0001213900-26-034129
SEC filingMarpai, Inc. (MRAI) reported FY 2025 revenue of $18.1M, a 36% decline from $28.2M in 2024, primarily due to 28% customer attrition amid market shifts to fully funded plans and acquisitions. Total costs and expenses fell 37% to $31.7M, driven by streamlined operations, reduced facilities ($580K vs $1.3M), sales/marketing ($1.1M vs $1.8M), and no goodwill impairment after 2024's $7.6M charge. Operating loss improved 39% to -$13.6M from -$22.1M. Net loss narrowed 25% to -$16.6M from -$22.1M, with EPS at -$0.95 vs -$1.92. Cash used in operations decreased to -$7.5M from -$15.2M, supported by $6.7M financing inflows from stock issuances ($7.0M) and debentures ($3.0M). Balance sheet shows total assets $10.9M, liabilities $43.5M, and stockholders' deficit -$32.6M, with unrestricted cash at $133K and going concern doubts due to negative working capital of -$15.4M. Strategic realignment in 2026 targets cost savings via unified claims platform and workforce reduction. Liquidity relies on further equity/debt raises amid high debt ($17.2M long-term).
Marpai, Inc. delivered FY 2025 revenue of $18.1M, down 36% from $28.2M in 2024 due to 28% client attrition from shifts to fully funded plans and acquisitions. Costs and expenses decreased 37% to $31.7M, reflecting operational streamlining: general/admin $11.1M (-13%), sales/marketing $1.1M (-38%), facilities $580K (-56%), and no repeat of 2024's $7.6M goodwill impairment. Operating loss narrowed 39% to -$13.6M from -$22.1M. Other expenses included $3.2M interest and -$1.9M debt extinguishment loss (2024 only), yielding net loss of -$16.6M, improved 25% from -$22.1M. EPS basic/diluted: -$0.95 vs -$1.92. Weighted shares: 17.4M.
Revenue sources include health plan administration, in-house ancillary services (e.g., care management, repricing, pharmacy), and third-party vendor pass-throughs. No segmented breakdowns disclosed. Decline driven by client turnover; largest two clients 10.0% and 20.6% of 2025/2024 revenue respectively. Core TPA services for self-insured SMEs emphasized, with technology like Marpai Saves for cost containment.
Cost of revenue (excl. D&A) $13.3M (-30% YoY), aligning with revenue drop; direct labor and vendor fees primary components. No explicit gross margin stated. Operating margin pressured by high G&A ($11.1M) and IT ($5.1M +9%). Profitability challenged by losses, but narrowing via cost cuts in non-core areas. Share-based comp $3.6M added to expenses.
Net cash from operations: -$7.5M (improved from -$15.2M), adjusted for $16.6M loss, $7.6M impairment (prior), $3.6M stock comp. Investing: +$0.5M from business unit sale. Financing: +$6.7M (stock $7.0M, debentures $3.0M, offset by repayments). Total cash/restricted: $9.0M end (down $281K). Assets $10.9M (cash $133K unrestricted, restricted $8.8M, receivables $1.5M). Liabilities $43.5M (current $25.7M, debentures $8.8M, other LT $11.4M). Equity deficit -$32.6M; accum. deficit -$115.4M. Negative working capital -$15.4M.
Going concern doubt noted; needs capital for operations amid $115.4M accum. deficit. 2026 realignment: consolidate claims processing, cut 10% workforce (11 FTEs), $465K restructuring charges for $101K severance, $364K software termination. Expects savings from reduced payroll/duplicative licenses. Pursuing equity/debt; potential non-core asset sales. Risks: client attrition, debt covenants (JGB debentures $11.8M+), regulation, competition in fragmented TPA market.