MARPAI REPORTS FIRST QUARTER 2026 FINANCIAL RESULTS
Strategic Investments in Operations and Technology Fuel Platform for Accelerated Growth and Aim of Second-Half 2026 Profitability
TAMPA, Fla., May 15, 2026 /PRNewswire/ -- Marpai, Inc. ("Marpai" or the "Company") (OTCQX:MRAI), a leader in innovative healthcare technology, Third-Party Administration (TPA), and Pharmacy Benefit Management ("PBM") services, announced the financial results for the first quarter 2026.
Marpai's first quarter 2026 results reflect the Company's continued execution of its operational transformation designed to position the business for profitability and growth. The Company has nearly completed the migration of its IT and claims processing to a single, unified cloud-based platform — a mission-critical initiative that is expected to significantly reduce operating costs and enhance service quality beginning in Q2 2026.
First Quarter 2026 Financial Highlights:
- Net Revenue: Net revenue for the three months ended March 31, 2026 were $4.4 million as compared to net revenue of $5.4 for the three months ended March 31, 2025. The year-over-year variance reflects a reduction in average enrolled lives during the transition period, with enrollment now recovering strongly.
- Expense Reduction: Total costs and expenses for the three months ended March 31, 2026 were $6.9 million, an improvement of $0.7 million, or approximately 10% lower year over year, reflecting continued cost discipline and operating efficiencies across G&A, IT, and Facilities.
- Operating Loss: Operating loss for the three months ended March 31, 2026 was $2.5 million, as compared to an operating loss of $2.3 for the three months ended March 31, 2025, reflecting deliberate investments in temporary staffing, claims processing, and technology infrastructure to support the Company's cloud migration and the rapid onboarding of new clients. These investments are expected to yield cost savings beginning in Q2 2026.
- Net Loss: Net loss was $3.2 million, or $(0.13) per basic and diluted share, an improvement of $0.08 per share year over year.
COMPLETING THE TECHNOLOGY TRANSFORMATION: CLOUD MIGRATION
The Company expects to complete the migration of IT systems and claims processing to a single, unified cloud-based platform in Q2 2026. This consolidation is intended to eliminate redundant legacy infrastructure, streamlines claims adjudication workflows, and creates a scalable, lower-cost technology foundation capable of supporting significantly higher membership volumes without proportional cost increases.
The transition required incremental investment in both technology and temporary staffing during Q1 2026 to ensure service continuity for existing clients while managing the complexity of the migration. The costs related to the transition are non-recurring in nature. Management expects to realize substantial reductions in IT expenses in Q2 2026 and beyond.
MANAGEMENT COMMENTARY
"We believe that the first quarter of 2026 positions the Company towards the end of our transformation journey," said Damien Lamendola, Chief Executive Officer of Marpai. "We made deliberate, targeted investments in the quarter — in our cloud migration, in our people, and in our infrastructure — and those investments are now beginning to pay off. The completion of our IT and claims processing migration to a single cloud-based system in Q2 is one of the most important operational milestones in our Company's history. It sets the foundation for meaningfully lower costs, faster claims adjudication, and a superior client experience."
Mr. Lamendola continued:
"We are executing on multiple fronts simultaneously — winning new business, expanding MarpaiRx, restructuring our balance sheet, and transforming our technology infrastructure — and I am incredibly proud of what this team has accomplished. I am confident in our second-half 2026 target for achieving run-rate profitability. The wins we've announced, the pipeline we've built, and the cost structure we've engineered all point in the same direction: Marpai is a fundamentally different and stronger company today than it was twelve months ago — we view it is a growth story."
MarpaiRx UPDATE: PHARMACY BENEFIT MANAGEMENT MOMENTUM
MarpaiRx, the Company's Pharmacy Benefit Management subsidiary, continued to build momentum during the first quarter of 2026 and into Q2. The division, led by Mimi Davis, President of MarpaiRx, is rapidly establishing itself as a differentiated, high-margin contributor to Marpai's overall platform.
"MarpaiRx is entering a period of significant acceleration," said Mimi Davis, President of MarpaiRx. "In March 2026, we announced a landmark marketing agreement that provides potential access to approximately 1.5 million employee lives — a milestone that speaks to both the quality of our PBM platform and the strength of the relationships we've built in the market. Our pharmacy benefit offering is differentiated by data-driven clinical management, transparency, and a genuine focus on member outcomes — and employers are taking notice."
Ms. Davis added:
"We are building a high-quality book of PBM business with strong retention characteristics and attractive unit economics. The pipeline entering the second half of 2026 is the most robust we have seen, and I am confident that MarpaiRx will be a meaningful driver of both revenue growth and profitability for the consolidated Marpai platform. Our integrated TPA and PBM model is a true competitive advantage — one that is resonating strongly with self-funded employers and their advisors."
RECENT BUSINESS WINS: BUILDING CONFIDENCE IN THE TURNAROUND
Marpai has announced a series of significant business wins in recent months that underscore the growing market recognition of the Company's differentiated value proposition and provide strong evidence of the traction being gained across both the TPA and PBM segments:
- MarpaiRx Marketing Agreement (March 2026): The Company announced a landmark marketing agreement for MarpaiRx, representing potential access to approximately 1.5 million employee lives. This agreement materially expands the Company's PBM addressable market and validates the quality and competitiveness of the MarpaiRx platform at scale.
- New TPA Client Wins: The Company has commitments to substantially increase new TPA clients for the 2026 plan year, reflecting a strengthening pipeline and the effectiveness of the integrated TPA-PBM value proposition.
- Leadership Appointments: The appointment of Mimi Davis as President of MarpaiRx reinforces the Company's commitment to capturing and executing high-margin pharmacy benefit volume with experienced, dedicated leadership.
The cumulative impact of these wins is visible in the Company's growing pipeline and in management's increasing confidence in the Company's path to profitability. Each announcement represents not only near-term revenue, but also long-term validation of Marpai's strategy and competitive positioning.
JGB DEBT AMENDMENT: BALANCE SHEET STRENGTHENED FOR GROWTH
The Company is pleased to report that it has successfully negotiated and executed an amendment to its existing convertible debenture agreement with JGB Management ("JGB") in a manner that provides Marpai with meaningfully greater financial flexibility during its current growth phase. The amendment realigns the debt repayment profile with the Company's expected cash flow generation trajectory, including the anticipated ramp in revenues and margins 2026 and 2027.
The JGB Amendment is a strategically significant development for Marpai. By restructuring the payment obligations, the Company has reduced near-term cash outlays, preserved liquidity for operational investment, and strengthened the overall balance sheet in advance of what management expects to be a period of significant revenue growth. We believe that this demonstrates JGB's continued confidence in the Company's strategy and management team, and a meaningful vote of support for Marpai's turnaround and growth trajectory.
2026 PROFITABILITY OUTLOOK: ON TRACK FOR SECOND-HALF PROFITABILITY
Management reaffirms its confidence that Marpai is on track to achieve company-wide run-rate profitability in the second half of 2026. This confidence is grounded in several factors:
- Revenue Recovery and Growth: Enrolled lives are recovering strongly, with the pipeline of new TPA and PBM clients contracted or in advanced stages representing potentially meaningful revenue additions in Q3 2026 through Q1 2027.
- Cost Structure Reset: The completion of the cloud migration eliminates a substantial layer of legacy IT costs, and the reduction in temporary staffing is expected to bring total headcount costs in line with the Company's longer-term operational model.
- MarpaiRx Ramp: The MarpaiRx PBM business is expected to contribute increasingly to revenues and margin as the marketing agreement pipeline converts and previously announced wins potentially begin generating revenue.
- Operating Leverage: The cloud-based unified platform creates a scalable infrastructure where incremental revenue growth generates meaningfully higher incremental margins, driving the path to profitability.
- Balance Sheet Flexibility: The JGB amendment provides the Company with the liquidity headroom to execute on its growth plan.
The Company expects the first half of 2026 to reflect continued investment activity, with the benefits of this investment manifesting in the financial results of Q3 and Q4 2026. Management is confident in the Company's path to profitability and remains committed to delivering on its strategic commitments to clients, partners, and shareholders.
About Marpai, Inc.
Marpai, Inc. (OTCQX:MRAI) is a technology platform company which operates subsidiaries that provide TPA, PBM and value-oriented health plan services to employers that directly pay for employee health benefits. Marpai works to deliver the healthiest member population for the health plan budget through its Marpai Saves initiative. Operating nationwide, Marpai offers access to leading provider networks including Aetna and Cigna. For more information, visit www.marpaihealth.com, the content of which is not incorporated by reference into this press release. Investors are invited to visit https://ir.marpaihealth.com.
Forward-Looking Statement Disclaimer
This press release contains forward-looking statements, as that term is defined in the Private Litigation Reform Act of 1995, that involve significant risks and uncertainties. Forward-looking statements can be identified through the use of words such as "anticipates," "expects," "intends," "plans," "believes," "seeks," "estimates," "guidance," "may," "can," "could", "will", "potential", "should," "goal" and variations of these words or similar expressions. For example, the Company is using forward-looking statements when it discusses Marpai's expectations regarding its path to profitability in the second half of 2026, the anticipated benefits of the cloud-based claims processing migration, projected contributions from MarpaiRx, the impact of the JGB debt amendment on balance sheet flexibility, its potential and expected future revenues and the timing thereof, that it expects the first half of 2026 to reflect continued investment activity, with the benefits of this investment manifesting in the financial results of Q3 and Q4 2026, and the projected growth in enrolled lives and revenues. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect Marpai's current expectations and speak only as of the date of this release. Actual results may differ materially from Marpai's current expectations depending upon a number of factors. These factors include, among others, adverse changes in general economic and market conditions, competitive factors including but not limited to pricing pressures and new product introductions, uncertainty of customer acceptance of new product offerings and market changes, risks associated with managing the growth of the business. Except as required by law, Marpai does not undertake any responsibility to revise or update any forward-looking statements whether as a result of new information, future events or otherwise.
More detailed information about Marpai and the risk factors that may affect the realization of forward-looking statements is set forth in Marpai's filings with the Securities and Exchange Commission. Investors and security holders are urged to read these documents free of charge on the SEC's web site at http://www.sec.gov.
MARPAI, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share data) | ||||
March 31, 2026 | December 31, 2025 | |||
ASSETS: | ||||
Current assets: | ||||
Cash and cash equivalents | $ 201 | $ 133 | ||
Restricted cash | 8,433 | 8,818 | ||
Accounts receivable, net of allowance for credit losses of $11 and $21 as of March 31, | 738 | 697 | ||
Unbilled receivables | 695 | 280 | ||
Prepaid expenses and other current assets | 364 | 408 | ||
Total current assets | 10,431 | 10,336 | ||
Capitalized software, net | — | 60 | ||
Operating lease right-of-use assets | 206 | 218 | ||
Security deposits | 227 | 229 | ||
Other long-term asset | 51 | 61 | ||
Total assets | $ 10,915 | $ 10,904 | ||
LIABILITIES AND STOCKHOLDERS' DEFICIT | ||||
Current liabilities: | ||||
Accounts payable | $ 5,902 | $ 3,668 | ||
Accrued expenses | 2,261 | 2,115 | ||
Accrued fiduciary obligations | 8,375 | 8,521 | ||
Deferred revenue | — | 89 | ||
Current portion of operating lease liabilities | 273 | 264 | ||
Current portion of convertible debentures, net | 1,668 | 3,037 | ||
Other short-term liabilities | 8,000 | 8,000 | ||
Due to related party | 668 | — | ||
Total current liabilities | 27,147 | 25,694 | ||
Other long-term liabilities | 11,900 | 11,450 | ||
Convertible debentures, net of current portion | 6,656 | 5,795 | ||
Operating lease liabilities, net of current portion | 457 | 528 | ||
Total liabilities | 46,160 | 43,467 | ||
COMMITMENTS AND CONTINGENCIES | ||||
STOCKHOLDERS' DEFICIT | ||||
Preferred stock, $0.0001 par value, 2,000,000 shares authorized; 0 shares issued and | — | — | ||
Common stock, $0.0001 par value, 227,791,050 shares authorized; 25,292,667 shares | 3 | 2 | ||
Additional paid-in capital | 83,329 | 82,829 | ||
Accumulated deficit | (118,577) | (115,394) | ||
Total stockholders' deficit | (35,245) | (32,563) | ||
Total liabilities and stockholders' deficit | $ 10,915 | $ 10,904 | ||
MARPAI, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (in thousands, except share and per share data) | ||||
Three Months Ended | ||||
March 31, 2026 | March 31, 2025 | |||
Revenue | $ 4,444 | $ 5,418 | ||
Costs and expenses | ||||
Cost of revenue (exclusive of depreciation and amortization | 3,239 | 3,484 | ||
General and administrative | 2,130 | 2,283 | ||
Information technology | 1,157 | 1,390 | ||
Sales and marketing | 229 | 245 | ||
Research and development | — | 7 | ||
Depreciation and amortization | 60 | 107 | ||
Facilities | 113 | 152 | ||
Total costs and expenses | 6,928 | 7,668 | ||
Operating loss | (2,484) | (2,250) | ||
Other income (expenses) | ||||
Other income, net | 76 | — | ||
Interest expense, net | (775) | (819) | ||
Loss before provision for income taxes | (3,183) | (3,069) | ||
Income tax expense | — | — | ||
Net loss | $ (3,183) | $ (3,069) | ||
Net loss per share, basic & fully diluted | $ (0.13) | $ (0.21) | ||
Weighted average common shares outstanding, basic and | 24,682,017 | 14,770,867 | ||
MARPAI, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (in thousands) | ||||
Three Months Ended | ||||
March 31, 2026 | March 31, 2025 | |||
Cash flows from operating activities: | ||||
Net loss | $ (3,183) | $ (3,069) | ||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||
Depreciation and amortization | 60 | 107 | ||
Share-based compensation | 203 | 574 | ||
Shares issued to vendors in exchange for services | 35 | — | ||
Amortization of right-of-use asset | 12 | 15 | ||
Non-cash interest expense | 475 | 463 | ||
Amortization of debt premium and debt issuance costs, net | (8) | (9) | ||
Changes in operating assets and liabilities: | ||||
Accounts receivable and unbilled receivables | (456) | 664 | ||
Prepaid expense and other assets | 56 | 151 | ||
Accounts payable | 2,234 | (373) | ||
Accrued expenses | 408 | (679) | ||
Accrued fiduciary obligations | (146) | 1,919 | ||
Operating lease liabilities | (62) | (59) | ||
Due to related party | 8 | — | ||
Other liabilities | (113) | 181 | ||
Net cash used in operating activities | (477) | (115) | ||
Cash flows from investing activities: | ||||
Proceeds from sale of business unit | — | 500 | ||
Net cash provided by investing activities | — | 500 | ||
Cash flows from financing activities: | ||||
Proceeds from issuance of related party promissory notes | 660 | — | ||
Proceeds from issuance of convertible debentures | — | 3,000 | ||
Payments of convertible debenture issuance costs | — | (162) | ||
Payments on convertible debentures | (500) | (750) | ||
Payments to seller for acquisition | — | (196) | ||
Net cash provided by financing activities | 160 | 1,892 | ||
Net (decrease) increase in cash, cash equivalents and restricted cash | (317) | 2,277 | ||
Cash, cash equivalents and restricted cash at beginning of period | 8,951 | 9,232 | ||
Cash, cash equivalents and restricted cash at end of period | $ 8,634 | $ 11,509 | ||
Reconciliation of cash, cash equivalents, and restricted cash reported in | ||||
Cash and cash equivalents | $ 201 | $ 729 | ||
Restricted cash | 8,433 | 10,780 | ||
Total cash, cash equivalents and restricted cash shown in the condensed | $ 8,634 | $ 11,509 | ||
Supplemental disclosure of cash flow information | ||||
Cash paid for interest | $ 299 | $ 403 | ||
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SOURCE Marpai