Spectral AI, Inc. Q4 FY2025 earnings call

2025 was pivotal for Spectral AI with progress in commercializing DeepView system for burn indication. Submitted de novo application to FDA in June 2025, received additional info notification letter and maintained dialogue. Completed burn validation study in March 2025 with data from 164 patients. Long-term partnership with BARDA, received $31.7 million advanced funding from BARDA last week, committed $9.7 million to development costs. International positive user feedback in UK with UKCA authorization. Handheld device development under DoD contract with no-cost extension to June 30, 2026. Entered 2026 in strong liquidity and financial position with cash over $15 million at year end.

Fourth quarter 2025: Research and development revenue was $3.8 million vs. $7.6 million prior year. Gross margin was 39.8% vs. 44.0%. General and administrative expenses were $4.0 million vs. $4.5 million. Net income was $0.6 million or $0.02 per diluted share vs. net loss of $7.7 million or negative $0.41 per diluted share in Q4 2024. Full year 2025: Research and development revenue decreased to $19.7 million from $29.6 million. Gross margin was 45.4% vs. 44.9%. G&A declined to $17.5 million from $19.9 million. Net loss was $7.6 million or negative $0.29 per diluted share vs. net loss of $15.3 million or negative $0.85 per diluted share in 2024. As of Dec 31, 2025, cash improved to $15.4 million from $5.2 million in 2024. Total debt was $8.5 million.

For 2026, forecasting revenue of approximately $18.5 million which includes effect of new BARDA funding. This guidance does not include significant contributions from sale of DeepView system.

Forward-looking statements are not guarantees and involve known and unknown risks, uncertainties, etc. Listeners cautioned not to rely unduly on forward-looking statements. Investors should consider risks in SEC filings.

Q: Congrats on BARDA funding and Vince's new role, talk about preparing for commercialization, etc.

A: Started search for new chief commercial officer, engaged Deloitte Consulting for strategic plan, plan to expand sales team.

Q: How BARDA funds hit in 2026 and 2027, visibility on contract obligations.

A: BARDA contract extends until 2030, acceleration runs mostly through 2028, working on label expansion, TBSA offering, EHR integration, etc.

Q: Timeframe for BARDA funds dispersal, revenue guidance post FDA licensure, potential optimization outside US.

A: BARDA contract extends to 2030, revenue depends on health systems' device deployment, will modify UKCA authorization for overseas deployment.

Q: Training force look and R&D spend allocation.

A: Have BMEs in place, plan to expand sales reps and BMEs, R&D includes label expansion, potential other indications like critical limb ischemia, etc.