Marpai Reports Second Quarter 2026 Financial Results

The second quarter marked the successful continuation of Marpai's turnaround. Metric Q2 2026 Q2 2025 Year-over-year Revenue $4.2 million $4.7 million 10.5% decrease Cost of revenue $3.2 million $3.9 million 19.0% decrease Gross profit $1.0 million $0.7 million 33.6% improvement Gross margin 23.9 % 16.0 % Improved by 7.9 percentage points Total costs and expenses $7.6 million $8.3 million 8.0% decrease Operating loss $(3.4) million $(3.6) million 4.8% improvement Net loss $(4.6) million $(4.4) million 4.9% increase Revenue declined primarily due to turnover and continued customer pruning. Cost of revenue decreased faster than revenue due to a reduction in claims processing expense, resulting in higher gross profit and gross margin. Total costs and expenses also declined, reflecting lower cost of revenue, information technology, sales and marketing, depreciation and amortization, and facilities expense, partially offset by higher general and administrative expense.

We continue to prune and adjust our customer base while adjusting our cost base to reflect our growing use of artificial intelligence ("AI") and other technological solutions to improve our efficiency and generate better returns. Marpai continued to streamline its operating model during the quarter. Information technology expenses decreased to $1.1 million from $1.3 million in for the six months ended June 30, 2025, while sales and marketing expenses decreased to $136 thousand from $312 thousand for the six months ended June 30, 2025. Facilities expenses declined to $116 thousand from $160 thousand for the six months ended June 30, 2025.

Debt Restructuring : As previously disclosed, in May 2026, the Company amended its senior secured convertible debentures, extending their maturity to April 15, 2028, and revising the amortization schedule. In July 2026, the Company amended its AXA notes extending their maturity to 2029 and revising the amortization schedule and repayment schedules.

Capital raise : Subsequent to the end of the second quarter of 2026, on July 31, 2026, the Company priced a private placement offering of newly designated Series A Preferred Stock, generating aggregate gross proceeds of $12.1 million to the Company. The financing is expected to support the Company's operations and strategic priorities.

For the six months ended June 30, 2026, revenue was $8.6 million, compared with $10.1 million for the six months ended June 30, 2025. Total costs and expenses were $14.5 million, compared with $15.9 million for the six months ended June 30, 2025. Operating loss was $5.9 million, compared with $5.9 million for the six months ended June 30, 2025, and n...