Spectral AI Earnings Call: Mixed Sentiment and Future Growth

Spectral Ai, Inc. Class A ((MDAI)) has held its Q3 earnings call. Read on for the main highlights of the call.

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Spectral AI’s recent earnings call presented a mixed sentiment, reflecting both optimism and challenges. The company maintains a robust cash position and has made significant strides with its FDA submission, receiving positive international feedback for its DeepView system. However, the decline in research and development revenue, increased net loss, and reduced revenue guidance for 2025 highlight some hurdles that need addressing. Despite these challenges, the company remains optimistic about its commercialization efforts and future growth prospects.

Strong Cash Position

Spectral AI reported a stable cash balance of $10.5 million from the second quarter of 2025, supplemented by an additional $7.6 million from a registered direct offering. This financial stability ensures that the company has sufficient financing for the foreseeable future, providing a solid foundation for its ongoing and future projects.

FDA Submission Progress

The completion of the FDA submission for the DeepView system in June 2025 marks a significant milestone for Spectral AI. Despite the U.S. government shutdown, the company continues to engage with the FDA on the de novo application, demonstrating its commitment to advancing its innovative technology.

Positive International Feedback

Spectral AI’s DeepView system has garnered overwhelmingly positive feedback from international markets. Users have praised its ease of use and effectiveness, and the company plans to incorporate this feedback into future iterations, further enhancing its product offerings.

Development of Handheld Device

Progress on the handheld module for military and civilian applications is underway, with positive feedback from military users. This development holds potential for future support and expansion into new markets, showcasing Spectral AI’s commitment to innovation and diversification.

Decline in Research and Development Revenue

Research and development revenue saw a significant decrease, dropping to $3.8 million from $8.2 million in the previous year. This decline reflects reduced reimbursements under the BARDA Project BioShield contract, highlighting a challenge the company needs to address moving forward.

Increased Net Loss

Spectral AI reported a net loss of $3.6 million for the third quarter of 2025, compared to $1.5 million in the same period of 2024. This increase is attributed to reduced revenue and higher general and administrative expenses, indicating areas where cost management may be necessary.

Reduced Revenue Guidance

The company revised its 2025 revenue guidance downward from $21.5 million to $18.5 million. This adjustment is primarily due to anticipated reduced work on the BARDA contract and timing effects from the U.S. government shutdown, reflecting external challenges impacting financial projections.

Forward-Looking Guidance

Spectral AI’s forward-looking guidance indicates a cautious approach to future revenue projections. While the company expects 2026 revenue to be relatively flat or slightly lower than 2025, it anticipates significant growth in 2027 and 2028. This outlook suggests a strategic focus on long-term growth despite short-term challenges.

In conclusion, Spectral AI’s earnings call reflects a mixed sentiment, balancing optimism about its cash position and product advancements with concerns over financial performance. Key takeaways include the company’s strong cash reserves, progress with the FDA, and positive international feedback, alongside challenges such as declining research revenue and increased net loss. Looking ahead, Spectral AI remains focused on overcoming these hurdles and achieving growth in the coming years.