SPECTRAL AI INC (NASDAQ:MDAI) Q2 2025 Earnings: Revenue Misses, Losses Widen Amid Regulatory Progress

Spectral AI Inc (NASDAQ:MDAI) Reports Q2 2025 Earnings: Revenue Misses Estimates, Losses Widen

Spectral AI Inc, a Dallas-based predictive AI company specializing in medical diagnostics for wound care, reported its second-quarter financial results for 2025. The company posted revenue of $5.07 million, falling short of analyst expectations of $5.61 million. Earnings per share (EPS) came in at -$0.10, worse than the estimated -$0.0748.

Key Financial Takeaways

• Revenue Decline: Q2 revenue dropped 32% year-over-year from $7.48 million in Q2 2024, primarily due to reduced reimbursed clinical trial costs under the company’s BARDA contract.
• Net Loss Widens: The company reported a net loss of $7.9 million, compared to a $2.9 million loss in the prior-year quarter, driven by a $5.4 million increase in warrant liability fair value adjustments.
• Gross Margin Slight Dip: Gross margin was 45.2%, down from 46.6% in Q2 2024, attributed to higher non-reimbursed expenses.
• Cash Position Strengthened: Cash reserves improved to $10.5 million as of June 30, 2025, up from $5.2 million at the end of 2024, following an $8.5 million debt financing drawdown and $2.7 million in equity financing.

Market Reaction

Following the earnings release, shares of Spectral AI saw an after-hours gain of 1.34%, suggesting a muted but slightly positive reaction despite the revenue miss and widening losses. The stock has declined 2.48% over the past week and 14.18% over the past two weeks, reflecting broader market skepticism ahead of the earnings report.

Business Highlights & Outlook

The company highlighted the completion of its De Novo application submission to the FDA for its DeepView System, a key milestone in securing regulatory approval for its AI-driven wound assessment technology. Management reiterated full-year 2025 revenue guidance of $21.5 million, though this does not account for potential commercialization of the DeepView System.

Analyst estimates for Q3 2025 project revenue of $5.14 million and an EPS of -$0.088, while full-year 2025 estimates forecast sales of $22.34 million and an EPS of -$0.1428.

Conclusion

While Spectral AI continues to make progress in regulatory approvals and maintains a solid cash position, its near-term financial performance remains under pressure due to declining reimbursements and higher operational costs. Investors appear cautiously optimistic, as reflected in the modest after-hours uptick, but execution on commercialization and FDA approval will be critical for sustained momentum.

For more detailed earnings estimates and historical performance, visit Spectral AI’s earnings page.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research before making any financial decisions.