Spectral AI Reports 63.8% Revenue Growth to $29.6 Million for Fiscal Year 2024

Spectral AI, Inc. reported a significant increase in its financial performance for the fiscal year ending December 31, 2024, with research and development revenue reaching $29.6 million, a 63.8% increase from $18.1 million in 2023. The company attributed this growth primarily to heightened activity under its contracts with the Biomedical Advanced Research and Development Authority (BARDA) and other U.S. governmental agencies. Despite the revenue increase, Spectral AI incurred a net loss of $15.3 million, an improvement from the $20.9 million loss reported in the previous year. The company’s gross profit also rose to $13.3 million, reflecting a gross margin of 44.9%, up from 43.6% in 2023.

In terms of strategic developments, Spectral AI executed a new multi-year contract with BARDA in September 2023, valued at up to $150 million, which includes an initial award of approximately $54.9 million aimed at supporting the clinical validation and FDA clearance of its DeepView System. This contract is expected to bolster the company’s research and development efforts and facilitate the commercialization of its technology, particularly in the burn wound treatment sector. Additionally, the company received a $4.9 million grant from the Medical Technology Enterprise Consortium (MTEC) to develop a handheld version of its DeepView System for military applications.

Operationally, Spectral AI has made strides in expanding its clinical database, which now comprises approximately 340 billion pixels of image data, a significant asset for training its AI algorithms. The company has also completed enrollment for a pivotal clinical study involving 267 patients across 22 sites in the U.S., further validating its technology. As of December 31, 2024, Spectral AI employed 78 full-time staff, with plans to expand its workforce to support its growth strategy, particularly in sales and marketing.

Looking ahead, Spectral AI anticipates initiating commercialization of its DeepView System in the United Kingdom in 2025, following the receipt of UKCA marking for burn indications. The company plans to leverage its existing government contracts to facilitate sales in the U.S. and UK markets. However, it remains dependent on continued government funding and regulatory approvals, which are critical for its long-term viability. The company’s ability to achieve profitability will hinge on successful commercialization and the effective management of its operational costs, particularly as it scales its operations.