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Spectral AI (MDAI)
NASDAQ:MDAI
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Spectral AI
(NASDAQ:MDAI)
Rating:45Neutral
Price Target:―
Positive Factors
Earnings
The company reported revenue of $6.7 million which was above estimates and earnings per share exceeded expectations due to a change in warrant liability value.
Product Development
Burn validation study underscores DeepView potential.
Regulatory Milestones
Positive clinical data supports regulatory submission; reiterate Buy.
Negative Factors
Debt Financing
MDAI's cash position improved to $14.1 million, which includes $8.5 million in new debt, helping the company to move towards commercial revenue with existing cash.
Regulatory Approval Timeline
The company expects to submit DeepView to the FDA by the end of the second quarter of 2025, with approval anticipated in early fiscal year 2026.
Revenue Guidance
Management provided 2025 revenue guidance of approximately $21.5M, an expected decrease from 2024, as the company intends to focus its efforts primarily on obtaining regulatory approval.
Spectral AI (MDAI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$37.59M
Dividend YieldN/A
Average Volume (3M)205.43K
Price to Earnings (P/E)―
Beta (1Y)0.52
Revenue Growth238.96%
EPS Growth35.96%
CountryUS
Employees78
SectorHealthcare
Sector Strength41
IndustryMedical - Devices
Share Statistics
EPS (TTM)0.12
Shares Outstanding25,747,519
10 Day Avg. Volume326,931
30 Day Avg. Volume205,434
Financial Highlights & Ratios
PEG Ratio-0.01
Price to Book (P/B)-3.07
Price to Sales (P/S)0.00
P/FCF Ratio-3.47
Enterprise Value/Market Cap0.84
Enterprise Value/Revenue0.32
Enterprise Value/Gross Profit2.37
Enterprise Value/Ebitda-0.78
Forecast
1Y Price Target
$3.83Price Target Upside162.33% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
Spectral AI Business Overview & Revenue Model
Company DescriptionSpectral AI, Inc. operates as an artificial intelligence (AI) company. The company focuses on medical diagnostics for faster and accurate treatment decisions in wound care with applications involving patients with burns and diabetic foot ulcers. Its products include DeepView, a predictive diagnostic device that offers clinicians an objective and immediate assessment of a wound's healing potential prior to treatment or other medical intervention. The company is based in Dallas, Texas.
How the Company Makes MoneySpectral AI generates revenue primarily through the sale and licensing of its DeepView Wound Imaging System to healthcare providers and institutions. The company may also engage in strategic partnerships with medical device manufacturers and healthcare organizations to expand the reach and adoption of its technology. Additionally, Spectral AI may receive funding from research grants and collaborations with government and private entities interested in advancing AI-driven medical solutions. The company's ability to commercialize its technology and secure long-term contracts with healthcare providers is a significant factor contributing to its earnings.
Spectral AI Financial Statement Overview
Summary
Spectral AI experienced significant revenue growth in 2024, but persistent losses and a precarious balance sheet with high leverage and negative cash flows indicate financial instability. The company's financial health is challenged, necessitating strategic shifts for sustainable profitability and stability.Income Statement
Spectral AI's revenue in 2024 increased by 63.8% compared to 2023, but this growth has not translated into profitability as evidenced by the negative Net Profit Margin of -51.8% and a significant EBIT Margin of -122.2%. Gross Profit Margin stands at 44.9%, indicating some efficiency in managing production costs. However, the consistent negative EBITDA highlights ongoing challenges in operational profitability.45
Neutral
Balance Sheet
The company is highly leveraged with a negative Stockholders' Equity of -$7.251 million in 2024, resulting in an undefined Debt-to-Equity ratio. The equity ratio is negative, reflecting more liabilities than assets. This financial structure indicates significant financial instability and potential liquidity risk.30
Negative
Cash Flow
Spectral AI's cash flow indicates challenging conditions, with a negative Free Cash Flow of -$9.199 million in 2024, albeit an improvement from 2023. The Operating Cash Flow to Net Income ratio is challenging, indicating a reliance on external financing as seen in the positive financing cash flow of $9.575 million.40
Negative
| Breakdown | |||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|
| Income Statement | Total Revenue | ||
| 29.58M | 18.06M | 25.37M | 15.24M | Gross Profit |
| 13.27M | 7.88M | 10.84M | 7.05M | EBIT |
| -6.58M | -12.98M | -2.65M | -4.18M | EBITDA |
| -11.49M | -12.26M | -2.08M | -4.18M | Net Income Common Stockholders |
| -15.31M | -20.85M | -2.91M | -3.99M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||
| 5.16M | 4.79M | 14.17M | 16.12M | Total Assets |
| 12.10M | 10.69M | 18.72M | 18.54M | Total Debt |
| 4.69M | 1.29M | 1.20M | 583.00K | Net Debt |
| -467.00K | -3.50M | -12.97M | -15.54M | Total Liabilities |
| 19.35M | 12.40M | 6.72M | 4.79M | Stockholders Equity |
| -7.25M | -1.71M | 12.00M | 13.75M |
| Cash Flow | Free Cash Flow | ||
| -9.20M | -13.24M | -1.16M | -2.92M | Operating Cash Flow |
| -9.20M | -13.24M | -1.16M | -2.92M | Investing Cash Flow |
| 0.00 | 0.00 | 0.00 | -7.00K | Financing Cash Flow |
| 9.57M | 3.84M | -785.00K | 13.92M |
Spectral AI Technical Analysis
Neutral
1.46
Price Trends
1.32
Positive
1.65
Negative
1.56
Negative
Market Momentum
0.03
Negative
61.66
Neutral
74.15
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MDAI, the sentiment is Neutral. The current price of 1.46 is above the 20-day moving average (MA) of 1.31, above the 50-day MA of 1.32, and below the 200-day MA of 1.56, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 61.66 is Neutral, neither overbought nor oversold. The STOCH value of 74.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for MDAI.
Spectral AI Risk Analysis
Spectral AI disclosed 72 risk factors in its most recent earnings report. Spectral AI reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 1 New Risks
1.
Q3, 2024
Spectral AI Peers Comparison
Overall Rating
UnderperformOutperform
Sector (53)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
60 Neutral | $102.37M | ― | -16.53% | ― | -4.15% | 3.49% | |
53 Neutral | $5.14B | 3.03 | -44.09% | 2.83% | 16.75% | -0.06% | |
46 Neutral | $31.03M | ― | -265.18% | ― | 135.03% | 60.67% | |
46 Neutral | $42.41M | ― | -67.86% | ― | 0.34% | 6.20% | |
45 Neutral | $37.59M | ― | 256.43% | ― | 238.96% | 35.96% | |
| $46.26M | ― | -257.72% | ― | ― | ― | ||
39 Underperform | $39.63M | ― | -104.36% | ― | ― | -1455.58% |
* Healthcare Sector Average
Performance Comparison
MDAI
Spectral AI
1.46
-0.15
-9.32%
ICAD
iCAD
3.73
2.20
143.79%
MODD
Modular Medical
0.85
-0.73
-46.20%
NMTC
NeuroOne Medical Technologies
0.62
-0.36
-36.73%
RBOT
Vicarious Surgical
6.68
-3.25
-32.73%
HYPR
Hyperfine
0.54
-0.33
-37.93%
Spectral AI Earnings Call Summary
Earnings Call Date:May 13, 2025
(Q1-2025)
| % Change Since: 2.82%|
Next Earnings Date:Aug 18, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant achievements in product development, financial performance, and successful financing efforts, showcasing a positive trajectory for Spectral AI. However, challenges such as revenue unpredictability and reliance on FDA approval were noted.Q1-2025 Updates
Positive Updates
Burn Validation Study Success
The Burn Validation Study, utilizing over 340 billion clinically validated data points, demonstrated the superior performance of Spectral AI's DeepView technology in predicting burn wound healing. This study will be part of the FDA De Novo submission.
Increased Revenue and Improved Financials
Research and development revenue for the first quarter rose 6% to $6.7 million, and gross margin increased to 47.2%. The company reported a net income of $2.9 million compared to a net loss of $3.2 million in the previous year.
Successful Financing Efforts
Spectral AI completed a debt financing agreement of up to $15 million and raised approximately $2.7 million in equity financing. Cash and cash equivalents increased to $14.1 million from $5.2 million.
Reduced Operating Loss
Operating loss for the first quarter of 2025 was reduced to $896,000 from $2.1 million in the first quarter of 2024 due to cost-cutting measures.
Progress in MTEC Development
Development of the DeepView System handheld device, DeepView Snapshot M, is on track with two fully functional prototypes assembled.
Negative Updates
Uncertainty in Revenue Guidance
Despite a strong start to the year, the second half of the year is expected to have less revenue from the BARDA contract, indicating potential variability in revenue streams.
Dependence on FDA Approval
The company's future operations and access to additional funding are heavily reliant on the FDA approval of the De Novo submission.
Company Guidance
During the Spectral AI, Inc. First Quarter 2025 Financial Results Conference Call, Chief Financial Officer Vince Capone provided guidance on several key metrics and strategic initiatives. The company reported a 6% increase in research and development revenue, totaling $6.7 million, driven by activities under the BARDA Project BioShield contract. The gross margin improved to 47.2% from 46.6% in the previous year, attributed to a higher concentration of direct labor as part of the revenue. General and administrative expenses were significantly reduced from $5.1 million in Q1 2024 to $4.1 million, leading to an operating loss of $896,000 compared to a $2.1 million net loss in Q1 2024. Spectral AI achieved a net income of $2.9 million, a substantial improvement from a $3.2 million net loss in the same period last year. The cash and cash equivalents increased to $14.1 million as of March 31, 2025, up from $5.2 million at the end of 2024, following successful financing agreements. The company reiterated its revenue guidance for 2025 at approximately $21.5 million, excluding potential contributions from the DeepView system sales in the U.K. and Australia.Spectral AI Corporate Events
Executive/Board ChangesBusiness Operations and StrategyFinancial Disclosures
Spectral AI Enhances CFO Compensation Amidst Growth
Positive
Apr 2, 2025
On March 26, 2025, Spectral AI’s Board of Directors approved an amendment to CFO Vincent Capone’s employment agreement, enhancing his compensation and stock options. The company announced its 2024 financial results, highlighting a significant increase in R&D revenue due to its BARDA PBS contract. Spectral AI is advancing its DeepView System for regulatory approval in the US, supported by successful burn validation study results. The company is on track to submit regulatory filings for its burn indication and anticipates FDA clearance in early 2026, with commercial product revenue expected in the second half of 2025.
Private Placements and FinancingBusiness Operations and Strategy
Spectral AI Secures $15M Financing for U.S. Expansion
Positive
Mar 26, 2025
On March 21, 2025, Spectral AI, Inc. completed a securities purchase agreement and a debt financing transaction, raising a total of $2.7 million from equity financing and securing up to $15 million in debt financing from Avenue Venture Opportunities Fund II, L.P. The funds will support the commercialization of its DeepView System in the U.S. market. The financing includes an initial draw of $8.5 million and potential additional debt contingent upon FDA clearance and further equity raise. This financial boost is expected to accelerate Spectral AI’s market entry and enhance its operational capabilities, positioning the company for growth and innovation in the medical diagnostics industry.
Product-Related AnnouncementsBusiness Operations and Strategy
Spectral AI Announces Successful Burn Study Results
Positive
Mar 17, 2025
On March 17, 2025, Spectral AI announced the successful results of its Burn Validation Study for the DeepView System, which uses multi-spectral imaging and AI algorithms to predict burn healing potential. The study, conducted from January 2024 to March 2025, involved 164 patients and demonstrated that the DeepView System significantly outperformed burn physicians in identifying non-healing tissue. With plans to submit these results to the FDA by mid-2025, Spectral AI aims for De Novo Clearance and rapid commercialization, potentially transforming burn care by providing faster and more accurate treatment insights.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.