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.
This figure includes $4.5 million in net proceeds from a private investment in public equity (PIPE) transaction.
Management stated that current capital, combined with the expected inflows from the NeuroNOS deal, extends the company’s operational runway into the first half of calendar 2027.
Looking ahead, Beyond Air reaffirmed its fiscal 2026 revenue guidance of $8 million to $10 million.