Spectral AI (MDAI) AI Stock Analysis

• Market Cap: $42.96M
• Dividend Yield: N/A
• Average Volume (3M): 272.42K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.89
• 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: 0.98
• Enterprise Value/Revenue: 1.82
• Enterprise Value/Gross Profit: 4.04
• Enterprise Value/Ebitda: -3.30
• 1Y Price Target: $4.50
• Price Target Upside: 184.81% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): -0.6
• Revenue Forecast (FY): $14.06M

• Rating: 50 Neutral
• Price Target: $2.00 ▲(26.58% Upside)
• Action: Upgraded Date: 01/27/26
• Date: Action: Upgraded 01/27/26

The score is held down primarily by weak financial performance (revenue contraction, large losses, negative equity, and ongoing cash burn). Technicals provide a partial offset with improving near-term momentum, while valuation remains constrained by unprofitability and no dividend support. The latest earnings call was mixed, with solid liquidity and FDA progress outweighed by reduced guidance and worsening near-term profitability.

Positive Factors

Solid cash runway

A $10.5M cash balance plus $7.6M raised provides multi-quarter runway, reducing immediate financing pressure. This bolsters the company’s ability to continue clinical validation and regulatory interactions, preserving optionality for commercialization and product iteration.

Regulatory progress (FDA)

Completing the FDA de novo submission is a structural milestone that, if successful, opens the U.S. commercial market and reimbursement pathways. Ongoing FDA engagement materially raises the odds of long-term adoption and legitimizes the DeepView platform for clinical customers.

Product expansion potential (handheld)

Developing a handheld module expands addressable market to military and point-of-care civilian settings. Positive military feedback signals product-market fit in rigorous environments, which supports durable commercial channels and potential institutional procurement contracts.

Negative Factors

Negative equity and rising leverage

Negative equity and increased debt materially weaken financial flexibility, raising refinancing and covenant risk. Over the medium term this constrains strategic choices, increases dilution or cost of capital risk, and forces dependence on external funding to sustain operations and commercialization.

Continued cash burn

Sustained negative operating and free cash flows indicate the business is not yet self-funding. Even with improvements, persistent burn requires recurring capital raises or contract financing, which can dilute shareholders and distract management from long-term commercialization execution.

Revenue reliance and guidance cut

A sharp drop in R&D reimbursements and a reduced 2025 revenue guide reflect reliance on BARDA and timing-sensitive government work. This concentration risk and guidance cut signal uncertainty in predictable revenue streams, hindering sustainable margin improvement and forecasting.

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

Financials are pressured by TTM revenue decline (~-15.9%), large ongoing losses (EBIT margin ~-43%, net margin ~-52%), negative equity (about -$8.2M), rising debt (~$9.7M), and continued cash burn (TTM operating cash flow ~-$6.9M; free cash flow ~-$4.4M). Gross margin stability (~45%) and some improvement versus 2023 help, but overall flexibility and funding risk remain key concerns.

Income Statement

TTM (Trailing-Twelve-Months) revenue fell to $23.2M (down ~15.9%), reversing the modest growth seen in 2024. Gross margin is steady around ~45%, indicating the core economics are holding up, but profitability remains weak: TTM operating losses are sizable (EBIT margin ~-43%) and net losses remain deep (net margin ~-52%). Losses improved materially versus 2023’s very depressed results, but the company has not demonstrated a clear path to sustained profitability.

Balance Sheet

The balance sheet is the key pressure point: stockholders’ equity is negative in TTM (about -$8.2M), which signals a thin capital cushion and elevated financial risk. Debt increased to ~$9.7M in TTM (up from ~$4.7M in 2024), while total assets are ~$15.3M, implying higher leverage into ongoing losses. Prior years (2021–2022) showed positive equity, but the move to negative equity materially weakens flexibility and increases reliance on external funding.

Cash Flow

Cash generation is consistently negative. TTM operating cash flow was about -$6.9M and free cash flow about -$4.4M, indicating continued cash burn. There is improvement versus 2023–2024 (when free cash flow was roughly -$13.2M and -$9.2M, respectively), but the trend is still negative and free cash flow declined versus 2024. Overall, cash flow does not yet provide self-funding support for operations.

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: Positive
• RSI: Neutral
• STOCH: Positive

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 1.53, above the 50-day MA of 1.56, and below the 200-day MA of 1.94, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 35.78 is Neutral, neither overbought nor oversold. The STOCH value of 16.21 is Positive, 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	$67.51M	-8.69	-14.85%	―	-13.79%	-132.21%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
MDAI	50 Neutral	$42.96M	-1.87	―	―	-15.02%	-11.06%
NMTC	48 Neutral	$33.87M	-4.07	-91.34%	―	250.35%	83.06%
ICCM	45 Neutral	$39.69M	-2.26	-157.91%	―	-18.96%	8.98%
LUNG	45 Neutral	$65.17M	-1.12	-73.73%	―	15.59%	4.13%
CTSO	44 Neutral	$47.26M	-3.96	-96.15%	―	-8.97%	47.29%

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.