MARPAI REPORTS SECOND QUARTER 2025 FINANCIAL RESULTS

Marpai Slashes Losses by Two-Thirds in Q2 2025, Paving the Way to Profitability.Operating Expenses Cut 70% as Turnaround Gains Traction , /PRNewswire/ -- Marpai, Inc. ("Marpai" or the "Company") (OTCQX: MRAI), a leader in innovative healthcare technology and Third-Party Administration (TPA) services, today announced second quarter 2025 results that mark a decisive step forward in its turnaround strategy. The Company delivered substantial quarterly year-over-year improvements across key financial metrics: Operating expenses down 70%, saving $9.9 million Operating loss reduced by 71% to $3.6 million, an $8.7 million improvement Net loss reduced by 66% to $4.4 million, also an $8.7 million improvement Net loss per share improved by $0.95 Net revenues down $2.5 million "We believe that our turnaround is real and accelerating," said Damien Lamendola, Chief Executive Officer of Marpai. "In just one year, we have significantly strengthened our financial position by cutting costs, streamlining operations, and staying laser-focused on profitability. We estimate that we are on track to deliver a profitable company in the first quarter of 2026. Our pipeline of new business for January 1st 2026 is strong, and we expect to make a major infrastructure investment in Q3 to further improve efficiency and client service. I believe deeply in Marpai's future. That's why I continue to invest my own personal capital in the company. While net revenues for the quarter were $4.7 million, down $2.5 million from the same quarter last year due to transitional impacts, the Company's sharp focus on cost control and operational discipline has resulted in a much leaner, stronger platform for growth." Webcast and Conference Call Information Marpai expects to host a conference call and webcast on Thursday, August 14, 2025, at 8:30 a.m. ET to review the Company's operational and financial highlights for its second quarter ended June 30, 2025. Investors interested in listening to the conference call may do so by dialing (800)-836-8184 for domestic callers or +1-646-357-8785 for international callers, or via webcast: https://app.webinar.net/pD32GbLd5Mx About Marpai, Inc. Marpai, Inc. (OTCQX: MRAI) is a technology platform company which operates subsidiaries that provide TPA and value-oriented health plan services to employers that directly pay for employee health benefits. Primarily competing in the $150 billion TPA sector serving self-funded employer health plans representing over $1.5 trillion in annual claims. Through its Marpai Saves initiative, the Company works to deliver the healthiest member population for the health plan budget. Operating nationwide, Marpai offers access to leading provider networks including Aetna and Cigna and all TPA services. For more information, visit www.marpaihealth.com, the content of which is not incorporated by reference into this press release. Investors are invited to visit https://ir.marpaihealth.com. Forward-Looking Statement Disclaimer This press release contains forward-looking statements, as that term is defined in the Private Litigation Reform Act of 1995, that involve significant risks and uncertainties. Forward-looking statements can be identified through the use of words such as "anticipates," "expects," "intends," "plans," "believes," "seeks," "estimates," "guidance," "may," "can," "could", "will", "potential", "should," "goal" and variations of these words or similar expressions. For example, the Company is using forward-looking statements when it discusses that it continues to make strong progress with its turnaround efforts, that improvements in its operating expenses and bottom line signals a critical inflection point for the Company, that it expects to make a major infrastructure investment in the third quarter, its belief that it is on track to achieve profitability in the first quarter of 2026 and that its focus on cost control and operational discipline has resulted in a much leaner, stronger platform for growth. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect Marpai's current expectations and speak only as of the date of this release. Actual results may differ materially from Marpai's current expectations depending upon a number of factors. These factors include, among others, adverse changes in general economic and market conditions, competitive factors including but not limited to pricing pressures and new product introductions, uncertainty of customer acceptance of new product offerings and market changes, risks associated with managing the growth of the business. Except as required by law, Marpai does not undertake any responsibility to revise or update any forward-looking statements whether as a result of new information, future events or otherwise. More detailed information about Marpai and the risk factors that may affect the realization of forward-looking statements is set forth in Marpai's filings with the Securities and Exchange Commission. Investors and security holders are urged to read these documents free of charge on the SEC's web site at http://www.sec.gov. MARPAI, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share data) June 30,2025 December 31, 2024 (Unaudited) ASSETS: Current assets: Cash and cash equivalents $ 619 $ 764 Restricted cash 7,661 8,468 Accounts receivable, net of allowance for credit losses of $1 and $1 as of June 30, 2025, and December 31, 2024, respectively 548 837 Unbilled receivables 914 569 Due from buyer for sale of business unit — 500 Prepaid expenses and other current assets 590 759 Total current assets 10,332 11,897 Capitalized software, net 227 441 Operating lease right-of-use assets 265 296 Security deposits 229 229 Other long-term asset 8 15 Total assets $ 11,061 $ 12,878 LIABILITIES AND STOCKHOLDERS' DEFICIT Current liabilities: Accounts payable $ 3,588 $ 3,109 Accrued expenses 2,069 2,585 Accrued fiduciary obligations 7,179 6,308 Deferred revenue 743 625 Current portion of operating lease liabilities 250 244 Current portion of convertible debentures, net 3,037 3,106 Other short-term liabilities 2,868 3,005 Total current liabilities 19,734 18,982 Other long-term liabilities 15,719 14,891 Convertible debentures, net of current portion 7,311 5,921 Operating lease liabilities, net of current portion 664 793 Total liabilities 43,428 40,587 COMMITMENTS AND CONTINGENCIES (Note 16) STOCKHOLDERS' DEFICIT Common stock, $0.0001 par value, 227,791,050 shares authorized; 16,536,186 shares and 14,237,176 shares issued and outstanding at June 30, 2025, and December 31, 2024, respectively 2 1 Additional paid-in capital 73,905 71,124 Accumulated deficit (106,274) (98,834) Total stockholders' deficit (32,367) (27,709) Total liabilities and stockholders' deficit $ 11,061 $ 12,878 MARPAI, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (in thousands, except share and per share data) Three months ended June 30, Six months ended June 30, 2025 2024 2025 2024 Revenue $ 4,656 $ 7,189 $ 10,074 $ 14,574 Costs and expenses Cost of revenue (exclusive of depreciation and amortization shown separately below) 3,910 5,174 7,395 10,045 General and administrative 2,483 3,721 4,766 7,142 Information technology 1,291 1,210 2,681 2,334 Sales and marketing 312 436 556 1,038 Research and development — 8 7 15 Depreciation and amortization 107 914 214 1,865 Impairment of goodwill and intangible assets — 7,588 — 7,588 Facilities 160 411 311 885 Total costs and expenses 8,263 19,462 15,930 30,912 Operating loss (3,607) (12,273) (5,856) (16,338) Other income (expenses) Other income 49 120 49 240 Interest expense, net (813) (872) (1,633) (1,270) Foreign exchange loss — (1) — (4) Loss before provision for income taxes (4,371) (13,026) (7,440) (17,372) Income tax expense — — — — Net loss $ (4,371) $ (13,026) $ (7,440) $ (17,372) Net loss per share, basic and fully diluted $ (0.28) $ (1.23) $ (0.49) $ (1.73) Weighted average shares of common stock outstanding, basic and diluted 15,503,132 10,626,516 15,140,332 10,016,146 MARPAI, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (in thousands) Six months endedJune 30, 2025 2024 Cash flows from operating activities: Net loss $ (7,440) $ (17,372) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 214 1,865 Loss on sale of receivables — 306 Share-based compensation 1,043 2,421 Amortization of right-of-use asset 31 120 Non-cash interest 914 646 Amortization of debt premium and debt issuance costs (17) 62 Impairment of goodwill and intangible assets — 7,588 Issuance of common stock to vendors in exchange for services 1,008 — Changes in operating assets and liabilities: Accounts receivable and unbilled receivables (56) 519 Prepaid expenses and other assets 176 (66) Accounts payable 479 (1,477) Accrued expenses (516) (173) Accrued fiduciary obligations 871 (1,625) Operating lease liabilities (123) (250) Other liabilities 92 731 Net cash used in operating activities (3,324) (6,705) Cash flows from investing activities: Proceeds from sale of business unit 500 — Net cash provided by investing activities 500 — Cash flows from financing activities: Proceeds from sale of future cash receipts on accounts receivable — 1,509 Proceeds from issuance of convertible debentures (Note 7) 3,000 5,978 Payments of debt issuance costs (162) (499) Payments to buyer of receivables — (1,816) Payments on convertible debentures (Note 7) (1,500) — Payments to seller for acquisition (196) (631) Proceeds from issuance of common stock in a private offering, net 730 2,727 Net cash provided by financing activities 1,872 7,268 Net (decrease) increase in cash, cash equivalents and restricted cash (952) 563 Cash, cash equivalents and restricted cash at beginning of period 9,232 13,492 Cash, cash equivalents and restricted cash at end of period $ 8,280 $ 14,055 Reconciliation of cash, cash equivalents, and restricted cash reported in the condensed consolidated balance sheet Cash and cash equivalents $ 619 $ 1,293 Restricted cash 7,661 12,762 Total cash, cash equivalents and restricted cash shown in the condensed consolidated statement of cash flows $ 8,280 $ 14,055 Supplemental disclosure of cash flow information Cash paid for interest $ 781 $ 1,259 SOURCE Marpai WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

MARPAI REPORTS SECOND QUARTER 2025 FINANCIAL RESULTS

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