XAIR earnings analysis
What we found in XAIR'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
The quarter showed year-over-year revenue improvement to $1.907 million and a positive 4.9% gross margin, but revenue missed the provided consensus estimate by 16.9% and EPS missed by 37.5%. Operating profitability remained extremely weak at a -376.0% margin, with free cash flow of negative $5 million. The most material filing update is heightened Nasdaq listing risk following a 1-for-20 reverse split and a one-year discretionary monitor, while no new quantitative guidance was provided.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue grew year over year but missed estimates
- Revenue was $1.907 million, approximately flat sequentially versus $2 million in 2026 Q3 and up from $1 million in 2025 Q4. The quarter nevertheless missed the provided $2.296 million consensus estimate by approximately 16.9%.
- Gross margin stayed positive
- Gross margin remained positive at 4.9%, although it declined from 13.7% in 2026 Q3; gross margin was also better than the negative 2.8% reported in 2025 Q4.
- Operating losses remain severe
- Diluted EPS was a loss of $0.77, versus the provided consensus loss estimate of $0.56, producing a 37.5% negative surprise. The operating margin remained deeply negative at -376.0%.
- Cash burn improved year over year
- Free cash flow was negative $5 million, an improvement from negative $8 million in 2025 Q4 but worse than negative $4 million in 2026 Q3.
- No material control deficiencies reported
- Management reported that disclosure controls were effective at the reasonable-assurance level as of June 30, 2026, and stated that there were no material changes to internal control over financial reporting during the three months ended June 30, 2026.
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.
- Heightened Nasdaq delisting risk
- Nasdaq imposed a Discretionary Panel Monitor for one year from August 6, 2026, through August 6, 2027. A new deficiency during that period could lead to a delisting determination without an additional compliance plan or cure period.
- Repeated reverse splits constrain remedies
- The company required a 1-for-20 reverse stock split on July 13, 2026 to regain compliance with Nasdaq's $1.00 minimum bid-price rule. The July 14, 2025 and July 13, 2026 splits represent a cumulative 400-to-1 ratio, limiting eligibility for another automatic compliance period.
- Potential $5 million MVLS requirement
- A proposed Nasdaq requirement would require at least $5 million of market value of listed securities; if effective, securities below that threshold for 30 consecutive business days could be suspended immediately without a cure period. The SEC stay means the rule was not effective or enforced as of the filing.
- Continued cash burn and operating losses
- The company generated negative $5 million of free cash flow in the quarter while reporting a -376.0% operating margin, underscoring continued dependence on external financing and the risk that operating losses could pressure liquidity.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $-0.77
- Gross margin
- 4.9%
- Operating margin
- -376.0%
What they said about what is next.
The 10-Q excerpt does not provide quantitative revenue or EPS guidance. The prior $8 million FY2026 revenue outlook was disclosed in the July 9, 2026 8-K, not this filing.
The filing reads worse than the one before it.
What came before.
- 10-K · June 26, 2026
- Beyond Air, Inc. reported revenues of $7.7 million for the year ended March 31, 2026, showing improvement from $3.7 million in the prior year. The company faced a significant net loss of $34.3 million, reflecting…
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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