Beyond Air (NASDAQ:XAIR) reported revenue of $1.8 million for the quarter ended June 30, 2026, unchanged from the same quarter a year earlier, as the company continued preparations for a potential U.S. commercial launch of its second-generation LungFit PH system.
Chief Executive Officer Robert Goodman said the company has focused in recent months on strengthening its balance sheet, expanding its commercial footprint and preparing for its next phase of growth. Beyond Air recently completed a financing arrangement of up to $30 million, including $10 million in upfront gross proceeds and up to $20 million tied to the exercise of short- and long-term warrants.
Commercial expansion and distribution
During the quarter, Beyond Air entered into a national group purchasing agreement with an unnamed major U.S. group purchasing organization. The agreement represents the company’s third partnership with a major national GPO, alongside existing relationships with Premier and Vizient.
Goodman said the agreements provide access to a substantial portion of U.S. hospitals and health systems and are an important part of Beyond Air’s commercial strategy. He added that the company’s commercial pipeline had doubled over the prior five or six months, though he noted that the hospital sales cycle remains long.
The company is also pursuing international growth through distribution partners. Goodman said Beyond Air has partnerships covering more than 40 countries and expects its strengthened financial position to help support partners’ efforts to bring LungFit PH to market in those regions. He said international business had begun to “pick up a little bit,” with revenue from those sales recognized immediately when purchases are made.
Second-generation LungFit PH remains under FDA review
Beyond Air submitted a premarket approval supplement for the second-generation LungFit PH system to the Food and Drug Administration in June 2025. Goodman characterized potential FDA approval as the company’s most important near-term catalyst and said Beyond Air continues to expect a possible decision during the second half of calendar 2026, though timing and the outcome remain subject to the agency’s review process.
During the question-and-answer session, Goodman said the company has submitted most of the necessary documentation and is moving into an audit phase. The FDA is reviewing the paperwork and will determine when audits take place, he said. Beyond Air and its contract manufacturer are completing engineering and pilot builds that will support the validation process.
Goodman said communications with the FDA have been productive and that the company believes it is where it should be in the process. While declining to specify an exact decision date, he indicated that a fourth-quarter outcome could be more likely given the calendar, while reiterating the company’s second-half expectation.
Quarterly financial results
Beyond Air’s gross margin improved to 13% from 9% in the prior-year quarter, marking its third consecutive quarter of positive gross profit, according to Chief Financial Officer Dan Moorhead.
- Research and development expense declined to $2 million from $3.1 million a year earlier.
- Selling, general and administrative expense rose to $4.9 million from $4.7 million.
- Other expense increased to $1.5 million from $500,000.
- Net loss attributable to common stockholders was $7.9 million, or $0.11 per basic and diluted share, compared with a net loss of $7.7 million, or $0.3067 per share, a year earlier.
- Cash equivalents, restricted cash and marketable securities totaled $15.2 million as of June 30, excluding the recently announced financing.
Moorhead said proceeds from the financing are expected to support operations, including production of pilot units in the near term and increased device production following potential FDA clearance. He added that the capital would also help fund the company’s cash burn during the launch preparation period.
Guidance maintained
Beyond Air reaffirmed its calendar-year 2026 revenue guidance of $8 million, representing approximately 15% growth from calendar 2025. Goodman emphasized that the forecast does not include revenue from the second-generation LungFit PH system.
The company also maintained its 2027 revenue outlook of $16 million to $18 million, which would represent more than 110% growth at the midpoint compared with 2026 guidance. The 2027 outlook includes anticipated revenue from a potential second-generation LungFit PH launch, subject to FDA approval.
Goodman said the company generated approximately $3.7 million of revenue in the first half of 2026 and expects about $4.3 million in the second half. He cited recent commercial wins, an expanding pipeline, tenders under discussion and improving international activity as reasons for confidence in the $8 million full-year target.
Beyond Air also noted that it has changed its fiscal year-end from March 31 to Dec. 31. The company said its SEC filings will continue using the March 31 fiscal-year framework until after its Dec. 31, 2026 filing, when it expects to transition to calendar-year reporting.
About Beyond Air (NASDAQ:XAIR)
Beyond Air, Inc is a clinical-stage medical technology company focused on the development and commercialization of inhaled nitric oxide (NO) therapy for pulmonary and respiratory diseases. The company’s proprietary LungFit® platform delivers pulsed, low-dose nitric oxide gas through compact, portable devices designed to support treatments in both inpatient and outpatient settings. Beyond Air’s approach leverages NO’s antimicrobial, vasodilatory and anti-inflammatory properties to address a range of unmet needs in respiratory medicine.
The company’s lead candidate, LungFit® PH, is under investigation for the treatment of pulmonary hypertension, with ongoing clinical studies assessing its impact on pulmonary arterial pressure and exercise capacity.
