Marpai Inc. (OTCQX: MRAI) reported its third‑quarter 2025 results on November 13, 2025, after the company announced the release the day before. Revenue for the quarter ended September 30 was $4.037 million, a 42% decline from the $7.0 million reported in Q3 2024. Operating loss narrowed to $2.8 million from $3.1 million, and net loss improved to $3.5 million from $3.6 million. Earnings per share were –$0.20, missing the consensus estimate of –$0.09 by 122 % and underscoring the company’s ongoing profitability challenge.
The revenue drop was driven primarily by customer churn and the exit from unprofitable legacy contracts, as Marpai’s management noted. The company’s focus on the MarpaiRx platform and the Empower member portal has shifted resources toward new initiatives, but the transition has not yet offset the loss of legacy revenue streams. The 42% decline also reflects broader market softness in the third‑party administration sector, where employers are tightening spend on self‑funded plans.
Operating expenses fell 24% to $3.8 million, a $1.2 million reduction from Q3 2024. The cost‑control program, described by CFO Steve Johnson as a “strategic initiative to enhance operational efficiency,” has been a key driver of the narrowed operating loss. The expense reduction was achieved through workforce optimization, vendor renegotiations, and a shift to cloud‑based service delivery, all of which have improved Marpai’s cost structure.
CEO Damien Lamendola emphasized that the company is “building a more resilient, capital‑efficient Marpai.” He highlighted the 24% expense cut and the 9% improvement in operating loss as evidence of a structural transformation that positions the firm for scalable, profitable growth. Lamendola also warned that the company has “substantial doubt” about its going‑concern status, citing strained liquidity, significant debt obligations, and a large AXA liability. The company is exploring strategic alternatives to address its financial position.
The market reacted sharply, with the stock falling over 20% in post‑market trading. The steep decline was driven by the EPS miss and the 42% revenue contraction, which investors interpreted as a sign that the company’s turnaround is still incomplete and that liquidity risks remain acute. Analysts noted that the company’s debt load and the “going‑concern” disclosure add to the uncertainty surrounding its near‑term prospects.
Looking ahead, Marpai has guided for profitability in Q1 2026, but it has not provided new revenue or earnings guidance for the remainder of 2025. Management remains focused on cost discipline, the expansion of the MarpaiRx platform, and the growth of the Empower portal, while also evaluating strategic alternatives to strengthen its balance sheet. The company’s trajectory will hinge on its ability to convert cost savings into revenue growth and to secure additional capital to support its transformation initiatives.
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