QTI earnings analysis
What we found in QTI's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
QT Imaging delivered $7.435 million of second-quarter revenue, approximately 86% above the $4 million prior-year level, but gross margin fell to 41% from 49.9% and diluted EPS was $(0.75). Reported results were further pressured by an $8.294 million non-cash debt modification charge, while first-half operating cash use increased to $8.5 million from $5.0 million. The company maintained its approximately $39 million 2026 revenue outlook, but continuing losses, dilution exposure and newly highlighted Middle East shipping risks outweigh the revenue growth.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Strong Year-Over-Year Revenue Growth
- Second-quarter revenue was $7.435 million, up from approximately $4 million in the prior-year quarter, representing growth of roughly 86%. Revenue was broadly comparable with approximately $7 million in Q1 2026.
- Revenue Growth Despite Margin Pressure
- Gross margin was 41%, versus 49.9% in Q2 2025, a decline of 8.9 percentage points year over year. This indicates that revenue growth has not yet translated into improved product economics.
- 2026 Revenue Outlook Maintained
- The company reaffirmed 2026 revenue guidance of approximately $39 million, unchanged from the prior outlook. No EPS guidance was provided.
- Additional Equity Financing Completed
- The company completed a May 2026 offering of 1,200,000 common shares at $5.00 per share and 800,000 pre-funded warrants at $4.9999 per warrant, providing an additional source of capital.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Material Quarterly Loss and EPS Miss
- Diluted EPS was $(0.75), versus $(0.14) in Q2 2025 and $(0.25) in Q1 2026. The filing also identifies an $8.294 million non-cash debt modification charge, materially worsening reported earnings.
- Persistent Cash Burn and Accumulated Deficit
- The company used $8.5 million in operating cash during the first six months of 2026, compared with $5.0 million in the first six months of 2025. It reported an accumulated deficit of approximately $67.5 million as of June 30, 2026, up from $53.0 million at December 31, 2025.
- Substantial Dilution and Resale Overhang
- The filing states that shares registered for resale represent over 50% of shares outstanding as of August 12, 2026. In addition, the company has warrants exercisable for an aggregate of 39,334,847 shares, including 25,313,508 shares under the Lynrock Lake warrant.
- Middle East Conflict Threatens Distribution
- The filing adds heightened Middle East shipping and distribution risk: maritime traffic through the Strait of Hormuz has declined by approximately 90% or more from normal volumes, while war-risk insurance premiums have increased from approximately 0.25% to as much as 1%-3% of insured vessel value. This could disrupt shipments to Saudi Arabia and the UAE and increase logistics costs.
- Unproven Large-Scale Commercial Model
- Management states that the company has demonstrated commercial viability only at scales of tens of scanners and has not yet demonstrated viability at larger scales. The company also expects losses and negative operating cash flows to continue and anticipates additional research, manufacturing, regulatory, marketing and capital-expenditure costs.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $-0.75
- Gross margin
- 41%
What they said about what is next.
The company reaffirmed 2026 revenue guidance of approximately $39 million, unchanged from the prior outlook. No numeric EPS guidance was provided.
The filing reads worse than the one before it.
What came before.
- 10-Q · May 13, 2026
- QT Imaging Holdings, Inc. reported a strong Q4 2026 with revenue of $8.275 million, surpassing prior estimates and showing significant growth from the previous quarter. The company achieved a diluted EPS of -$0.10,…
- 10-K · March 25, 2026
- QT Imaging reported a step-change in revenue in 2025 (quarterly run-up to $8.0M in Q4) while continuing to operate at a loss and consume cash. The company secured additional regulatory momentum with a March 10, 2026 FDA…
- 10-Q · August 7, 2025
- QT Imaging reported significant quarter-over-quarter and year-over-year revenue growth to $3,659,414 in Q2 2025 (Q2 2024: $1,714,035), with gross profit of $1,827,077 and a quarterly gross margin of ~49.9%. Operating…
- 10-Q · May 13, 2025
- QT Imaging reported revenue of $2,798,415 for the quarter (up from $1,362,163 a year ago) and gross profit of $1,811,862, but recorded a net loss of $11,136,000 (net loss per share $(0.40)). Operating loss improved to…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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