Marpai, Inc. Reports 35.2% Revenue Decline in Q2 2025, Improves Operating Loss

Marpai, Inc. reported a significant decline in financial performance for the second quarter of 2025, with revenues totaling $4.7 million, down 35.2% from $7.2 million in the same period last year. For the first half of 2025, the company generated $10.1 million in revenue, a decrease of 30.9% compared to $14.6 million in the first half of 2024. 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 $3.6 million for the quarter, a 70.6% improvement from a loss of $12.3 million in the prior year.

In terms of expenses, Marpai reported a total of $8.3 million for the second quarter, down 57.5% from $19.5 million in the same quarter of 2024. This reduction was driven by lower costs across various categories, including a significant decrease in general and administrative expenses, which fell by 33.3% to $2.5 million. The company also eliminated the impairment of goodwill and intangible assets, which had previously resulted in a $7.6 million charge in the second quarter of 2024. Overall, the company’s net loss for the quarter was $4.4 million, a substantial improvement from the $13 million loss reported in the same period last year.

Operationally, Marpai has been focusing on streamlining its operations and reducing costs. The company’s employee headcount has been adjusted to improve efficiency, and it has strategically decommissioned unutilized facilities, contributing to a reduction in facilities expenses. As of June 30, 2025, Marpai had approximately $619,000 in unrestricted cash and an accumulated deficit of $106.3 million. The company’s total liabilities increased to $43.4 million, up from $40.6 million at the end of 2024, primarily due to ongoing obligations related to convertible debentures and other liabilities.

Looking ahead, Marpai's 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. Marpai's ability to continue operations may be impacted if it cannot secure the necessary funding, raising concerns about its long-term viability. The company is actively seeking to raise additional funds through equity or debt securities to support its business objectives.