QT Imaging Reports 105% Revenue Growth to $2.8 Million, Net Loss Increases to $11.1 Million

QT Imaging Holdings, Inc. reported significant financial developments in its latest 10-Q filing for the quarter ending March 31, 2025. The company achieved revenues of $2.8 million, a 105% increase from $1.4 million in the same period last year. This growth was primarily driven by the sale of six QT Breast Scanners, up from three sold in the first quarter of 2024, reflecting the impact of minimum order quantities established in the amended distribution agreement with NXC Imaging. Despite the revenue increase, the company reported a net loss of $11.1 million, a substantial rise from a loss of $628,590 in the prior year, largely due to increased operating expenses and other financial liabilities.

Total operating expenses decreased to $2.9 million from $6.3 million year-over-year, primarily due to a significant reduction in selling, general, and administrative expenses, which fell by 65% to $2 million. This reduction was attributed to decreased transaction costs and professional service fees. Research and development expenses, however, increased by 33% to $852,252, reflecting ongoing investments in product development. The company’s gross profit also saw a notable increase of 138%, reaching $1.8 million, indicating improved efficiency in its operations.

In terms of strategic developments, QT Imaging completed a significant financing transaction by entering into a credit agreement for a senior secured term loan of $10.1 million with Lynrock Lake. This loan, secured by a first priority lien on the company’s assets, is intended to support working capital needs and facilitate the repayment of previous debts, including the extinguishment of the Yorkville Note and Cable Car Note. Additionally, the company issued warrants to purchase shares of common stock as part of this financing, which could further dilute existing shareholders if exercised.

Operationally, QT Imaging has made strides in expanding its market presence. The company has entered into distribution agreements that are expected to generate cash inflows of $18 million in 2025 and $27 million in 2026. As of March 31, 2025, the company reported total assets of $10.9 million, up from $6.1 million at the end of 2024, while total liabilities surged to $31.1 million, reflecting the impact of the new debt and other financial obligations. The company’s accumulated deficit also increased to $43.1 million, indicating ongoing challenges in achieving profitability.

Looking ahead, QT Imaging anticipates continued investment in research and development, alongside efforts to enhance its sales and marketing capabilities. The company expects to remain cash flow negative in the near term but believes that the recent financing and anticipated revenue from distribution agreements will provide sufficient liquidity to support its operations for at least the next 12 months. However, the company acknowledges that its ability to achieve profitability will depend on generating sufficient revenues to cover its operational costs, and it may need to seek additional capital in the future.