Marpai, Inc. Reports 26.6% Revenue Decline and Improved Operating Loss in Q1 2025

Marpai, Inc. reported its financial results for the first quarter of 2025, revealing a total revenue of $5.4 million, a decrease of 26.6% from $7.4 million in the same period last year. The decline in revenue is attributed primarily to customer turnover as the company adapts to evolving market conditions. Despite the drop in revenue, Marpai managed to reduce its operating loss to $2.3 million, down from $4.1 million in the prior year, reflecting a 44.6% improvement in operational efficiency.

The company's total costs and expenses for the quarter were $7.7 million, a significant reduction from $11.5 million in the previous year, marking a 33% decrease. This reduction was driven by lower costs of revenue, which fell to $3.5 million from $4.9 million, and a decrease in general and administrative expenses, which dropped from $3.4 million to $2.3 million. The company also reported a net loss of $3.1 million, compared to a net loss of $4.3 million in the first quarter of 2024, resulting in a net loss per share of $0.21, down from $0.46.

Operationally, Marpai's customer base and engagement metrics have been impacted by the market's shifting dynamics. The company continues to focus on enhancing its technology-driven services to self-insured employers, which it believes will lead to long-term revenue growth. As of March 31, 2025, Marpai had approximately $729,000 in unrestricted cash and cash equivalents, alongside an accumulated deficit of $101.9 million. The company also reported negative working capital of $6.9 million, raising concerns about its liquidity and ability to sustain operations without additional capital.

In terms of strategic developments, Marpai has been actively exploring options to maximize shareholder value, including potential mergers or strategic investments. The company has also made organizational changes, such as the consolidation of its third-party administration services, which it believes will enhance operational efficiency. Additionally, Marpai has been involved in financing activities, including the issuance of convertible debentures and private placements, to support its ongoing operations.

Looking ahead, Marpai's management has indicated that the company will need to secure additional capital to fund its operations and investments until it reaches a revenue level that allows for cash self-sufficiency. The company is currently evaluating various funding alternatives, including equity and debt securities, to address its liquidity challenges. The outlook remains cautious, as the management has expressed substantial doubt about the company's ability to continue as a going concern over the next twelve months without raising additional capital.