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Marpai Inc

MARPAI REPORTS SECOND QUARTER 2025 FINANCIAL RESULTS

Marpai Slashes Losses by Two-Thirds in Q2 2025, Paving the Way to Profitability.
Operating Expenses Cut 70% as Turnaround Gains Traction

TAMPA, Fla. , Aug. 13, 2025 /PRNewswire/ -- Marpai, Inc. ("Marpai" or the "Company") (OTCQX: MRAI), a leader in innovative healthcare technology and Third-Party Administration (TPA) services, today announced second quarter 2025 results that mark a decisive step forward in its turnaround strategy.

The Company delivered substantial quarterly year-over-year improvements across key financial metrics:

  • Operating expenses down 70%, saving $9.9 million
  • Operating loss reduced by 71% to $3.6 million, an $8.7 million improvement
  • Net loss reduced by 66% to $4.4 million, also an $8.7 million improvement
  • Net loss per share improved by $0.95
  • Net revenues down $2.5 million

"We believe that our turnaround is real and accelerating," said Damien Lamendola, Chief Executive Officer of Marpai. "In just one year, we have significantly strengthened our financial position by cutting costs, streamlining operations, and staying laser-focused on profitability. We estimate that we are on track to deliver a profitable company in the first quarter of 2026. Our pipeline of new business for January 1st 2026 is strong, and we expect to make a major infrastructure investment in Q3 to further improve efficiency and client service. I believe deeply in Marpai's future. That's why I continue to invest my own personal capital in the company. 

While net revenues for the quarter were $4.7 million, down $2.5 million from the same quarter last year due to transitional impacts, the Company's sharp focus on cost control and operational discipline has resulted in a much leaner, stronger platform for growth."

Webcast and Conference Call Information

Marpai expects to host a conference call and webcast on Thursday, August 14, 2025, at 8:30 a.m. ET to review the Company's operational and financial highlights for its second quarter ended June 30, 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/pD32GbLd5Mx

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 $150 billion TPA sector serving self-funded employer health plans representing over $1.5 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, that it expects to make a major infrastructure investment in the third quarter, its belief that it is on track to achieve profitability in the first quarter of 2026 and that its focus on cost control and operational discipline has resulted in a much leaner, stronger platform for growth. 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 SHEETS

(in thousands, except share and per share data)




June 30,
2025



December 31,
2024




(Unaudited)





ASSETS:







Current assets:







Cash and cash equivalents


$

619



$

764


Restricted cash



7,661




8,468


Accounts receivable, net of allowance for credit losses of $1 and $1 as of June 30, 2025,

and December 31, 2024, respectively



548




837


Unbilled receivables



914




569


Due from buyer for sale of business unit



—




500


Prepaid expenses and other current assets



590




759


Total current assets



10,332




11,897











Capitalized software, net



227




441


Operating lease right-of-use assets



265




296


Security deposits



229




229


Other long-term asset



8




15


Total assets


$

11,061



$

12,878


LIABILITIES AND STOCKHOLDERS' DEFICIT









Current liabilities:









Accounts payable


$

3,588



$

3,109


Accrued expenses



2,069




2,585


Accrued fiduciary obligations



7,179




6,308


Deferred revenue



743




625


Current portion of operating lease liabilities



250




244


Current portion of convertible debentures, net



3,037




3,106


Other short-term liabilities



2,868




3,005


Total current liabilities



19,734




18,982











Other long-term liabilities



15,719




14,891


Convertible debentures, net of current portion



7,311




5,921


Operating lease liabilities, net of current portion



664




793


Total liabilities



43,428




40,587


COMMITMENTS AND CONTINGENCIES (Note 16)









STOCKHOLDERS' DEFICIT









Common stock, $0.0001 par value, 227,791,050 shares authorized; 16,536,186 shares and
14,237,176 shares issued and outstanding at June 30, 2025, and December 31, 2024,
respectively



2




1


Additional paid-in capital



73,905




71,124


Accumulated deficit



(106,274)




(98,834)


Total stockholders' deficit



(32,367)




(27,709)


Total liabilities and stockholders' deficit


$

11,061



$

12,878


 

MARPAI, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

(in thousands, except share and per share data)




Three months ended
June 30,



Six months ended
June 30,




2025



2024



2025



2024


Revenue


$

4,656



$

7,189



$

10,074



$

14,574


Costs and expenses

















Cost of revenue (exclusive of depreciation and amortization

shown separately below)



3,910




5,174




7,395




10,045


General and administrative



2,483




3,721




4,766




7,142


Information technology



1,291




1,210




2,681




2,334


Sales and marketing



312




436




556




1,038


Research and development



—




8




7




15


Depreciation and amortization



107




914




214




1,865


Impairment of goodwill and intangible assets



—




7,588




—




7,588


Facilities



160




411




311




885


Total costs and expenses



8,263




19,462




15,930




30,912


Operating loss



(3,607)




(12,273)




(5,856)




(16,338)


Other income (expenses)

















Other income



49




120




49




240


Interest expense, net



(813)




(872)




(1,633)




(1,270)


Foreign exchange loss



—




(1)




—




(4)


Loss before provision for income taxes



(4,371)




(13,026)




(7,440)




(17,372)


Income tax expense



—




—




—




—


Net loss


$

(4,371)



$

(13,026)



$

(7,440)



$

(17,372)


Net loss per share, basic and fully diluted


$

(0.28)



$

(1.23)



$

(0.49)



$

(1.73)


Weighted average shares of common stock outstanding,

basic and diluted



15,503,132




10,626,516




15,140,332




10,016,146


 

MARPAI, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

(in thousands)




Six months ended
June 30,




2025



2024


Cash flows from operating activities:







Net loss


$

(7,440)



$

(17,372)


Adjustments to reconcile net loss to net cash used in operating activities:









Depreciation and amortization



214




1,865


Loss on sale of receivables



—




306


Share-based compensation



1,043




2,421


Amortization of right-of-use asset



31




120


Non-cash interest



914




646


Amortization of debt premium and debt issuance costs



(17)




62


Impairment of goodwill and intangible assets



—




7,588


Issuance of common stock to vendors in exchange for services



1,008




—


Changes in operating assets and liabilities:









Accounts receivable and unbilled receivables



(56)




519


Prepaid expenses and other assets



176




(66)


Accounts payable



479




(1,477)


Accrued expenses



(516)




(173)


Accrued fiduciary obligations



871




(1,625)


Operating lease liabilities



(123)




(250)


Other liabilities



92




731


Net cash used in operating activities



(3,324)




(6,705)


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 (Note 7)



3,000




5,978


Payments of debt issuance costs



(162)




(499)


Payments to buyer of receivables



—




(1,816)


Payments on convertible debentures (Note 7)



(1,500)




—


Payments to seller for acquisition



(196)




(631)


Proceeds from issuance of common stock in a private offering, net



730




2,727


Net cash provided by financing activities



1,872




7,268











Net (decrease) increase in cash, cash equivalents and restricted cash



(952)




563











Cash, cash equivalents and restricted cash at beginning of period



9,232




13,492


Cash, cash equivalents and restricted cash at end of period


$

8,280



$

14,055











Reconciliation of cash, cash equivalents, and restricted cash reported in the
condensed consolidated balance sheet









Cash and cash equivalents


$

619



$

1,293


Restricted cash



7,661




12,762


Total cash, cash equivalents and restricted cash shown in the condensed

 consolidated statement of cash flows


$

8,280



$

14,055


Supplemental disclosure of cash flow information









Cash paid for interest


$

781



$

1,259


 

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SOURCE Marpai