Modular Medical Inc (MODD)
NASDAQHealth CareMedical - DevicesSnapshot 2026-09-04
$3.68+7.60%
Close 2026-09-04 · 1-day change
NASDAQHealth CareMedical - DevicesSnapshot 2026-09-04
Broken: Primary pillar broken — Reduce operating losses and negative cash flow: Operating income not reported; TTM OCF -$1.32M vs target >-$5.82M.
Modular Medical started selling its insulin pumps in 2026. It raised $3.375 million in 2026-Q4 to fund growth. The company has a $350,000 credit line to support operations.
The company keeps losing money and cash flow is worsening. Operating losses grew from $4.22 million to $5.68 million in one year. Cash from operations dropped from -$3.55 million to -$5.82 million.
The market is selling off the stock amid losses and cash flow problems. No clear growth or profit targets are priced in due to lack of guidance and estimates.
Breaks if: Fail to raise $3.38 million or lose $0.35 million credit facility by 2026-Q4
Manage capital allocation through equity offerings, credit facilities, and related financial agreements to support operations.
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a turnaround situation. MODD is currently experiencing volatility in management and ongoing losses, which raises concerns about its future performance.
The market appears to be pricing in a high level of risk, given the company's loss-making status and the elevated probability of missing earnings. Recent sector momentum has improved, but the overall sentiment remains cautious.
Fundamentals are likely to remain under pressure due to ongoing operating losses and negative cash flow. Management's focus on capital allocation and operational efficiency is noted, but progress has been limited.
The future performance of MODD hinges on broader healthcare sector trends and the company's ability to manage its losses. Key factors include the performance of sector bellwethers and the potential for further management changes.
The most important moves since the prior daily snapshot.
Our read on the company is unchanged since the prior snapshot.
as of 2026-09-04
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Stated as a priority in 3 distinct disclosures in 2026-Q1 and 2026-Q2. The company completed a $3.4 million equity offering in 2026-Q2 and established a $350,000 revolving credit facility in 2026-Q1. These capital allocation actions align with management's stated focus and show delivering progress in funding operations.
“Announced pricing of $3.4 million registered direct offering of common stock.”
“Entered into a secured promissory note providing a $350,000 revolving credit facility.”
“Entered into a placement agency agreement for a best-efforts offering of common stock.”
Breaks if: Significant leadership turmoil or governance issues in 2026
Breaks if: Operating income or cash flow worse than targets in 2026-Q4
Focus on controlling operating losses and improving cash flow from operations to sustain business activities.
Management has stated managing operating losses and cash flow as a priority in 8 consecutive quarters from 2025-Q2 through 2027-Q1. Operating income remained negative, ranging from -$5.0 million in 2025-Q2 to -$6.5 million in 2027-Q1, while cash from operations stayed negative, around -$3.8 million to -$6.0 million. The trajectory shows persistent operating losses and negative cash flow, indicating limited progress in improving profitability or cash flow.
“Operating income was negative $6.5 million and cash from operations was negative $5.97 million.”
“Operating income was negative $5.68 million and cash from operations was negative $5.82 million.”
“Operating income was negative $7.24 million and cash from operations was negative $7.16 million.”
“Operating income was negative $7.83 million and cash from operations was negative $5.41 million.”
“Operating income was negative $6.8 million and cash from operations was negative $5.37 million.”
“Operating income was negative $4.98 million and cash from operations was negative $4.31 million.”
“Operating income was negative $4.85 million and cash from operations was negative $4.1 million.”
In the next 1 to 3 years, MODD faces significant challenges that could impact its recovery. The situation requires close monitoring of sector dynamics and management execution. Not investment advice.
“Operating income was negative $5.0 million and cash from operations was negative $3.77 million.”