Beyond Air (NASDAQ:XAIR) reported a surge in third-quarter revenue and a strategic pivot toward its core respiratory business, announcing a binding agreement to divest its autism and neuro-oncology subsidiary to XTL Biopharmaceuticals.
The Garden City, New-York based medical device company saw revenue for the fiscal third quarter ended Dec. 31, 2025, jump 105% year-over-year to $2.2 million.
While the company reported a net loss of $7.3 million, or $0.85 per share, the top-line growth reflects accelerating hospital adoption of its LungFit PH system, a cylinder-free nitric oxide delivery device that extracts the gas from ambient air.
The financial results were paired with a major corporate update: a binding letter of intent for XTL Biopharmaceuticals to acquire 85% of Beyond Air’s NeuroNOS subsidiary.
Under the terms, Beyond Air could receive up to $32.5 million in total consideration, including upfront cash and milestones, alongside a 19.99% equity stake in XTL.
The move allows Beyond Air to shed the R&D costs of the neuro-focused platform while retaining significant upside in its clinical progress.
Beyond Air also fortified its balance sheet during the period, reporting pro forma cash of $22.3 million.