Spectral AI (MDAI) AI Stock Analysis

• Market Cap: $49.41M
• Dividend Yield: N/A
• Average Volume (3M): 272.42K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.90
• Revenue Growth: -15.02%
• EPS Growth: -11.06%
• Country: US
• Employees: 78
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): -0.13
• Shares Outstanding: 30,688,894
• 10 Day Avg. Volume: 290,415
• 30 Day Avg. Volume: 272,420
• PEG Ratio: 0.08
• Price to Book (P/B): -7.00
• Price to Sales (P/S): 1.72
• P/FCF Ratio: -5.52
• Enterprise Value/Market Cap: 1.20
• Enterprise Value/Revenue: 2.55
• Enterprise Value/Gross Profit: 5.68
• Enterprise Value/Ebitda: -4.64
• 1Y Price Target: $4.50
• Price Target Upside: 184.81% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): -0.68
• Revenue Forecast (FY): $12.15M

• Rating: 41 Neutral
• Price Target: $1.50 ▼(-5.06% Downside)

The score is held down primarily by weak financial performance (revenue contraction, sizable losses, negative equity, and ongoing cash burn). Technicals add pressure as the stock trades below key moving averages with negative MACD. Valuation is difficult to support with losses and no dividend, while the earnings call provides only partial offset via liquidity and FDA progress amid reduced guidance and higher losses.

Positive Factors

FDA submission progress

Completing the De Novo/FDA submission is a durable commercial inflection: regulatory clearance would enable U.S. market access, reimbursement discussions, and institutional procurement. Successful approval materially increases long‑term adoption potential and partnership opportunities.

Positive international feedback

Consistent positive real‑world feedback signals product‑market fit outside the U.S., reducing commercial execution risk. Strong adoption evidence abroad supports scalable rollouts, referenceability for new customers, and iterative product improvements that sustain adoption over multiple quarters.

Near-term cash runway extended

A $10.5M cash balance plus a $7.6M financing meaningfully extends runway, lowering immediate refinancing risk. This funding supports ongoing FDA interactions, commercialization activities and handheld development, enabling multi‑quarter execution on product readiness and early sales.

Negative Factors

Revenue contraction and heavy losses

A sustained revenue decline alongside large negative margins shows the business has not reached scalable economics. Persistent operating and net losses erode internal funding capacity, increasing reliance on external capital and potentially limiting investment in sales and product development over quarters.

Negative equity and higher leverage

Negative equity and rising debt materially weaken the balance sheet, reducing strategic flexibility. Elevated leverage raises refinancing and covenant risk, can constrain partnership negotiations, and increases probability of dilutive capital raises that affect long‑term resource allocation.

Ongoing cash burn

Continued negative OCF and FCF indicate the company remains cash‑burning despite improvements. Persistent cash outflows necessitate further financing, which can divert management attention, limit investment scale in commercialization and R&D, and pressure execution across the next several quarters.

Spectral AI Business Overview & Revenue Model

Company Description

Spectral 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 Money

Spectral 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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	23.17M	29.58M	18.06M	25.37M	15.24M
Gross Profit	10.43M	13.27M	7.88M	10.84M	7.05M
EBITDA	-12.76M	-11.49M	-20.12M	-2.08M	-4.18M
Net Income	-16.36M	-15.31M	-20.85M	-2.91M	-3.99M
Balance Sheet
Total Assets	15.30M	12.10M	10.69M	18.72M	18.54M
Cash, Cash Equivalents and Short-Term Investments	10.49M	5.16M	4.79M	14.17M	16.12M
Total Debt	9.66M	4.69M	1.29M	1.20M	583.00K
Total Liabilities	23.50M	19.35M	12.40M	6.72M	4.79M
Stockholders Equity	-8.20M	-7.25M	-1.71M	12.00M	13.75M
Cash Flow
Free Cash Flow	-4.40M	-9.20M	-13.24M	-1.16M	-2.92M
Operating Cash Flow	-6.90M	-9.20M	-13.24M	-1.16M	-2.92M
Investing Cash Flow	0.00	0.00	0.00	0.00	-7.00K
Financing Cash Flow	13.68M	9.57M	3.84M	-785.00K	13.92M

Spectral AI Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.58
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MDAI, the sentiment is Negative. The current price of 1.58 is above the 20-day moving average (MA) of 1.52, above the 50-day MA of 1.58, and below the 200-day MA of 1.89, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 49.12 is Neutral, neither overbought nor oversold. The STOCH value of 41.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MDAI.

Spectral AI Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SRTS	65 Neutral	$81.47M	-28.70	-5.71%	―	-13.79%	-132.21%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
LUNG	51 Neutral	$75.48M	-1.25	-73.73%	―	15.59%	4.13%
NMTC	50 Neutral	$45.32M	-11.51	-91.34%	―	250.35%	83.06%
ICCM	45 Neutral	$46.97M	-2.66	-157.91%	―	-18.96%	8.98%
CTSO	44 Neutral	$43.38M	-3.69	-96.15%	―	-8.97%	47.29%
MDAI	41 Neutral	$49.41M	-2.08	―	―	-15.02%	-11.06%

Spectral AI Corporate Events

Spectral AI announces immediate resignation of board director

On January 5, 2026, Spectral AI announced that Colin Bristow resigned from its Board of Directors, with the resignation taking effect immediately. The company stated that Bristow’s departure did not arise from any disagreement regarding Spectral AI’s operations, policies, or practices, suggesting the move is not expected to signal underlying governance or strategic conflicts for stakeholders.

The most recent analyst rating on (MDAI) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on Spectral AI stock, see the MDAI Stock Forecast page.

Spectral AI Secures $7.6 Million Funding for Expansion

On October 22, 2025, Spectral AI, Inc. entered into a securities purchase agreement with an investor to sell 3,065,000 shares of its common stock at $1.90 per share, raising approximately $7.6 million. This funding will support the expansion and development of its DeepView System, with the company aiming for commercial readiness by 2026. The transaction also included the issuance of warrants and pre-funded warrants, and Northland Capital Markets acted as the exclusive placement agent. The proceeds are intended for working capital and general corporate purposes, and the company remains committed to advancing its AI-powered technology and supporting its BARDA Project BioShield contract.

The most recent analyst rating on (MDAI) stock is a Buy with a $3.50 price target. To see the full list of analyst forecasts on Spectral AI stock, see the MDAI Stock Forecast page.