Breaking Down Beyond Air, Inc. (XAIR) Financial Health: Key Insights for Investors

You're looking at Beyond Air, Inc. (XAIR) and seeing the classic biotech dilemma: explosive commercial growth that still can't outrun the burn rate. Honestly, the company's fiscal year 2025 results, which ended March 31, 2025, show a 220% jump in revenue to $3.7 million, driven by the LungFit PH system's adoption, but that progress is overshadowed by a net loss of $46.6 million for the year. Here's the quick math: with a quarterly cash burn that was recently running at about $7.6 million, and a cash balance of $6.9 million as of the fiscal year-end, the runway is tight, even with management expecting it to stretch well into 2026. The question isn't whether the product works, but whether the commercial scale-up can hit escape velocity before the capital runs out, so the real action is in their fiscal year 2026 guidance, which forecasts a massive revenue leap to between $12 million and $16 million. That's the critical inflection point we need to break down.

Revenue Analysis

You're looking at Beyond Air, Inc. (XAIR) because of its massive revenue growth, and you're right to be intrigued. The direct takeaway is that while the total revenue is still small for a publicly traded company, the growth trajectory is explosive and driven by a single, commercialized product. For the fiscal year (FY) ending March 31, 2025, Beyond Air, Inc. reported total revenue of $3.7 million. That's a phenomenal 220% year-over-year increase from the $1.2 million recorded in FY 2024.

The core of this revenue surge comes from the commercialization of their cylinder-free nitric oxide delivery system, LungFit PH. This product is defintely the primary revenue stream, reflecting increasing adoption in the U.S. and a strategic push into international markets. The system is now installed and in regular use at more than 45 U.S. hospitals, which builds a critical mass of reference customers.

Here's the quick math on the recent acceleration:

What this estimate hides is the segment breakdown, which is currently simple. The vast majority of the $3.7 million is tied to LungFit PH-equipment sales, rentals, and consumables-in the U.S. and initial international shipments. The company's other major initiative, the Beyond Cancer platform, which uses ultra-high concentration Nitric Oxide (UNO) therapy, is still in the clinical trial phase (Phase Ib is underway). So, for now, the revenue contribution from that segment is negligible, making LungFit PH a single point of failure and success.

The significant change in revenue streams isn't a shift in product focus but a massive expansion in geographic reach and commercial traction. New distribution partnerships have given Beyond Air, Inc. access to markets in Europe, the Middle East, and Asia, covering over 2 billion potential lives. This global expansion, coupled with new hospital signings and contract renewals in the U.S., is what fueled the 220% growth. The CE Mark approval for LungFit PH in Europe also triggered a $1 million milestone payment in the third quarter of FY 2025, which is a one-time revenue boost you have to factor in.

The key drivers for the near-term revenue opportunities are clear:

• Accelerating U.S. hospital adoption of LungFit PH (now over 45 installations).
• Initial revenue realization from international distribution partners.
• Potential FDA approval of the second-generation LungFit PH system.

You can see how their strategy ties into the product's core purpose by reviewing their Mission Statement, Vision, & Core Values of Beyond Air, Inc. (XAIR). The risk is that the cost of revenue ($5.4 million in FY 2025) still exceeds the revenue, resulting in a gross loss of $1.7 million for the year. This means they are buying growth, but the commercial momentum is undeniable.

Profitability Metrics

You're looking for a clear-eyed view of Beyond Air, Inc. (XAIR)'s financial engine, and the simple truth is this is a pre-profit, commercial-stage story. The company is in a deep investment phase, which means all its key profitability metrics are negative right now. You need to focus on the rate of improvement, not the absolute numbers.

For the fiscal year (FY) ended March 31, 2025, Beyond Air, Inc. reported total revenue of $3.7 million, a significant 220% increase over the prior year, but this top-line growth is overshadowed by its cost structure. Here's the quick math on the key margins:

• Gross Profit Margin: -45.95%
• Operating Profit Margin: -1205.4%
• Net Profit Margin: -1259.5%

The company is still generating a negative gross profit, meaning the direct cost of getting its LungFit PH product to the customer-including device depreciation and one-time upgrade costs-is higher than the revenue it brings in. This is a red flag for operational efficiency, but it's common for a company scaling a new, high-value medical device.

The table below shows the core profitability breakdown for FY 2025. This is a clear picture of a company prioritizing market penetration and R&D over near-term profit.

Operational Efficiency and Trend Analysis

While the margins are stark, the trend is what matters for a growth-stage company. The net loss for FY 2025 was $46.6 million, which is a material improvement from the $60.2 million net loss reported in FY 2024. That's a reduction of over 22% in the net loss, primarily driven by cost management in operating expenses.

The company aggressively cut Selling, General and Administrative (SG&A) expenses to $26 million in FY 2025 from $37.3 million in the prior year, and Research and Development (R&D) expenses also dropped to $16.9 million from $24.4 million. This shows management is defintely focused on capital conservation, which is a positive sign for the cash runway.

Still, the negative gross margin is the core operational challenge. The cost of revenue exceeded the revenue because of the up-front costs of deploying the LungFit PH devices, like depreciation and system upgrades. The goal here is to push past the inflection point where recurring revenue from consumables and services finally covers the initial device cost and depreciation.

Industry Comparison: A Reality Check

To put Beyond Air, Inc.'s profitability in perspective, you have to look at established players. For a mature medical device company, a GAAP Gross Margin of around 45.5% and an Adjusted Operating Margin of 2.6% are possible, as seen with companies like Azenta in FY 2025. More broadly, the average operating margin for the 15 largest life sciences companies was around 25.7%.

Beyond Air, Inc.'s margins of -45.95% Gross and -1205.4% Operating are nowhere near these industry averages, but that is the cost of being an early-stage commercial innovator. Your investment thesis hinges on whether the 220% revenue growth and cost-cutting can eventually flip that negative gross margin to positive, which is the first step toward true profitability. For a deeper look at who is betting on this turnaround, you should read Exploring Beyond Air, Inc. (XAIR) Investor Profile: Who's Buying and Why?

Debt vs. Equity Structure

Beyond Air, Inc. (XAIR) has a capital structure that is heavily reliant on debt relative to its equity, a position that has significantly shifted in the last year as the company manages its commercial-stage growth. The key takeaway is that the company's debt-to-equity ratio is substantially higher than the industry average, but recent strategic refinancing has provided a critical cash runway.

As of the fiscal year ending March 31, 2025, Beyond Air, Inc.'s debt-to-equity ratio stood at 81.5%. This is a stark contrast to the broader Healthcare sector average, which typically sits around 27.9%. This high ratio means the company is using a much larger proportion of debt to finance its assets compared to its peers, which increases financial risk. The total long-term debt outstanding as of the fiscal year end was approximately $12.2 million. That's a high number for a company with a market capitalization of only $10.57 million.

The company's financing strategy in 2024 and 2025 has been a high-wire act, balancing debt reduction with new capital raises. They've been actively restructuring their liabilities, which is defintely a good sign of proactive management, but it underscores the underlying liquidity pressure. The most notable activity includes:

• Retired $17.5 million in debt from Avenue Capital.
• Secured a new $11.5 million loan from an insider-led investor group.
• Completed a $20.6 million private placement offering (equity funding).

This mix shows a clear preference for a balanced approach: using equity funding (the private placement) to bring in fresh, non-repayable capital, while simultaneously refinancing debt to push out maturity dates and eliminate high-cost obligations. The new $11.5 million loan, for instance, defers principal repayment until June 2026 and uses an 8% royalty on net sales starting July 2026 for repayment. This structure is a creative, if aggressive, way to manage cash flow in the near term.

Here's the quick math on their recent debt profile:

What this estimate hides is the critical role of the $20.6 million equity raise. That cash infusion is what truly strengthened the balance sheet and extended the cash runway through June 2026, not just the debt restructuring. The continued reliance on equity, as seen by the stock split in July 2025, means shareholders are bearing the primary financial risk of the company's growth and losses. To get a full picture of the capital sources, you should also be Exploring Beyond Air, Inc. (XAIR) Investor Profile: Who's Buying and Why?

Liquidity and Solvency

You need to know if Beyond Air, Inc. (XAIR) has the cash to keep the lights on and fund its growth, and the answer is a classic biotech paradox: the ratios look great, but the cash burn is a real headwind. The company's short-term liquidity is strong, but its long-term viability remains dependent on continued capital raises to offset a significant negative operating cash flow.

Current and Quick Ratios Signal Short-Term Strength

Beyond Air, Inc. (XAIR)'s liquidity ratios suggest it can comfortably cover its near-term obligations. The company's current ratio is a strong 4.24, meaning it has over four dollars in current assets for every dollar of current liabilities. This is defintely a solid position.

Also, the quick ratio (or acid-test ratio), which strips out inventory-a less liquid asset-is still robust at 2.66. A quick ratio above 1.0 is generally good, so this number shows a healthy capacity to meet immediate debts without having to rush product out the door. The business has a good buffer, but that doesn't tell the whole story about its cash runway.

Analysis of Working Capital Trends

The working capital trend is where the nuance lies. While the ratios are high, they are supported by capital raises, not operating profit. For the fiscal year ended March 31, 2025, Beyond Air, Inc. (XAIR) reported a net loss of ($46.6) million, which is an improvement from the prior year but still a substantial loss. This persistent loss eats into working capital, even with a revenue surge of 220% to $3.7 million for FY2025.

As of March 31, 2025, the company's cash, cash equivalents, and marketable securities stood at just $6.9 million. Here's the quick math: high ratios are good, but if the numerator (current assets) is rapidly shrinking due to losses, the ratio is a lagging indicator of a cash crunch. This is why you need to look at the cash flow statement. You can read more about the long-term strategy that supports this financial structure here: Mission Statement, Vision, & Core Values of Beyond Air, Inc. (XAIR).

Cash Flow Statements Overview

The cash flow statement confirms the capital-intensive nature of a commercial-stage medical device company. Over the last twelve months (LTM), the operating cash flow was a negative ($23.67 million). This is the core of the liquidity challenge-the business is burning cash to run its day-to-day operations and commercialize its LungFit PH system.

• Operating Cash Flow: ($23.67 million) (LTM)
• Investing Cash Flow (Capital Expenditures): ($2.48 million) (LTM)
• Financing Cash Flow: This is the lifeline, as the company relies on debt and equity to cover the ($26.15 million) free cash flow deficit.

The company is projecting its net cash burn rate to be less than $30 million for the full Fiscal Year 2025, which shows a conscious effort at capital conservation.

Potential Liquidity Concerns or Strengths

The primary concern is the high cash burn rate, which shortens the cash runway. However, the company has been proactive in addressing this, which is a significant near-term strength. In November 2025, Beyond Air, Inc. (XAIR) secured new financing, providing a crucial injection of liquidity. This included a secured promissory note for $12.0 million in net proceeds and an equity purchase agreement for up to an additional $20.0 million in common stock.

This financing is a clear action to extend the cash runway, which management is confident will support current operating plans through June 2026. The key risk now shifts to execution: can the company accelerate revenue growth from its LungFit PH system fast enough to reach cash flow breakeven, which is currently targeted for the fourth fiscal quarter of 2026? That's a tight timeline.

Valuation Analysis

You are looking at Beyond Air, Inc. (XAIR) because the numbers suggest a massive disconnect between the current stock price and analyst expectations. Based on November 2025 data, the stock appears significantly undervalued, but you must understand that this valuation gap is a direct function of the company's high-risk, pre-profit stage. It's a classic biotech bet, not a steady-eddy investment.

The first thing to notice is the stock price trend: over the last 12 months, Beyond Air, Inc. (XAIR)'s stock price has plummeted by roughly 86.68%, trading recently around the $1.23 to $1.47 range. The 52-week high was a staggering $13.52, showing just how volatile this equity is. This kind of drop signals a loss of investor confidence, likely tied to clinical or commercialization hurdles, but it also sets the stage for a potential high-upside rebound if the LungFit PH system gains traction. You're buying a lottery ticket, not a bond.

When we look at traditional valuation multiples, Beyond Air, Inc. (XAIR) doesn't fit the mold of a mature company. Its Price-to-Earnings (P/E) ratio is negative, as is its Enterprise Value-to-EBITDA (EV/EBITDA) ratio at about -0.61, which is expected because the company is not yet profitable. The P/E ratio is around -0.1x, which is typical for a growth-stage medical technology firm burning cash to scale. However, the Price-to-Book (P/B) ratio sits at a modest 1.36, suggesting the market is valuing the company's equity at only a small premium to its net tangible assets.

Honestly, the real story here is the analyst consensus. Wall Street analysts have a consensus rating of 'Moderate Buy' for Beyond Air, Inc. (XAIR). The average 12-month price target is around $10.33, with a high target reaching up to $14.00. Here's the quick math: from the current price of about $1.23, that average target implies an upside of over 740%. That's a massive potential return, but remember, it's predicated on the successful execution of their Mission Statement, Vision, & Core Values of Beyond Air, Inc. (XAIR). The company does not currently pay a dividend, so your return will be purely from capital appreciation.

To be defintely clear, the valuation metrics scream 'speculative growth.'

• P/E Ratio: Negative (N/A) - Not profitable yet.
• P/B Ratio: 1.36 - Modestly priced relative to book value.
• EV/EBITDA: -0.61 - Negative EBITDA is the norm for this stage.

Here is a snapshot of the consensus:

Your action now is to look past the multiples and focus on clinical and commercial milestones. If you are comfortable with the risk, a small, speculative position is warranted, but you must set a clear stop-loss, perhaps just below the 52-week low of $1.19. Finance: Track the next quarterly revenue report for signs of LungFit PH commercial progress.

Risk Factors

You need to look past the impressive revenue growth-up 220% to $3.7 million for the fiscal year ended March 31, 2025-and focus on the underlying risks. Beyond Air, Inc. (XAIR) is a commercial-stage company, which means its financial health is still highly dependent on capital markets and successful market penetration against established rivals.

The core challenge is a classic one for innovative medical technology firms: managing a heavy cash burn while scaling a commercial product. Simply put, they are spending far more than they are earning right now. The company's financial footing is the most immediate concern for any investor.

• Liquidity and Cash Runway: The net cash burn for the fiscal year ended March 31, 2025, was substantial at $44.1 million, excluding financing activities. This outpaced the net loss of $46.6 million for the same period. As of March 31, 2025, the company reported only $6.9 million in cash, cash equivalents, and marketable securities. That's a very tight runway, forcing reliance on future financing.
• Gross Margin Loss: Despite the revenue surge, Beyond Air, Inc. (XAIR) recorded a gross loss of $1.7 million in FY 2025. This is a critical operational risk, as the cost of revenue ($5.4 million) is higher than the revenue itself, primarily driven by the depreciation of LungFit devices and one-time upgrade costs. They are not yet profitable on a unit-by-unit basis.

External and Competitive Pressures

The external market for nitric oxide (NO) delivery systems is competitive and regulated. Beyond Air, Inc. (XAIR)'s LungFit PH system, which generates NO from ambient air, is a great piece of technology, but it faces a steep climb. The U.S. market is estimated at approximately $300 million, and Mallinckrodt still holds a dominant 70% market share with their traditional cylinder-based systems. Displacing an entrenched competitor in hospitals is defintely a slow process.

Regulatory risk is also a constant headwind. The company faces uncertainties with FDA approval timelines for their next-generation LungFit PH system and label expansion for new indications, which could significantly delay market entry and revenue projections. International expansion, while promising-now covering 35 countries as of September 2025-also introduces new regulatory hurdles and longer tender processes in foreign markets.

Operational and Strategic Execution Risks

The commercialization of LungFit PH carries significant operational risk. The company had to lower its fiscal year 2025 revenue guidance from an initial target of $15 million to $10 million, a significant cut that was partly prompted by a breach of contract with a key partner, Airgas. This highlights the fragility of their commercial agreements and the difficulty in accurately forecasting sales in a nascent market.

The strategic risk also lies in their diversified pipeline. While the Beyond Cancer initiative and the NeuroNOS subsidiary offer long-term upside, they divert precious R&D resources. In FY 2025, R&D expenses were still high at $16.9 million. The company must balance its focus between commercializing LungFit PH and funding these investigational programs. You can read more about the investor landscape in Exploring Beyond Air, Inc. (XAIR) Investor Profile: Who's Buying and Why?

Growth Opportunities

You're looking past the current losses at Beyond Air, Inc. (XAIR) to see where the real value is built, and you're right to focus on their unique technology and market expansion. The direct takeaway is that their cylinder-free nitric oxide system, LungFit PH, is driving massive, albeit early-stage, revenue growth and is the core competitive advantage poised to disrupt a multi-billion-dollar market.

Beyond Air's fiscal year 2025 (FY2025) revenue surged to $3.7 million, a remarkable 220% increase over the prior year, showing strong commercial traction in the U.S. But still, the company reported a net loss of $46.6 million for the year, which is why a realist investor must track execution closely. Here's the quick math on their near-term outlook: management has provided updated revenue guidance for FY2026 of $8 million to $10 million, which still represents a potential year-over-year increase of over 170% at the midpoint.

Product Innovation and Competitive Edge

The company's primary growth driver is the LungFit PH system, an FDA-approved device that generates nitric oxide (NO) on-demand from ambient air. This is the game-changer, eliminating the logistical nightmare of traditional high-pressure NO cylinders. This cylinder-free approach offers hospitals significant benefits:

• Reduces inventory and storage requirements.
• Improves safety by eliminating NO2 purging steps.
• Generates NO with minimal power, about a 60-watt lightbulb's worth.

Also, the submission of a Pre-Market Approval (PMA) supplement for their second-generation LungFit PH device is a key near-term catalyst. Customers are defintely anticipating this next-gen system, which is expected to be transport-capable, unlocking a much wider range of hospital applications beyond the current neonatal hypoxic respiratory failure indication.

Strategic Market Expansion and Partnerships

The company's strategic initiatives are clearly focused on rapidly expanding access to the LungFit PH system in the U.S. and internationally. The most significant win in 2025 was securing a national group purchasing agreement (GPO) with Premier, Inc., effective July 15, 2025. This partnership grants Beyond Air, Inc. access to Premier's network, which includes roughly 3,000 U.S. hospitals. That's a massive sales funnel.

Internationally, the expansion is even more aggressive. As of September 30, 2025, Beyond Air, Inc. has distribution partnerships covering 35 countries and a combined population of 2.8 billion people, including recent agreements in Japan and South Korea. While international sales conversion is slower due to tender processes, the long-term potential here is huge-some analysts project the international market will eventually be larger than the U.S. market for this technology.

To be fair, the company's growth is still pipeline-dependent, extending beyond just the LungFit PH system. They are advancing other nitric oxide therapies through their affiliates:

• NeuroNOS: Focused on neurological disorders like Autism Spectrum Disorder.
• Beyond Cancer, Ltd.: Investigating ultra-high concentration nitric oxide (UNO) for solid tumors, with a Phase 1a trial underway.

What this estimate hides is the execution risk tied to these clinical programs and the need to manage their cash position, which was $6.9 million as of March 31, 2025. The growth is there, but so is the burn.

For a deeper dive into the company's liquidity and valuation, you can read the full analysis here: Breaking Down Beyond Air, Inc. (XAIR) Financial Health: Key Insights for Investors

Your next step is to monitor the Q3 2026 earnings report for evidence that the Premier agreement and international distribution are translating into the upper end of that $8 million to $10 million revenue guidance.