MARPAI REPORTS FIRST QUARTER 2025 FINANCIAL RESULTS
Marpai's turnaround momentum is building
TAMPA, Fla., May 14, 2025 /PRNewswire/ -- Marpai, Inc. ("Marpai" or the "Company") (OTCQX:MRAI), a leader in innovative healthcare technology and Third-Party Administration (TPA) services, announced financial results for the first quarter of 2025. The Company expects to hold a webcast to discuss the results on May 15, 2025.
Marpai CEO Damien Lamendola commented, "Our consistent double-digit success in cutting operating expenses and improving our bottom line signals what we believe is a critical inflection point for the Company. Looking ahead to the second quarter, we are focused on completing several key initiatives, including the launch of our Healthcare Management tool with Empara, LLC ("Empara"), exciting advancements with MarpaiRx, and the onboarding of our new Chief Operating Officer, Dallas Scrip. Our unwavering goal is to achieve profitability and positive cash flow by the end of 2025."
Q1 2025 Financial Highlights:
- Net revenues were approximately $5.4 million for the three months ended March 31, 2025, down $2.0 million, or 27% lower year over year, compared to the three months ended March 31, 2024.
- Operating expenses were $7.7 million for the three months ended March 31, 2025, down $3.8 million, or 33% lower year over year, compared to the three months ended March 31, 2024.
- Operating loss was $2.3 million for the three months ended March 31, 2025, lower by $1.8 million, or 45% lower year over year, compared to the three months ended March 31, 2024.
- Net loss was $3.1 million for the three months ended March 31, 2025, lower by $1.3 million, or 29% lower year over year, compared to the three months ended March 31, 2024.
- Basic and diluted earnings per share were ($0.21) for the three months ended March 31, 2025, an improvement of $0.25 per share year over year, compared to the three months ended March 31, 2024.
- The Company had $0.7 million in unrestricted cash on hand at the end of three months ended March 31, 2025, down $0.1 million from the three months ended March 31, 2024.
Webcast and Conference Call Information
Marpai expects to host a conference call and webcast on Thursday, May 15, 2025, at 8:30 a.m. ET to review the Company's operational and financial highlights for its first quarter ended March 31, 2025.
Investors interested in listening to the conference call may do so by dialing (800)-836-8184 for domestic callers or +1-646-357-8785 for international callers, or via webcast: https://app.webinar.net/e6RGaxOgz3n
About Marpai, Inc.
Marpai, Inc. (OTCQX:MRAI) is a technology platform company which operates subsidiaries that provide TPA and value-oriented health plan services to employers that directly pay for employee health benefits. Primarily competing in the $22 billion TPA sector serving self-funded employer health plans representing over $1 trillion in annual claims. Through its Marpai Saves initiative, the Company works to deliver the healthiest member population for the health plan budget. Operating nationwide, Marpai offers access to leading provider networks including Aetna and Cigna and all TPA services. For more information, visit www.marpaihealth.com, the content of which is not incorporated by reference into this press release. Investors are invited to visit https://ir.marpaihealth.com.
Forward-Looking Statement Disclaimer
This press release contains forward-looking statements, as that term is defined in the Private Litigation Reform Act of 1995, that involve significant risks and uncertainties. Forward-looking statements can be identified through the use of words such as "anticipates," "expects," "intends," "plans," "believes," "seeks," "estimates," "guidance," "may," "can," "could", "will", "potential", "should," "goal" and variations of these words or similar expressions. For example, the Company is using forward-looking statements when it discusses that it continues to make strong progress with its turnaround efforts, that improvements in its operating expenses and bottom line signals a critical inflection point for the Company, quarter, that it expects to complete several key initiatives, including the launch of its Healthcare Management tool with Empara and advancements with MarpaiRx, and that its goal remains profitability and positive cash flow by the end of 2025. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect Marpai's current expectations and speak only as of the date of this release. Actual results may differ materially from Marpai's current expectations depending upon a number of factors. These factors include, among others, adverse changes in general economic and market conditions, competitive factors including but not limited to pricing pressures and new product introductions, uncertainty of customer acceptance of new product offerings and market changes, risks associated with managing the growth of the business. Except as required by law, Marpai does not undertake any responsibility to revise or update any forward-looking statements whether as a result of new information, future events or otherwise.
More detailed information about Marpai and the risk factors that may affect the realization of forward-looking statements is set forth in Marpai's filings with the Securities and Exchange Commission. Investors and security holders are urged to read these documents free of charge on the SEC's web site at http://www.sec.gov.
MARPAI, INC. AND SUBSIDIARIES | ||||
CONDENSED CONSOLIDATED BALANCE SHEET | ||||
(in thousands, except share and per share data) | ||||
(Unaudited) | ||||
March 31, 2025 | December 31, 2024 | |||
ASSETS: | ||||
Current assets: | ||||
Cash and cash equivalents | $ 729 | $ 764 | ||
Restricted cash | 10,780 | 8,468 | ||
Accounts receivable, net of allowance for credit losses of $1 and $1 as of March 31, 2025 and Dec 31, 2024 | 368 | 837 | ||
Unbilled receivables | 374 | 569 | ||
Due from buyer for sale of business unit | — | 500 | ||
Prepaid expenses and other current assets | 615 | 759 | ||
Total current assets | 12,866 | 11,897 | ||
Capitalized software, net | 334 | 441 | ||
Operating lease right-of-use assets | 281 | 296 | ||
Security deposits | 229 | 229 | ||
Other long-term asset | 8 | 15 | ||
Total assets | $ 13,718 | $ 12,878 | ||
LIABILITIES AND STOCKHOLDERS' DEFICIT | ||||
Current liabilities: | ||||
Accounts payable | $ 2,736 | $ 3,109 | ||
Accrued expenses | 1,906 | 2,585 | ||
Accrued fiduciary obligations | 8,227 | 6,308 | ||
Deferred revenue | 806 | 625 | ||
Current portion of operating lease liabilities | 248 | 244 | ||
Current portion of convertible debentures, net | 3,037 | 3,106 | ||
Other short-term liabilities | 2,834 | 3,005 | ||
Total current liabilities | 19,794 | 18,982 | ||
Other long-term liabilities | 15,329 | 14,891 | ||
Convertible debentures, net of current portion | 8,069 | 5,921 | ||
Operating lease liabilities, net of current portion | 730 | 793 | ||
Total liabilities | 43,922 | 40,587 | ||
COMMITMENTS AND CONTINGENCIES | ||||
STOCKHOLDERS' DEFICIT | ||||
Common stock, $0.0001 par value, 227,791,050 shares authorized; 14,896,686 shares and 14,237,176 shares issued and outstanding at March 31, 2025 and December 31, 2024, respectively | 1 | 1 | ||
Additional paid-in capital | 71,698 | 71,124 | ||
Accumulated deficit | (101,903) | (98,834) | ||
Total stockholders' deficit | (30,204) | (27,709) | ||
Total liabilities and stockholders' deficit | $ 13,718 | $ 12,878 | ||
MARPAI, INC. AND SUBSIDIARIES | ||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||
(in thousands, except share and per share data) | ||||
(Unaudited) | ||||
Three Months Ended | ||||
March 31, 2025 | March 31, 2024 | |||
Revenue | $ 5,418 | $ 7,385 | ||
Costs and expenses | ||||
Cost of revenue (exclusive of depreciation and amortization shown separately below) | 3,484 | 4,871 | ||
General and administrative | 2,283 | 3,421 | ||
Information technology | 1,390 | 1,124 | ||
Sales and marketing | 245 | 602 | ||
Research and development | 7 | 7 | ||
Depreciation and amortization | 107 | 951 | ||
Facilities | 152 | 474 | ||
Total costs and expenses | 7,668 | 11,450 | ||
Operating loss | (2,250) | (4,065) | ||
Other income (expenses) | ||||
Other income | — | 120 | ||
Interest expense, net | (819) | (398) | ||
Foreign exchange loss | — | (3) | ||
Loss before provision for income taxes | (3,069) | (4,346) | ||
Income tax expense | — | — | ||
Net loss | $ (3,069) | $ (4,346) | ||
Net loss per share, basic & fully diluted | $ (0.21) | $ (0.46) | ||
Weighted average common shares outstanding, basic and diluted | 14,770,867 | 9,405,775 | ||
MARPAI, INC. AND SUBSIDIARIES | ||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||
(in thousands) | ||||
(Unaudited) | ||||
Three Months Ended | ||||
March 31, 2025 | March 31, 2024 | |||
Cash flows from operating activities: | ||||
Net loss | $ (3,069) | $ (4,346) | ||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||
Depreciation and amortization | 107 | 951 | ||
Share-based compensation | 574 | 561 | ||
Amortization of right-of-use asset | 15 | 62 | ||
Non-cash interest expense | 463 | 423 | ||
Amortization of debt premium and debt issuance costs | (9) | — | ||
Changes in operating assets and liabilities: | ||||
Accounts receivable and unbilled receivables | 664 | 800 | ||
Prepaid expense and other assets | 151 | (99) | ||
Accounts payable | (373) | (825) | ||
Accrued expenses | (679) | 215 | ||
Accrued fiduciary obligations | 1,919 | (2,063) | ||
Operating lease liabilities | (59) | (126) | ||
Other liabilities | 181 | 862 | ||
Net cash used in operating activities | (115) | (3,585) | ||
Cash flows from investing activities: | ||||
Proceeds from sale of business unit | 500 | — | ||
Net cash provided by investing activities | 500 | — | ||
Cash flows from financing activities: | ||||
Proceeds from sale of future cash receipts on accounts receivable | — | 1,509 | ||
Proceeds from issuance of convertible debentures | 3,000 | — | ||
Payments of debt issuance costs | (162) | — | ||
Payments to buyer of receivables | — | (57) | ||
Payments on convertible debentures | (750) | — | ||
Payments to seller for acquisition | (196) | (474) | ||
Proceeds from issuance of common stock in a private offering, net | — | 2,727 | ||
Net cash provided by financing activities | 1,892 | 3,705 | ||
Net increase in cash, cash equivalents and restricted cash | 2,277 | 120 | ||
Cash, cash equivalents and restricted cash at beginning of period | 9,232 | 13,492 | ||
Cash, cash equivalents and restricted cash at end of period | $ 11,509 | $ 13,612 | ||
Reconciliation of cash, cash equivalents, and restricted cash reported in | ||||
Cash and cash equivalents | $ 729 | $ 851 | ||
Restricted cash | 10,780 | 12,761 | ||
Total cash, cash equivalents and restricted cash shown in the condensed | $ 11,509 | $ 13,612 | ||
Supplemental disclosure of cash flow information | ||||
Cash paid for interest | $ 403 | $ — | ||
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SOURCE Marpai