Successful turnaround leads to lower operating costs and improved gross margin; debt restructuring and subsequent financing strengthen capital structure

TAMPA, Fla., Aug. 13, 2026 /PRNewswire/ -- Marpai, Inc. ("Marpai" or the "Company") (OTCQX:MRAI), a leader in innovative healthcare technology, Third-Party Administration (TPA), and Pharmacy Benefit Management ("PBM") services, announced its financial and operational results for the three and six months ended June 30, 2026.

SECOND QUARTER 2026 FINANCIAL HIGHLIGHTS

The second quarter marked the successful continuation of Marpai's turnaround.

Metric	Q2 2026	Q2 2025	Year-over-year
Revenue	$4.2 million	$4.7 million	10.5% decrease
Cost of revenue	$3.2 million	$3.9 million	19.0% decrease
Gross profit	$1.0 million	$0.7 million	33.6% improvement
Gross margin	23.9 %	16.0 %	Improved by 7.9 percentage points
Total costs and expenses	$7.6 million	$8.3 million	8.0% decrease
Operating loss	$(3.4) million	$(3.6) million	4.8% improvement
Net loss	$(4.6) million	$(4.4) million	4.9% increase

Revenue declined primarily due to turnover and continued customer pruning. Cost of revenue decreased faster than revenue due to a reduction in claims processing expense, resulting in higher gross profit and gross margin. Total costs and expenses also declined, reflecting lower cost of revenue, information technology, sales and marketing, depreciation and amortization, and facilities expense, partially offset by higher general and administrative expense.

OPERATING AND STRATEGIC UPDATE

We continue to prune and adjust our customer base while adjusting our cost base to reflect our growing use of artificial intelligence ("AI") and other technological solutions to improve our efficiency and generate better returns.

Marpai continued to streamline its operating model during the quarter. Information technology expenses decreased to $1.1 million from $1.3 million in for the six months ended June 30, 2025, while sales and marketing expenses decreased to $136 thousand from $312 thousand for the six months ended June 30, 2025. Facilities expenses declined to $116 thousand from $160 thousand for the six months ended June 30, 2025.

Debt Restructuring:

As previously disclosed, in May 2026, the Company amended its senior secured convertible debentures, extending their maturity to April 15, 2028, and revising the amortization schedule. In July 2026, the Company amended its AXA notes extending their maturity to 2029 and revising the amortization schedule and repayment schedules.

Capital raise:

Subsequent to the end of the second quarter of 2026, on July 31, 2026, the Company priced a private placement offering of newly designated Series A Preferred Stock, generating aggregate gross proceeds of $12.1 million to the Company. The financing is expected to support the Company's operations and strategic priorities.

Management Commentary

"We believe that our second-quarter results demonstrate continued progress in revamping our cost structure to support the expected growth of the business by deploying AI and other technological solutions to improve our efficiency and increase our margins," said Damien Lamendola, Chief Executive Officer of Marpai. "While revenue continued to reflect lingering customer pruning and turnover, our lower cost of revenue and disciplined investments in process improvements and technology improved gross margin and reduced our operating loss. The debt amendments and subsequent financing improved our capital structure as we focus on growing our customer base profitably, improving client services, and building a more scalable platform."

SIX-MONTH 2026 RESULTS

For the six months ended June 30, 2026, revenue was $8.6 million, compared with $10.1 million for the six months ended June 30, 2025. Total costs and expenses were $14.5 million, compared with $15.9 million for the six months ended June 30, 2025. Operating loss was $5.9 million, compared with $5.9 million for the six months ended June 30, 2025, and net loss was $7.8 million, or $(0.31) per basic and diluted share, compared with $7.4 million, or $(0.49) per basic and diluted for the six months ended June 30, 2025.

Net cash used in operating activities was $4.6 million for the first six months of 2026. As of June 30, 2026, unrestricted cash and cash equivalents were $138 thousand. These balances do not include the $12.1 million of gross proceeds from the private placement completed after quarter-end, as disclosed above.

About Marpai, Inc.

Marpai, Inc. (OTCQX:MRAI) is a technology platform company which operates subsidiaries that provide TPA, PBM and value-oriented health plan services to employers that directly pay for employee health benefits. Marpai works to deliver the healthiest member population for the health plan budget through its Marpai Saves initiative. Operating nationwide, Marpai offers access to leading provider networks including Aetna and Cigna. For more information, visit www.marpaihealth.com, the content of which is not incorporated by reference into this press release. Investors are invited to visit https://ir.marpaihealth.com.

Forward-Looking Statement Disclaimer

This press release contains forward-looking statements, as that term is defined in the Private Litigation Reform Act of 1995, that involve significant risks and uncertainties. Forward-looking statements can be identified through the use of words such as "anticipates," "expects," "intends," "plans," "believes," "seeks," "estimates," "guidance," "may," "can," "could", "will", "potential", "should," "goal" and variations of these words or similar expressions. For example, the Company is using forward-looking statements when it discusses statements regarding the Company's continued adjustments to its customer base while adjusting is cost base to reflect growing use of artificial intelligence and other technological solutions to improve efficiency and generate better returns; the Company's expectation that the capital raise through a private placement offering will support its operations and strategic priorities; the Company's belief that its second-quarter results demonstrate continued progress in revamping its cost structure to support the expected growth of the business by deploying AI and other technological solutions to improve its efficiency and increase its margins; and the Company's focus on growing its customer base profitably, improve client services and build a more scalable platform. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect Marpai's current expectations and speak only as of the date of this release. Actual results may differ materially from Marpai's current expectations depending upon a number of factors. These factors include, among others, adverse changes in general economic and market conditions, competitive factors including but not limited to pricing pressures and new product introductions, uncertainty of customer acceptance of new product offerings and market changes, risks associated with managing the growth of the business. Except as required by law, Marpai does not undertake any responsibility to revise or update any forward-looking statements whether as a result of new information, future events or otherwise.

More detailed information about Marpai and the risk factors that may affect the realization of forward-looking statements is set forth in Marpai's filings with the Securities and Exchange Commission. Investors and security holders are urged to read these documents free of charge on the SEC's web site at http://www.sec.gov.

MARPAI, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(in thousands, except share and per share data)
	June 30, 2026	December 31, 2025

ASSETS:
Current assets:
Cash and cash equivalents	$ 138	$ 133
Restricted cash	6,437	8,818
Accounts receivable, net of allowance for credit losses of $86 and $21 as of June 30, 2026, and December 31, 2025, respectively	1,017	697
Unbilled receivables	1,085	280
Prepaid expenses and other current assets	327	408
Total current assets	9,004	10,336

Capitalized software, net	—	60
Operating lease right-of-use assets	193	218
Security deposits	227	229
Other long-term asset	43	61
Total assets	$ 9,467	$ 10,904
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities:
Accounts payable	$ 5,783	$ 3,668
Accrued expenses	2,456	2,115
Accrued fiduciary obligations	7,270	8,521
Deferred revenue (including related party amounts of $317 and $0, respectively)	317	89
Current portion of operating lease liabilities	278	264
Current portion of convertible debentures, net	1,966	3,037
Other short-term liabilities	2,450	8,000
Vendor financing advance	2,000	—
Due to related party	1,026	—
Total current liabilities	23,546	25,694

Other long-term liabilities	18,306	11,450
Convertible debentures, net of current portion	6,122	5,795
Operating lease liabilities, net of current portion	384	528
Total liabilities	48,358	43,467
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' DEFICIT
Preferred stock, $0.0001 par value, 2,000,000 shares authorized; 0 shares issued and outstanding at June 30, 2026 and December 31, 2025.	—	—
Common stock, $0.0001 par value, 227,791,050 shares authorized; 26,667,334 shares and 24,035,610 shares issued and outstanding at June 30, 2026, and December 31, 2025, respectively	3	2
Additional paid-in capital	84,266	82,829
Accumulated deficit	(123,160)	(115,394)
Total stockholders' deficit	(38,891)	(32,563)
Total liabilities and stockholders' deficit	$ 9,467	$ 10,904

MARPAI, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(in thousands, except share and per share data)
	Three Months Ended		Six Months Ended
	June 30, 2026	June 30, 2025	June 30, 2026	June 30, 2025
Revenue (including related party amounts of $183, $0, $183, and $0, respectively)	$ 4,166	$ 4,656	$ 8,610	$ 10,074
Costs and expenses
Cost of revenue (exclusive of depreciation and amortization shown separately below)	3,169	3,910	6,408	7,395
General and administrative	3,069	2,483	5,199	4,766
Information technology	1,109	1,291	2,266	2,681
Sales and marketing	136	312	365	556
Research and development	—	—	—	7
Depreciation and amortization	—	107	60	214
Facilities	116	160	229	311
Total costs and expenses	7,599	8,263	14,527	15,930
Operating loss	(3,433)	(3,607)	(5,917)	(5,856)
Other income (expenses)
Other income, net	77	49	153	49
Interest expense, net	(1,227)	(813)	(2,002)	(1,633)
Loss before provision for income taxes	(4,583)	(4,371)	(7,766)	(7,440)
Income tax expense	—	—	—	—
Net loss	$ (4,583)	$ (4,371)	$ (7,766)	$ (7,440)
Net loss per share, basic & fully diluted	$ (0.18)	$ (0.28)	$ (0.31)	$ (0.49)
Weighted average common shares outstanding, basic and diluted	25,860,374	15,503,132	25,277,172	15,140,332

MARPAI, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(in thousands)
	Six Months Ended
	June 30, 2026	June 30, 2025
Cash flows from operating activities:
Net loss	$ (7,766)	$ (7,440)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	60	214
Share-based compensation	1,120	1,043
Shares issued to vendors in exchange for services	55	1,008
Amortization of right-of-use asset	25	31
Non-cash interest expense	1,331	914
Amortization of debt premium and debt issuance costs, net	56	(17)
Bad debt expense	178	—
Changes in operating assets and liabilities:
Accounts receivable and unbilled receivables	(1,303)	(56)
Prepaid expense and other assets	101	176
Accounts payable	2,115	479
Accrued expenses	604	(516)
Accrued fiduciary obligations	(1,251)	871
Operating lease liabilities	(130)	(123)
Due to related party	26	—
Other liabilities	203	92
Net cash used in operating activities	(4,576)	(3,324)
Cash flows from investing activities:
Proceeds from sale of business unit	—	500
Net cash provided by investing activities	—	500
Cash flows from financing activities:
Proceeds from issuance of related party promissory notes	660	—
Payments on related party promissory notes	(660)	—
Proceeds from vendor financing advance	2,000	—
Proceeds from related party advance	1,000	—
Proceeds from issuance of convertible debentures	—	3,000
Payments of convertible debenture issuance costs	—	(162)
Payments on convertible debentures	(800)	(1,500)
Payments to seller for acquisition	—	(196)
Proceeds from issuance of common stock in a private offering, net		730
Net cash provided by financing activities	2,200	1,872

Net (decrease) increase in cash, cash equivalents and restricted cash	(2,376)	(952)

Cash, cash equivalents and restricted cash at beginning of period	8,951	9,232
Cash, cash equivalents and restricted cash at end of period	$ 6,575	$ 8,280

Reconciliation of cash, cash equivalents, and restricted cash reported in the condensed consolidated balance sheet
Cash and cash equivalents	$ 138	$ 619
Restricted cash	6,437	7,661
Total cash, cash equivalents and restricted cash shown in the condensed consolidated statement of cash flows	$ 6,575	$ 8,280
Supplemental disclosure of cash flow information
Cash paid for interest	$ 591	$ 781

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SOURCE Marpai