GICS Sector : Healthcare
Spectral AI, Inc.operates as an artificial intelligence (AI) company.The company focuses on medical diagnostics for faster and accurate treatment decisions in wound care with applications involving patients with burns and diabetic foot ulcers.
Spectral AI, Inc. reported a robust first-quarter 2025 performance, marked by improving financial health and significant progress toward its key regulatory and operational milestones. The company generated $6.7 million in research and development revenue for the quarter, with a gross margin of 47.2%. General and administrative expenses were tightly controlled at $4.1 million, contributing to a net income of $2.9 million. This compares favorably to analyst estimates, as the company reported an EPS of -$0.06, outperforming the expected -$0.13. The improved profitability was further bolstered by a $4.4 million decrease in the fair value of its warrant liability. With a cash runway now extending through its key growth initiatives, Spectral AI appears well-positioned to execute on its strategic objectives.
Publication Date: May -15
The company made significant strides in its product development and regulatory submissions. Spectral AI remains on track to submit its FDA De Novo classification by the end of Q2 2025, supported by promising results from its Burn Validation Study. The study highlighted the DeepView System's superior performance in predicting burn wound healing, a critical factor for regulatory approval. Additionally, the company advanced its MTEC development, assembling two functional prototypes of the DeepView Snapshot M handheld device and progressing toward industrial design and environmental testing. Management emphasized its focus on operational efficiencies and preparing for future commercialization efforts, particularly under the PBS BARDA contract.
From a valuation perspective, Spectral AI's current trading multiples reflect the market's optimism about its growth prospects. The company's P/S ratio of 1.13 indicates a reasonable valuation relative to its revenue growth expectations, with analysts forecasting a 49.4% year-over-year revenue increase in 2026. However, the negative P/E and EV/EBITDA ratios highlight the market's focus on future profitability rather than current earnings. The company's strong ROIC of 261.64% and ROE of 342.62% underscore its ability to generate returns from its investments, while a Net Debt/EBITDA of 0.04 suggests minimal leverage and a healthy balance sheet. As Spectral AI progresses toward FDA approval and commercialization, these metrics will be critical in assessing whether the company can justify its current valuation.
DeepView™ System Featured at 2025 US Burn Conferences
Nov -19
Spectral AI, Inc. (MDAI) Q3 2025 Earnings Call Transcript
Nov -11
Spectral AI Announces 2025 Third Quarter Financial Results
Nov -11
Spectral AI Schedules 2025 Third Quarter Financial Results and Conference Call
Oct -28
Spectral AI raises $7.6 Million of Additional Growth Capital
Oct -23
Spectral AI Named to TIME's List of World's Top HealthTech Companies 2025
Sep -19
DeepView® System highlighted at the European Burns Association Congress
Sep -10
Spectral AI, Inc. (MDAI) Q2 2025 Earnings Call Transcript
Aug -13
BARDA's 10.27% growth is driven by increasing government funding for biomedical research, rising demand for advanced medical countermeasures, and strategic partnerships with private companies like Spectral AI, Inc. to accelerate innovation in infectious disease treatment and vaccine development.
Strong demand for government services, increasing federal spending, and growing need for digital transformation in the public sector drive growth for Other U.S. Governmental Authorities. Additionally, investments in infrastructure, cybersecurity, and data analytics also contribute to the 9.9% growth rate.
A natural language processing platform that enables businesses to extract insights and meaning from unstructured text data.
A computer vision platform that enables businesses to extract insights and meaning from visual data.
A predictive maintenance platform that enables businesses to predict equipment failures and reduce downtime.
A recommendation engine that enables businesses to provide personalized recommendations to customers.
A chatbot platform that enables businesses to automate customer support and engagement.
The threat of substitutes for Spectral AI, Inc. is medium due to the availability of alternative AI solutions in the market.
The bargaining power of customers is high due to the presence of large enterprises that can negotiate prices and terms.
The bargaining power of suppliers is low due to the availability of multiple suppliers in the market.
The threat of new entrants is medium due to the presence of barriers to entry, such as high capital requirements and regulatory hurdles.
The intensity of rivalry is high due to the presence of established players and new entrants in the AI market.
| Value | |
|---|---|
| Debt Weight | -306.90% |
| Debt Cost | 3.95% |
| Equity Weight | 406.90% |
| Equity Cost | 7.00% |
| WACC | 16.36% |
| Leverage | -75.42% |
Value: 9.0
Growth: 3.2
Quality: 5.6
Yield: 0.0
Momentum: 10.0
Volatility: 0.7
1-Year Total Return ->
Value: 8.2
Growth: 4.9
Quality: 4.5
Yield: 0.0
Momentum: 8.5
Volatility: 1.0
1-Year Total Return ->
Value: 8.0
Growth: 4.4
Quality: 3.6
Yield: 0.0
Momentum: 5.0
Volatility: 0.7
1-Year Total Return ->
Value: 5.4
Growth: 7.7
Quality: 6.0
Yield: 0.0
Momentum: 0.0
Volatility: 1.0
1-Year Total Return ->
Value: 8.0
Growth: 2.1
Quality: 3.4
Yield: 0.0
Momentum: 1.0
Volatility: 0.3
1-Year Total Return ->
Value: 6.6
Growth: 2.2
Quality: 2.4
Yield: 0.0
Momentum: 2.0
Volatility: 1.0
1-Year Total Return ->