Beyond Air, Inc. Q2 FY2026 earnings call

• LungFit PH revenue grew 128% YOY to $1.8 million in Q2 2026, with strong clinical feedback from hospitals. - Raised $12 million in debt and filed for an additional $20 million equity line of credit. - LungFit PH placed in first hospital outside US for commercial use. - Appointed Bob Goodman as Interim Chief Commercial Officer. - Updated fiscal year '26 guidance to $8 million to $10 million. - Introduced capital purchase sales model in US with first hospital purchase. - Data from Beyond Cancer Phase Ia trial shows median survival at 22 months. - NeuroNOS' BA-101 granted Orphan Drug Designation for glioblastoma, BA-102 for Phelan-McDermid syndrome. - Added new distribution partnerships in multiple countries, expanding international coverage to 35 countries.

For the fiscal second quarter of 2026, revenue from LungFit PH was $1.8 million, a 128% year-over-year increase from $0.8 million in the same period last year. Sequential growth was flat compared to the prior quarter. Gross loss for the fiscal second quarter 2026 was $0.3 million, an improvement from a $1.1 million loss the prior year. Operating expenses were reduced to just above $7.4 million for Q2 2026, a 37% year-over-year reduction.

• Updated fiscal year '26 guidance to $8 million to $10 million. - Anticipate R&D expenses to decrease slightly next quarter as Gen II device costs are mostly behind us. - SG&A expenses to increase in line with commercial performance. - Confident in steeper growth trajectory once Gen II LungFit PH is approved and launched.

• Supply chain challenges affecting Gen II launch. - Trade disagreements and government shutdowns impacting part availability and contract manufacturing inspection. - Natural variability in international shipments and hospital purchasing cycles affecting sales performance.

Q: Without going into specific fiscal 2027 guidance, can you comment on expected growth drivers leading into Gen II approval?

A: Growth drivers include international expansion with 35 countries already having partnerships and first commercial hospital outside US; introduction of capital purchase model in US; anticipation of steeper growth once Gen II is approved.

Q: Comment on comparison between Gen II and Gen I LungFit PH?

A: Gen II is 60% smaller, approved for ground and air transportation, upgraded user interface based on customer feedback, longer maintenance interval reducing disruption for high-volume users.

Q: Thoughts on the updated guide $8 million to $10 million and visibility?

A: $8 million to $10 million guidance due to transition at Chief Commercial Officer, expected disruption as new CCO implements processes; $3.6 million in first half makes leap to guidance achievable but with transition impacts.