Marpai, Inc. Reports 42.4% Revenue Decline in Q3 2025, Cautions on Financial Outlook

Marpai, Inc. reported a significant decline in financial performance for the third quarter and the first nine months of 2025, as detailed in its latest 10-Q filing. For the three months ended September 30, 2025, the company generated revenue of $4.0 million, a decrease of 42.4% from $7.0 million in the same period of 2024. The nine-month revenue also fell by 34.6%, totaling $14.1 million compared to $21.6 million in the prior year. The decline in revenue is attributed primarily to customer turnover, prompting the company to adapt its approach to better meet evolving market demands.

In terms of expenses, Marpai reported a total cost of revenue of $3.0 million for the third quarter of 2025, down from $5.0 million in the previous year, reflecting a 41.1% reduction. For the nine-month period, costs decreased from $15.1 million to $10.4 million, a 31.3% drop. General and administrative expenses also saw a decline, totaling $2.1 million for the third quarter, down from $2.8 million, and $6.8 million for the nine months, compared to $10.0 million in 2024. The overall operating loss for the third quarter was $2.8 million, a slight improvement from a loss of $3.1 million in the prior year, while the nine-month operating loss narrowed to $8.6 million from $19.4 million.

Marpai's operational metrics indicate a strategic shift, with the company focusing on streamlining its operations. The total employee headcount has been reduced as part of efforts to consolidate departments and improve efficiency. The company also reported a significant reduction in depreciation and amortization expenses, which fell from $2.1 million to $321,000 for the nine months ended September 30, 2025, largely due to prior impairments of goodwill and intangible assets.

Looking ahead, Marpai's financial outlook remains cautious. As of September 30, 2025, the company reported an accumulated deficit of approximately $109.8 million and negative working capital of about $10.7 million. The management has indicated that additional capital will be necessary to fund ongoing operations and investments until the company reaches a revenue level that allows for cash self-sufficiency. The company is exploring various strategic alternatives, including potential mergers or sales, to maximize shareholder value. If additional capital cannot be secured, Marpai may need to scale back operations or divest assets, raising substantial doubt about its ability to continue as a going concern.