Modular Medical Reports $6.5 Million Net Loss, Launches Next-Generation Insulin Pump

Modular Medical, Inc. reported its financial results for the three months ended June 30, 2026, revealing a net loss of approximately $6.5 million, a slight improvement from a net loss of $6.7 million during the same period in 2025. The company’s total operating expenses decreased to $6.5 million from $6.8 million year-over-year, primarily due to reduced research and development costs, which fell by 14.9% to $4.4 million. Selling, general, and administrative expenses increased by 29.8% to $2.2 million, driven by higher sales and marketing costs and professional services. The loss per share for the quarter was $1.19, compared to $3.70 in the prior year, reflecting a significant increase in the number of shares outstanding following a reverse stock split.

In terms of liquidity, Modular Medical's cash and cash equivalents decreased to $3.9 million as of June 30, 2026, down from $6.9 million at the end of the previous quarter. The company’s total assets also declined to $12.3 million from $14.8 million, while total liabilities remained stable at $1.5 million. The accumulated deficit increased to approximately $119.5 million, highlighting ongoing financial challenges. The company has expressed substantial doubt about its ability to continue as a going concern, emphasizing the need for additional capital to support operations and product development.

Strategically, Modular Medical has made significant advancements in its product offerings. The company announced the commercial availability of its next-generation insulin pump, branded as Pivot, in June 2026, following FDA approval in April 2026. This product aims to enhance the user experience and expand the market for insulin delivery devices. The company is actively working to increase commercial activities for the Pivot product and is seeking regulatory clearance for international markets. Additionally, Modular Medical has been involved in various financing activities, including a registered direct offering in April 2026 that raised approximately $3.4 million.

Operationally, the company has seen a reduction in its workforce, with full-time employees in research and development decreasing from 54 to 42 year-over-year. This reduction is part of a broader strategy to manage costs amid ongoing financial losses. The company’s engagement metrics indicate a focus on expanding its market presence, particularly in metropolitan areas, as it seeks to capture a larger share of the diabetes management market. However, the company continues to face challenges related to cash flow and the need for further capital to sustain its operations and development efforts.

Looking ahead, Modular Medical anticipates continued operating losses as it invests in the commercialization of its products. The company’s ability to secure additional funding will be critical to its future operations, and it plans to explore various avenues for raising capital, including equity and debt securities. The management has indicated that if it cannot secure the necessary funding, it may need to curtail its research and development initiatives and implement further cost-reduction measures.