Marpai, Inc. (MRAI): Business Model Canvas [Dec-2025 Updated]

You're digging into the mechanics of how Marpai, Inc. actually makes money in the complex world of healthcare administration, and honestly, the Q3 2025 numbers tell a tight story: net revenues of $4 million against operating expenses of $3.8 million, leaving them with just about $450,000 in cash reserves. As a former analyst, I can tell you their whole game rests on using proprietary AI and deep learning to aggressively contain employer healthcare spend through their Third-Party Administration services, balancing significant network access costs against those slim margins. Dive into the nine blocks below to see exactly how they plan to scale this tech-heavy, high-touch model from here.

Marpai, Inc. (MRAI) - Canvas Business Model: Key Partnerships

You're looking at the core relationships Marpai, Inc. relies on to deliver its Third-Party Administration (TPA) and Pharmacy Benefit Management (PBM) services in the competitive self-funded employer health plan market, which Marpai, Inc. states is a $150 billion sector serving plans representing over $1.5 trillion in annual claims as of late 2025.

Renewed Aetna Signature Administrator (ASA) PPO network access

Marpai, Inc. successfully renewed its critical network access agreement with Aetna as of December 1, 2025. This renewal is key because it ensures Marpai, Inc.'s self-funded employer clients and their members maintain broad, national access to the Aetna Signature Administrator (ASA) PPO network. This continuity of care is a major selling point for clients looking at network stability.

Strategic integration of Aetna Faircost Optimizer for out-of-network claims

To enhance cost containment, Marpai, Inc. integrated the Aetna Faircost Optimizer. This tool is specifically used to help plan sponsors manage their out-of-network claims costs, which are often volatile. The goal is to deliver superior cost containment by providing maximum savings on non-contracted claims and protecting self-funded plans from excessive balance billing.

Access to other national provider networks, including Cigna

Marpai, Inc. operates nationwide and its offering includes access to several leading provider networks. This multi-network strategy is important for serving employers with multi-state locations.

Collaboration with Vitable and Health In Tech for DPC-integrated plans

In January 2025, Marpai, Inc. announced a strategic collaboration with Vitable and Health In Tech to introduce a competitively priced self-funded health plan. This partnership leverages Vitable's Direct Primary Care (DPC) model, which is designed to drive down costs through high utilization. The Vitable enhanced primary care plan specifically includes:

• $0 out-of-pocket cost for members for primary care services
• Free prescription drugs
• Lab work
• Care navigation for the entire household

This integration is intended to provide competitive value and comprehensive care within Health In Tech's eDIYBS platform for Marpai, Inc.'s self-funded health plan offerings.

Relationships with Brokers and Consultants for client acquisition

The effectiveness of Marpai, Inc.'s network and cost-saving strategies is reflected in its sales performance. The company reported a robust sales cycle, securing a volume of new clients for January 1, 2026, that surpasses internal expectations. This success in the sales cycle, which is critical for the January 1st renewal period typical for TPA business, sets a strong foundation for 2026 growth. While specific commission or referral revenue percentages aren't public, the direct result is a strong pipeline following a period where Q1 2025 net revenues were $5.4 million, down 27% year-over-year.

Finance: draft 13-week cash view by Friday.

Marpai, Inc. (MRAI) - Canvas Business Model: Key Activities

You're looking at the core things Marpai, Inc. has to do every day to make this business model work, especially now that they've come through a major cost-cutting phase. It's all about execution on the technology and service delivery front.

Delivering Third-Party Administration (TPA) and claims processing services.

Marpai, Inc. is fundamentally a Third-Party Administrator (TPA) for self-funded employer health plans. They are actively operating within a sector estimated to be worth $150 billion. The plans they administer represent over $1.5 trillion in annual claims. This core activity earned them recognition as a TOP HEALTH PLAN THIRD PARTY ADMINISTRATOR for 2025. They manage the administration using access to premier national networks, including Aetna and Cigna.

Here's a look at the operational focus areas within this activity:

• Administering Health, COBRA, Dental, and Vision plans.
• Providing proactive member interventions.
• Delivering compliance services.
• Offering actionable analytics for data-driven decisions.

Developing and maintaining the proprietary AI/deep learning technology platform.

This technology is what Marpai, Inc. says gives them a competitive edge. They tout a proprietary tech platform valued at $50+ million. The deep learning algorithms are designed to predict potential health events before they become expensive claims. For example, an improved AI algorithm decreased the time needed to catch future conditions from over 2 years to 6 months. This focus on advanced technology is key to their value proposition in a sector they see as traditionally low-tech.

Operating the MarpaiRx Pharmacy Benefit Management (PBM) solution.

Marpai, Inc. operates its own Pharmacy Benefit Management (PBM) solution, MarpaiRx, which saw a comprehensive relaunch in the second half of 2025. This is a direct effort to tackle prescription costs, noting that over 24% of each healthcare dollar goes to drugs, according to a 2024 AHIP study. The goal is to deliver significant cost reductions, with the MarpaiRx solution aiming for a 25%+ reduction on pharmacy spend. Furthermore, their PACCS program specifically targets up to 75% off on specialty drugs and high-cost medications.

Proactive member engagement and clinical guidance to prevent high-cost events.

This activity is central to their Marpai Saves initiative. The key is using their technology to identify at-risk members early and guide them toward the right care pathways. This proactive engagement is meant to reduce avoidable, excessive, and overpriced care, ultimately improving member health and lowering claims costs.

The engagement strategy includes:

• Gaps in Care Outreach.
• Guiding members to low-cost, quality in-network providers.
• Reminding members to complete annual exams.
• Utilizing the myMarpai App as a personal health GPS.

Executing cost-reduction and operational efficiency initiatives.

You can definitely see the results of this focus in the recent financials. For the three months ended September 30, 2025, Marpai, Inc. reported operating expenses of $3.8 million. That was a 24% reduction compared to the $5.0 million in operating expenses for the same period last year, netting about $1.2 million in savings for that quarter alone. To be fair, the Q2 2025 results showed an even steeper year-over-year cut, with operating expenses down 70%, saving $9.9 million. The company raised $3.9 million in gross proceeds from a Private Investment in Public Equity (PIPE) transaction to help fund this turnaround execution. The stated goal is to achieve profitability in the first quarter of 2026.

Here's the quick math on the Q3 2025 turnaround progress:

What this estimate hides is that net revenues for Q3 2025 were $4 million, which was approximately 42% lower than Q3 of the prior year. Finance: draft 13-week cash view by Friday.

Marpai, Inc. (MRAI) - Canvas Business Model: Key Resources

You're looking at the core assets Marpai, Inc. (MRAI) relies on to compete in the self-funded Third-Party Administration (TPA) space. These aren't just line items; they are the engines driving their value proposition.

Proprietary Technology and Infrastructure

The foundation of Marpai, Inc.'s offering is its technology stack, which they position as a major differentiator against lower-tech competitors in the $150 billion TPA sector. This includes significant investment in their predictive capabilities.

• The technology platform infrastructure is valued at $50MM+.
• Proprietary deep learning algorithms are the core of their predictive analytics.
• These algorithms are designed to mimic the logic and learning of the human brain via a deep neural network.
• The system predicts potential near-term health events, specifically citing chronic illness like Type 2 Diabetes and major procedures like knee surgery.
• This prediction capability activates early clinical intervention, aiming to prevent costly claims.

Operational Footprint and Licenses

Marpai, Inc. operates as a national TPA, which requires specific regulatory permissions and a broad service area to cover self-funded employer health plans across the country. They maintain access to major networks, which is a critical resource for client service delivery.

Financial Liquidity

Cash on hand is a vital resource, especially during a turnaround phase. The company recently bolstered its position through a capital raise.

As of the end of Q3 2025, Marpai, Inc. reported $450,000 in unrestricted cash reserves. This followed a successful $3.9 million Private Investment in Public Equity (PIPE) transaction.

Human Capital and Expertise

The specialized nature of their business requires specific expertise across technology development, day-to-day TPA administration, and clinical oversight to manage member health proactively. You need the right people to run the algorithms and manage the client relationships.

• CEO and Director: Damien Lamendola.
• Clinical Management: An in-house clinical team oversees utilization management, acute care, and chronic condition management.
• Technology Development: R&D efforts are centered at Marpai Labs, where data scientists develop the predictive algorithms.

The successful renewal of the Aetna Signature Administrator network agreement in late 2025 also points to strong relationship management capabilities within the TPA operations team.

Marpai, Inc. (MRAI) - Canvas Business Model: Value Propositions

You're an employer looking at the self-funded healthcare market, which is a massive space-over $150 billion in the Third-Party Administration (TPA) sector alone, managing more than $1.5 trillion in annual claims. Marpai, Inc. positions its value around using technology to tackle the rising cost curve directly.

AI-driven cost containment to reduce employer healthcare spend

Marpai, Inc. uses its platform to deliver cost containment, which is critical since clients cite 92% of the time that cost predictability is their top priority. The company's Q1 2025 revenue was $5.4 million, but the focus is on operational efficiency, which saw operating expenses drop 33% in that quarter.

Proactive identification of at-risk members for early intervention and better outcomes

The AI algorithms are designed to spot trouble before it becomes an expensive claim. For instance, in 2025, the algorithms flagged 13,400 new client lives for early interventions, aiming to reduce avoidable claims. This focus on member health is part of the Marpai Saves initiative, which works to deliver the healthiest member population for the health plan budget.

MarpaiRx offering unprecedented transparency and significant PBM savings

The MarpaiRx Pharmacy Benefit Management (PBM) solution is a cornerstone of their value. They claim this program generates savings of 25%+ versus industry standards. The company relaunched this offering in the second half of 2025, emphasizing no hidden spreads or markups. By Q1 2025, 70% of pharmacy spending was being directed through MarpaiRx, which was noted for offering discounts exceeding industry averages.

Here's a quick look at the financial discipline supporting these value drivers, based on Q3 2025 results:

Simplified, member-centric experience via the Empara client portal

Marpai, Inc. emphasizes a member-centric approach, which is supported by technology like the myMarpai app, where members can manage their healthcare in one place. The company's CEO personally invested $1.7 million in Q3 2025, showing confidence in the platform that is disrupting the $5.5 trillion U.S. healthcare market.

• Member experience is streamlined for Rx delivery and prior authorizations.
• The platform guides users to low-cost providers and medications.
• MarpaiRx offers a contracted network of 60,000+ pharmacies.

Ability to service self-funded plans with multi-state employee locations

Marpai, Inc. operates nationwide, offering access to major networks like Aetna and Cigna. This national footprint allows them to serve employers with multi-state locations, a capability where regional competitors often struggle. The company renewed its agreement to access the Aetna Signature Administrator (ASA) PPO network in December 2025, ensuring broad, national provider access for clients.

The company is competing in a sector where the TPA industry is projected to grow 123% by 2031. Marpai, Inc. solidified its financial footing in Q3 2025 by completing a Private Investment in Public Equity (PIPE) transaction, raising gross proceeds of $3.9 million, with $450,000 in unrestricted cash on hand at the end of that quarter.

Marpai, Inc. (MRAI) - Canvas Business Model: Customer Relationships

You're looking at how Marpai, Inc. engages with the employers and members who rely on their Third-Party Administration (TPA) services. The focus is clearly on blending technology with personalized service to drive cost efficiency, which is key in the self-funded health plan space.

Tech-enabled self-service via the Empara client experience tool.

Marpai, Inc. is implementing the Empara unified engagement platform to consolidate fragmented tools and apps, aiming to give members on-demand access to benefits information. Management stated they expect to complete the full platform rollout in Q4 2025. The tool uses AI to answer plan questions and is designed to lower call volumes for support staff. This is a critical infrastructure upgrade expected to unlock additional cost savings in technology and infrastructure expenses.

Dedicated account management and personalized member support.

The myMarpai App acts as a personal health GPS, giving members on-demand access to benefits, costs, deductibles, and telehealth options. While specific metrics for dedicated account management staffing ratios aren't public, the operational shift emphasizes retention and new business through a client-centric approach guided by Key Performance Indicators (KPIs).

High-touch, proactive clinical guidance for at-risk members.

Marpai, Inc. uses Artificial Intelligence to proactively identify and connect at-risk members to proven clinical solutions early in their care journey. The relaunch of MarpaiRx, their transparent Pharmacy Benefit Manager (PBM) offering, is a key part of this strategy, actively offered in the second half of 2025. This program is cited by leadership as a game changer in winning new business.

Direct communication with employers on plan performance and cost savings.

Marpai, Inc. emphasizes delivering value through its Marpai Saves initiative, aiming to provide the healthiest member population for the health plan budget. The company's success in securing new business directly reflects employer confidence in this value proposition. For the 2025 plan year, Marpai, Inc. secured new clients totaling 13,400 employee lives. The company was recognized as a TOP HEALTH PLAN THIRD PARTY ADMINISTRATOR for 2025 by Insurance Business Review Magazine.

Here are the details on the major new client additions for the 2025 coverage year:

The company reported its Q3 2025 Net Revenues were $4 million. Operational discipline, which supports client cost savings, resulted in operating expenses of $3.8 million for Q3 2025, a 24% reduction year-over-year.

The relationship is reinforced through continuous improvement metrics:

• Operating Loss narrowed 9% to $2.8 million in Q3 2025 compared to Q3 2024.
• Net Loss improved 2% to $3.5 million in Q3 2025 compared to Q3 2024.
• Earnings Per Share strengthened by $0.10 in Q3 2025 year-over-year.
• The company successfully completed a $3.9 million Private Investment in Public Equity (PIPE) transaction to support execution.

Finance: draft Q4 2025 client retention forecast by next Tuesday.

Marpai, Inc. (MRAI) - Canvas Business Model: Channels

You're looking at how Marpai, Inc. gets its value proposition-AI-powered TPA services-into the hands of self-funded employers. The channel strategy relies on a mix of direct effort, third-party influence, and digital self-service.

Direct sales force targeting self-funded employers.

Marpai, Inc. has been building out its direct sales capacity, adding a new sales team in early 2024 to drive client acquisition for the 2025 plan year and beyond. This team focuses on securing new major accounts directly from the self-funded employer segment, which is part of a larger, $22 billion TPA market. The success of this direct effort is reflected in the pipeline for the next cycle.

Here's a look at some of the significant new business secured, which would have been driven by this direct sales function:

The momentum continued into the next sales cycle, with Marpai, Inc. reporting double-digit new clients contracted for January 1, 2026. That's a solid indicator of the direct sales engine gaining traction.

Distribution through Brokers and Consultants.

While the search results don't give a specific revenue split, the company maintains a dedicated section for Brokers & Consultants on its corporate site, indicating this is a recognized, necessary channel for reaching the target market of self-funded employers. Brokers and consultants often serve as trusted advisors to these employers, making their endorsement key to closing deals. The sales team's success in leveraging Marpai Saves to deliver value was noted as a key factor in securing the new 2025 business.

Digital channels via the Empara member portal and mobile app.

The digital channel is being rapidly unified to improve member engagement, which is crucial for cost containment. Marpai, Inc. announced a strategic collaboration with Empara, aiming to roll out a unified Health Engagement Platform, including a powerful member app, with the full platform expected to be live by the end of the second quarter of 2025. This platform consolidates fragmented tools and portals, giving members intuitive access to benefits and driving utilization of cost-effective care pathways. The company also lists a general Member Portal on its site.

The digital engagement tools are designed to support the core value proposition:

• Integrate personalized care pathways.
• Provide intuitive access to benefits.
• Guide members to low-cost, quality in-network providers.

Strategic partnerships like Health In Tech's eDIYBS platform.

Marpai, Inc. is focused on leveraging key integrations to enhance its offering and network access. A significant recent development was the renewal of access to the Aetna Signature Administrator (ASA) PPO network, which preserves broad national provider access and competitive network discounts for clients. This network access is a critical channel component, as it dictates where members can seek care. Furthermore, the integration of the Aetna Faircost Optimizer adds an integrated tool specifically to manage out-of-network claims and limit costs. While Health In Tech's eDIYBS platform wasn't explicitly detailed with 2025 metrics, the ASA network renewal and the Empara integration show a clear strategy of using partnerships to bolster service delivery and market reach.

Finance: draft 13-week cash view by Friday.

Marpai, Inc. (MRAI) - Canvas Business Model: Customer Segments

You're looking at the core of Marpai, Inc.'s strategy: targeting employers who are taking direct control of their employee healthcare spend. This is a massive market, but one that Marpai, Inc. believes is ripe for technology-driven disruption.

Self-funded employer health plans in the US.

Marpai, Inc. operates within the self-funded employer health plan space, which is a significant portion of the overall benefits landscape. In 2025, self-funded plans covered 64% of the 165 million Americans covered by employer health plans. This segment is served by the Third-Party Administrator (TPA) sector, which Marpai, Inc. competes in, a market valued at $150 billion. The broader Pharmacy Benefit Management (PBM) industry, where Marpai, Inc.'s MarpaiRx operates, serves self-funded plans representing over $1.5 trillion in annual claims.

Employers seeking to transition to a self-funded model.

A key driver for Marpai, Inc.'s growth is the inherent need for cost control among these self-funded entities. Honestly, 92% of self-funded employers state that "cost predictability" is their number one concern. This focus on predictability aligns perfectly with Marpai, Inc.'s AI-driven approach to mitigating avoidable claims. The company is positioning its platform as the intelligent alternative to legacy TPA solutions for these cost-conscious decision-makers.

Small employers targeted by the Marpai Vitality offering.

For smaller groups, Marpai, Inc. is working to bring competitively priced options to market, specifically through collaborations like the one announced with Vitable. Vitable offers a hybrid Direct Primary Care (DPC) health plan that includes in-home and virtual primary care, free prescription drugs, and mental health programs, all with $0 out-of-pocket cost for members. The intention is to use this DPC model to provide low quotes within Health In Tech's eDIYBS platform for Marpai, Inc.'s self-funded health plan offerings. What this estimate hides is the exact number of small employers Marpai, Inc. is actively targeting with this specific product bundle.

Large groups, including specific wins like Texas school districts.

Marpai, Inc. is actively expanding its base business, reporting that they contracted for double-digit new clients for the January 1, 2026 effective date. A concrete example of landing larger groups involves leveraging historical relationships, as the company recently signed a couple of school districts in Texas, with coverage set to start on September 1. These wins are linked to the Teachers Retirement System of Texas relationship. The CEO, Damien Lamendola, continues to invest in the company, including $1.7 million in Q3 2025, showing strong personal conviction in the platform's ability to secure and serve these larger groups.

Here's a quick look at the market context and Marpai, Inc.'s recent client momentum:

You should track the January 1 pipeline update expected after the third quarter call in mid-November for more clarity on 2026 numbers.

Finance: draft 13-week cash view by Friday.

Marpai, Inc. (MRAI) - Canvas Business Model: Cost Structure

You're looking at the core expenditures Marpai, Inc. (MRAI) faces to run its AI-powered Third-Party Administration (TPA) business, which is heavily weighted toward technology and operational efficiency gains as of late 2025.

Significant investment in technology platform development and maintenance is a major cost driver. Marpai, Inc. cites its technology as a sustainable competitive advantage, specifically mentioning the $50+ million tech platform that incorporates deep learning and data analytics.

The overall cost discipline is evident in recent quarterly results. For the three months ended September 30, 2025, Marpai, Inc.'s Operating Expenses were $3.8 million, which represented a 24% year-over-year reduction from $5.0 million for the same period in 2024, delivering approximately $1.2 million in cost savings.

These operating expenses encompass several key areas, including personnel costs for TPA operations, claims processing, and sales, as well as general and administrative expenses for a national footprint. While specific breakdowns aren't public, the consolidated figures reflect the cost of running a national operation.

The structure of these costs for the third quarter of 2025 compared to the prior year is summarized below:

Marpai, Inc. also incurs variable costs related to service delivery, such as network access fees for major provider networks like Aetna and Cigna, which are necessary to service its self-funded employer health plan clients.

The company's focus on efficiency is also driving down other related costs, as evidenced by the ongoing infrastructure upgrade to consolidate claims processing into a single operating system, which is expected to unlock further savings in technology and infrastructure expenses going into 2026.

Key components that form the overall cost base include:

• Significant capital outlay for the proprietary technology platform.
• Salaries and overhead for personnel supporting claims and sales functions.
• Fees associated with contracted provider and pharmacy networks.
• Costs to support a national operational presence.

Marpai, Inc. (MRAI) - Canvas Business Model: Revenue Streams

You're looking at the core ways Marpai, Inc. (MRAI) brings in money as of late 2025. The business model centers on providing administrative and cost-management solutions directly to employers who self-fund their employee health benefits. This puts Marpai, Inc. squarely in competition within the massive self-funded employer health plan space, which is a sector valued at over $1.5 trillion in annual claims, with the Third-Party Administration (TPA) sector alone being a $150 billion market.

The revenue streams for Marpai, Inc. are derived from its technology platform and the services it offers:

• Fees for Third-Party Administration (TPA) services paid by employers.
• Revenue from the MarpaiRx Pharmacy Benefit Management (PBM) solution.
• Fees for value-oriented health plan services and cost-containment programs.

The latest reported top-line revenue figure shows the current scale of these combined streams. For the three months ended September 30, 2025, Marpai, Inc. reported net revenues of $4 million, which represented a year-over-year decline of approximately 42% compared to the third quarter of 2024. This revenue performance is set against the backdrop of the company's ongoing transformation efforts.

To support its strategy and operations, Marpai, Inc. also generates capital through financing activities, which is a distinct but related financial inflow. As you review the financial health, note the recent capital raise:

The integrated MarpaiRx PBM offering is specifically highlighted as a key differentiator, designed to expand value per client in the PBM industry, which Marpai, Inc. notes is a $550 billion market. The fees associated with value-oriented health plan services and cost-containment programs, such as the Marpai Saves initiative, are crucial as they aim to deliver the healthiest member population for the health plan budget, which supports client retention and growth in the TPA contracts.

The successful completion of the $3.9 million Private Investment in Public Equity (PIPE) transaction in Q3 2025 provides financial strength to execute the turnaround plan. Also, the CEO, Damien Lamendola, invested $1.7 million in Marpai, Inc. during Q3, showing commitment from the largest shareholder.