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Spectral AI (MDAI)
NASDAQ:MDAI
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Spectral AI (MDAI) AI Stock Analysis

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MDAI

Spectral AI

(NASDAQ:MDAI)

Rating:45Neutral
Price Target:
Spectral AI shows significant revenue growth and strategic technological developments, yet faces substantial financial challenges with negative profitability and high leverage. Technical indicators suggest bearish momentum, and the valuation appears unattractive due to the negative P/E ratio. The earnings call presents a mixed outlook, highlighting achievements but also projecting revenue declines, contributing to a cautious overall assessment.
Positive Factors
Clinical Data
Positive clinical data supports regulatory submission; reiterate Buy.
Financial Performance
MDAI reported revenue of $6.7 million which was above estimates and earnings per share exceeded expectations due to a change in warrant liability value.
Regulatory Progress
MDAI submitted regulatory filings to the FDA for the Burn indication, with clearance expected, which could open new opportunities.
Negative Factors
Cash Position
Spectral AI ended 2Q25 with cash and cash equivalents of $10.5M, which is believed to be sufficient cash runway to fund operations into 2Q26.
Financial Challenges
For 2Q25, the company reported revenues of $5.1M and a net loss of $0.31 per diluted share, compared to consensus estimates revenues of $5.5M and a net loss of $0.07.

Spectral AI (MDAI) vs. SPDR S&P 500 ETF (SPY)

Spectral AI Business Overview & Revenue Model

Company DescriptionSpectral AI, Inc. (MDAI) is a technology-driven company specializing in the development of artificial intelligence (AI) solutions for the medical industry. The company's core product, the DeepView Wound Imaging System, leverages AI to provide healthcare professionals with real-time insights into wound healing and treatment efficacy, primarily focusing on burn and diabetic foot ulcers. Spectral AI aims to enhance patient outcomes and streamline clinical decision-making processes through cutting-edge imaging technology.
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 Earnings Call Summary

Earnings Call Date:Aug 12, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 17, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant achievements in FDA submission and financial strengthening, despite facing challenges in decreased R&D revenue and increased net loss for the quarter. The progress made in operational efficiencies and financial positioning suggests a cautiously optimistic outlook.
Q2-2025 Updates
Positive Updates
Successful FDA Submission
Spectral AI completed its FDA submission for the DeepView System in the second quarter of 2025, marking a significant milestone in the company's development.
Strong Financial Position
The company completed a debt financing agreement with Avenue Venture Opportunities Fund II for up to $15 million and raised $2.7 million in equity financing, leading to a cash balance of over $10 million at the end of June 2025.
Reduction in General and Administrative Expenses
General and administrative expenses were reduced from $5.8 million in Q2 2024 to $4.4 million in Q2 2025, reflecting continued focus on operating efficiencies.
Decreased Net Loss for the First Half of 2025
Despite a larger warrant liability, the company reported a net loss of $5.1 million for the first half of 2025, down from $6.1 million in the same period of 2024.
Negative Updates
Decrease in Research and Development Revenue
R&D revenue decreased from $7.5 million in Q2 2024 to $5.1 million in Q2 2025, largely due to reduced reimbursements under the BARDA Project BioShield contract.
Increased Net Loss for Q2 2025
The net loss for Q2 2025 was $7.9 million, up from $2.9 million in Q2 2024, due in part to an increase in the fair value of the company's publicly traded warrant liability by $5.4 million.
Company Guidance
During the Spectral AI Inc. Q2 2025 Financial Results Conference Call, the company provided key guidance on financial and strategic initiatives. Spectral AI emphasized its successful completion of a debt financing agreement with Avenue Venture Opportunities Fund II, securing up to $15 million, including an initial draw of $8.5 million. The company also raised $2.7 million through equity financing, resulting in over $10 million in cash on hand by the end of June 2025, with potential access to an additional $6.5 million. These financial maneuvers support their growth initiatives, including the planned U.S. launch of the DeepView System. The company reiterated its 2025 revenue guidance of approximately $21.5 million. Additionally, Spectral AI highlighted the completion of its de novo application submission to the FDA in Q2 2025, a significant milestone in their business evolution. The company reported a net loss of $7.9 million in Q2 2025 compared to a $2.9 million loss in the same period last year, reflecting changes in the fair value of its warrant liability. Despite financial challenges, Spectral AI remains focused on its strategic goals, emphasizing the 3 Fs: finance, focus, and finish, while looking forward to potential FDA interactions and commercialization plans.

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
45
Neutral
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
30
Negative
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
40
Negative
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue27.55M29.58M18.06M25.37M15.24M
Gross Profit12.32M13.27M7.88M10.84M7.05M
EBITDA-22.13M-11.49M-12.26M-2.08M-4.18M
Net Income-14.32M-15.31M-20.85M-2.91M-3.99M
Balance Sheet
Total Assets16.01M12.10M10.69M18.72M18.54M
Cash, Cash Equivalents and Short-Term Investments10.52M5.16M4.79M14.17M16.12M
Total Debt9.65M4.69M1.29M1.20M583.00K
Total Liabilities25.16M19.35M12.40M6.72M4.79M
Stockholders Equity-9.15M-7.25M-1.71M12.00M13.75M
Cash Flow
Free Cash Flow-6.02M-9.20M-13.24M-1.16M-2.92M
Operating Cash Flow-6.02M-9.20M-13.24M-1.16M-2.92M
Investing Cash Flow0.000.000.000.00-7.00K
Financing Cash Flow9.63M9.57M3.84M-785.00K13.92M

Spectral AI Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.93
Price Trends
50DMA
2.40
Negative
100DMA
1.94
Negative
200DMA
1.88
Positive
Market Momentum
MACD
-0.11
Positive
RSI
34.62
Neutral
STOCH
17.31
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 1.93 is below the 20-day moving average (MA) of 2.17, below the 50-day MA of 2.40, and above the 200-day MA of 1.88, indicating a neutral trend. The MACD of -0.11 indicates Positive momentum. The RSI at 34.62 is Neutral, neither overbought nor oversold. The STOCH value of 17.31 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 0 New Risks

Spectral AI Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
60
Neutral
-4.15%3.49%
57
Neutral
$97.44M-77.26%-9.59%8.78%
53
Neutral
$38.21M-95.39%145.48%67.36%
51
Neutral
$7.85B-0.21-41.41%2.22%22.81%-2.01%
45
Neutral
$51.59M256.43%22.27%49.22%
$39.95M-215.41%
39
Underperform
$36.37M-125.63%6.48%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
MDAI
Spectral AI
1.93
0.47
32.19%
ICAD
iCAD
3.87
2.34
152.94%
MODD
Modular Medical
0.72
-1.12
-60.87%
NMTC
NeuroOne Medical Technologies
0.76
-0.03
-3.80%
RBOT
Vicarious Surgical
6.11
0.27
4.62%
HYPR
Hyperfine
1.24
0.24
24.00%

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
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Apr 22, 2025