QT Imaging (NASDAQ:QTI) lowered its 2026 revenue outlook after conflict-related shipping disruptions delayed deliveries to customers and distribution partners in Saudi Arabia and the United Arab Emirates, even as third-quarter sales rose 75%.
The breast imaging company now expects full-year revenue of approximately $34 million, down from its previous forecast of approximately $39 million. Chief Financial Officer Jay Jennings said the U.S. scanner shipment plan was unchanged, but the timing of Middle East shipments and associated revenue recognition remained uncertain.
QT Imaging reported third-quarter revenue of $7.3 million, up from $4.2 million a year earlier, as it sold 15 Breast Acoustic CT scanners compared with nine in the prior-year quarter. For the first nine months of 2026, revenue rose to $21.3 million from $10.7 million, while scanner sales increased to 43 from 23.
Medicare decision supports hospital strategy
Chief Executive Officer Dr. Raluca Dinu said a recent Medicare decision was an important step toward broader clinical adoption. The Centers for Medicare & Medicaid Services reversed an earlier proposed non-payment decision and established separate Medicare hospital outpatient payment for diagnostic QTscan examinations effective Jan. 1, 2027, she said.
The company’s dedicated billing code, 1079T, took effect Oct. 1. Dinu said the Medicare payment applies to medically necessary, physician-ordered diagnostic examinations, not routine screening. She added that QT Imaging does not have screening clearance comparable to mammography.
QT Imaging is distributing a coding and billing guide to providers and has begun discussions with payers about expanding reimbursement. The company is also pursuing clinical research to demonstrate the technology’s diagnostic value and support broader coverage, Dinu said.
Separately, distribution partner NXC Imaging secured a national group purchasing agreement with Premier in October. Dinu said the agreement provides access to nearly 4,400 hospitals and health systems through pre-negotiated pricing and purchasing terms. The company’s focus is now on converting that access into orders and installations.
QT Imaging has also started a radiologist training program with two established groups. Approximately 13,000 women have been imaged using its Breast Acoustic CT technology, Dinu said.
Higher expenses widen operating loss
Third-quarter gross profit rose to $3 million from $1.8 million a year earlier. Gross margin was 41.3%, compared with 41.2% in the second quarter of 2026.
Operating expenses increased to $5.5 million from $3.5 million a year earlier as the company added commercial personnel and advanced clinical work. Research and development expenses rose to $1.7 million from $0.9 million, while selling, general and administrative expenses increased to $3.8 million from $2.5 million. The operating loss widened to $2.4 million from $1.7 million.
Net loss narrowed to approximately $297,000, or $0.02 per share, from $4.6 million, or $0.47 per share, a year earlier. Jennings said the improvement substantially reflected changes in the fair value of financial liabilities, including a $2.4 million non-cash gain related to an earnout liability, compared with a $2.2 million expense in the prior-year quarter.
Net cash used in operating activities was $2.2 million for the quarter, compared with $0.9 million a year earlier. Cash, cash equivalents and restricted cash totaled approximately $8.4 million at Sept. 30, down from approximately $11 million at June 30.
Asked about the company’s cash runway and potential capital needs, Dinu said QT Imaging did not currently plan to raise money in the market. Management would assess how the year ends before deciding whether capital is needed for accelerated growth, she said.
Middle East delays and sales plans
Despite the shipping uncertainty, Dinu said on the call that QT Imaging expects to sell 25 scanners in the fourth quarter, including 17 in the U.S. and the remainder in the Gulf Cooperation Council region. She said the company plans to ship delayed scanners as soon as it can, but did not commit to a date.
The company received its first commercial order in the Gulf region from American Hospital Dubai through distributor Al Naghi Medical. It also received scanner regulatory approvals in Bahrain and Qatar and registration in Israel, where it is working toward a scanner placement and clinical collaboration with Rambam Health Care Campus.
In the U.S., three senior sales leaders report to Chief Commercial Officer Satrajit Misra. Dinu said management would assess orders and backlog during the first two quarters of 2027 before deciding whether to add sales managers.
QT Imaging’s current domestic distribution agreement with NXC Imaging runs through the end of 2026. Dinu said discussions with NXC and Canon Medical Systems USA about a future relationship were progressing, but a new agreement had not been finalized.
Dinu also said she believes U.S. business will support 25% year-over-year revenue growth, citing the opportunity created by Medicare payment and hospital access. She said QT Imaging hopes to obtain European regulatory approval around the middle of 2027, after prioritizing the U.S. and Gulf markets.
On the manufacturing side, QT Imaging completed a move to an approximately 22,000-square-foot facility in Petaluma, California, which Dinu said approximately doubled scanner manufacturing capacity. The company also completed its first routine Food and Drug Administration inspection in July with no Form FDA 483 observations, she said.
About QT Imaging (NASDAQ:QTI)
QT Imaging Holdings, Inc. (NASDAQ:QTI) is a medical technology company that develops advanced ultrasound-based imaging systems. Its technology is designed to create three-dimensional images of human tissue without using ionizing radiation. The company’s principal product is the QTscan, an automated breast-imaging system that uses sound waves to capture images without breast compression. The system is intended to support breast imaging and may be particularly relevant for evaluating breast tissue that can be difficult to assess with conventional mammography.
