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 | 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 | 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 | ||||||||
Cash and cash equivalents | $ 360 | $ 445 | ||||||
Restricted cash | 7,411 | 10,070 | ||||||
Total cash, cash equivalents and restricted cash shown in the condensed | $ 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 | $ — | ||||||
SOURCE Marpai
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