the expected growth of the business by deploying AI and other technological solutions to improve its efficiency and increase its margins; and the Company's focus on growing its customer base profitably, improve client services and build a more scalable platform. 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) |
||||
June 30, 2026 |
December 31, 2025 |
|||
ASSETS: |
||||
Current assets: |
||||
Cash and cash equivalents |
$ 138 |
$ 133 |
||
Restricted cash |
6,437 |
8,818 |
||
Accounts receivable, net of allowance for credit losses of $86 and $21 as of June 30, |
1,017 |
697 |
||
Unbilled receivables |
1,085 |
280 |
||
Prepaid expenses and other current assets |
327 |
408 |
||
Total current assets |
9,004 |
10,336 |
||
Capitalized software, net |
— |
60 |
||
Operating lease right-of-use assets |
193 |
218 |
||
Security deposits |
227 |
229 |
||
Other long-term asset |
43 |
61 |
||
Total assets |
$ 9,467 |
$ 10,904 |
||
LIABILITIES AND STOCKHOLDERS' DEFICIT |
||||
Current liabilities: |
||||
Accounts payable |
$ 5,783 |
$ 3,668 |
||
Accrued expenses |
2,456 |
2,115 |
||
Accrued fiduciary obligations |
7,270 |
8,521 |
||
Deferred revenue (including related party amounts of $317 and $0, respectively) |
317 |
89 |
||
Current portion of operating lease liabilities |
278 |
264 |
||
Current portion of convertible debentures, net |
1,966 |
3,037 |
||
Other short-term liabilities |
2,450 |
8,000 |
||
Vendor financing advance |
2,000 |
— |
||
Due to related party |
1,026 |
— |
||
Total current liabilities |
23,546 |
25,694 |
||
Other long-term liabilities |
18,306 |
11,450 |
||
Convertible debentures, net of current portion |
6,122 |
5,795 |
||
Operating lease liabilities, net of current portion |
384 |
528 |
||
Total liabilities |
48,358 |
43,467 |
||
COMMITMENTS AND CONTINGENCIES |
||||
STOCKHOLDERS' DEFICIT |
||||
Preferred stock, $0.0001 par value, 2,000,000 shares authorized; 0 shares issued and |
— |
— |
||
Common stock, $0.0001 par value, 227,791,050 shares authorized; 26,667,334 shares and |
3 |
2 |
||
Additional paid-in capital |
84,266 |
82,829 |
||
Accumulated deficit |
(123,160) |
(115,394) |
||
Total stockholders' deficit |
(38,891) |
(32,563) |
||
Total liabilities and stockholders' deficit |
$ 9,467 |
$ 10,904 |
||
MARPAI, INC. AND SUBSIDIARIES |
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||
(UNAUDITED) |
||||||||
(in thousands, except share and per share data) |
||||||||
Three Months Ended |
Six Months Ended |
|||||||
June 30, 2026 |
June 30, 2025 |
June 30, 2026 |
June 30, 2025 |
|||||
Revenue (including related party amounts of $183, $0, $183, and $0, respectively) |
$ 4,166 |
$ 4,656 |
$ 8,610 |
$ 10,074 |
||||
Costs and expenses |
||||||||
Cost of revenue (exclusive of depreciation and amortization |
3,169 |
3,910 |
6,408 |
7,395 |
||||
General and administrative |
3,069 |
2,483 |
5,199 |
4,766 |
||||
Information technology |
1,109 |
1,291 |
2,266 |
2,681 |
||||
Sales and marketing |
136 |
312 |
365 |
556 |
||||
Research and development |
— |
— |
— |
7 |
||||
Depreciation and amortization |
— |
107 |
60 |
214 |
||||
Facilities |
116 |
160 |
229 |
311 |
||||
Total costs and expenses |
7,599 |
8,263 |
14,527 |
15,930 |
||||
Operating loss |
(3,433) |
(3,607) |
(5,917) |
(5,856) |
||||
Other income (expenses) |
||||||||
Other income, net |
77 |
49 |
153 |
49 |
||||
Interest expense, net |
(1,227) |
(813) |
(2,002) |
(1,633) |
||||
Loss before provision for income taxes |
(4,583) |
(4,371) |
(7,766) |
(7,440) |
||||
Income tax expense |
— |
— |
— |
— |
||||
Net loss |
$ (4,583) |
$ (4,371) |
$ (7,766) |
$ (7,440) |
||||
Net loss per share, basic & fully diluted |
$ (0.18) |
$ (0.28) |
$ (0.31) |
$ (0.49) |
||||
Weighted average common shares outstanding, basic and |
25,860,374 |
15,503,132 |
25,277,172 |
15,140,332 |
||||
MARPAI, INC. AND SUBSIDIARIES |
||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||
(UNAUDITED) |
||||
(in thousands) |
||||
Six Months Ended |
||||
June 30, 2026 |
June 30, 2025 |
|||
Cash flows from operating activities: |
||||
Net loss |
$ (7,766) |
$ (7,440) |
||
Adjustments to reconcile net loss to net cash used in operating activities: |
||||
Depreciation and amortization |
60 |
214 |
||
Share-based compensation |
1,120 |
1,043 |
||
Shares issued to vendors in exchange for services |
55 |
1,008 |
||
Amortization of right-of-use asset |
25 |
31 |
||
Non-cash interest expense |
1,331 |
914 |
||
Amortization of debt premium and debt issuance costs, net |
56 |
(17) |
||
Bad debt expense |
178 |
— |
||
Changes in operating assets and liabilities: |
||||
Accounts receivable and unbilled receivables |
(1,303) |
(56) |
||
Prepaid expense and other assets |
101 |
176 |
||
Accounts payable |
2,115 |
479 |
||
Accrued expenses |
604 |
(516) |
||
Accrued fiduciary obligations |
(1,251) |
871 |
||
Operating lease liabilities |
(130) |
(123) |
||
Due to related party |
26 |
— |
||
Other liabilities |
203 |
92 |
||
Net cash used in operating activities |
(4,576) |
(3,324) |
||
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 |
— |
||
Proceeds from issuance of convertible debentures |
— |
3,000 |
||
Payments of convertible debenture issuance costs |
— |
(162) |
||
Payments on convertible debentures |
(800) |
(1,500) |
||
Payments to seller for acquisition |
— |
(196) |
||
Proceeds from issuance of common stock in a private offering, net |
730 |
|||
Net cash provided by financing activities |
2,200 |
1,872 |
||
Net (decrease) increase in cash, cash equivalents and restricted cash |
(2,376) |
(952) |
||
Cash, cash equivalents and restricted cash at beginning of period |
8,951 |
9,232 |
||
Cash, cash equivalents and restricted cash at end of period |
$ 6,575 |
$ 8,280 |
||
Reconciliation of cash, cash equivalents, and restricted cash reported in |
||||
Cash and cash equivalents |
$ 138 |
$ 619 |
||
Restricted cash |
6,437 |
7,661 |
||
Total cash, cash equivalents and restricted cash shown in the condensed |
$ 6,575 |
$ 8,280 |
||
Supplemental disclosure of cash flow information |
||||
Cash paid for interest |
$ 591 |
$ 781 |
||
SOURCE Marpai
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