QTI

This article first appeared on GuruFocus. Release Date: August 12, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. QT Imaging Holdings Inc (NASDAQ:QTI) reported a 103% year-over-year revenue increase in Q2 2026, reaching $7.4 million, driven by the shipment of 15 scanners. The company received FDA clearance for an enhanced scanner configuration and software functionality, expanding the platform's capabilities. QT Imaging Holdings Inc (NASDAQ:QTI) secured a dedicated Category 3 CPT reimbursement code from the AMA, effective January 1, 2027, which creates a framework for future coverage decisions. The company strengthened its balance sheet with a $10 million underwritten public offering and extended its senior secured term loan maturity by two years. QT Imaging Holdings Inc (NASDAQ:QTI) successfully completed its first routine FDA inspection with zero Form 483 observations, reflecting strong quality management systems. The company expanded its international regulatory footprint with clearances from the Saudi Food and Drug Authority and the Ministry of Health in Israel. QT Imaging Holdings Inc (NASDAQ:QTI) is advancing multiple clinical studies, including a Mayo Clinic study and a high-risk population study in Israel, to build clinical evidence. The company is relocating to a new 22,000 square foot facility in Petaluma, California, which will more than double operational space while reducing lease cost per square foot by approximately 55%. QT Imaging Holdings Inc (NASDAQ:QTI)'s gross margin declined to 41% in Q2 2026 from 50% in the prior year quarter, due to a lower weighted average cost of inventory sold in the prior period. The company reported a net loss of $11.1 million in Q2 2026, significantly wider than the $4.0 million loss in Q2 2025, partly due to an $8.3 million non-cash loss on debt extinguishment and modification. QT Imaging Holdings Inc (NASDAQ:QTI) increased its interest rate on the senior secured term loan from 10% to 12% per annum as part of the maturity extension. The company acknowledged that geopolitical developments have impacted commercial activity in parts of the Gulf region, affecting sales momentum. QT Imaging Holdings Inc (NASDAQ:QTI) noted that scanner implementation and customer adoption is progressing slower than desired, requiring additional support from its direct sales team. Operating expenses increased to $4.9 million in Q2 2026 from $2.9 million a year ago, reflecting higher compensation, professional services, and marketing costs. The company's 2026 revenue guidance of approximately $39 million relies on distributor minimum order quantities and direct sales contributions, which may be subject to execution risks. Warning! GuruFocus has detected 5 Warning Signs with QTI. Is QTI fairly valued? Test your thesis with our free DCF calculator. Q: Could you talk about U.S. commercial activity in the back half of the year, as well as your few commercial adds internally and how that may work domestically with QT as well as with NXT in the U.S.?A: Raluca Dinu (CEO): We are executing against our plan for shipments in the United States. We shipped 15 scanners this quarter and plan to ship another 15 and 17 scanners in Q3 and Q4 respectively, through our strong partnership with NXT Imaging. We have strengthened our direct sales team with two experienced sales VPs to cover the East and West Coasts, focusing on imaging centers and hospitals. We plan to have our direct sales team take on more responsibility in 2027, with support from NXT and other distribution partners. Q: You mentioned a Q2 versus MRI 100-patient study. Is that a new study? And what do you expect to derive from that as far as coding or reimbursement down the road?A: Raluca Dinu (CEO): Yes, it's a new study at Mayo Clinic. We are looking to ensure that all findings from MRI are discovered by QT scan, and second, to reduce the number of biopsies by reducing BI-RADS-4 findings to BI-RADS-3. If a woman is BI-RADS-3, there is no need for a biopsy. All this data would be recorded under the Category 3 CPT reimbursement code starting January 1, 2027. Q: Cadence on back half placements for this year, would you expect a ramp through Q3 and Q4 or would you expect them to be fairly even?A: Raluca Dinu (CEO): We do expect an increase in placements in Q3 and Q4, and our team will help the NXT team through that. Q: Back half OpEx, is that $5 million number going to be fairly flat for the second-half of the year per quarter?A: Jay Jennings (CFO): We anticipate it going up a little bit with the hiring of the sales team as well as shifting of some of the clinical studies expenses from the first half of the year into the second-half of the year. Q: On the direct sales force, it sounds like you'll begin to add some additional folks as sales materialize beyond the gentlemen that you've recently hired. Is there anything else worth sharing on the direct sales strategy?A: Raluca Dinu (CEO): We have three very senior sales guys who joined the team. We have set up Salesforce, have leads, and are operational. These guys are extremely experienced and are starting to bring in opportunities through 2026. I do not foresee any additions to the team in 2026 for two reasons: we are trying to keep track of operational costs, and the strategic direction from the team is to collect enough information about the two market segments (imaging centers and hospitals) to know exactly what we need to hire in 2027. Q: Congrats on the Israeli clearance. What is the commercialization strategy there? And the study you have planned, how many women and how long on the data?A: Raluca Dinu (CEO): We are extremely pleased that Rambam Hospital has accepted our offer for a clinical study. We will focus on high-risk women and longitudinal study, but also on understanding the standard of care in Israel and what can be added with our technology. We are exploring a relationship with a distributor in Israel and plan to have a partnership in place. We will report back in the next call. Q: On international, any more countries in the works beyond Israel, Pakistan, and the existing Gulf states?A: Raluca Dinu (CEO): We are looking into Bahrain and Qatar as the next two countries for regulatory approval. We are focused on building the business in Saudi Arabia, UAE, and Israel, but Qatar and Bahrain are next, followed by full focus on CE and MDR for next year. Q: Is there any more you can share on the utilization of the installs you are seeing? Any movement there?A: Raluca Dinu (CEO): We see a slow move of implementation of the scanners or sharing of the scanners with customers. This is why our Chief Commercial Officer and his two hires will focus on helping NXT. NXT is making progress, but we feel that even for the functional medicine space, we need to help. For the next five months, we will focus on helping NXT have all those scanners at the customers. Q: You mentioned Pakistan at the beginning of the call. Could you bring us up to speed on what's going on there?A: Raluca Dinu (CEO): We have a sales agent agreement in Pakistan with a woman-led company called Reinvent. We have a few systems that will hopefully go in the next few months. FDA clearance is appropriate for Pakistan, so we do not need additional regulatory clearance. Q: The facility in Petaluma, have you 100% completely moved to that facility or are you still operating the two?A: Raluca Dinu (CEO): We are operating the two facilities. We got the keys for the new facility this week. It will take about a month and a half to be moved completely. We plan to finish production in our Novato facility to not bother shipments for Q3, and then have our Q4 shipments out of the Petaluma facility. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Image source: The Motley Fool. Wednesday, Aug. 12, 2026 at 4:30 p.m. ET Chief Executive Officer - Raluca Dinu Chief Financial Officer - Jay W. Jennings Operator: Welcome to the QT Imaging Second Quarter 26 Financial Results Conference Call. All participants will be in listen only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by 0. After today's presentation, there will be an opportunity to ask questions. Please note this event is being recorded. I would now like to turn the conference over to your host, Bruce Voss. With us on the call today are Dr. Raluca Dinu, Chief Executive Officer and Jay Jennings, Chief Financial Officer. I want to remind listeners that comments made during this call by management will include forward looking statements within the meaning of federal securities laws. Any statements that are not statements of historical facts should be deemed to be forward looking statements. Such statements involve known and unknown risks. Uncertainties and other factors that may cause actual results performance, or achievements to be materially different from those implied by such statements. All forward looking statements are based on QT Imaging's current beliefs, as well as assumptions made by and information currently available to QT imaging. And relate to, among other things, QT imaging breast acoustic CT scanner including its product commercialization and manufacturing, the evolution of QT imaging into a scalable imaging platform, a QTI cloud platform and SaaS model, performance of software enhancements, new product development and introduction, and product sales growth and projected revenues. For a list and description of the risks and uncertainties associated with the company's business, please see its filings with the Securities and Exchange Commission. Furthermore, the content of this call contains information that is accurate only as of the date of this live broadcast, 08/12/2026. QT Imaging disclaims because of new information, future events, or otherwise. Mhmm. And now I would like to turn the call over to Doctor. Raluca Dinu. Raluca? Raluca Dinu: Thank you, Bruce, and good afternoon, everyone. Thank you for spending time with us and for your interest in QT Imaging. The second quarter was another strong period of execution for QT Imaging as we continued to scale our commercial business and build the foundation for broader adoption of breast acoustic CT imaging technology. Our mission is to transform breast health by giving women and physicians a better approach to breast imaging. Today's pathway still has important limitations. Mammography can be less effective in dense breasts and requires compression. MRI can be costly and burdensome. And conventional ultrasound remains highly operator dependent. CT imaging was built to address these challenges with a differentiated 3-dimensional imaging platform that is radiation free compression free and quantitative. Our vision extends beyond delivering a better imaging experience. We are building a platform designed to provide objective reproducible information that can support more personalized breast health management and overtime enable quantitative biomarkers and AI driven applications. During the quarter, we shipped 15 breast acoustic CT scanners in line with our United States shipment plan and generated revenue of 7.4 million an increase of 103% compared to the second quarter of 25. For the first 6 months of 2026, we shipped 28 scanners and generated $14 million in revenue, compared to 14 scanners and $6.5 million in revenue during the same period last year. To put that growth in perspective, Imaging generated no revenue in 2023, $4.9 million in revenue in 2024, and $18.9 million in 2025. With our 2026 revenue guidance of approximately $39 million we believe this trajectory demonstrates the continued scaling of our commercial business and the growing adoption of breast acoustic CT imaging modality. Most importantly, more than 12 thousand women have now been imaged using breast acoustic CT scans today. For us that milestone is about more than the growth of our installed base. It represents a growing body of real world clinical experience with our technology and progress toward our ultimate objective. Expanding the access to a more patient centered quantitative approach to risk imaging. As we enter the second half of the year, our focus is increasingly on translating this foundation into broader adoption. Let me start with our United States commercial strategy. In the United States, we continue to strengthen the commercial infrastructure needed to support our next phase of growth. Under the leadership of our Chief Commercial Officer, Satrajit Misra, we expanded our United States commercial organization with the appointment of Jason Dyer, our Vice President Regional Southeast and Dave Reinhart as Vice President Regional Sales This expanded team strengthens our ability to engage directly with breast imaging centers, clinicians, and enterprise health systems, while continuing to leverage our exclusive distribution partnership with NXT Imaging, a subsidiary of Canon Medical Systems, United States. By combining established distribution infrastructure with expanded direct commercial and business development capabilities, we are building a scalable commercial model designed to deepen customer engagement, accelerate clinical adoption and installed base growth, and support sustainable long term revenue growth and margin expansion. Internationally, we continue to expand our commercial infrastructure through experienced regional partners. With established market presence, local relationships and deep knowledge of their healthcare systems. Our distribution partnerships with Gulf Medical in Saudi Arabia and Al Nadi Medical in United Arab Emirates Together with our sales agent partnership, For Frieha in Pakistan, provide a capital efficient model for extending our commercial reach and supporting local market development. This partner led approach enabled QT Imaging to leverage established sales and service infrastructure, while building the foundation for broader international adoption of breast CT imaging modality. While geopolitical developments have impacted commercial activity in parts of the Gulf Region, we are beginning to see encouraging signs of renewed customer engagement, supported by our regulatory authorization and distributor partnerships. On the regulatory front, we continue to expand our international commercial foundation. We received clearance from the Saudi Food and Drug Authority SFDA, for the QTI Breast Acoustic CT scanner. Enabling us to market and sell our technology in Saudi Arabia. More recently, we received AMAR authorization from the Ministry of Health in Israel enabling commercialization of the breast acoustic CT scanner in the market. Together with our existing authorization in The United Arab Emirates, these milestones further extend our regulatory foundation across the Middle East, and expand the market in which we can commercialize breast acoustic CT platform. The first breast acoustic CT scanner in Israel is going to Rambam Healthcare Campus. To support a planned clinical study in women with hereditary risk for breast cancer. This study provides an important opportunity to evaluate our radiation free compression free quantitative imaging technology in a high risk population where longitudinal imaging is particularly important and to generate additional evidence supporting its potential role in personalized breast health management. During the quarter, we also strengthened our balance sheet through a $10 million underwritten public offering. In addition, we amended our senior secured term loan with Lynrock Lake extending the maturity date by 2 years. Together, these actions provide additional financial flexibility as we continue to execute our commercial, clinical and strategic initiatives. During the first half of this year, we secured 2 FDA clearances that expanded the capabilities of the breast acoustic CT system including an enhanced scanner configuration that improves posterior breast imaging and software functionality supporting volumetric measurements for lesion doubling time assessment. These enhancements reinforce QT imaging strategy of continuously expanding the platform through innovation in both hardware and software. A critical milestone during the first half of the year was the American Medical Association's approval of a dedicated Category III CPT reimbursement code for our imaging modality. The code was released on July 1st and becomes effective January 1, 2027. It provides a standardized mechanism for reporting utilization tracking and data collection and importantly creates the framework to build the clinical and health economic evidence that can support future coverage decisions. We continue to strengthen the clinical expertise supporting the adoption of the Breast Acoustic CT platform. Our Clinical Advisory Board includes leaders across breast imaging, breast surgery and clinical practice. Including Dr. Mary Yamashita of USC Keck School of Medicine, Dr. Barry Roseman, an MD Anderson trained surgical oncologist and breast surgeon and Dr. George Telinger, Mayo Clinic trained radiologist and early adopter of our imaging modality in his imaging center. Their complementary expertise is helping us strengthen education, clinical implementation and reader training, as we support broader clinical adoption. Additionally, we announced results from a multi site study evaluating the repeatability and reproducibility of quantitative measurement generated by the breast acoustic CT platform. The results demonstrated less than 1% variability in speed of sound measurements across scanners under the study conditions. This level of consistency is important because quantitative imaging biomarkers might be reproducible across systems, locations and operators to reliably measure changes in breast tissue over time. We believe that these results reinforce the potential of our imaging platform to provide objective reproducible quantitative information for longitudinal breast health management, and precision breast care. As reported previously, Mayo Clinic conducted a prospective feasibility study evaluating QT scan in the supplemental imaging setting. The study reported breast level agreement between QT scan and MRI, and the identification by QT scan of all lesions considered suspicious on MRI. This pilot findings support the rationale for a second study involving more than 100 patients, which is expected to begin in the coming months. We are also advancing a prospective clinical study with Dr. Barry Roseman to evaluate the breast acoustic CT technology in the diagnostic breast imaging pathway. This study will compare QT scan with established breast imaging modalities and where available pathology with the goal of generating real world clinical evidence supporting the diagnostic performance and broader adoption of our technology. At Sunnybrook, an ongoing 100 patient clinical studies evaluating QTD scan versus MRI and under our NIH contract, clinical work is evaluating advanced quantitative ultrasound findings in relation to treatment response in women receiving neoadjuvant chemotherapy. Together these programs are building complementary body of evidence across diagnostic performance, high risk populations quantitative reproducibility and treatment response, monitoring, supporting our broader objective of establishing the Breast Acoustic CT imaging modality as a clinically validated quantitative breast imaging platform. Innovation remains an important area of focus during the quarter. Software version 4.5.0 improved the spatial resolution of Breast Acoustic CT reflection imaging, providing radiologists with greater image detail and clear visualization of breast anatomy and tissue structures while maintaining processing time designed to support an efficient clinical workflow. Our collaboration with Olea Medical was focused during the quarter on productization of the Imaging-Olea Viewer as an advanced modality imaging solution for breast acoustic CT platform. The viewer is being developed to provide physicians with an integrated environment for image visualization, correlation with other imaging modalities, quantitative assessment and longitudinal patient evaluation. While supporting more efficient clinical workflows. In parallel, collaboration with Intellirad provides the secure cloud and PACS infrastructure supporting image management, clinical and research connectivity. And enterprise deployment of QT imaging precision pathway. Building on this infrastructure, we continue to advance the QTI precision pathway. Cloud platform to support secure image management, clinical collaboration, quantitative analysis, software development, and future AI enabled application. Our strategy is to build a platform that combines diverse scanner with software and cloud based capabilities to enhance the value of each system across the installed base. In July, we announced the successful completion of our first routine FDA inspection since the inception of the company with zero Form FDA 483 observations. The inspector provided positive feedback regarding the organization of our quality management system. And the responsiveness of our team. We believe this exceptional outcome reflects the quality culture we are building and the strength of the systems and processes supporting the manufacturing and commercialization of our technology. During the quarter, we entered into an agreement to relocate our headquarters and manufacturing operations into a new 22 thousand-square-foot facility in Petaluma, California. As reported previously, the new facility will provide more than 2.5x our current operational space while reducing the lease cost per square foot by approximately 55%. Put another way, we are more than doubling our real estate foot footprint at a comparable cost. This investment expands our manufacturing capacity, improves operating efficiency and provide the infrastructure needed to support future commercial growth. Presenting our scientific leadership is an ongoing priority. We recently appointed Dr. Julia Albright as our Chief Science Officer. Julia brings more than 3 decades of leadership experience across medical imaging healthcare technology, artificial intelligence, and enterprise software. In her role, she is helping align our scientific strategy, product innovation, engineering and clinical programs as we advance the QT imaging. Platform. Collectively, these achievements demonstrate we are building the commercial, clinical, regulatory and operational foundation needed to support broader adoption of Breast Acoustic CT platform. As we look toward 2027, our focus is increasingly on accelerating adoption, expanding our installed base and leveraging the commercial infrastructure we are building today to support sustainable growth and margin expansion. At the same time, as we mentioned previously, our vision extends beyond the Breast Acoustic CT scanner itself. We are building a quantitative breast imaging platform that brings together advanced hardware, software, cloud infrastructure and over time quantitative biomarkers and AI enabled clinical applications. We believe this platform has the potential to increase the value of our growing installed base while providing physicians with objective reproducible information to support more personalized breast health management. And now I will turn the call over to our CFO, Jay W. Jennings to review our financial results. Jay? Jay W. Jennings: Thank you, Raluca, and good afternoon, everybody. Revenue for the second quarter of 26 was $7.4 million an increase of 103% compared with $3.7 million for the second quarter of 25. The increase was primarily attributable to the shipment of 15 breast acoustic CT scanners in the 26 quarter compared with 8 in the prior year quarter. Gross margin was 41% for the second quarter of 26 compared with 50% for the second quarter of 25. The gross margin for the second quarter of 26 was in line with our projections for sales in The United States. The higher prior year gross margin reflected a lower weighted average cost of inventory sold. Total operating expenses for the second quarter of 26 were $4.9 million compared with $2.9 million a year ago. With the increase reflecting higher employee compensation and benefits professional service costs and marketing expenses. Operating loss for the second quarter of 26 was $1.9 million compared with an operating loss of $1 million for the second quarter of 25 and $2.3 million for the first quarter of 26. The net loss for the second quarter of 26 was $11.1 million compared with a net loss of $4 million for the second quarter of 25. The second quarter 26 net loss included an $8.3 million non-cash loss on debt extinguishment and modification associated with the amendment of our senior secured term loan with Lynrock Lake. Accounts receivable was $7.4 million as of June 30, 2026 primarily from the shipment of 15 scanners during June 2026. Compared to $5.8 million as of December 31, 2025 primarily from the shipment of 12 scanners during December 2025. The accounts receivable is $7.4 million was paid during the beginning of August 2026. Accordingly, as of August 7, 2026, cash and restricted cash totaled approximately $14.2 million compared with approximately $11 million as of June 30, 2026. Please see our Form 10 Q filed earlier today for further regarding our second quarter and first half financial results. During the quarter, we amended our credit agreement with Lynrock Lake extending the maturity date of the $10.1 million senior secured term loan by 2 years from March 31, 2027 to March 31, 2029. And increasing the interest rate from 10% per annum to 12% per annum. Now turning to 2026 financial guidance. We are affirming our expectation for revenue of approximately $39 million for the year more than double 2025 revenue. This guidance is based on the expected shipment of scanners under distributor minimum order quantities as well as expected contributions from our direct sales efforts. And now I will turn the call back to Raluca. Raluca Dinu: Thank you, Jay. As we look ahead, we believe QT imaging is entering an important next phase. We have demonstrated commercial growth, expanded our United States and international infrastructure strengthened our clinical and regulatory foundation and continue to advance the QTI imaging platform. Our priorities for the remainder of 2026 are clear. 1. Accelerate commercial adoption and installed base growth 2. Strengthening our clinical and scientific evidence. 3, expand global market access. 4, advance our quantitative imaging platform and 5. to continue scaling the business with operational discipline. We believe execution across these priorities positions us well as we move towards 2027 and continue building QT Imaging into a leading quantitative breast imaging company. Thank you for your interest in QT Imaging and for your continued support. With that, we are ready to take questions. Operator? Operator: We will now begin the question-and-answer session. [Operator Instructions]. If at any time your question has been addressed and you would like to withdraw the question. Our first question comes from Jeffrey Cohen with Ladenburg Thalmann. Please go ahead. Jeffrey Cohen: Good afternoon, Raluca and Jay. Hope you are doing well. We have got a few questions. So I guess, firstly, you did mention Pakistan at the beginning of the call. Could you bring us up to speed on what is going on there? Raluca Dinu: Hi, Jeffrey. Thank you so much for joining the call. Great to hear you. So we do have a sales agent agreement in Pakistan with a woman led company that is called Re:Invent. And we do have a few systems and they will hopefully go in the next few months towards that geography. FDA clearance is appropriate for Pakistan so we do not need an additional regulatory clearance. But that is the plan, Jeffrey. Thank you so much for asking. Jeffrey Cohen: Okay. Got it. And then could you talk about U. S. And the back half of the year and commercial activity as well as your few commercial ads internally and how that may work domestically with QTI as well as with NXC in the US? Raluca Dinu: Absolutely. So we are executing against our plan for shipments in The United States. So we shipped this quarter 15 scanners, and we do plan to ship another 15 scanners and 17 respectively, from Q3 and Q4 in United States. Obviously, through very strong partnership with NXC Imaging. We did move on as we discussed last quarter, Jeffrey, with us starting to strengthen our direct sales team. We do see progress with our direct sales team selling into at least 2 segments, definitely imaging centers and hospitals. It is more of a solution sales technical sale, clinical sale in those segments. Thus, we have brought in the 2 very experienced sales VPs to cover the East Coast and the West Coast. We are not going to continue to hire up until we get our feet on the ground and the 2 sales managers start selling and growing the business in The United States. We do plan to have our direct sales taking on the responsibility in 2027 and ahead. Obviously, the support from NXT and other distribution partners as they move into 2027. Did I answer your question? Jeffrey Cohen: Yeah. Perfect. Couple more if I may. Cadence on back half placements for this year, would you expect a ramp through Q3 and Q4? Or would you expect them to be fairly even? Operator: Jeffrey, I had a hard time hearing beginning of your question. Raluca Dinu: Could you please repeat? Jeffrey Cohen: Back half placements for the back half of the year are Q3 versus Q4, would you expect a gradual increase through the next 2 quarters or even? Raluca Dinu: No, no. We do expect an increase in the placements in Q3 and Q4, and our team will help NXC team through that. Jeffrey Cohen: Got it. Okay. 1 for Jay, if I may, Jay. Back half OpEx, is that $5 million number going to be fairly flat for the second half of the year per quarter. Jay W. Jennings: Yes. We anticipate it going up a little bit with the higher of the sales team as well as shifting of some of the clinical studies expenses from the first half of the year into the second half of the year. Jeffrey Cohen: Got it. Okay. And then lastly, Raluca, you mentioned QT versus MRI, 100-patient study. Is that a new study? And what do you expect to derive from that as far as coding or reimbursement down the road? Raluca Dinu: So yes, it is a new study at Mayo, and we were looking towards we were looking out at the results as the following. 1, to make sure that all the findings from MRI are discovered by QT. And 2, to reduce the number of biopsies So reducing the BI-RADS 4 findings to BI-RADS 3. If the woman is a BI-RADS 3 category, there is no need for her to get the biopsy. So that is the goal for that study. All this data would be recorded under the Category III CPT code reimbursement code starting on 01/01/2027. Jeffrey Cohen: Okay. So you would not expect any additional or add on codes to the Category III starting in January. Raluca Dinu: Not for now. Not for now. We have to start recording all the data against our code. Jeffrey, before we can improve or add to the reimbursement strategy. Jeffrey Cohen: Okay. And then lastly for us, the facility in Temecula, have you 100% completely moved to that facility or you are still operating the 2? Raluca Dinu: In Petaluma? No, we are operating out of the 2. Very good question. We are operating out of the 2. We got the key for the facility this week. It will take us about a month a month and a half to be moved completely there. We do plan to finish just the production in our Novato facility. So we do not bother the shipments for Q3 and then to have our shipments for Q4 out of Petaluma facility. Jeffrey Cohen: Perfect. That does it for us. Thanks for taking the questions. Raluca Dinu: No, thank you so much. I appreciate it. Operator: Thank you very much, Our next question comes from Benjamin Haynor with Lake Street Capital Markets. Please go ahead. Benjamin Haynor: Good afternoon, Raluca and Jay. Thanks for taking the questions. Raluca Dinu: Hi, Benjamin. Thank you so much for being in our call. Thank you so much for listening to us. Benjamin Haynor: No. No problem. First off, just kind of following up on the direct salesforce. It sounds, if I am hearing you correctly, that you will, excuse me, begin to add some additional folks as sales materialize beyond from the gentlemen that you recently hired. Am I hearing you correctly there? Raluca Dinu: And then I know you provided quite a bit of detail. On who the targets are, but is there anything else worth sharing on kind of the direct sales strategy? So, Benjamin, thanks for asking. So we have now 3 very senior sales guys. that have joined the team. We got ourselves set up in Salesforce. We have leads, and we got ourselves operational from the back end of sales, organizing sales. These guys are extremely experienced and they will start bringing in opportunities through 2026. I do not foresee any additions to the team in 2026 for 2 reasons. Number 1, we are trying to keep track of our operational costs, obviously. And the second 1, the request the strategic direction for the team was to collect enough information about the 2 market segments that these direct sales guys will address the imaging centers and obviously, still selling into the functional medicine space. We absolutely respect that segment too. But to get all the data points and know exactly what we need to hire in 2027 if we so decide. Benjamin Haynor: Okay. Got it. that is helpful. And then congrats on the Israeli clearance. Just wondering what the commercialization strategy is there. I mean, is that something where you do yourself? Do you sign a distribution agreement? And then the study that you have planned there, sounds like high risk. Longitudinal data, any more, how many women, how long, on the data, what that would be? Great to hear. Raluca Dinu: Absolutely. So, Benjamin, yes, we are extremely pleased with the fact that Rambam Hospital has accepted our offer for clinical study. We are going to focus exactly as you said on high risk women and longitudinal study, but also on trying to understand the standard of care in Israel and what else can be added with our technology within their standard of care. So these are the 2 dimensions for the clinical study. But to answer your question, we are exploring a relationship with the distributor in Israel. We would like to go through that, and we will report back in the next call. The plan is to have a partnership with a distributor in Israel. Benjamin Haynor: Okay. Got it. And then on I guess any more countries in the works beyond, you know, Israel, Pakistan, Pakistan, you mentioned the call on the existing kind of Gulf states. Raluca Dinu: So, Benjamin, we are trying to stay away from the missiles and the conflict there? We are looking into Bahrain and Qatar. These are the 2 additional countries for us to seek, regulatory approval. And, certainly now we are focused on building the business in Saudi Arabia, UAE and Israel. But that is the next 2, Qatar and Bahrain. And then we will focus on CE Mark and MDR for next year. Benjamin Haynor: Okay. Got it. And then just I do not know if there is any more you can share or anything you can share on the utilization on the installs that you are seeing is still kind of sticking to the same kind of level and any movement there? What can you tell us? Raluca Dinu: So we do see a slow -- I mean, slow -- move. it is never as fast as we want it, Benjamin, of implementation of the scanners or getting the scanners all the way to the customer. This is why Satrajit and his 2 hires will focus on helping NXC. NXC is making progress. On having the scanners at the customers. But we do feel that even for the functional medicine space, we need to help. And for the next, sorry, 5 months, we will focus on helping NXC having all those scanners at the customers. Benjamin Haynor: Okay. Excellent. Well, thank you so much for taking the questions, and congrats on all the progress. Raluca Dinu: I appreciate it. Thank you so much, and thank you for taking, taking the time to be with us. Operator: This concludes our question and answer session. I would like to turn the conference back over to Dr. Raluca Dinu for closing remarks. Raluca Dinu: Thank you very much. I want to thank everyone for joining us today and for your continuing interest in QT Imaging. We are energized by our progress and remain focused on disciplined execution during the second half of the year. We look forward to discussing our continued progress during our next conference call when we report third quarter results. Until then, have a nice evening. Thank you so much. Operator: The conference is now concluded. Thank you for attending today's presentation. You may now disconnect. Before you buy stock in Qt Imaging, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Qt Imaging wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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Second-quarter revenue reached $7.4 million; first-half revenue increased 116% to $14.0 million, with 28 scanners shipped Strengthened capital position through a $10.0 million public offering and expanded direct U.S. commercial capabilities to accelerate adoption Reaffirms full-year 2026 revenue guidance of approximately $39 million Conference Call begins at 4:30 p.m. Eastern Time today NOVATO, Calif., August 12, 2026--(BUSINESS WIRE)--QT Imaging Holding, Inc. (Nasdaq: QTI) ("QT Imaging" or the "Company"), a medical device company dedicated to transforming breast health management through innovative, radiation-free imaging technology, today reported financial results for the three and six months ended June 30, 2026, and provided a business update. "Our second quarter results demonstrate continued execution and the growing commercial momentum of QT Imaging. Revenue more than doubled year-over-year to $7.4 million, and we shipped fifteen Breast Acoustic CT scanners during the quarter, compared with eight in the prior-year period," said Dr. Raluca Dinu, Chief Executive Officer of QT Imaging. "We also took important steps to support continued growth, completing a $10 million public offering, expanding our direct U.S. sales organization, and securing regulatory authorization in Israel and Saudi Arabia. At the same time, we generated new evidence demonstrating less than 1% variability in Speed of Sound measurements across our scanners, successfully completed our first routine FDA inspection with zero Form 483 observations, and expanded manufacturing capacity through our new 22,000-square-foot facility. These are tangible steps toward scaling Breast Acoustic CT commercially while building the clinical, regulatory and operational foundation for broader adoption." "With more than 12,000 women already imaged using our technology, we are building more than an innovative medical imaging system; we are building a quantitative breast imaging platform that integrates advanced hardware, software, cloud infrastructure and, over time, AI-enabled clinical applications," added Dr. Dinu. "At the same time, we continue to evolve our commercial strategy by complementing our established distribution partnerships with expanded direct commercial, and business development capabilities to accelerate customer engagement and broaden adoption. While geopolitical developments have impacted commercial activities in parts of the Gulf region, we are beginning to see encouraging signs of renewed customer engagement." Second Quarter and Recent Business Highlights Continued commercial execution: QT Imaging shipped 15 Breast Acoustic CT scanners during the second quarter of 2026 and 28 scanners during the first six months of the year. The revenue for the second quarter of 2026 was $7.4 million. The Company continues to pursue commercial opportunities through a combination of established distribution partners and its expanding internal commercial and business development capabilities. Strengthened capital position: During the second quarter, QT Imaging completed an underwritten public offering that generated approximately $10.0 million in gross proceeds. The Company also extended the maturity of its senior secured term loan by two years, from March 31, 2027, to March 31, 2029. Built a scalable U.S. commercial organization: Under the leadership of our Chief Commercial Officer Satrajit Misra, a seasoned medical imaging executive with three decades of industry experience, QT Imaging expanded its direct commercial organization with the appointments of Jason Dyer as Vice President, Regional Sales East, and Dave Reinhart as Vice President, Regional Sales West. Together, this team strengthens the Company’s ability to directly engage breast imaging centers, clinicians and enterprise health systems, deepen strategic customer relationships and complement its established distribution partnerships, creating a scalable commercial model designed to accelerate adoption, grow the installed base and support long-term revenue growth and margin expansion. Expanded global regulatory foundation for Breast Acoustic CT scanners: During the quarter, the Company received AMAR authorization from Israel’s Ministry of Health and Food and Drug Administration ("FDA") regulatory clearance in Saudi Arabia. QT Imaging continues to pursue additional regulatory authorizations in the Gulf region and Europe. Successfully completed the Company’s first routine FDA inspection: The inspection concluded with zero Form 483 observations, reflecting the strength of the Company’s Quality Management System and its focus on quality, compliance and manufacturing readiness. Generated additional scientific evidence: A multi-site repeatability and reproducibility study demonstrated less than 1% variability in Speed of Sound measurements across Breast Acoustic CT scanners. The results support the potential use of objective and reproducible quantitative imaging biomarkers in longitudinal breast health assessment and treatment monitoring. These results reflect testing performed under the study conditions and do not represent a new FDA-cleared indication. Continued advancing the QTI technology platform: Development activities included enhancements to image reconstruction, quantitative imaging algorithms, clinical workflow, and the QTI Precision Pathway™ cloud platform. The Company also continued its collaboration with Olea Medical to productize its multimodality image viewer, physician workflow and quantitative image analysis. Strengthened clinical and scientific leadership: Appointed Dr. Julia Albright as Chief Science Officer, effective July 27, 2026, and welcomed nationally recognized breast surgical oncologist Dr. Barry Roseman as Senior Medical Advisor. Dr. Albright brings more than three decades of leadership in medical imaging innovation, quantitative imaging and artificial intelligence, with a proven track record of translating advanced technologies into clinically impactful products. Dr. Roseman brings more than 30 years of experience in breast cancer diagnosis, treatment and multidisciplinary patient care, providing deep clinical expertise to support physician engagement, clinical implementation, and broader adoption of our technology. Advanced clinical expansion in Israel: Following our recent AMAR authorization from Israel’s Ministry of Health, the first Breast Acoustic CT scanner in Israel is planned for placement at Rambam Health Care Campus, one of the country’s leading academic medical centers. The scanner will support a planned clinical study evaluating Breast Acoustic CT imaging modality in women with hereditary risk for breast cancer, expanding the Company’s clinical evidence-generation efforts in an important high-risk population. Expanded manufacturing capacity while improving operating efficiency: Continued investing in manufacturing excellence and supply chain readiness while relocating to a new 22,000-square-foot headquarters and manufacturing facility, located in Petaluma, CA. The expanded facility provides more than 2.5x the operational space of the current location while reducing lease cost per square foot by approximately 55%, enhancing the Company's ability to scale production efficiently. Increased visibility within the investment community: QT Imaging was added to the Russell Microcap® Index as part of the 2026 semi-annual Russell index reconstitution and following its return to the Nasdaq Capital Market in January. Pursued grassroots initiatives focused on breast health: Dr. Dinu participated in two prestigious events hosted by The Shift, including its inaugural Shiftmakers Gala celebrating women driving change held at Harvard University and featuring actress and breast cancer survivor Olivia Munn, and presenting the Shiftmaker Award to tennis legend and two-time cancer survivor Martina Navratilova at the Sports Shiftmaker Awards ceremony during Wimbledon week in London. Second Quarter 2026 Financial Results Revenue for the second quarter of 2026 was $7.4 million, an increase of 103% compared with $3.7 million for the second quarter of 2025. The increase was primarily attributable to the shipment of fifteen Breast Acoustic CT scanners in the 2026 quarter, compared with eight in the prior-year quarter. Gross margin was 41% for the second quarter of 2026, compared with 50% for the second quarter of 2025. The gross margin for the second quarter of 2026 was in line with our projections for sales in the USA. The higher prior-year gross margin reflected a lower weighted average cost of inventory sold. Total operating expenses were $4.9 million for the second quarter of 2026, compared with $2.9 million for the second quarter of 2025. The increase was primarily attributable to employee compensation and benefits, professional service costs, and marketing expenses. Operating loss for the second quarter of 2026 was $1.9 million, compared with an operating loss of $1.0 million, for the second quarter of 2025 and $2.3 million for the first quarter of 2026. Total interest and other expense, net, was $9.2 million during the second quarter of 2026, compared with $3.0 million in the prior-year quarter. The increase was due primarily to an $8.3 million non-cash loss on debt extinguishment related to the Lynrock Lake term loan modification. Net loss for the second quarter of 2026 was $11.1 million, or $0.75 per share, compared with a net loss of $4.0 million, or $0.42 per share, for the second quarter of 2025. Prior-period share and per-share amounts have been adjusted to reflect the Company’s 3:1 reverse stock split completed in October 2025. Non-GAAP adjusted EBITDA, which excludes interest, taxes, depreciation and amortization, other income or expense, changes in the fair value of financial liabilities, and stock-based compensation, was negative $1.2 million, or $0.08 per share, for the second quarter of 2026, compared with negative $0.8 million, or $0.08 per share, for the second quarter of 2025. Net cash used in operating activities during the second quarter of 2026 was $4.8 million, compared with $1.4 million during the second quarter of 2025. As of June 30, 2026, the Company had cash and restricted cash of $11.0 million, compared with $10.5 million as of December 31, 2025. As of August 7, 2026, the Company had cash and restricted cash of $14.2 million. 2026 Revenue Outlook The Company affirms its 2026 revenue guidance of approximately $39 million. This outlook reflects minimum order quantities under its distribution agreements, as well as expected contributions from the Company’s direct sales efforts. Conference Call and Webcast QT Imaging management will host a conference call today at 4:30 p.m. Eastern Time to discuss these results and provide a business update. Participants are encouraged to pre-register here. Callers who are unable to pre-register can access the call by dialing 866-777-2509 (U.S.) or 412-317-5413 (international). A live and archived webcast of the call will be available at this link and on the IR Calendar section of the QT Imaging website. Non-GAAP Financial Measures Some of the financial information and data contained in this press release, such as EBITDA and Adjusted EBITDA, have not been prepared in accordance with GAAP. To supplement our unaudited condensed consolidated financial statements, which are prepared and presented in accordance with GAAP in our press release, we also report certain non-GAAP financial measures. A "non-GAAP financial measure" refers to a numerical measure of a company’s historical or future financial performance, financial position or cash flows that excludes (or includes) amounts that are included in (or excluded from) the most directly comparable measure calculated and presented in accordance with GAAP in such company’s financial statements. Non-GAAP financial measures should not be considered in isolation or as a substitute for the relevant GAAP measures and should be read in conjunction with information presented on a GAAP basis. Because not all companies use identical calculations, our presentation of non-GAAP measures may not be comparable to other similarly titled measures of other companies. The presentation of these financial measures is not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP and should not be considered measures of QT Imaging’s liquidity. Investors are cautioned that there are material limitations associated with the use of non-GAAP financial measures as an analytical tool. In particular, many of the adjustments to our GAAP financial measures reflect the exclusion of certain items, as defined in our non-GAAP definitions below, which are recurring and will be reflected in our financial results for the foreseeable future. In addition, these measures may be different from non-GAAP financial measures used by other companies, even where similarly titled, limiting their usefulness for comparison purposes and therefore should not be used to compare QT Imaging’s performance to that of other companies. We endeavor to compensate for the limitation of the non-GAAP financial measures presented by also providing the most directly comparable GAAP measures and descriptions of the reconciling items and adjustments to derive the non-GAAP financial measures. We believe these non-GAAP financial measures provide investors and analysts with useful supplemental information about the financial performance of our business, enable comparison of financial results between periods where certain items may vary independent of business performance, and allow for greater transparency with respect to key measures used by management to operate and analyze our business over different periods of time. EBITDA is defined as loss before interest expense, income tax expense, depreciation and amortization. Adjusted EBITDA is defined as EBITDA further adjusted for other expense (income), change in fair value of the warrant, derivative, and earnout liabilities, loss on issuance of debt, loss on debt extinguishment and modification, and stock-based compensation. Similar excluded expenses may be incurred in future periods when calculating these measures. QT Imaging believes these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to the Company’s financial condition and results of operations. QT Imaging believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating projected operating results and trends and in comparing QT Imaging’s financial measures with other similar companies, many of which present similar non-GAAP financial measures to investors. Management does not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they exclude significant expenses and income that are required by GAAP to be recorded in the Company’s consolidated financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgment by management about which expense and income items are excluded or included in determining these non-GAAP financial measures. Management uses EBITDA and Adjusted EBITDA as a non-GAAP performance measure that is defined in the accompanying tables and is reconciled to net loss, the most directly comparable GAAP measure, in the tables below. We present reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures in the tables below. About QT Imaging QT Imaging Holdings, Inc. (Nasdaq: QTI) is a medical device company engaged in the research, development, and commercialization of innovative imaging systems that use low-frequency sound waves. QT Imaging Holdings, Inc. strives to improve global health outcomes. Its strategy is predicated upon the fact that medical imaging is critical to the detection, diagnosis, and treatment of disease and that it should be safe, affordable, accessible, and centered on the patient’s experience. For more information on QT Imaging Holdings, Inc., please visit the Company’s website at www.qtimaging.com and follow us on LinkedIn. Breast Acoustic CT™ is a trademark of an affiliate of QT Imaging Holdings, Inc. Forward-Looking Statements This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act of 1934, as amended. Forward-looking statements generally are accompanied by words such as "believe," "may," "will," "estimate," "continue," "anticipate," "intend," "expect," "should," "would," "plan," "predict," "potential," "seem," "seek," "future," "outlook," and similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding QT Imaging’s quality and regulatory compliance and its ability to scale manufacturing, expand commercialization globally, and support a growing customer base, plans for QT Imaging, new product development and introduction, product sales growth and projected revenues, QT Imaging’s industry, future events, and other statements that are not historical facts. Forward-looking statements involve certain risks and uncertainties, and actual results may differ materially from those discussed in any such statement. These statements are based on various assumptions, whether or not identified herein, and on the current expectations of QT Imaging's management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on by you or any other investor as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond our control. These forward-looking statements are subject to a number of risks and uncertainties, including those relating to: the ability of the Company to sell and deploy the QT Imaging Breast Acoustic CT™ Scanner; the ability to extend product offerings into new areas or products; the ability to commercialize technology; unexpected occurrences that deter the full documentation and "bring to market" plan for products; trends and fluctuations in the industry; changes in demand and purchasing volume of customers; unpredictability of suppliers; the ability to attract and retain qualified personnel and the ability to move product sales to production levels; changes in domestic and foreign business, market, financial, political, and legal conditions; the uncertainty of projected financial information; delays caused by factors outside of our control; changes in our ability to successfully receive purchase orders and generate revenue under our existing contracts with partners and distributors; our ability to realize the benefits of the strategic partnerships; the identified material weakness in our internal controls over financial reporting (including the timeline to remediate the material weakness); the rollout of the business and the timing of expected business milestones; the effects of competition on our future business; our ability to obtain and access financing in the future; our ability to pay our debt obligations as they come due; and those factors discussed in the Company’s reports and other documents filed with the SEC, including under the heading "Risk Factors." If any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that QT Imaging presently does not know or that QT Imaging currently believes are immaterial which could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect QT Imaging's expectations, plans or forecasts of future events and views as of the date of this release. QT Imaging anticipates that subsequent events and developments will cause QT Imaging's assessments to change. However, while QT Imaging may elect to update these forward-looking statements at some point in the future, QT Imaging specifically disclaims any obligation to do so. Accordingly, undue reliance should not be placed upon the forward-looking statements. [Financial tables below] View source version on businesswire.com: https://www.businesswire.com/news/home/20260812051029/en/ Contacts Investors CORE IRTirth [email protected] 386-295-2215 Media CORE IRMatthew [email protected] 212-655-0924

QT Imaging Holdings (NASDAQ:QTI) held its first-quarter earnings conference call on Wednesday. Below is the complete transcript from the call. This content is powered by Benzinga APIs. For comprehensive financial data and transcripts, visit https://www.benzinga.com/apis/. View the webcast at https://event.choruscall.com/mediaframe/webcast.html?webcastid=oOJcpr1M QT Imaging Holdings reported Q1 2026 revenue of $6.5 million, a 133% increase from the prior year, primarily due to the shipment of 13 breast acoustic CT scanners. The company achieved a significant milestone with the approval of a new Category 3 CPT code by the American Medical Association, effective January 1, 2027, and received FDA 510k clearance for enhancements to their Breast Acoustic CT scanner. Operational highlights include the extension of a senior secured term loan maturity date, strategic international regulatory approvals, and the launch of the QT Imaging OLEA Viewer and software version 4.5.0. QT Imaging Holdings anticipates 2026 revenue of approximately $39 million, with contracted sales of scanners through distributors like NXC Imaging, Gulf Medical, and Alnagi Medical. Management emphasized ongoing strategic initiatives in commercialization, clinical validation, and software innovation, while highlighting partnerships and a strong clinical advisory team to support growth. OPERATOR Good day and welcome to the QT Imaging Holdings First Quarter 2026 Financial Results Conference call. All participants will be in a listen only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation there will be an opportunity to ask questions. To ask a question you may press Star then one on a touchtone phone. To withdraw your question, please press Star then two. Please note this event is being recorded. I would now like to turn the conference over to Bruce Voss. Please go ahead. Bruce Voss (Investor Relations) This is Bruce Voss with Alliance Advisors IR. Thank you for participating in today's call. Joining me from QT imaging holdings are Dr. Ralouka Dinu, Chief Executive Officer and Jay Jennings, Chief Financial Officer Officer. I would like to remind listeners that comments made during this call by management will include forward looking statements within the meaning of Federal securities laws. Any statements that are not statements of historical facts should be deemed to be forward looking statements. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those implied by such statements. All forward looking statements are based on QT Imaging's current beliefs as well as assumptions made by and information currently available to QT Imaging and relate to, among other things, QT Imaging's breast acoustic CT scanner, including its product commercialization and manufacturing, the evolution of QT Imaging into a scalable imaging platform, the QTI cloud platform and SAS model performance of software enhancements, new product development and introduction and product sales, growth and projected revenues. For a list and description of the risks and uncertainties associated with the company's business, please see its filings with the securities and Exchange Commission. Furthermore, the content of this call contains information that is accurate only as of the date of the live broadcast, May 13, 2026. QT Imaging disclaims any obligation, except as requIRed by law, to update or revise any financial or OPER operational projections or other forward looking statements, whether because of new information, future events or otherwise. And now I'd like to turn the call over to Dr. Ralouka Dinu Raluca Dr. Ralouka Dinu (Chief Executive Officer) thank you Bruce and good afternoon everyone. Thank you for spending the time with us and for your interest in qt Imaging. The first quarter of 2026 was a highly productive period for QT Imaging as we continue to execute across commercialization, clinical validation, reimbursement, regulatory expansion and software innovation. We believe that the progress achieved during the quarter further strengthens the foundation for the long term adoption of our technology and supports our strategy of building a leading quantitative breast imaging platform. During the quarter, we shipped 13 QT breast acoustic CT systems, which was in line with our commercial distribution commitments. These shipments reflect continued operational execution and growing commercial activity as we expand our installed base both domestically and internationally. We're also pleased to announce that subsequent to the close of the quarter, the maturity date of our senior secured term loan with Linrock Lake was extended by two years from March 31, 2027 to March 31, 2029. We would like to thank Linrock Lake for their continued support and confidence in QT imaging. This extension provides the company with additional financial flexibility as we continue executing on our commercial, clinical and strategic growth initiatives. On the reimbursement front, we achieved an important milestone with the approval by the American Medical association of a new Category 3 CPT code for our technology, effective January 1, 2027. We believe this is a meaningful step toward broader clinical adoption, standardized reporting, utilization tracking, and future reimbursement pathways for our technology. We also received FDA 510(k) clearance for enhancement to our Breast Acoustic CT scanner and platform designed to improve visualization and imaging coverage of posterior breast tissue. This region has historically been challenging to evaluate with traditional breast imaging technologies, and we believe the updated configuration further improves the clinical utility and overall performance of our system. On the international regulatory front, we secured official classification and clearance in the United Arab Emirates for both our QT Breast Acoustic CT scanner and the QTI SaaS cloud platform under our distribution agreement with Al Nagi Medical Company. We also continue to advance our software, ecosystem and imaging capabilities. During the quarter, we launched the QT Imaging OLEA Viewer, an innovative multimodality imaging platform designed to support efficient review and correlation of imaging findings across modalities while enabling longitudinal patient evaluation and quantitative analysis. In parallel, we released software version 4.5.0, a next generation image reconstruction update that improves spatial resolution in reflection imaging and enhances image quality while maintaining efficient processing times. We believe continuous software innovation will remain a key differentiator of and advantage for QT imaging as we expand our install base and advance toward a more scalable imaging and data platform. Importantly, our commercial efforts continue to be supported by growing clinical evidence generated at leading institutions. For example, at the Mayo Clinic, a prospective feasibility study evaluating QT scan as a supplemental screening tool compared to an MRI in high risk women provided encouraging early validation of the technology. The study demonstrated absolute agreement between QT imaging and MRI, suggesting comparable effectiveness of QT imaging and MRI in identifying positive findings. We also continue to strengthen our clinical and medical advisory team. During the quarter we welcomed Dr. Maria Mascheta as Senior Clinical Advisor to support our clinical strategy, reader training activities and development of structured interpretation pathways for QT scan. More recently, we welcomed Dr. Barry Rosman, a senior medical advisor. Dr. Rosman is a breast surgical oncologist with more than 25 years of experience treating breast cancer and breast disease. He currently operates Advanced Breast Care Surgical Oncology of North Georgia, which is a comprehensive breast imaging and diagnostic center of North Georgia. His engagement with QT Imaging includes implementation of QT scan within his busy clinical practice to support physician training, workflow integration, patient access and the collection of real world clinical and operational experience with the technology. Given his extensive experience treating women with dense breast tissue, Dr. Roseman understands firsthand the limitation of existing imaging modalities which can miss cancers in dense breasts, and the need for additional technologies capable of providing more quantitative and clinically meaningful information. We believe QT imaging technology is uniquely positioned as a radiation free, compression-free 3D Breast Imaging Platform capable of delivering quantitative information that may improve clinical decision making, particularly for women with dense breast. More broadly, we believe QT imaging sits at the intersection of advanced imaging, quantitative diagnostic and AI enabled healthcare infrastructure. Overall, we remain focused on disciplined execution as we continue expanding commercialization efforts, advancing our technology platform and building long term value for patients, providers and shareholders. Now I'll turn the call over to our CFO Jay Jennings to review our financial results. Jay Jay Jennings (Chief Financial Officer) thank you Ralouka and good afternoon everybody. Revenue for the first quarter of 2026 was $6.5 million, up 133% from the prior year quarter. The increase was primarily attributable to the shipment of 13 breast acoustic CT scanners during the quarter, up from six scanners in Q1 2025. Cost of revenue for Q1 2026 was $3.9 million compared with $986,000 for Q1 2025, resulting in a gross margin for the 2026 quarter of 41%, compared with 65% for the 2025 quarter. The higher gross margin in the 2025 quarter was primarily due to the sale of two scanners with a lower cost basis. Total operating expenses for the first quarter of 2026 were $5 million versus $2.9 million a year ago. The increase was primarily attributable to higher employee compensation and professional and outside service costs. Net loss for the first quarter of 2026 was $3.4 million, which is a substantial reduction from a net loss of $11.1 million for the first quarter of 2025. EBITDA for Q1 2026 was negative $2.5 million compared with negative $10.4 million for Q1 2025 excluding stock based compensation and other non cash expenses such as the change in fair value of the warrant and earn out liabilities. Adjusted EBITDA for Q1 2026 was negative $1.5 million compared with negative $903,000 for Q1 2025. Net cash used in operating activities during the first quarter of 2026 was $3.7 million compared with $3.5 million used used during the first quarter of 2025. As of March 31, 2026, the company had cash restricted cash and cash equivalent of $7 million. Please see our Form 10Q filed earlier today for further details regarding our first quarter financial results. Subsequent to the close of the quarter, we amended our credit agreement with Linrock Lake, extending the maturity date of the $10.1 million senior secured term loan to March 31, 2029 and increasing the interest rate from 10% per annum to 12% per annum. Turning now to 2026 financial guidance, we are affirming our expectation for revenue of approximately $39 million for the year, more than double 2025 revenue. This guidance is based on the expected shipment of scanners under distributor minimum minimum order quantities as well as the early monetization of cloud based services as we bring our platform online across clinical and research customers under our distribution agreements. In addition to the 60 scanners contracted by NXC Imaging for 2026, Gulf Medical is contracted for 20 scanners in 2026, 32 scanners for 2027 and 40 scanners for 2028 for a total exceeding $51 million. Alnagi Medical is contracted for 7 scanners in 2026, 16 scanners in 2027 and 20 scanners in 2028 for a total of approximately $24 million. And now I'll turn the call back to Raloouka. OPERATOR Thanks Jay. So in summary, QT Imaging is building a leading platform in breast imaging and quantitative imaging based precision diagnostics. We have done that we have a differentiated technology addressing a large unmet need in dense breast imaging with greenfield opportunities in adding biomarkers and Precision Breast Technology 2 We have a strong clinical, regulatory and reimbursement momentum including our new Category 3 CPT Code 3 we have strategic manufacturing distribution and software Partners, software partners that support global scale in the SaaS enabled business model and four we have a clear roadmap from hardware to recurring software and AI revenue as we expand our installed base and data assets. We are excited by the progress we've made and we are confident in the path ahead. Thank you so much for your interest in our company and for your support. And with that, we are now ready to take questions. Operator we will now begin the question and answer session. To ask a question, you may press star, then one on your touchtone phone. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star then two. At this time, we will pause momentarily to assemble our roster. The first question today comes from Jeffrey Cohen with Ladenburg Thalman. Please go ahead. Jeffrey Cohen (Equity Analyst) Hey, good afternoon, Ralouka and Jay. Thanks for taking our questions and congrats on all the accomplishments in the quarter. So firstly, can you touch upon Gulf Medical? What's the regulatory status in Saudi? It's approved. And then could you talk about the updated and amended agreement that expands the units in the timeline and maybe give us a sense of how those financials work as far as units and or the additional software, AI or SAS model that may be included. Dr. Ralouka Dinu (Chief Executive Officer) Great. Hi, Jeff. Great to hear you and thank you so much for joining us. So going back to the beginning of your question, so we got the UAE regulatory approval mohap in UAE and we are not there yet with sfda. So Saudi Arabia FDA approval is still to be received. Jeff, I can tell you we've gone back and forth three, four times with them how we are at like one or two questions left. So we do hope within the next month or so we're going to get our SSDA approval for so we. I'm sorry, please. Jeffrey Cohen (Equity Analyst) No, go ahead. Dr. Ralouka Dinu (Chief Executive Officer) Yeah, regarding for the Gulf and Saudi Arabia and uae, we are discussing back and forth with our distribution partners there. As soon as the war gives us a little bit of a break, we'll start shipping in uae. And as soon as you get our SFDA Saudi Arabia FDA approval, we'll start shipping in Saudi Arabia. Jeffrey Cohen (Equity Analyst) Okay. Would you anticipate Saudi approval this calendar year? Dr. Ralouka Dinu (Chief Executive Officer) Saudi Arabia fda? Jeff, it should be within a month or so. That's hopefully no later than that. Jeffrey Cohen (Equity Analyst) Okay, got it. And then I wanted to jump over to your canon agreement. So could you talk about it was mentioned in the press release, you called it an amended distribution agreement. Maybe talk about that and tell us if there's been any updates recently as far as timeline and cadence and perhaps beyond this year. Dr. Ralouka Dinu (Chief Executive Officer) We've pushed out the debt of the company from January, from March 31, 2027 to March 31, 2029. The team at Linrock Lake was very kind and we've discussed this back and forth and they do have the trust in the company and obviously in the strategy of us together. But in terms of NXC Imaging, the contract is for 2026. We are discussing with NXC Imaging and Canon USA further business beyond 20 and we'll update in the next calls as we have more data on that. We've met in Seattle at SBI conference and we'll continue meeting to hash out what's happening beyond 2026. Thank you so much for the question. Jeffrey Cohen (Equity Analyst) Thank you. Dr. Ralouka Dinu (Chief Executive Officer) Thank you so much. Great to hear you, Jeff. OPERATOR As a reminder, if you would like to ask a question, please press star then one to join the question queue. The next question comes from Ben Haynor with Lake Street Capital Markets. Please go ahead. Ben Haynor (Equity Analyst) Good afternoon. Hello and Jay, thanks for taking the questions. Hi Ben. First off, hey, so first off for me on the software improvements that you bumped up the imaging quality on, is there any beyond. I mean obviously just improving the image quality is a good in and of itself, but are there any sort of edge cases, whether it's like calcification or things of that nature where the updated image algorithms. Algorithms do a much better job of helping folks identify, you know, important structures or findings? Dr. Ralouka Dinu (Chief Executive Officer) That's a great question. So first of all, we have improved the resolution of our reflection images in the X, Y and Z direction. Meaningful, like 40 to 50% improvement in the resolution that is critical as we are looking into the morphological shapes of various findings in the breast. So to your point, indirectly we are having better resolution with all the findings that result from the reflection in the breast. But certainly calcification is the one finding critical and that gets discovered via our reflection, not via our transmission. So thank you so much for bringing that up. The 4.5.0 software version directly improves resolution for us to get calcification. Ben Haynor (Equity Analyst) Okay, great. That sounds like a great update. And then on the kind of, I guess, longitudinal imaging biopharma front, you know, I know the applications there are potentially pretty exciting anymore to share. The investors would be interested on that front. Dr. Ralouka Dinu (Chief Executive Officer) Ben, we are ready to submit a manuscript for a paper with clear results that show the non responders of various therapies. These are results from our Sunnybrook Cancer Center IH program, and I think everybody will be very pleased reading the paper. It's exactly what we discussed in the past. The patients are being tracked, the volume is being measured of the findings under the certain treatment and Rather than the linear dimension that has much higher error in the measurement, the volume is clearly showing the increase or decrease with much higher precision. So what paper is going out? We have one other very large institution in Boston that's going to be working with us on a very similar study. We do seem to be getting a lot of interest in the precision therapy monitoring. As you and I discussed again and again over the last quarter, we're tracking this very important direction for us. Ben Haynor (Equity Analyst) Looking forward to seeing that. And then lastly for me, and I apologize if you already mentioned this, but on the kind of new distribution agreements front, you know, obviously you've got the couple of Middle east distributors and then NXT imaging. Are there other discussions that are ongoing that, you know, folks should maybe think about new countries coming on this year, next year, what have you? Dr. Ralouka Dinu (Chief Executive Officer) Yes. So we would like to cover fully the Gulf region, Ben, for obvious reasons. We have other four countries in the Gulf regions we're trying to cover. From regulatory perspective, it'll take us a quarter or two. We have applied also for Amar regulatory approval in Israel. It'll take us probably August or September to get to that. And we'll work through the year to get our paperwork together for a CE mark. Like we discussed, that's tracking, as we promised in the past, we'll probably have that up and running Q2 next year, but that's where we are in terms of expansion. International expansion. A lot to do in the United States for sure, but we're tracking international expansion tips. Ben Haynor (Equity Analyst) Okay, very helpful. That's all I have. Thank you so much. Dr. Ralouka Dinu (Chief Executive Officer) Oh, thank you so much, Ben. OPERATOR Thank you so much for joining. This concludes our question and answer session. I would like to turn the conference back over for any closing remarks. Betsy Thank you so much, Betsy. Once again, I'd like to thank you for joining us today and for your interest in QT Imaging. We are energized by our momentum with more to come. We look forward to discussing our progress during our next conference call in August and we can when we can report the second quarter results. Until then, have a nice afternoon and thank you so much. Disclaimer: This transcript is provided for informational purposes only. While we strive for accuracy, there may be errors or omissions in this automated transcription. For official company statements and financial information, please refer to the company's SEC filings and official press releases. Corporate participants' and analysts' statements reflect their views as of the date of this call and are subject to change without notice. UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga: QT IMAGING HOLDINGS (QTI): Free Stock Analysis Report This article QT Imaging Holdings Q1 2026 Earnings Call: Complete Transcript originally appeared on Benzinga.com ﾩ 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Interested in QT Imaging Holdings, Inc.? Here are five stocks we like better. Q1 2026 revenue jumped 133% to $6.5 million as QT Imaging shipped 13 Breast Acoustic CT systems, more than double the six scanners shipped a year earlier. The company also narrowed its net loss to $3.4 million from $11.1 million in Q1 2025. The company affirmed its 2026 revenue outlook of about $39 million, supported by distributor minimum order quantities and early cloud-service monetization. QT Imaging also said its 2026 pipeline includes major contracted scanner orders from NXC Imaging, Gulf Medical and Al Naghi Medical. QT Imaging highlighted several reimbursement, regulatory and software milestones, including approval of a new AMA Category III CPT code, FDA 510(k) clearance for scanner enhancements, and UAE approval for its scanner and SaaS platform. Management also pointed to software upgrades and clinical evidence, including a Mayo Clinic study showing agreement with MRI in high-risk women. QT Imaging (NASDAQ:QTI) reported sharply higher first-quarter 2026 revenue as scanner shipments more than doubled from the prior-year period, while management highlighted progress on reimbursement, regulatory approvals, software upgrades and international expansion during the company’s earnings call. Chief Executive Officer Raluca Dinu said the quarter was “a highly productive period” as the company continued work across commercialization, clinical validation, reimbursement, regulatory expansion and software innovation. QT Imaging shipped 13 QT Breast Acoustic CT systems during the quarter, which Dinu said was in line with the company’s commercial distribution commitments. → Rocket Lab Just Hit a New All-Time High—Time to Buy or Let It Breathe? “These shipments reflect continued operational execution and growing commercial activity as we expand our installed base both domestically and internationally,” Dinu said. Chief Financial Officer Jay Jennings said revenue for the first quarter of 2026 was $6.5 million, up 133% from the prior-year quarter. The increase was primarily tied to the shipment of 13 Breast Acoustic CT scanners, compared with six scanners in the first quarter of 2025. → MP Materials Is Quietly Building a Rare Earth Powerhouse Cost of revenue rose to $3.9 million from $986,000 a year earlier, producing a gross margin of 41%, compared with 65% in the prior-year quarter. Jennings said the higher margin in the 2025 period was primarily due to the sale of two scanners with a lower cost basis. Total operating expenses were $5 million, up from $2.9 million a year earlier. Jennings attributed the increase mainly to higher employee compensation and professional and outside service costs. → Micron Investors Face a High-Stakes Moment After the Latest Rally The company reported a net loss of $3.4 million, improved from a net loss of $11.1 million in the first quarter of 2025. EBITDA was negative $2.5 million, compared with negative $10.4 million a year earlier. Adjusted EBITDA, excluding stock-based compensation and other non-cash expenses such as changes in the fair value of warrant and earn-out liabilities, was negative $1.5 million, compared with negative $903,000 in the first quarter of 2025. Net cash used in operating activities was $3.7 million, compared with $3.5 million in the prior-year quarter. QT Imaging ended the quarter with $7 million in cash, restricted cash and cash equivalents. QT Imaging affirmed its expectation for approximately $39 million in 2026 revenue, which Jennings said would be more than double 2025 revenue. The guidance is based on expected scanner shipments under distributor minimum order quantities and the early monetization of cloud-based services as the company brings its platform online across clinical and research customers. Jennings said QT Imaging’s distribution agreements include 60 scanners contracted by NXC Imaging for 2026. Gulf Medical is contracted for 20 scanners in 2026, 32 scanners in 2027 and 40 scanners in 2028, for a total exceeding $51 million. Al Naghi Medical is contracted for seven scanners in 2026, 16 in 2027 and 20 in 2028, totaling approximately $24 million. Subsequent to the quarter, QT Imaging amended its credit agreement with Lynrock Lake, extending the maturity date of its $10.1 million senior secured term loan to March 31, 2029, from March 31, 2027. Jennings said the amendment also increased the interest rate to 12% per year from 10%. Dinu said QT Imaging reached an important reimbursement milestone with the American Medical Association’s approval of a new Category III CPT code for the company’s technology, effective Jan. 1, 2027. She said the code is a meaningful step toward broader clinical adoption, standardized reporting, utilization tracking and potential future reimbursement pathways. The company also received FDA 510(k) clearance for enhancements to its QT Breast Acoustic CT scanner and platform. Dinu said the changes are designed to improve visualization and imaging coverage of posterior breast tissue, an area she said has historically been difficult to evaluate with traditional breast imaging technologies. Internationally, QT Imaging secured official classification and clearance in the United Arab Emirates for both its QT Breast Acoustic CT scanner and QTI SaaS Cloud platform under its distribution agreement with Al Naghi Medical Company. During the question-and-answer session, Ladenburg Thalmann analyst Jeffrey Cohen asked about regulatory status in Saudi Arabia. Dinu said the company has received UAE approval but is still awaiting Saudi FDA approval. She said QT Imaging has gone “back and forth” several times with the Saudi regulator and has “one or two questions left,” adding that the company hopes to receive approval “within the next month or so.” Dinu said QT Imaging continued to expand its software ecosystem during the quarter with the launch of the QT Imaging-Olea Viewer, a multimodality imaging platform designed to support review and correlation of imaging findings across modalities, longitudinal patient evaluation and quantitative analysis. The company also released software version 4.5.0, described by Dinu as a next-generation image reconstruction update that improves spatial resolution in reflection imaging and enhances image quality while maintaining efficient processing time. In response to a question from Lake Street Capital Markets analyst Ben Haynor, Dinu said the updated software improved reflection image resolution in the X, Y and Z directions by roughly 40% to 50%. She said that improvement is important for evaluating morphological shapes of findings in the breast and is particularly relevant to calcification detection, which she said is discovered through reflection imaging rather than transmission imaging. Dinu also cited clinical evidence from a Mayo Clinic prospective feasibility study evaluating QTscan as a supplemental screening tool compared with MRI in high-risk women. She said the study demonstrated “absolute agreement” between QT Imaging and MRI, suggesting comparable effectiveness in identifying positive findings. The company also added to its advisory team, naming Dr. Mary Yamashita as Senior Clinical Advisor during the quarter and more recently adding Dr. Barry Roseman as a senior medical advisor. Dinu said Roseman, a breast surgical oncologist with more than 25 years of experience, will implement QTscan within his clinical practice to support physician training, workflow integration, patient access and real-world clinical and operational experience. Asked about additional distribution opportunities, Dinu said QT Imaging would like to cover the Gulf region more fully and is working on regulatory coverage in four additional Gulf countries. She said that process could take “a quarter or two.” Dinu also said the company has applied for AMAR regulatory approval in Israel, which she expects could come by August or September. She added that QT Imaging plans to continue preparing paperwork for CE mark approval through the year, with the process expected to be “up and running” in the second quarter of next year. In closing, Dinu said the company remains focused on building a breast imaging and quantitative imaging-based precision diagnostics platform, with a roadmap that includes hardware, recurring software and artificial intelligence revenue as QT Imaging expands its installed base and data assets. QT Imaging Ltd. (NASDAQ: QTI) is a medical technology company specializing in the development and commercialization of advanced ultrasound imaging solutions. The company focuses on real-time volumetric imaging systems designed to enhance diagnostic capabilities in obstetrics, gynecology and other clinical applications. QT Imaging's flagship Q.VIEW® system and associated software suite enable practitioners to capture, analyze and visualize high-resolution 3D/4D ultrasound images, offering improved workflow efficiency and enhanced patient care. QT Imaging's product portfolio includes proprietary transducers, imaging consoles and software platforms that can be integrated with existing ultrasound scanners from leading original equipment manufacturers. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "QT Imaging Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.

This article first appeared on GuruFocus. Release Date: May 13, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. QT Imaging Holdings Inc (NASDAQ:QTI) shipped 13 QT breast-acoustic CT systems in Q1 2026, reflecting strong operational execution and growing commercial activity. The company achieved a significant milestone with the approval of a new Category 3 CPT code by the American Medical Association, effective January 1, 2027, which is expected to enhance clinical adoption and reimbursement pathways. FDA 510 clearance was received for enhancements to the breast acoustic CT scanner, improving visualization and imaging coverage of posterior breast tissue. Revenue for Q1 2026 was $6.5 million, up 133% from the prior year quarter, driven by increased shipments of breast acoustic CT scanners. The company secured international regulatory clearance in the United Arab Emirates for its QT Breath Acoustic CT scanner and QTi SAS Cloud platform, expanding its global footprint. Gross margin for Q1 2026 decreased to 41% from 65% in Q1 2025, primarily due to higher costs associated with increased shipments. Total operating expenses increased to $5 million in Q1 2026 from $2.9 million a year ago, driven by higher employee compensation and professional service costs. Net loss for Q1 2026 was $3.4 million, although reduced from a net loss of $11.1 million in Q1 2025, indicating ongoing financial challenges. The interest rate on the company's senior secured term loan was increased from 10% to 12% per annum, potentially increasing financial burden. Regulatory approval in Saudi Arabia is still pending, which may delay market entry and revenue generation in that region. Warning! GuruFocus has detected 7 Warning Signs with QTI. Is QTI fairly valued? Test your thesis with our free DCF calculator. Q: Can you provide an update on the regulatory status and distribution agreement with Gulf Medical, particularly regarding Saudi Arabia? A: Dr. Raluca Dinu, CEO: We have received regulatory approval in the UAE but are still awaiting approval from the Saudi FDA. We anticipate receiving this within the next month. Once approved, we will begin shipping to Saudi Arabia. The distribution agreement is in place, and we are ready to proceed once regulatory hurdles are cleared. Q: Could you elaborate on the improvements in imaging quality with the new software update? A: Dr. Raluca Dinu, CEO: The new software version 4.5.0 significantly improves the resolution of our reflection images by 40% to 50%. This enhancement is crucial for better morphological analysis of breast findings, particularly calcifications, which are critical in breast imaging. Q: What progress has been made in the longitudinal imaging and biopharma applications? A: Dr. Raluca Dinu, CEO: We are preparing to submit a manuscript with results from the Sunnybrook Cancer Center, demonstrating the effectiveness of our technology in tracking therapy responses. This study highlights our ability to measure volume changes with high precision, which is crucial for monitoring precision therapies. Q: Are there any new distribution agreements or expansions planned for this year or next? A: Dr. Raluca Dinu, CEO: We aim to fully cover the Gulf region and have applied for regulatory approval in Israel, expected by August or September. We are also working towards obtaining a CE mark by Q2 next year, which will facilitate further international expansion. Q: Can you discuss the amended distribution agreement with Canon and any updates on future plans? A: Dr. Raluca Dinu, CEO: We have extended our debt maturity with Lindrock Lake to 2029, showing their confidence in our strategy. Discussions with NXC Imaging and Canon USA are ongoing for business beyond 2026, and we will provide updates as more information becomes available. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Revenue of $6.5 Million, Up 133% Year-Over-Year with 13 Scanners Shipped Two Year Extension of the Maturity Date of the Senior Secured Term Loan to March 31, 2029 Secured a Category III CPT Code Specific to QT Imaging, Paving the Way to U.S. Reimbursement Conference Call Begins Today at 4:30 p.m. Eastern Time NOVATO, Calif., May 13, 2026--(BUSINESS WIRE)--QT Imaging Holdings, Inc. (Nasdaq: QTI) ("QT Imaging" or the "Company"), a medical device company dedicated to transforming breast health management through innovative, radiation-free imaging technology, today reported financial results for the three months ended March 31, 2026 and provided a business update. "We continued to execute during the first quarter, making meaningful progress across commercialization, regulatory execution, and clinical validation," said Dr. Raluca Dinu, Chief Executive Officer of QT Imaging. "During the quarter, we shipped 13 QT Breast Acoustic CT™ systems, in line with our commercial distribution commitments, secured a dedicated Category III CPT code for our technology that becomes effective as of January 2027, and received FDA 510(k) clearance for enhancements that improve visualization of posterior breast tissue. "Recently, the maturity date of our senior secured term loan with our lender was extended by two years from March 31, 2027 to March 31, 2029. This extension provides the Company with additional financial flexibility as we continue executing on our commercial, clinical, and strategic growth initiatives. "Importantly, we also expanded internationally with regulatory clearance in the United Arab Emirates, supporting a previously established multiyear commercial agreement in the region. At the same time, we advanced our technology platform through the launch of the QT Imaging-Olea Viewer and released a meaningful software improvement focused on reflection image quality, workflow, and quantitative analysis. "Our clinical strategy continues to gain momentum through investigator studies at leading institutions that demonstrate strong concordance between QTscan and MRI. We believe QTscan is uniquely positioned as a radiation-free, compression-free, true 3D breast-imaging platform capable of providing quantitative information meant to improve clinical decision making, particularly for women with dense breasts. We remain focused on disciplined execution as we expand adoption of the platform globally," she added. First Quarter and Recent Business Highlights Shipped 13 Breast Acoustic CT scanners in the first quarter of 2026 through our Amended NXC Distribution Agreement. Generated additional clinical evidence supporting agreement of the QTscan with MRI through investigator studies. A prospective pilot study at the Mayo Clinic evaluated QTscan as a supplemental screening tool in high-risk women and demonstrated absolute agreement between QT Imaging and MRI, suggesting comparable effectiveness of QT Imaging and MRI in identifying positive findings. Secured American Medical Association (AMA) approval of a new Category III CPT code, X579T, for 3D quantitative transmission volumetric ultrasound tomography of the breast. This code recognizes the distinct clinical service enabled by QTI's Breast Acoustic CT system’s radiation-free, compression-free, 3D breast-imaging platform, and becomes effective January 1, 2027. Received U.S. Food and Drug Administration (FDA) 510(k) clearance for an updated configuration of QTI's Breast Acoustic CT scanner, which is designed to enhance visualization and expand imaging coverage of the posterior breast tissue, a region that is challenging to capture. Received official classification and clearance from the United Arab Emirates (UAE) Emirates Drug Establishment for use of QTI’s Breast Acoustic CT scanners and the QT Imaging’s Cloud SaaS Platform subscription. QT Imaging has an exclusive distribution agreement for the UAE with Al Naghi Medical Co., a leading regional distributor of medical devices in the Gulf region. The agreement provides for committed minimum order quantities (MOQs) of seven scanners in 2026, increasing to 16 scanners in 2027 and 20 scanners in 2028, for a total minimum of 43 scanners representing revenue of more than $24 million. Launched the QT Imaging-Olea Viewer, which provides a unified platform for viewing multiple breast imaging modalities, enabling clinicians to efficiently correlate findings across multi-imaging sources and monitor patients longitudinally to streamline workflow. The viewer is designed to enhance clinical efficiency and support more informed patient management. Released software update version 4.5.0, a next-generation image reconstruction that improves spatial resolution in reflection imaging, resulting in more accurate image representation while maintaining efficient processing time. Uplisted to The Nasdaq Capital Market after having met all listing requirements, including financial, corporate governance, and regulatory criteria. Named renowned breast cancer researcher Dr. Mary W. Yamashita as Medical Advisor to provide strategic advisory and development support across several key areas, including optimizing clinical integration and user experience, and ensuring the Company’s technologies meets and exceeds the expectations of clinicians and patients. Welcomed Dr. Barry Roseman, a breast surgical oncologist with more than 25 years of experience treating breast cancer and breast disease, as Senior Medical Advisor. Dr. Roseman’s engagement includes clinical implementation of the QT Imaging technology in his diagnostic and screening center to support physician training, workflow integration, patient access, and ongoing collection of real-world clinical, operational, financial, patient, and provider experiences. Subsequent to the close of the quarter, the Company amended the Lynrock Lake Credit Agreement, extending the maturity date of the senior secured term loan by two years to March 31, 2029, and increasing the interest rate to 12.0% per annum from 10.0% previously. First Quarter Financial Results Revenue for the first quarter of 2026 was $6.5 million, an increase of 133% from $2.8 million for the first quarter of 2025. The increase was primarily attributable to the shipment of 13 Breast Acoustic CT scanners in the 2026 quarter compared with six scanners in the prior-year period. Gross margin for the first quarter of 2026 was 41% compared with 65% for the first quarter of 2025. The higher gross margin in the first quarter of 2025 was primarily due to the sale of two majorly depreciated scanners, hence with a lower cost basis. Total operating expenses for the first quarter of 2026 were $5.0 million compared with $2.9 million for the same period of 2025. The increase was primarily attributable to employee compensation and professional and outside service costs. Total interest and other expense, net for the first quarter of 2026 was $1.1 million compared with $10.1 million for the first quarter of 2025. The decrease was primarily due to $8.8 million in nonrecurring charges recorded in the prior-year period, including noncash expense related to the issuance of the Lynrock Lake Term Loan and the extinguishment and modification charges associated with the Yorkville and Cable Car Notes. The decrease was partially offset by higher interest expense driven by accrued interest and debt discount amortization on the Lynrock Lake Term Loan. Net loss for the first quarter of 2026 of $3.4 million, or $0.25 per share, compared with a net loss of $11.1 million, or $1.21 per share, for the first quarter of 2025. Non-GAAP adjusted EBITDA* for the first quarter of 2026 of $(1.9) million compared with $(0.9) million for the first quarter of 2025. Net cash used in operating activities during the first quarter of 2026 was $3.7 million compared with $3.5 million during the first quarter of 2025. Cash, restricted cash, and cash equivalents were $7.0 million as of March 31, 2026 compared with $10.5 million as of December 31, 2025. 2026 Revenue Guidance The Company reaffirms guidance for 2026 revenue to be approximately $39 million, reflecting scanner shipments in the U.S. and world-wide, and initial revenue from the QT Imaging Cloud Platform. These expectations are in accordance with the MOQs per its Amended Distribution Agreement with its U.S. strategic business and distribution partner, NXC Imaging, Inc., a wholly owned subsidiary of Canon Medical Systems USA, as well as its new distribution partners in the Gulf region, Gulf Medical and Al Naghi Medical. Conference Call and Webcast QT Imaging management will host an investment community conference call today beginning at 4:30 p.m. Eastern time (1:30 p.m. Pacific time) to discuss the Company’s financial and operational results and answer questions. Participants can pre-register for the conference call here. Callers who pre-register will be given a conference passcode and unique PIN to gain immediate access to the call and bypass the live operator. Participants may pre-register at any time, including up to and after the call start time. Those who choose not to pre-register can access the live conference call by dialing 866-777-2509 from within the U.S. and 412-317-5413 from outside the U.S. and requesting the QT Imaging call. A live and archived webcast of the conference call will be available on the IR Calendar section of the Company website. Non-GAAP Financial Measures Some of the financial information and data contained in this press release, such as EBITDA and Adjusted EBITDA, have not been prepared in accordance with GAAP. To supplement our unaudited condensed consolidated financial statements, which are prepared and presented in accordance with GAAP in our press release, we also report certain non-GAAP financial measures. A "non-GAAP financial measure" refers to a numerical measure of a company’s historical or future financial performance, financial position or cash flows that excludes (or includes) amounts that are included in (or excluded from) the most directly comparable measure calculated and presented in accordance with GAAP in such company’s financial statements. Non-GAAP financial measures should not be considered in isolation or as a substitute for the relevant GAAP measures and should be read in conjunction with information presented on a GAAP basis. Because not all companies use identical calculations, our presentation of non-GAAP measures may not be comparable to other similarly titled measures of other companies. The presentation of these financial measures is not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP and should not be considered measures of QT Imaging's liquidity. Investors are cautioned that there are material limitations associated with the use of non-GAAP financial measures as an analytical tool. In particular, many of the adjustments to our GAAP financial measures reflect the exclusion of certain items, as defined in our non-GAAP definitions below, which are recurring and will be reflected in our financial results for the foreseeable future. In addition, these measures may be different from non-GAAP financial measures used by other companies, even where similarly titled, limiting their usefulness for comparison purposes and therefore should not be used to compare QT Imaging’s performance to that of other companies. We endeavor to compensate for the limitation of the non-GAAP financial measures presented by also providing the most directly comparable GAAP measures and descriptions of the reconciling items and adjustments to derive the non-GAAP financial measures. We believe these non-GAAP financial measures provide investors and analysts with useful supplemental information about the financial performance of our business, enable comparison of financial results between periods where certain items may vary independent of business performance, and allow for greater transparency with respect to key measures used by management to operate and analyze our business over different periods of time. EBITDA is defined as loss before interest expense, income tax expense, depreciation and amortization. Adjusted EBITDA is defined as EBITDA further adjusted for stock-based compensation, net change in fair value of the derivative, earnout and warrant liabilities, transaction expenses, warrant modification expense, loss on debt extinguishment, debt issuance expense and other income (expense), net. Similar excluded expenses may be incurred in future periods when calculating these measures. QT Imaging believes these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to the Company’s financial condition and results of operations. QT Imaging believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating projected operating results and trends and in comparing QT Imaging’s financial measures with other similar companies, many of which present similar non-GAAP financial measures to investors. Management does not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they exclude significant expenses and income that are required by GAAP to be recorded in the Company’s consolidated financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgment by management about which expense and income items are excluded or included in determining these non-GAAP financial measures. Management uses EBITDA and Adjusted EBITDA as a non-GAAP performance measure that is defined in the accompanying tables and is reconciled to net loss, the most directly comparable GAAP measure, in the tables below. We present reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures in the tables below. About QT Imaging QT Imaging Holdings, Inc. (Nasdaq: QTI) is a medical device company engaged in the research, development and commercialization of innovative imaging systems using low frequency sound waves. QT Imaging Holdings, Inc. strives to improve global health outcomes. Its strategy is predicated upon the fact that medical imaging is critical to the detection, diagnosis, and treatment of disease and that it should be safe, affordable, accessible, and centered on the patient’s experience. For more information on QT Imaging Holdings, Inc., please visit the Company’s website at www.qtimaging.com. Breast Acoustic CT™ is a trademark of an affiliate of QT Imaging Holdings, Inc. Forward-Looking Statements This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act of 1934, as amended. Forward-looking statements generally are accompanied by words such as "believe," "may," "will," "estimate," "continue," "anticipate," "intend," "expect," "should," "would," "plan," "predict," "potential," "seem," "seek," "future," "outlook," and similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding any express or implied statements or guidance regarding current or future financial performance and position, including shipments to the Gulf region, QTI's Breast Acoustic CT scanner, including its commercialization, manufacturing (including large scale) and further development, the evolution of QT Imaging into a scalable imaging platform combining proprietary hardware, advanced image reconstruction software, and AI-powered clinical decision tools to address the growing need for precision in breast health, the QTI Cloud Platform and SaaS pricing model, performance of software enhancements, plans for QT Imaging, new product development and introduction, product sales growth and projected revenues, QT Imaging’s industry, future events, and other statements that are not historical facts. Forward-looking statements involve certain risks and uncertainties, and actual results may differ materially from those discussed in any such statement. These statements are based on various assumptions, whether or not identified herein, and on the current expectations of QT Imaging's management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on by you or any other investor as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond our control. These forward-looking statements are subject to a number of risks and uncertainties, including those relating to: the ability of the Company to sell and deploy QTI’s Breast Acoustic CT Scanner; the impact on military actions in the Gulf region on the Company’s ability to ship products to that region.; the ability to extend product offerings into new areas or products; the ability to commercialize technology; unexpected occurrences that deter the full documentation and "bring-to-market" plan for products; trends and fluctuations in the industry; changes in demand and purchasing volume of customers; unpredictability of suppliers; the ability to attract and retain qualified personnel and the ability to move product sales to production levels; changes in domestic and foreign business, market, financial, political, and legal conditions; the uncertainty of projected financial information; delays caused by factors outside of our control; changes in our ability to successfully receive purchase orders and generate revenue under our existing contracts with partners and distributors; our ability to realize the benefits of the strategic partnerships; the rollout of the business and the timing of expected business milestones; the effects of competition on our future business; our ability to obtain and access financing in the future; our ability to pay our debt obligations as they come due; and those factors discussed in the Company’s reports and other documents filed with the SEC, including under the heading "Risk Factors." If any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that QT Imaging presently does not know or that QT Imaging currently believes are immaterial which could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect QT Imaging's expectations, plans, or forecasts of future events and views as of the date of this release. QT Imaging anticipates that subsequent events and developments will cause QT Imaging's assessments to change. However, while QT Imaging may elect to update these forward-looking statements at some point in the future, QT Imaging specifically disclaims any obligation to do so. Accordingly, undue reliance should not be placed upon the forward-looking statements. View source version on businesswire.com: https://www.businesswire.com/news/home/20260513639808/en/ Contacts Investors Alliance Advisors IR Bruce Voss [email protected] 310-691-7104 Media Alliance Advisors IR Fatema Bhabrawala [email protected] 647-620-5002