Key Highlights

  • Third-quarter 2026 Revenue was USD 1.5 million, against USD 1.6 million a year earlier.
  • Software revenue was USD 879 thousand, against USD 615 thousand.
  • Net loss was USD 1.9 million, or USD 0.88 per share.
  • Nine-month revenue was USD 4.8 million, against USD 4.2 million.

MultiSensor AI (NASDAQ:MSAI) reported revenue of USD 1.5 million for the third quarter ended September 30, 2026, against an estimate of USD 2.10 million and USD 1.6 million in the third quarter of 2025. Net loss was USD 0.88 per share, against an estimate of a loss of USD 1.23. The company provides sensor-based inspection and monitoring technology, and described a strategic initiative to move from being a hardware provider to being a solutions provider.

Quarterly Revenue by Product

Third-quarter hardware revenue was USD 575 thousand, against USD 853 thousand a year earlier. Software revenue was USD 879 thousand, against USD 615 thousand, and services revenue was USD 51 thousand, against USD 106 thousand. Total revenue was USD 1,505 thousand, against USD 1,574 thousand.

The company attributed the decrease in revenue primarily to a decline in hardware revenue of USD 0.3 million, or 33%, and a decline in services revenue of USD 0.1 million, or 52%. It linked the services decline primarily to the discontinuation of inspection and Training services in August 2025. Software revenue rose 43%, which the company described as in line with its strategic initiative.

By geography, international revenue was USD 1,176 thousand in the quarter, against USD 563 thousand, while United States revenue was USD 329 thousand, against USD 1,011 thousand.

Costs and Net Loss

Total operating expenses were USD 3.1 million, against USD 2.7 million in the third quarter of 2025. Operating loss was USD 2.1 million, against USD 1.7 million. Net loss was USD 1.9 million, against USD 1.7 million, and net loss per basic and diluted share was USD 0.88, against USD 1.94. Weighted-average basic and diluted shares outstanding were about 2.2 million in the quarter, against about 0.9 million a year earlier. The company's chief executive officer serves as its chief operating decision maker and uses consolidated Net Income to evaluate performance and monitor budget against actual results.

Nine-Month Results and Cash Flow

For the nine months ended September 30, 2026, revenue was USD 4.8 million, against USD 4.2 million. Software revenue grew 81% to USD 2.3 million, which the company said reflects its focus on growing its software-as-a-service business, while services revenue decreased USD 0.3 million, or 75%. Contract liabilities for software subscriptions, recognized over terms of 12 to 48 months, included USD 2.5 million of current balances as of September 30, 2026.

The nine-month net loss was USD 6.9 million, or USD 3.28 per share, against USD 9.4 million, or USD 11.25 per share. Operating loss was USD 7.3 million, against USD 9.6 million, and the company said this decrease drove lower net cash used in operating activities. Net cash used in investing activities was USD 0.6 million, against USD 1.2 million.

Net cash provided by financing activities was USD 1.0 million, against USD 3.7 million. The company attributed the 2026 amount to USD 1.0 million of proceeds from the exercise of 2025 warrants, compared with USD 4.8 million of Equity Financing proceeds, primarily sales under its equity line of credit, in the prior-year period.