Spectral AI Inc. Class A Common Stock (MDAI)

FairStock Score: 26/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for durable competitive advantages, conservative finances, and a margin of safety. Spectral AI is a 65-employee medical-device and artificial-intelligence company selling the DeepView System, a predictive wound-care diagnostic. The idea may have promise, but the financials do not yet show a durable business. In fiscal 2025, the year ended 2025-12-31, revenue was $19.6 million and net income was -$7.6 million, or -$0.29 per diluted share. In fiscal 2024, the year ended 2024-12-31, revenue was $29.6 million and net income was -$15.2 million. Revenue therefore fell sharply while losses narrowed, which reflects cost cuts more than a growing franchise. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $3.5 million and net income was -$4.2 million, or -$0.13 per diluted share. That is a -118.5% net margin. Trailing free cash flow was -$12.9 million, a -25.6% free-cash-flow yield on the $50.2 million market cap as of 2026-10-13. FairStock's price-based calculations as of the 2026-10-13 close show a P/E of -4.87, a Piotroski F-Score of 2/9, and an Altman Z-Score of -4.29. With losses in each of the last four years, the computed Peter Lynch category is none, because no category fits a company that has not yet earned a profit. A medical-device moat would have to come from adoption and pricing power, but these figures do not prove either. At $1.56, the market cap is roughly 2.6 times fiscal 2025 revenue, which is not a Graham bargain for a loss-making, cash-burning business. I would require evidence of durable revenue growth and a credible path to positive cash flow before calling this investment-grade.

In plain English: Spectral AI makes artificial-intelligence software that helps doctors evaluate wounds and predict whether they will heal. The business is still small and unprofitable, with declining revenue and negative cash flow, so its financial foundation looks weak. At $1.56 on 2026-10-13, the stock does not look cheap based on current sales and losses; it reflects hope about future adoption rather than proven profits.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer