QT Imaging (QTI) Q3 2026 Earnings Call Transcript

DATE

Nov. 10, 2026

CALL PARTICIPANTS

• Investor Relations - Tirth Patel
• Chief Executive Officer - Dr. Raluca Dinu
• Chief Financial Officer - Jay W. Jennings

TAKEAWAYS

• Revenue -- $7.3 million, up 75% primarily due to the sale of 15 breast acoustic CT scanners compared to nine units a year ago.
• Nine-Month Revenue -- $21.3 million, compared to $10.7 million in the first nine months of 2025.
• Scanner Sales -- 15 units in the third quarter, representing a 67% increase from the prior-year period.
• Nine-Month Scanner Sales -- 43 units, compared to 23 units in the first nine months of the previous year.
• Gross Profit -- $3.0 million, compared to $1.8 million in the third quarter of 2025.
• Gross Margin -- 41.3%, remaining consistent with the 41.2% reported in the second quarter of 2026.
• Operating Expenses -- $5.5 million, up from $3.5 million a year ago due to expanded commercial personnel and increased clinical research activities.
• Research and Development -- $1.7 million, compared to $900,000 in the prior-year quarter reflecting higher professional services and clinical study costs.
• Selling, General and Administrative -- $3.8 million, up from $2.5 million a year ago primarily due to higher compensation and benefits.
• Operating Loss -- $2.4 million, compared to a loss of $1.7 million in the third quarter of 2025.
• Net Loss -- $297,000, or $0.02 per share, which included a $2.4 million noncash gain from the change in fair value of the earnout liability.
• Cash and Cash Equivalents -- $8.4 million as of Sept. 30, 2026, including restricted cash, compared to $11.0 million on June 30, 2026.
• Accounts Receivable -- $7.3 million, which management reported was collected in full by the end of October.
• Inventory -- $11.5 million as of Sept. 30, 2026, compared to $5.0 million as of Dec. 31, 2025.
• Full-Year Revenue Guidance -- approximately $34 million, revised downward from the previous outlook of approximately $39 million.
• Medicare Reimbursement -- APC 5522, assigned to diagnostic scans under CPT code 1079T with payment status indicator S effective Jan. 1, 2027.
• Manufacturing Capacity -- doubled, following the relocation of manufacturing operations to a 22,000-square-foot facility in Petaluma, California.
• Net Cash Used in Operating Activities -- $10.7 million for the first nine months of 2026, compared to $5.9 million in the same period last year.
• Clinical Adoption Milestone -- 13,000 women, representing the total number of patients who have now been imaged using the company's technology.
• Middle East Logistics -- zero committed shipment dates, reflecting uncertainty regarding regional shipping routes and conflict in the Gulf region.

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RISKS

• Jennings stated, "The revision reflects shipment delays to our distribution partners in Saudi Arabia, and The United Arab Emirates. Arising from the conflict in The Middle East and severe disruption to the region's normal shipping routes," leading to a downward revision in 2026 revenue guidance.
• Jennings noted that "the timing of Middle East shipments and any associated revenue recognition remain uncertain" due to regional instability and the effective closure of the Strait of Hormuz to commercial traffic.

SUMMARY

QT Imaging Holdings, Inc. (NASDAQ:QTI) reported third-quarter revenue growth of 75% driven by increased scanner sales while adjusting its full-year 2026 outlook due to logistics disruptions in the Middle East. Management achieved a critical regulatory milestone with the Centers for Medicare and Medicaid Services (CMS) establishing separate hospital outpatient payment pathways for diagnostic scans. The company is transitioning its commercial strategy through a strengthened direct sales force and has expanded its domestic manufacturing capacity to support scaled production. International expansion continues with new regulatory authorizations and the first commercial order in the Gulf Cooperation Council region, although regional conflict has impacted short-term shipment schedules.

• Dinu stated, "This decision removes a significant reimbursement uncertainty and establishes a clear Medicare hospital outpatient payment pathway for medically necessary diagnostic QT scan examination."
• The company completed its first routine FDA inspection in July 2026 with zero Form FDA 483 observations, confirming regulatory compliance at its manufacturing facilities.
• Management secured a national group purchasing agreement with Premier Inc., providing procurement access to approximately 4,400 hospitals and health systems in the United States.
• Dinu noted that multisite research demonstrated less than 1% variability in speed of sound measurements, stating this supports the "operator independent nature" of the automated imaging modality.
• The company secured its first commercial order in the Gulf Cooperation Council region with American Hospital Dubai, which Dinu noted was the first healthcare institution in the Middle East to join the Mayo Clinic Care Network.
• Management is finalizing the 2027 commercial structure as the current domestic distribution agreement with NXC Imaging expires at the end of December 2026.

INDUSTRY GLOSSARY

• APC (Ambulatory Payment Classification): The United States government's method of paying for facility outpatient services for the Medicare program.
• Breast Acoustic CT: A radiation-free and compression-free 3D imaging technology that utilizes low-frequency sound waves for high-resolution breast tissue visualization.
• CPT Category III Code: A set of temporary codes for emerging technology, services, and procedures used for tracking and data collection.
• Form FDA 483: A report issued by the FDA at the conclusion of an inspection when investigators have observed conditions that may constitute violations of regulatory requirements.
• GPO (Group Purchasing Organization): An entity that helps healthcare providers realize savings by aggregating purchasing volume to negotiate discounts with manufacturers.
• GCC (Gulf Cooperation Council): A regional political and economic union consisting of Arab states in the Persian Gulf region.
• Precision Pathway: The company's cloud-based platform designed for image processing and quantitative analysis of breast tissue data.

Full Conference Call Transcript

Operator: Welcome to the QT Imaging Third Quarter 26 Financial Results Conference Call. Should you need assistance, please signal conference specialist by pressing the star key followed by 0. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then 1 on your telephone keypad Please note, today's event is being recorded. I would now like to turn the conference over to your host, Turf Patel with Investor Relations. Please go ahead.

Turf Patel: This is Turf Patel with CORE IR. Thank you for participating in today's call. Joining me from QT Imaging are Dr. Raluca Dinu, Chief Executive Officer and Jay W. 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. These relate to, among other things, commercialization and manufacturing of the breast acoustic CT scanner the QTI Precision Pathway Cloud Platform software development reimbursement and clinical evidence initiatives, commercial distribution, international shipments, product sales growth, and projected revenue, including the 2026 revenue outlook. 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, 11/10/2026.

QT Imaging disclaims any obligation except as required by law to update or revise any financial or operational projections or other forward looking statements, whether because of new information, future events or otherwise. We will also refer to certain non GAAP measures during the call. The definitions of these measures and reconciliations to the most directly comparable GAAP measures are available in today's earnings release. And now, I would like to turn the call over to Dr. Raluca Dinu. Raluca?

Raluca Dinu: Thank you, Turf. Good afternoon, everyone. Our third quarter results demonstrate the progress we are making in commercializing our breast acoustic CT imaging modality. Revenue was $7.3 million an increase of 75% year over year, and we sold 15 scanners compared to 9 a year ago. For the first 9 months, revenue reached $21.3 million compared to $10.7 million last year. And the scanner sales increased to 43 million from 2023 These results reflect meaningful growth. Our next responsibility is to translate that growth into broader clinical adoption. I want to discuss today our execution in 4 areas. 1, U.S. Commercialization. 2, clinical adoption and reimbursement; 3, technology and operational scale and 4, international expansion and financial discipline.

First, commercial execution. Our U. S. Commercial business continued to gain momentum during the quarter supported by a stronger direct sales organization, a significantly expanded pipeline of qualified opportunities nationwide, and the receipt of our purchase orders directly from customers across the country. Strengthened our commercial leadership structure with the 3 sales leaders now reporting into our Chief Commercial Officer, Satrajit Misra. This expanded organization is improving our ability to engage customers, advance opportunities through the sales cycle, and convert growing market interest into purchase orders. These developments represent important progress in building a scalable U. S. Commercial operation and expanding our market presence.

In parallel, we continue working with our distribution partner NXT Imaging, a subsidiary of Canon Medical Systems USA. To improve customer placements, strengthen service execution and drive greater commercial effectiveness. As we finalize our 2027 commercial structure, we are focused on accelerating sales growth, strengthening customer relationships, and establishing clear accountability across both our direct sales organization and the distribution channel. Looking ahead to 2027, our current domestic distribution agreement with NXC Imaging runs through the end of this year. We are engaged in constructive discussions with NXT and Canon Medical Systems USA regarding our future commercial relationship and scanner with the Precision Pathway SaaS platform purchase commitments.

While the new agreement has not yet been finalized, we are encouraged by the progress and see opportunities to strengthen collaboration as we expand into hospitals and imaging centers. An important part of our U. S. Commercial strategy is expanding access to large hospital networks and integrating healthcare systems. We also made significant progress in expanding our access to United States hospitals and health systems through Premier Inc. 1 of the nation's largest health group purchasing organization or GPO. Our breast acoustic CT technology was recognized at Premier Supplier Innovation Celebration, following evaluation by a national committee of clinicians and healthcare supply chain experts.

Building on this recognition in October, our distribution partner NXT Imaging secured the national group purchasing agreement with Premier. Providing access to nearly 4400 hospitals and health systems nationwide. The agreement establishes pre negotiated pricing and purchasing terms simplifying procurement for participating providers. This significantly expands our commercial reach. Our focus now is to convert this access into purchase orders and scanners and scanner installation. Second, clinical adoption and reimbursement. On November 4, just a few days back, we achieved a major reimbursement milestone when the Centers for Medicare and Medicaid Services or CMS reverted earlier proposed non payment decision and established separate Medicare hospital outpatient payment for diagnostic QT scan examination effective January 1, 2027.

Under the final 2027 Medicare rules CMS assigned our dedicated CPT billing code 1.08 thousandT to ambulatory payment classification 5520. With payment status indicator s. Importantly, CMS recognized that physician ordered QT scan examination addressing specific diagnostic findings qualify under Medicare's existing diagnostic ultrasound coverage framework. Together with the October 1 implementation of our dedicated CPT billing code, this decision removes a significant reimbursement uncertainty and establishes a clear Medicare hospital outpatient payment pathway for medically necessary diagnostic QT scan examination. This is a very meaningful commercial milestone for QT imaging. Hospitals now have both a dedicated billing code and an established Medicare payment classification strengthening the business case for adopting our breast imaging technology.

Our focus is now on translating this progress into scanner installations and clinical adoption. We have developed a comprehensive coding and billing guide to support hospitals and imaging providers. While continuing our engagement with Medicare and commercial payers expanding the clinic and economic evidence needed for broader coverage. Medicare payment applies to medically necessary physician order examination rather than routine screening. We will continue pursuing additional reimbursement opportunities related to our SaaS platform and AI software improvements. An essential part of our commercial execution is ensuring that imaging centers and hospitals have access to breast radiologists properly trained to interpret the QT scan. We have initiated a structured training program with 2 established radiology groups under the leadership of Dr.

Mary Yamashita. These relationships will expand our clinical reading capacity and support the adoption of Breast Acoustic CT imaging modality across our growing installed base. Approximately 13,000 women have now been imaged using QT Imaging Breast Acoustic CT technology. Making a significant milestone in clinical adoption and reinforcing the growing real world foundation for advancing quantitative breast imaging. Equally important, our multisite repeatability reproducibility research demonstrated less than 1% variability in speed of sound measurements under the conditions studied. This finding support the operator independent nature of our automated imaging modality, a significant advantage over conventional handheld ultrasound, where image acquisition and measurements are highly dependent on operator technique and experience.

Our payer strategy builds on the newly established Medicare reimbursement pathway for medically necessary diagnostic scan examinations and focuses on the following clinical application. 1, diagnostic evaluation of women with dense breasts who require additional imaging following mammography. Diagnostic evaluation of high risk women, particularly those who face barriers to breast MRI. 2, quantitative monitoring of response to adjuvant cancer therapy and 3, beyond these applications, we see a significant opportunity to improve participation in the breast cancer screening. More than 30 percent of eligible women are not up to date with recommended screening. Our radiation free, compression-free technology has the potential to help bring these women back into the standard of care.

Although routine screening is not currently covered under Medicare. We will work diligently to generate the clinical evidence to pursue the necessary regulatory approvals and expand reimbursement pathway to make QTscan accessible to more women particularly those who face barriers to conventional breast imaging. We are aligning our clinical research programs with these priorities, working with our clinical partners to demonstrate QT scans incremental diagnostic value, potential to reduce unnecessary biopsies, ability to provide quantitative biomarkers for treatment monitoring. Our objective is to generate the clinical and economic evidence needed to expand payer coverage strengthen physician adoption and accelerate broader patient access. Third, technology and operational scale. We are building an integrated breast imaging platform, not simply a manufacturing scanner.

Our breast acoustic CT technology provides radiation free compression free 3D imaging and quantitative information derived from the acoustic properties of breast tissue. The QTI Olea Viewer supports clinical interpretation while QTI precision pathway is our cloud platform for image processing and quantitative analysis. We continue to advance our reconstruction software, improve reflection quality and streamline radiologist workflows. These investments are designed to strengthen clinical performance and support the scalability of our technology. We strengthened our scientific leadership in July with the appointment of Dr. Julia Albright as chief science officer. Her role is to connect our research, product development and clinical evidence priorities.

We also completed the relocation of our headquarters and manufacturing operations to a new approximately 22 thousand-square-foot facility in Petaluma, California. Under the leadership of our Chief Operating Officer, Steve Choate. This expansion more than doubles our available space and has approximately doubled our scanner manufacturing capacity. While significantly reducing our lease cost per square foot. The new facility allows us to streamline production workflows, improve operational efficiency and strengthen quality control as manufacturing volumes increase. Importantly, this investment positions QT Imaging to support growing demand in the U. S. And the international markets as we scale our commercial operations in 2027 and beyond. Execution at scale depends on quality.

In July, we completed our first routine FDA inspection with 0 Form FDA 483 observations. This is an important result for our team and the systems we have put in place. Fourth, international expansion and financial discipline. In July, we have received regulatory registration from Israel's Ministry of Health enabling commercialization in the market. We are working toward a scanner placement and clinical collaboration with Rambam Healthcare Campus focused on women with hereditary breast cancer risk. Our international expansion a major milestone with our first commercial order, in the Gulf Cooperation Council (GCC) region, secured with American Hospital Dubai through our distribution partner Al Naghi Medical.

American Hospital Dubai was the first healthcare institution in The Middle East to join the Mayo Clinic Care Network. Operate the multidisciplinary breast institute integrating advanced imaging breast surgery, oncology, pathology and high risk patient care. Beyond this first commercial order, we intend to work closely with American Hospital Dubai and Al Naghi Medical on joint marketing initiatives physician education and clinical research evaluating the performance patient acceptance and quantitative tissue measurement. The clinical need in The UAE is significant. A 2023 study found that only 23 percent of surveyed women had undergone mammography, while separate research reported a median breast cancer diagnosis age of 48. While 50% presenting with locally advanced or metastatic disease.

Women die of breast cancer in UAE 12 years earlier than in the United Arab Emirates. We also received regulatory approval for our Breast Acoustic CT scanner in Bahrain and Qatar. Further expanding our authorized market presence in the Gulf region. Together with our first commercial order from American Hospital Dubai, this milestone strengthens our foundation for commercial expansion across the GCC. The Middle East conflict and the disruption affected regional logistics has delayed anticipated shipments to our customers and distribution partners in Saudi Arabia and The UAE. We are maintaining and further developing those relationships but we cannot responsibly commit to a shipment date while conditions remain uncertain.

Beyond these commercial and operational milestones, October was also an important opportunity to reinforce why we are building this company. On October 2, we had the honor of ringing the NASDAQ closing bell to mark Breast Cancer Awareness Month. Just days after World Breast Cancer Day. I emphasize the principle at the heart of QT imaging. For decades, women have been asked to adapt to breast imaging technology We believe technology should adapt to women. Patient comfort matters because adherence to screening matters. And women with dense breast deserve better imaging options. Our vision is a future of breast imaging that is multimodal, quantitative and personalized. The Nasdaq ceremony celebrated how far we have come.

But our responsibility now is to bring this technology to more physicians more communities, and more women around the world. We have substantially grown our revenues strengthened our commercial organization, substantially advanced our reimbursement strategy and our manufacturing capabilities. We are building the infrastructure to bring QT breast acoustic CT imaging technology to more physicians and more women. While maintaining our focus on commercial execution, clinical adoption and financial discipline. With that, I will turn the call over to Jay to review our financial results. Jay?

Jay W. Jennings: Thank you, Raluca, and good afternoon, everyone. Revenue for the third quarter of 2026 was $7.3 million up 75% from $4.2 million the third quarter of 2025. The increase was primarily attributable to sales of 15 breast acoustic CT scanners in the 2026 quarter. Compared with 9 scanners in the prior year period. For the first 9 months, revenue was $21.3 million compared with $10.7 million a year ago. Gross profit for the quarter was $3 million compared with $1.8 million a year ago. Gross margin was 41.3% compared with 41.2% in the second quarter of 2026.

Total operating expenses for the quarter were $5.5 million compared with $3.5 million in the third quarter of last year, and $4.9 million in the second quarter of 2026. As we discussed on our last call, we expected operating expenses to increase as we added commercial personnel and advanced clinical work. Third quarter research and development expense was $1.7 million compared with $900,000 a year ago. Selling general and administrative expense was $3.8 million compared with $2.5 million in the prior year quarter. Operating loss for the third quarter was $2.4 million compared with $1.7 million in the year ago period.

Net loss was approximately $297,000 or $2 per share compared with a net loss of $4.6 million or $0.47 per share in the third quarter of 2025. The smaller reported net loss reflects in substantial part changes in the fair values of financial liabilities. In particular, the quarter included a $2.4 million non cash gain related to the earn out liability. Compared with a $2.2 million expense in the prior year quarter. Net cash used in operating activities during the third quarter of 2026 was $2.2 million compared with $900,000 during the third quarter of 2025. And $4.8 million during the second quarter of 2026.

For the first 9 months of 2026, net cash used in operating activities totaled $10.7 million compared with $5.9 million in the prior year period. As of September 30, we had cash, cash equivalents and restricted cash of approximately $8.4 million compared with approximately $11 million on June 30. Now turning to our full year 2026 outlook. We are revising our revenue expectation to approximately $34 million compared with our previous guidance of approximately $39 million The revision reflects shipment delays to our distribution partners in Saudi Arabia, and The United Arab Emirates. Arising from the conflict in The Middle East and severe disruption to the region's normal shipping routes. Our U. S. Scanner shipment plan is unchanged.

We remain engaged with our partners with the timing of Middle East shipments and any associated revenue recognition remain uncertain. We believe it is appropriate to reflect those conditions on our current outlook. Please refer to our third quarter earnings release and Form 10 Q for more information about the quarter's results liquidity and risk factors. And now I will turn the call back to Raluca.

Raluca Dinu: Thank you, Jay. In summary, our progress reflects meaningful advances across the business. 1, commercial growth. is a strong year over year revenue growth with 15 Breast Acoustic CT scanners sold in the third quarter and 43 during the first 9 months of 2026. 2, U.S. commercialization, a strengthened direct sales organization and expanding pipeline of qualified opportunities and continued collaboration with NXC Imaging and Canon Medical Systems USA to accelerate customer placement. 3, reimbursement. CMS established a separate Medicare hospital outpatient payment for diagnostic QT scan examinations, effective January 1, 2027, building on the implementation of our dedicated CPT billing code in October. 4, clinical adoption.

We expanded radiologist training and ongoing clinical research programs aligned with our payer strategy focusing on supplemental breast imaging, high risk diagnostic applications, cancer treatment response monitoring and re-attraction of women needing breast screening and the standard of care. 5, international expansion. Our first commercial order from American Hospital Dubai regulatory approvals in Israel, Bahrain and Qatar. And progress towards clinical collaboration in this market. 6, operational execution. The successful relocation to our expanded Petaluma headquarters and manufacturing facility doubled our capacity to support future growth. 7, technology innovation. Continued advancement of our integrated breast acoustic CT platform combining quantitative imaging improved reconstruction software, the QTI Olea Viewer and the QTI Precision Pathway Cloud Capabilities.

As we approach year-end, Our Priorities Are Clear. Accelerate U. S. Commercial sales, convert our growing pipeline into purchase orders and scanners installations, expand clinical adoption and continue building the evidence to support broader reimbursement. While regional instability has delayed certain shipments to our Middle East customers, and distribution partners, our United States commercial strategy remains on track. We are focused on delivering strong execution through the remainder of 2020 and positioning QT Imaging for continued growth in 2027. Thank you for your interest in QT Imaging and for your continued support. With that, we are ready to take questions. Operator?

Operator: Thank you. We will now begin the question and answer session. To ask a question, you may press star then 1 on your telephone keypad. If you are using a speakerphone, please pick up your handset before pressing the keys. To assemble our roster. And today's first question comes from Jeffrey Cohen at Ladenburg Thalmann. Please go ahead.

Jeffrey Cohen: Hello Raluca and Jay. Thanks for taking our questions. A couple from our end. So firstly, could you talk about Q4 as far as placement and expectations? I know that based upon your commentary, you are anticipating 27 placements. Wondering beyond MHC, where you see the balance of those placements emanating from?

Raluca Dinu: Hi Jeffrey. Thank you so much for being with us in the call. We do expect 25 scanners sold in 2024 with 17 in the United States and the rest of them in GCC area.

Jeffrey Cohen: Okay. Got it. And could you talk about anticipated cost of goods for Q4? I think that probably have already assembled some scanners and would we see on a percentage basis COGS for Q4 decreasing on a percentage basis?

Raluca Dinu: Yes. COGS will add so first of all, the as you know, the gross margin for United States for our scanners is 41% and the gross margin for the scanners are sold in outside The United States in the GCC area as the price is higher, the COGS is lower. So we do expect that the overall gross margin for the Q4 to increase rather than be exactly as we have it today for United States?

Jeffrey Cohen: Okay. Got it. And then lastly, could you talk about the US commercial organization as it stands now? With the recent ads? How many folks? And how are you on characterizing by, geography?

Raluca Dinu: Yes. Very senior sales VPs reporting into the commercial. Chief commercial officer, Satajit Misra. 2 of them covering the East Coast, 1 covering the West Coast, and that was actually absolutely an incredible progress for us to start addressing directly the customers, Jeffrey, on both coasts. Obviously, the middle of the country is split equally between the sales managers of the 2 regions. But we are bringing in POs ourselves and we are obviously working collaboratively with the NXT Imaging making sure that the sales channel is kept without noise. But very happy to have them part of the team.

Jeffrey Cohen: Perfect. Thanks for taking our questions.

Raluca Dinu: Thank you so much, Jeffrey. Appreciate it.

Operator: Thank you. Thank you. And our next question today comes from Matt Hewitt at Craig Hallum Capital Group. Please go ahead.

Analyst: Good afternoon. Thanks for taking the questions. Maybe first up, congratulations on the CMS decision. I am just curious, what are the next steps from a reimbursement perspective Private payers, other portions of the government. Could you walk us through that, please?

Raluca Dinu: Matt, thank you so much for joining. Very much appreciated. Yes. Big news from CMS. it is great to see. The reimbursement and news for QT scan as the first time in the history of this company and it is an extraordinary news for us. The next would be the following. We will make sure that everybody is up to speed with the content of our billing and coding guide to make sure that the each 1 of our clinics is aware of the fact that they can, that their clinics can get the reimbursement from CMS.

We have already started discussions with the payers to make sure that as we get in 2027, they expand that reimbursement to other payers now. A lot ahead of us, but Medicare payment for this technology is an incredible step. Hospitals can be addressed now with QT imaging technology imaging modality directly as much as all the other imaging modalities.

Analyst: Got it. that is helpful. And then regarding the Middle East, obviously, a fluid situation. But I am curious, once the shipping lanes do reopen, will there be a catch up period? Meaning, you were supposed to ship, 5 this quarter, and 5 next quarter, would you ship 10 as soon as things open or will you just get back to that kind of expected number?

Raluca Dinu: So, Matt, our plan is to shift the scanners that are lagging behind as soon as we can do that. We have very good relationships in both Saudi Arabia, UAE, obviously through the distributor, but directly with the customers too. The moment that we see the shipments happening, we will start addressing all those customers that are waiting for our scanners.

Analyst: Got it. And then maybe 1 final 1. Regarding the US internal or direct sales team, As you look at fiscal 27, I am sure you are just starting that planning now. But as you look at fiscal 27, is it your expectation that you will be adding resources to that team or you want to kind of get these 3 up and running first? Thank you.

Raluca Dinu: So, Matt, good question. So first of all, this. The 3 senior sales managers are doing the great job, and they will be covering both Q1 and Q2 of next year and they already have a very strong backlog for us to start selling into 2027. Obviously, discussions with the NXT Imaging and Canon Medical Systems USA were progressed very well. And we are going to get the news to the market the moment that we have final terms for our agreement.

Are we going to increase our sales team I strongly believe that we have to see the first 2 quarters in 27, how we bring in the orders and how the backlog looks like to decide if we are going to increase the number of sales managers than in the United States.

Analyst: Got it. Thank you. Appreciate it.

Raluca Dinu: Thank you, Matt.

Operator: Thank you. And our next question today comes from Pat McCann at D. Borel Capital. Please go ahead.

Analyst: Hi, thanks for taking my questions. Just a couple here. First, I wanted to touch on the cash balance of, I believe, around $8 million or so at the end of quarter. And then the receivables that you collected in October What would be your updated kind of expectations around your cash runway How has that changed at all in terms of your potential need for capital and kind of how you view your ability to kind of continuing to progress with the cash you have on hand right now?

Raluca Dinu: So thank you so much for being with us. Very much appreciated. Wonderful to have you all with us. The. We pushed out some of the scanners revenue, not necessarily depleting our cash. We are very careful about our cash and we do make sure that we stay within the limit of our balance sheet. Without doubt. Do we plan to go out to the market for money not for now. We do feel that we have to close Q4 and see how the year ends up, and then we will decide if there is a need for accelerated growth. For now, we are on solid ground. And thank you so much for asking.

Analyst: Thanks for that. And then my other question just happens to do with the issue in The Middle East. I just wanted to drill in a little bit on that. You know, it is about, I think, what, $5 million in revenue that you kind of, is being accounted for in from The Middle East in the kind of the revision that you did for full year. Wondering, given that it is hard for anyone to know when that situation will be resolved. Internally, when you look at 2027, could you give any sense of how significant you know, maybe The Middle East and those channels would be in your internal projections?

Just trying to get a sense of what the impact could be if this situation persists for a longer term?

Raluca Dinu: Yes, very good question. First of all, remember this, the CMS reimbursement opens up the business for QT imaging to the hospitals. For us, there is a segment that we did not even project in 2027. So it is a segment that we really believe will open up doors for United States business. We do have scanners planned for GCC, obviously, but it is a very important segment for us. But we do believe that the business in the United States will take us to 25% growth year over year in revenue.

Analyst: Excellent. Thank you so much. that is all I had. Appreciate it. I appreciate it.

Raluca Dinu: Thank you so much for great questions.

Operator: Thank you. And our next question today comes from Benjamin Haynor at Lake Street Capital Markets. Please go ahead.

Benjamin Haynor: Good afternoon. Thanks for taking the questions and congrats on the CMS outcome here recently.

Raluca Dinu: Hi, Benjamin. Thank you so much.

Benjamin Haynor: Yeah. No problem. First off for me, just on the medically necessary diagnostic language, is that something that, applies to kind of all women with dense breasts, those >40 with a family history? What kind of group is that. Does that kinda total up to?

Raluca Dinu: Yes. So it is all women that come to sorry. Benjamin, can you hear me?

Benjamin Haynor: I can. Yeah. There was some echo on the line.

Raluca Dinu: Yeah. There was some echo on the line. Sorry. So it is diagnostic imaging. it is supplemental imaging for everybody that needs it. The. it is not screening. And it is like we always discussed. We do not have clearance for screening. Like mammography, for example, has. But we do have clearance for all women that need this imaging modality for diagnostics, which is obviously a lot. Large category of women. As we know, Benjamin, 50% of women in the United States have dense breast. The cancers are hiding in dense breasts. The cancers are hiding in dense breasts that are being imaged by mammography. So this is where we shine.

Benjamin Haynor: Yeah. that is helpful. And then it looks like the potential hospital market with the Premier agreement, not too long ago that seems to obviously fit well with the CMS development. Have the sales folks that you have onboarded now, have they already started to have conversations with this channel? And if so, how are they going so far?

Raluca Dinu: Absolutely. Our direct sales force and NXT Imaging, our distributor partner in United States, everybody is extremely excited about the reimbursement news from CMS. Definitely the relationship with Premier. We have a big year ahead of us. So we will we will put our head down and execute as we have done until now.

Benjamin Haynor: Okay. Got it. And then any plans for other international markets entering next year?

Raluca Dinu: So, Benjamin, first of all, we have properly develop Saudi Arabia, UAE, Israel, Bahrain, Qatar, And towards the middle of next year, we are going to get, hopefully, the regulatory approval in Europe. It is a lot to do within a year because, obviously, our main focus is United States. And as the second priority and the growing the business in GCC countries. And after that, Europe is next. But, yes, Benjamin, that is our focus.

Benjamin Haynor: Okay. Great. Well, thank you so much for the color and congrats on the progress. Bye.

Raluca Dinu: Thank you so much, Benjamin. Thank you so much for being with us.

Operator: Thank you. And that 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 so much. I want to thank everyone for joining us today and for your continued interest in QT Imaging. We remain focused on disciplined execution as we finish the year and prepare for 2027. We look forward to discussing our progress during our next conference call Until then, have a nice evening. Thank you so much.

Operator: Thank you. The conference has now concluded, and we thank you all for attending today's presentation. You may now disconnect your lines, and have a wonderful day.

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