Breaking Down Marpai, Inc. (MRAI) Financial Health: Key Insights for Investors

Are you keeping a close watch on your investments? Ever wonder how to truly gauge the financial stability of a company like Marpai, Inc. (MRAI) before making a move? For the fiscal year 2024, Marpai's financial results reveal a mixed bag: net revenues reached $28.2 million, a 24.2% decrease year-over-year, while operating expenses improved by 23.7% to $31.2 million. With an operating loss of $22.1 million and a net loss of $22.1 million, is Marpai on the path to recovery, or are there hidden risks lurking beneath the surface? Dive in as we dissect Marpai's financial health, offering you key insights to make informed decisions.

Marpai, Inc. (MRAI) Revenue Analysis

Marpai, Inc. reported total revenues of $21.9 million for the year ended December 31, 2024. The primary source of revenue for Marpai is derived from fees earned for providing administrative and care management services to self-funded employer health plans. These services include claims processing, data analysis, and care navigation, aimed at reducing healthcare costs and improving patient outcomes.

Analyzing Marpai's revenue streams involves understanding the contribution from different business segments. While specific segment breakdowns for 2024 are not detailed in the provided extracts, it's typical for such companies to delineate revenue based on the types of services offered (e.g., administrative services, care management, or specific product offerings) or the size and type of employer groups served.

Year-over-year revenue growth is a critical indicator of Marpai's performance. The extracts show a decrease in revenue from $27.4 million in 2023 to $21.9 million in 2024, representing a 20.1% decrease. This decline could be attributed to various factors such as loss of clients, changes in pricing models, or broader market conditions affecting employer-sponsored healthcare.

Here is a summary of Marpai, Inc.'s revenue trends:

• 2024 Total Revenue: $21.9 million
• 2023 Total Revenue: $27.4 million
• Year-over-Year Change: -20.1%

Understanding these trends is essential for investors. Significant changes in revenue streams often reflect strategic shifts or market challenges. For Marpai, the decrease in revenue warrants a closer look at the underlying causes and the company's strategies to address them.

More insights about the company can be found here: Mission Statement, Vision, & Core Values of Marpai, Inc. (MRAI).

Marpai, Inc. (MRAI) Profitability Metrics

Analyzing Marpai, Inc.'s (MRAI) financial health requires a close examination of its profitability metrics. This includes assessing gross profit, operating profit, and net profit margins, as well as understanding the trends in these metrics over time. Additionally, comparing these ratios with industry averages and analyzing operational efficiency, such as cost management and gross margin trends, provides a comprehensive view for investors.

For the full year 2024, Marpai, Inc. (MRAI) reported:

• Net revenues of $28.2 million, a 24.2% decrease year-over-year.
• Operating expenses of $31.2 million, a 23.7% improvement year-over-year.
• Operating loss of $22.1 million, a 21.1% improvement from the prior year.
• Net loss of $22.1 million, a 23.2% improvement year-over-year.
• Basic and diluted earnings per share of ($1.92), an improvement of $2.22 per share year-over-year.

In the fourth quarter of 2024, the company's financial highlights included:

• Net revenues of $6.6 million, a 6.0% decrease compared to Q3 2024.
• Operating expenses of $5.3 million, a 5.1% increase compared to Q3 2024.
• Operating loss of $2.7 million, a 12.2% improvement compared to Q3 2024.
• Net loss of $1.2 million, a 67.5% improvement year-over-year.
• Basic and diluted earnings per share of ($0.08), an improvement of $0.22 per share compared to Q3 2024.

Marpai also reported an adjusted EBITDA loss of $9.1 million for the year ended December 31, 2024, compared to a loss of $20.2 million for the year ended December 31, 2023. This improvement was attributed to better resource utilization and expense reduction efforts throughout 2023 and 2024.

While specific gross profit, operating profit, and net profit margins for 2024 aren't detailed in the provided snippets, the overall trend indicates improvements in reducing losses and managing operating expenses. The company's focus on cost streamlining and innovative services is expected to drive future profitability.

To see more information about Marpai, Inc. (MRAI) financial health, check out this link: Breaking Down Marpai, Inc. (MRAI) Financial Health: Key Insights for Investors

Marpai, Inc. (MRAI) Debt vs. Equity Structure

Understanding how Marpai, Inc. (MRAI) finances its operations and growth is crucial for investors. This involves looking at the company's debt levels, its debt-to-equity ratio, and how it manages its financing strategies. Here’s a breakdown:

As of December 31, 2023, Marpai, Inc. reported the following debt levels:

• Short-term debt: $0.4 million
• Long-term debt: $18.6 million

The company's total liabilities amounted to $27.48 million.

The debt-to-equity ratio is a significant metric used to assess a company's financial leverage. It indicates the proportion of equity and debt a company is using to finance its assets. As of December 31, 2023, Marpai, Inc.'s debt-to-equity ratio can be derived from its total liabilities and total equity. Total equity was reported as $7.87 million. Using these figures, the debt-to-equity ratio can be calculated as follows:

Debt-to-Equity Ratio = Total Liabilities / Total Equity

Debt-to-Equity Ratio = $27.48 million / $7.87 million ≈ 3.49

A debt-to-equity ratio of approximately 3.49 indicates that Marpai, Inc. has about $3.49 in liabilities for every $1 of equity. This is relatively high and suggests that the company relies more on debt financing compared to equity. It is important to compare this ratio with industry standards to determine whether it is within a reasonable range. Generally, a high debt-to-equity ratio can indicate higher financial risk, as the company has a greater obligation to creditors.

Recent activities, such as debt issuances, credit ratings, or refinancing, can provide insights into the company's financial strategy and health. However, specific details on these activities were not available in the provided context.

Balancing debt and equity is crucial for sustainable growth. While debt can provide necessary capital for expansion and operations, excessive debt can lead to financial instability. Marpai, Inc.'s reliance on debt financing, as indicated by its debt-to-equity ratio, suggests a strategy that may need careful management to ensure long-term financial health.

For more insights into the values and objectives that guide Marpai, Inc., you can read about their Mission Statement, Vision, & Core Values of Marpai, Inc. (MRAI).

Marpai, Inc. (MRAI) Liquidity and Solvency

Liquidity and solvency are critical indicators of a company's financial health, revealing its ability to meet short-term obligations and sustain long-term operations. For Marpai, Inc. (MRAI), assessing these metrics provides insights into its financial stability and operational efficiency.

Assessing Marpai, Inc.'s Liquidity:

Analyzing Marpai, Inc.'s liquidity involves examining several key ratios and financial statements to gauge its ability to cover its immediate liabilities.

• Current and Quick Ratios: These ratios are essential for evaluating Marpai, Inc.'s liquidity position.

The current ratio, calculated by dividing current assets by current liabilities, indicates whether a company has enough short-term assets to cover its short-term debts. A current ratio of 1.0 or higher is generally considered acceptable, suggesting that the company has sufficient liquid assets to meet its immediate obligations. However, according to the data from the fourth quarter of 2023, Marpai, Inc. reported a current ratio of 0.72. This indicates potential challenges in meeting its short-term obligations with its current assets.

The quick ratio, also known as the acid-test ratio, is a more conservative measure of liquidity. It excludes inventories from current assets, as inventories may not be easily converted into cash. Marpai, Inc.'s quick ratio was 0.72 as of Q4 2023, the same as the current ratio, reinforcing concerns about immediate liquidity.

• Analysis of Working Capital Trends:

Working capital, defined as the difference between current assets and current liabilities, is a measure of a company's short-term financial health and operational efficiency. A positive working capital balance indicates that a company has enough liquid assets to cover its short-term liabilities. As of Q4 2023, Marpai, Inc. had a working capital deficit of $1.7 million. This negative working capital position suggests that the company may face challenges in funding its day-to-day operations and meeting its short-term obligations.

• Cash Flow Statements Overview:

An overview of Marpai, Inc.'s cash flow statements provides insights into the company's ability to generate cash from its operating, investing, and financing activities.

Operating Cash Flow: Operating cash flow reflects the cash generated from a company's core business operations. Marpai, Inc.'s operating cash flow was negative $2.6 million for the fourth quarter of 2023, indicating that the company used cash in its operations during this period.

Investing Cash Flow: Investing cash flow relates to the purchase and sale of long-term assets, such as property, plant, and equipment (PP&E). Marpai, Inc.'s investing cash flow was $70,000 for the fourth quarter of 2023.

Financing Cash Flow: Financing cash flow involves activities related to debt, equity, and dividends. Marpai, Inc.'s financing cash flow was $3.3 million for the fourth quarter of 2023, primarily due to proceeds from financing activities.

The trends in cash flow from operating, investing, and financing activities provide a comprehensive view of how Marpai, Inc. manages its cash resources. The negative operating cash flow is offset by positive financing cash flow, which suggests that the company relies on external funding to sustain its operations.

• Potential Liquidity Concerns or Strengths:

Based on the analysis of liquidity ratios and cash flow statements, Marpai, Inc. faces potential liquidity concerns. The current ratio of 0.72 and a negative working capital of $1.7 million indicate that the company may struggle to meet its short-term obligations.

The negative operating cash flow further exacerbates these concerns, as it suggests that the company is not generating sufficient cash from its core business operations. While positive financing cash flow provides a temporary relief, relying on external funding to cover operational losses is not a sustainable long-term strategy. Marpai, Inc. needs to improve its operational efficiency and cash generation to address its liquidity challenges.

For additional insights into Marpai, Inc.'s values, see Mission Statement, Vision, & Core Values of Marpai, Inc. (MRAI).

Marpai, Inc. (MRAI) Valuation Analysis

Determining whether Marpai, Inc. (MRAI) is overvalued or undervalued requires a multifaceted approach, considering various financial ratios, stock performance, and analyst perspectives. Here's an overview of key valuation metrics:

Price-to-Earnings (P/E) Ratio: As Marpai, Inc. reported a net loss for the year 2024, the P/E ratio is not applicable because it cannot be calculated when earnings are negative.

Price-to-Book (P/B) Ratio: The P/B ratio, which compares a company's market capitalization to its book value of equity, is another useful metric. However, up-to-date information for 2024 is not available.

Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: The EV/EBITDA ratio provides a more comprehensive valuation measure, especially for companies with significant debt. For Marpai, Inc., the EV/EBITDA ratio can offer insights into its operational profitability relative to its enterprise value. However, recent data is not available.

Stock Price Trends: Analyzing Marpai, Inc.'s stock price trends over the last 12 months provides context on market sentiment and investor confidence. As of April 2025, the available data indicates:

• 1-Year Target Est: The average target price estimate for Marpai Inc. is $2.50.
• Stock Price: As of April 18, 2025, Marpai Inc. was trading at $0.39.

Dividend Yield and Payout Ratios: As of 2024, Marpai, Inc. does not offer dividends, so dividend yield and payout ratios are not applicable.

Analyst Consensus: Analyst ratings provide a summarized view of professional opinions on the stock's potential. The consensus for Marpai, Inc. is:

• Rating: A 'moderate buy' rating.
• Recommendation: Based on 3 analysts offering 12-month price targets, the median target is $2.50, with a high estimate of $4.00 and a low estimate of $1.00.

For further insights, explore our comprehensive analysis: Breaking Down Marpai, Inc. (MRAI) Financial Health: Key Insights for Investors

Marpai, Inc. (MRAI) Risk Factors

Investing in Marpai, Inc. (MRAI) involves navigating a landscape of potential risks, both internal and external, that could significantly impact the company's financial health. These risks span industry competition, regulatory changes, market conditions, and specific operational and strategic challenges detailed in Marpai's filings.

Here's an overview of key risks:

• Industry Competition: The health technology sector is intensely competitive. New entrants and established players continually vie for market share, potentially squeezing Marpai's profitability.
• Regulatory Changes: Healthcare regulations are subject to frequent changes. Shifts in laws and policies could increase compliance costs or limit Marpai's operational flexibility.
• Market Conditions: Economic downturns or shifts in healthcare spending patterns can affect Marpai's revenue and growth prospects.

Operational, financial, and strategic risks are often highlighted in Marpai's earnings reports and filings. These may include:

• Financial Risks: These could involve challenges in maintaining adequate cash flow, securing financing, or managing debt levels.
• Operational Risks: Issues such as technological disruptions, data security breaches, or difficulties in scaling operations could impede Marpai's performance.
• Strategic Risks: Poor strategic decisions, unsuccessful acquisitions, or failure to adapt to market changes could undermine Marpai's long-term viability.

Mitigation strategies are crucial for Marpai to address these risks effectively. While specific plans vary depending on the risk, common strategies include:

• Diversification: Expanding into new markets or service offerings to reduce reliance on a single revenue stream.
• Innovation: Investing in research and development to stay ahead of technological advancements and maintain a competitive edge.
• Compliance Programs: Implementing robust compliance programs to navigate regulatory complexities and minimize legal risks.
• Financial Planning: Prudent financial planning and risk management practices to ensure financial stability.

Understanding these risks and mitigation strategies is essential for investors. For further insights into Marpai's strategic direction, explore: Mission Statement, Vision, & Core Values of Marpai, Inc. (MRAI).

Marpai, Inc. (MRAI) Growth Opportunities

Marpai, Inc. faces a dynamic landscape of growth prospects driven by a combination of strategic initiatives, technological advancements, and market opportunities. Understanding these factors is crucial for investors assessing the company's potential.

Key growth drivers for Marpai, Inc. include:

• Product Innovations: Marpai's focus on developing and enhancing its AI-powered platform for healthcare administration is central to its growth strategy. Continuous innovation in this area can attract new clients and increase the value proposition for existing ones.
• Market Expansion: Expanding its reach within the self-funded employer health plan market represents a significant growth opportunity. This includes targeting new industries and geographic regions.
• Strategic Partnerships: Collaborations with other healthcare providers, technology companies, or benefits administrators can extend Marpai's capabilities and market access.
• Acquisitions: While not always predictable, strategic acquisitions of complementary businesses or technologies could accelerate growth and expand Marpai's service offerings.

Predicting future revenue growth and earnings requires careful consideration of market trends and company-specific factors. Investors often rely on analyst estimates and company guidance to form expectations. Keep in mind that these are projections and are subject to change based on various factors, including:

• Market conditions
• Competitive pressures
• Regulatory changes

Here's a look at potential strategic initiatives and competitive advantages:

• AI-Driven Efficiency: Marpai's core competitive advantage lies in its AI platform, which aims to reduce healthcare costs and improve outcomes. The effectiveness of this technology in delivering tangible results will be a key factor in its growth.
• Data Analytics: Leveraging data analytics to provide insights and personalized recommendations to employers and employees can differentiate Marpai from competitors.
• Customer Service: Providing exceptional customer service and support can enhance client retention and attract new business through referrals.

For more insights into Marpai, Inc. (MRAI), check out: Exploring Marpai, Inc. (MRAI) Investor Profile: Who’s Buying and Why?

Analyzing Marpai's competitive positioning involves understanding its strengths and weaknesses relative to other players in the healthcare technology and benefits administration space. This includes assessing factors such as:

• Technology
• Pricing
• Service offerings
• Market share

Here is a sample table of potential competitive advantages:

Successfully capitalizing on these opportunities and maintaining a competitive edge will be crucial for Marpai, Inc. to achieve its growth objectives.