XAIR - Earnings call transcript Q3 2025

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Operator

Good afternoon, and welcome, everyone, to the Beyond Air financial results call for the fiscal quarter ended December 31, 2024. [Operator Instructions].

And now I'd like to turn the call over to Corey Davis, LifeSci Advisors. Thank you.

begin. may You

Corey Davis

for Good copy us. operator. Events under a and you be XX, our financial thank release fiscal on quarter Thank ended found this XXXX after afternoon, News press the the section. joining December results and highlights Today, the The issued beyondair.net, Air's market for and third announcing of A you, XXXX. operational everyone, Beyond of closed, website, press can we release

like remind and harbor about for everyone would constitute will I Litigation making comments remarks the we provisions statements begin, various be Private Securities future Reform we Before safe to the purposes of forward-looking prospects, Act that under and of plans expectations, which XXXX.

and statements Exchange that the and to Securities Commission, which materially limitation, differ with forward-looking are and most factors everyone results the We to those identify filings Beyond to subject could company's including, Form from actual without review Air uncertainties statements. may those in indicated. to the actual materially described events results Form encourage from specific that differ risks or XX-Q, cause company's forward-looking that cause cautions XX-K the recent these

XX, and recorded of the conference date rebroadcast the be content is only as Additionally, call that XXXX. accurate February call is of contains website, of www.beyondair.net. this conference live being available audio this our for will on Furthermore, time-sensitive broadcast, information this

no circumstances call. undertakes obligation or any or this after Air Beyond of events revise to date update statements to the reflect

Go Executive call and ahead, Officer Air. over Beyond With to that, Steve Chief the let Steve. Chairman me of turn Lisi,

Steven Lisi

is Larson, Officer. Chief Financial me everyone here to Thanks, Corey, our afternoon and joining Doug today us. good With

to commercial sequential going a hospital in pleased been continues PH LungFit call process we by team begin driven has the system seeing by quarterly to steady our as stating through the new their signings stream Let's start growth and significant using make This we our institutions. today's progress. are revenue onboarding with are how of

starts and the about since X team. contracts, and During Commercial years. new energy Air new Officer PH us, of one which X quarter, them our joined been only we their since LungFit upgraded months renew the hospitals shipping X began our X hospital to X Chief entire new has for brought months saw There's Beyond

We expect growth throughout and revenue sequential momentum this will continue this quarterly year. drive

respiratory PH for are possible staff nurses, key the stage tremendous our factor which of hospital a customers on ongoing each references great engagements. physicians, and A experience is our strengthening job for process team that of customer providing Beyond has of the potential best new course, success offering of device, to the administrators the ensure feedback we engagement positive Air LungFit existing therapists. to done are translates Most overwhelmingly importantly,

to the our we contracting TrillaMed on and team. engagement links, our several and pipeline, care Military and that supplementing GPOs robust advisory Building engage a to direct distribute sales now with veterans IDNs including us hospitals. health customer care have renowned with help place, and partnerships works Administration in and firm health

upgraded significantly, a efforts efforts. sales marketing which our our Additionally, provided been to boost have meaningful has

take are activities our postings. which media at conferences can and In social all a our much if see respiratory of improved, presence you addition, all you at look

FDA include for supplement PMA cardiac discussion the the to PH to the continues. LungFit with Turning interactive label surgery, expansion

updates information to quarter. the each will FDA provide investors provide request with that We and continue they to

the cardiac products United surgery As are currently States. in a no for reminder, approved nitric oxide

last the One market. about U.S. point

question November, strong FDA. shortly can we the Meeting, my feedback being, the version that expect quite to most system I AARC in Recall for submission next-generation PMA transport We this supplement in Annual system PH our common our for hospital. of get was capable demonstrated LungFit at and ready when LungFit PH to next-generation this with be the

earnings next We this on system call. on details will further provide quarter's

royalty us we the approval. recognize a payment Union with with other Outside treatment LungFit March conjunction Pacific distribution announced $X Getz allows Mark receive the than postoperative U.S., PH and Healthcare, Receiving Mark XX certification. from market will the this we under receive that with we in and in our of Along the Mark which with the as in to European indications December treatment of long-awaited as million infants the LungFit and on well adults PH based in covered peri weeks CE partner, countries approval children quarter. failure CE heart in certification milestone This pulmonary payments, are greater surgery. received hypertension that Asia gestation PH. The respiratory CE hypoxic triggered will LungFit

is South provide Europe, Getz Australia hospitals LungFit U.S. accelerate Asia to To Pacific East. ex schedule receiving PH to Asia of region in Middle authorization have market months throughout ahead than up America, teamed X and already business with the securing Mark. CE consultants less after the we sales,

We East. have new already high interest. contracts already X fact, And we in signed extremely seen progress in distributor have with the Middle

due unable [ the a PH supply with room or systems. oxide difficulties to not ] generates obtain air, cylinder-based reminder, use that nitric Cameron from areas logistical opportunity the associated where enormous opens LungFit to nitric world As hospitals do natural around in oxide up fact are oxide

Overall, since that XXXX expect inflection globally. the in point commercial few an impact and is in will U.S., which the the share make start PH, infrastructure. significant U.S. taking happening on new starting the fiscal to months, our market next in on to is LungFit our poised U.S. now the spring we The the market revenues back and half to of system XXXX believe updated in the of and Globally, thanks the we improved performance shipments see beyond. and

XXXX our fiscal be will will for in XXXX fiscal guidance June. call, revenue year-end which on We providing and held be conference

cancer. Beyond to Turning

patient of UNO, anti-PD-X therapy Ib approval Ib high regulatory cancer patients around ultra-high study be need. call X nitric The utilize late-stage will per XX%. therapy, than milliliters end UNO an because received unmet human a have who while they remains XXXX. now a XX,XXX which data XXX in anticipated gas, to Top begin our parts dose oxide of with original Ib low-volume for this low We of reported, reduction gas, line study from it Phase million. trial study the liter previously failed anti-PD-X area are combination calendar As utilized Phase will in over Phase or volume this of less concentration of

pleased for those therapy subsidiary with therapies you potentially encourage anti-PD-X transformational this I be for information the in Spectrum disorders Autism website is global visit market for the tumors. tens of advances all of focused Beyond from solid cancer more is to we the believe NeuroNOSour knows, that should of everyone on this am the billions as for groundbreaking therapy dollars. making. also As I year suffering

data in NeuroNOS leader few During the gene awarded understanding Board. to reality. what the we of and the Advisory December I begin later for the will in years, over more The Nobel a with his field in the therapy Prize in you website indicators path leading how made all get this across Chemistry the hope expect Dr. a next its idea meet human recently nitric first and to indications. for later is is of great future see calendar in bright studies, XXXX. to FDA of progress PH multiple the of paint and appointment revolutionary for groundbreaking these LungFit NeuroNOS Professor to which quarter, including as work eukaryotic a anticipated in NeuroNOS announced a in human an complete XXXX. year renowned Roger Kornberg XXXX to Kornberg,, Scientific come transcription oxide offers was molecular

team vision improving on need benefits of profitability to of Beyond the patients continue nitric will in the Air path of this lives the the and oxide.

Doug will turn I it Larson. CFO, over our to Now

Douglas Larson

good Thanks, everyone. afternoon, Steve, and

results with for $X.X third financial XX, last profit We're and the of of $X.X were loss for a quarter fiscal ended the third December same showing fiscal of year. a year loss Our compared XXXX, million quarter follows: to for in as XXXX million a the fiscal for million XXXX $X.X period gross XXXX, quarter ago. as which million the $X.X Revenue are third compared

in The expenses of noncash million revenue costs to upgrade of stock-based due decrease and $X.X yet primarily million X the compensation. to of Cost plus XXXX. $X.X million deployed. development mainly ended in a devices to attributed was current the of and required onetime of exceeded $X.X the not compared of decrease for months headwinds, fiscal devices were year to our $X primarily revenue XX, but December Research depreciation salaries existing fleet $X.X purchased million as million

primarily the $X.X costs. were to was attributed of basic of million expense primarily $X.X December in loss expenses was common the The share XXXX, Air, increase to $X.X stockholders diluted. of Net and and ended loss months the to SG&A in of of million, year. December a was and XXXX, million Other $XX million and salaries attributed decrease respectively. mostly compared to million noncash Avenue a $X.X the previous XX, $X.XX on loan. compensation Beyond Inc. million $X.X stock-based for and extinguishment attributed or per decrease XX, $X.X X was The million

was basic loss or for million Our share a per X XXXX, loss XX, December ended $XX.X net $X.XX months diluted. the of and

in than FDA. as study in the year was $X.X more due same anticipate implemented putting continue of prior was quarter, required decrease on the burn trend which CAP onetime ended hold XXXX. forecasts. September million, cash half Net saw complete our submission first lower magnitude cash production the of a not This offices, costs X lower in the March burn quarter during to the quarter quarter to but us XXXX we XX% to in to our LungFit the to PH and mostly our and staff, included XX% next-generation which closing to reduction is than the adjusting cost reductions attributable the this XX, We fiscal

marketable marketable current We XXXX $XX.X allow believe cash and revenue operating us cash, December of Beyond to provided XX, we securities costs of XXXX, spring plans through million. the securities be will and at and our cash estimates that support had our As to sufficient internal company of control Air. cash, hit our to the equivalents continue equivalents

I'll With call to hand that, Steve. the back

Steven Lisi

Doug. Thanks,

take questions. We will now

Operator

[Operator Instructions].

from First from Partners. ROTH Wittes question Jason is

Jason Wittes

quarter. this progression nice like Looks

should immediate terms does what going how do CE is start that? initial that of an -- revenues how we that in terms get in the of Mark, terms delay in? an Is think about to forward? Or timing Or that about installations impacting In think hit? of might we how a

Steven Lisi

takes little Yes, Yes. Thanks, Jason. it bit. a

December and we'd in towards a then March much quarter more after I look this up think I significantly in impact much in September quarter and So small would June wouldn't and see in. we're that the more that. picking

So shipping of to it will we're bit for going, a to get but this little first calendar half going take the sure. be in year

Jason Wittes

know. has of going I quarter, think these the R&D, out in come said I to in the incrementally of specifically like And guess expenses, because coming sounds all terms how sounds understand this you of an is in good next quarter, be R&D everything what like -- what fourth be should it might it and That's kind terms right? Did expenses. down from quarter although expenses, looks said, specifically, of that PMA. the in it correctly trend Okay. next additionally the except for incrementally down I then op you there's that

Steven Lisi

March a will the much Yes. LungFit getting will Exactly. PH steeper be quarter drop because the I be submitted. than mean second-generation we're quarter this June

Jason Wittes

other well. sounds as asking on it still those incremental that's I some additional like I what down there's expenses, guess But was the expenses.

Steven Lisi

Correct. Yes.

Jason Wittes

in maybe queue. Okay. last And jump then back question, one I'll

and of but run understand it's easy always may submission, to through I hard get the process? long that that the on Is answer, you of take FDA. this sense be visibility terms a In expect PMA to to may the -- how that not

Steven Lisi

you people and guess you just now. have Especially an receipt once I retirement we'll send as we really there's the know FDA and many don't out I some And idea thoughts what some to quitting on don't that acknowledges better comments submit. and a and FDA going or know, are we how usually know. questions taking be your were submission.

in need to they of the to don't to to know of even So idea know an think like have what if I kind where kind we they staff FDA will stands what their days. that get of for devote XX this resources and wait application. I next look

So for Jason. did, it I really wish I know I this how I moment. don't you, but have an to don't answer at handicap

in I think flux things over are there. still

Operator

from BTIG. Thibault from Marie is question Next

Sam Eiber

here start on Maybe This for changes Sam you months the since is joined. to about organization. David Marie. commercial been on It's could the X

are new progressing You and system right direction. things clearly, in the have LungFit the

some changes sequential working that wondering that's what I'm internally you've of are what's guess made strength this some well, I here? So of driving the

Steven Lisi

more it's think I shift. of a cultural

David, think David to who's call Chief don't culture anymore, so I no he's I a him Commercial think I new Officer. new here. But new longer has our want new. driven

think reasons. came more changed. was not And customer we to think I I created various I And think service I in our and the good. strong. for the think needed launched just new always here, culture was be it culture it's And when Dave is that culture a a and positive attitude. product,

better. I gotten think it's

them. all system, new was customers that was is now original keep with of we expected care us you're But customer running original we And new through, service gentleman that potential on makes your because had lot and now. customers, difference leadership taking making a beautifully. take time again, when expected. even now, the long Very as for who's service a have expected our version that actually get how lot would to hands running which the FDA. We the side. customer their in it's about it they're and the right of excited of smoothly wasn't questions not absolutely our but upgrades team running when It our hit. with customers And is is they're everything And through machine to expected issues that the work with those more version performing trying up the to has sure

So I culture to have one important ability superior think customer shift our to service expect. what thing the the is and than most might

Sam Eiber

the once is get Maybe I often of How I'm PMA Yes. on And makes you do the transport it where do Yes, waiting be being basically sign a you sense. lot that just get maybe up? guess hospitals? maybe how up. something ready to And submission. conversations so And material have up wondering following that is with pipeline approval? the your now coming is already built that approval, you once that customers could

Steven Lisi

are back seen I Yes. about showed answer you. I how question quite just upgrades it. and to next-generation People comes And lighter. got We think are about and it's It's I do but this capable, it excited all it think smaller in product. have lot our want going that a difference. But transport They for it's it November. not up have careful it. I made, bit make there yes, it. the other been People a

So that will help a lot as well.

going want to definitely not waiting But go they're and list. as So people have it for that. it. won't say we far I'm waiting I say so to a

Sam Eiber

Okay.

And Very squeeze just Okay. one. maybe X good. in I can final

of annualized terms revenue. contract In

update was Any it think still is million of $X.X on you're about metric? that October. providing? I as that something Or

Steven Lisi

year our place be $XX the on of now. for million Was probably you. around that, be. will certainly leave guess We Looking good that to that. going that right I to Doug I think fiscal run $X will to a as rate the the I'll for be, that's comment is what And Street at it high? comment aren't guess, I million.

to You quarter It's than this saw what December quarter up or quarter. the the grow next will be March we put higher for quarter sure. going

So you be. will guess run what can of that rate kind

Operator

from Next question is Jason Piper Bednar Sandler. from

Jason Bednar

going you're answer try. start not I'll here quarter I'll on progress. the the not, sure but to one. I'm with or it to build Steve, Congrats and you'll

the reintroducing quarter. You that great said to next is you're guidance, going to you to that we hear when get to be which visibility do got

maybe double-digit modeling growth sitting fiscal like investors, guess Street hey, you prep with is forward You I you that. throughout for all of kind we the currently just going the can We're for where as also the sprinkled strong sequential And try Street in, Street see -- 'XX. the growth sequential future. to the quarter-on-quarter all quarter-on-quarter like, do already pretty double-digit foreseeable year.

conservatively to thoughts the set? So like setup say there be is the things for of or it's more on early year? you it -- too you strong? Do thoughts Any kind would

Steven Lisi

guidance for for that give going you June, and June fiscal in your you'll on I what face definitely We'll going report not hints to am what give see we in you not give guidance. with year. numbers. you to thanks the Jason. bringing should comment. any I'll Well, a my to smile do We're And

feel a good So internally, in general, the We, about we've we as now. really company good we're doing have. about right momentum what the feel we and really progress We made

at it that. I'll So leave

Jason Bednar

Okay.

approach are international talk get about to contribution here's -- you a position that of get Or kind an and partnerships? revenue point, we you leave from versus As total our at worldwide thinking do closer the we'll you to as think we be U.S. about hey, expect it that. guidance you'll on just in

Steven Lisi

going It gauge could early because I think little than think move us for to could too think. to longer it's a to it's that be ratio. faster total International we than I think. we take

countries of Mark, Union, inside lots And through CE to we the even outside terms you of your than process product this the as the have in European market. of quicker others getting are Union. though We European the know, countries regulatory go some to have

So that our some are the out those of are of things control.

will don't quickly just know we it So how happen.

the U.S., contracts when again, terms start. timing And things in in of be little of chunky can a even

terms going total to guidance of give fine some up room our that hit movement be be that those expectations able that to on little tough we're be there's between might belt, bit X, perfectly of between to when But I that's nail experience give. if to going guidance. Maybe will with a or think a be but think going I in better, so ratio tough. be down we to So our really we the total the that's able to our guidance we'll number, under ourselves number year X after do give down to

Sam Eiber

Okay.

you you've more As seasonality some of you're with any a these the business are forward the rhythm maybe that decision-making? are noticing when that seeing coming the be for moving kind to when for and while. and contracting are a now of seasonality bid Or contracts been contracting at experienced give process. you in not hospitals Any up to bit business piece the hospital the more on notable

Steven Lisi

really I than think again, to depends I much there on don't or seasonality And it's really larger hospitals some don't is. it. there's think others.

have hospitals not and the might X X could get one. X next X the X quarter equal and So and X or those quarter X you in get big big

chunky it's we've seen think So point. just year. month every of hospitals it's And pretty what the starting at this are I is

haven't We major really seen point. a time

move but And start much, to they a -- the out can -- some I right? -- want, lot They to end have right? when of don't can don't There until the have certain wait want the too they of them, contracts they ways give don't they to they contracts. start contract, are of of

So we So have. if they of say, "Hey, contract that move the want depends just to they and want it type they to move, they go." just just on

I think variable. So very it's

make move, to when want they'll it's move. think I up they their mind, they

Sam Eiber

all a next-gen how update PMA That's label? question with know status you status around question. you're move One to FDA you helpful. Is in the receiving, that missed you X forward the I right. you think in cardiac can or I the response submission last looking that's as you that on label prior for that in don't was anything All I Okay. the of the there sorry commented the to just in. secure -- trying to expansion indication there on the Did -- squeeze device. it. were if and questions

Steven Lisi

obviously keep it's the We're down about the at in a kind moment. for bit said PMA certainly but waiting I much bit to -- the them, and United kind push with mean, for say contact FDA, I mean them. this with flux the little I But with together I is I same the them. next-gen a system. with to right of this. it's do I in just don't this, with indication we'll that -- Yes, of we're on now. working forward really and approved so an everywhere is thing little detail things about we're we'll settle working world, in have that's won't this all the that other continue but States. can and

patients, be So patient I something think should laid. this is that Absolutely. safety, for

and So we'll keep them FDA get what need. working with the they

Operator

Walsh from Jones Next question Trading.] is from [ Justin

Unknown Analyst

of I'm wondering impact how remind importance U.S. as you geographies and product U.S. there. longer-term geographies maybe view expected the gets can that for you versus relative next-generation the the of ex LungFit if out us PH in different

Steven Lisi

Yes. than making be it prohibitive think the But would changes look easy these if years, mean Right a U.S. or that game. with now, cost product, that problem. it's you deal not. fact the much ambient U.S. that ex of And we geographically it's be out It's for I bigger lot solve may from with air, we're I to prohibitive. X not or cylinders countries they just our

I think in base that one example of Guam. that is the naval

difficult I support think will it's oxide. to world so them satisfaction, over ones nitric our that we're opinion, where all could get occur that only in the the

of to volume that's It's next you're overnight. going a time. in to for years, money bigger not going U.S. So not be It's is But States the happen looking terms United ex X total lot going and happen think year. market, I sure. going to out than to if take

So we're very U.S. excited about opportunity. the ex

will that out. some take time roll again, But to

fiscal us as it U.S. market. than 'XX see it's a 'XX or will look way I meaningful market. it bigger So way company, larger than in in the a don't the a impacting U.S. where impact won't but meaningful massively It

in you'll I which be 'XX, to think start that starting XXXX, see that fiscal our calendar moving. trend beyond which mostly would that,

be much product anyone to I realize, up this than believes. is volume a bigger start think the you'll to is picking globally, wow, going

Operator

from from & Next Jen comes Company. Yale Laidlaw question

Yale Jen

in and the right? new hospitals you you've got U.S. X quarter. Steve, And Is this for mentioned X that new renews

Steven Lisi

correct. That's

Yale Jen

in got here of contract, terms maybe paying more on then last able is any last that quarter. sort you that a for question that of -- Would mentioned becoming front? to any quarters, And the colors the And be customers this contracts. actually being XX% time X of previous quarter, give you increase you you hospital got

Steven Lisi

increase, have paying to So about of your you about off-line. catch and you like I'm sorry. question don't that? My get that can me I part did customers, didn't quarter. percentage What But I last I the get the apologies. it numbers I was of the front last in for

Yale Jen

I mean last curious already words, of may you just some certain quarter, -- immediately. some whether have a contracts -- contracts be those not immediately. other number anything of of those contracts purchase paid become In I'm purchased customers. signed. quarter of this on

So take....

Steven Lisi

Yes. right. You're

yes, a majority them, can sign like contract. The customers you. So XX within of days contracts starting to you the sign we when XX with

a Some sometimes. in But of advance they usually when or start, that while, with us days days X something I months. a you it's a in and months less once have X start we're assigns hospital or hey, X say, within a usually. sign XX say, every you, signing them XX would But contract, within in

happen. does that So

March March quarter. That people did no hospital, summer didn't But that December the quarter, were started and actually we start nobody There quarter the March quarter. is the quarter. the in true. we a the started the was quarter longer quarter. they're X starting December had we that they December September the term signed signed the summer, and in that But -- were in didn't in right over had and hospitals starting X no, in December So start We all signed are have hospitals in X or in Right. the in December. in

Yale Jen

becomes in do anticipate be varying of the shortened. So Or on continues? contract? trend other this time you words, lumpy could sort depends this turnaround And the

Steven Lisi

from in X mostly. not X the mean, that's I months we've hospitals -- XX up that's are Most No, of seen. within starting at days, normal. hospitals signing least signed that and look, rare. the advance, what XX days,

said I'm but that just differently, so never they of a from it move they're what see space least a perhaps going and So happen, but move, we've to the seen it's the it's I when ordinary, little switch, far, wants out to companies at want rare, in done. I other not to saying they hospital think was

-- contracts, honestly, they they sometimes think go don't hospital they their with so wants and a to I us out and get us of realize So with think I signed wait. just can't

I happened that's with what these X hospitals. think

happens. that sometimes So

So I think more.... it's

Yale Jen

color I Great. appreciate the on Maybe that. quick Okay. X questions.

in First correct? -- sheet, look out the balance terms debt. totally I of of one, Is that long-term are at you

Steven Lisi

We -- the last remember, we debt. no. quarter, out swapped No,

we have but of payments until October begin that the on million XX 'XX. don't So

it gives that. So time before us on making payments

So interest that's on principal pays on that until of making payments, the royalty and accruing top is net that. going X% the we sales an and start

the later. payments. any days later. So a of scheduled make have the on days It's will of is, of don't quarter we at or that payment. XX XX just end we Yes, ''XX, XX September later 'XX make calendar It's days We a payment.

on based on pay our net So we ability sales. based making those payments to start

is structure company-friendly very that So obviously. that's

Yale Jen

off here mean question is the you last new this maybe device. I have that Absolutely. next-gen transport

file if with the you indications? may maybe start for have any you PMA supplement assume that [ and PMA just you or approved. NICU the project system regular supplement approved? reason later once for Let's gen for both cardiac still for both ] next for surgery and have Or the the the the NICU may you Would

Steven Lisi

a That's pretty generation think a supplement question. PMA our is good I this right? approved don't I currently thought really supplement, for about PH. a LungFit is PMA one. I haven't So that

would So regulatory don't problem [indiscernible]. my I just be know of kind automatic. really it I think

supplement, a we're gene. for going assume the to first for generation our I whatever PMA generation, our it's think first -- just it second there is since

Yale Jen

appreciate and got congrats on Well, I great. the you. Right, right, the I right. of version color quarter. I understand. Improved

Operator

management to to the back floor This concludes turn I'd the question-and-answer session. like any. for

Steven Lisi

Thanks, everybody, for joining us.

looking June providing and to definitely you. guidance in We you for you. are Thank speaking forward with

Operator

disconnect concludes lines this today's you your time. you teleconference, participation. This again the for at your may Thank

Beyond Air (XAIR) 10 Feb 252025 Q3 Earnings call transcript