Biomerica Reports Second Quarter Fiscal 2026 Financial Results

Rhea-AI Summary

Biomerica (Nasdaq: BMRA) reported Q2 fiscal 2026 results for the period ended November 30, 2025. Q2 revenue was $1.21M versus $1.64M year-ago and six-month revenue was $2.59M versus $3.44M prior year. Management highlighted a strategic pivot to higher-margin diagnostic-guided therapy products and cost discipline. Working capital improved 14.7% $2.5M. CMS later established a $300 Medicare payment rate for inFoods IBS effective January 1, 2026. Operating expenses declined year-to-date and R&D spending was reduced by 27% as the company reallocates resources to commercialization.

Positive

• Working capital improved by 14.7% (~$457k)
• Cash position increased to $2.5 million
• Research & development reduced by 27%
• Six‑month net loss improved to $1.31M from $2.27M

Negative

• Q2 revenue declined to $1.21M from $1.64M (≈26% decline)
• Six‑month revenue fell to $2.59M from $3.44M (≈25% decline)
• Gross margin contracted to 18% from 21% (300 bps decline)
• Q2 net loss widened to $1.32M from $0.95M
• Absence of prior large MENA distributor stocking orders reduced sales

Key Figures

Q2 FY26 revenue: $1.21M Q2 FY25 revenue: $1.64M Six-month revenue: $2.59M +5 more

8 metrics

Q2 FY26 revenue $1.21M Three months ended November 30, 2025

Q2 FY25 revenue $1.64M Three months ended November 30, 2024 (prior-year quarter)

Six-month revenue $2.59M Six months ended November 30, 2025

Operating expenses $2.96M Six months ended November 30, 2025 (down ~4% YoY)

Six-month net loss $1.31M Six months ended November 30, 2025 vs $2.27M prior year

Q2 net loss $1.32M Three months ended November 30, 2025 vs $0.95M prior year

ERC refund $1.10M Employee Retention Credit received earlier in fiscal year

Cash position $2.5M Cash balance after ERC and financing activities

Market Reality Check

Price: $2.69 Vol: Volume 5,936 is only 0.04...

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Volume Volume 5,936 is only 0.04x the 20-day average of 150,365, indicating limited pre-news trading interest. low

Technical Shares at $2.70 trade 73.47% below the 52-week high of $10.16 and above the 52-week low of $2.11, remaining below the 200-day MA of $3.10.

Peers on Argus

Argus momentum data flags a broader move: peers like XAIR and HSDT are down arou...

1 Up 2 Down

Argus momentum data flags a broader move: peers like XAIR and HSDT are down around 4–5%, while LFWD is up about 5.26%. Mixed peer directions but multiple names are in motion, suggesting sector-wide dynamics rather than a purely isolated move.

Historical Context

5 past events · Latest: Dec 23 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Dec 23	Medicare pricing win	Positive	+10.6%	CMS set a <b>$300</b> national Medicare rate for inFoods® IBS.
Dec 11	Regulatory approval	Positive	+3.2%	Egyptian Drug Authority authorized full rapid screening test portfolio.
Nov 25	Clinical highlight	Positive	+4.4%	Henry Schein publication featured positive inFoods® IBS clinical results.
Nov 06	CDMO expansion	Positive	-1.2%	Announced expansion of CDMO services across multiple assay formats.
Oct 16	Commercial partnership	Positive	+5.2%	Henry Schein marketing agreement for inFoods® IBS across the U.S.

Pattern Detected

Recent non-earnings news with commercial or regulatory milestones has usually led to positive price reactions, while one CDMO expansion headline saw a mild negative divergence.

Recent Company History

Over the past six months, Biomerica reported several inFoods® IBS milestones, including a CMS Medicare payment rate of $300, a Henry Schein marketing agreement, and strong trial data, each followed by positive price moves. Egyptian Drug Authority approval also coincided with gains. An expansion of CDMO services on Nov 6, 2025 drew a small negative reaction. Overall, commercial and regulatory updates around inFoods® IBS and international expansion have been key drivers ahead of these Q2 FY2026 results.

Market Pulse Summary

This announcement details Q2 FY2026 results showing lower revenue and gross margin versus the prior ...

Analysis

This announcement details Q2 FY2026 results showing lower revenue and gross margin versus the prior year quarter, but improved six‑month net loss and reduced operating expenses. Management highlights a pivot toward higher‑margin inFoods® IBS, hp+detect™, and CDMO services, supported by prior CMS pricing and international approvals. Key factors to watch include future revenue mix shifts, margin trends, liquidity levels, and execution on new partnerships such as Henry Schein.

Key Terms

cms, employee retention credit, cdmo

3 terms

cms regulatory

"the Centers for Medicare & Medicaid Services (CMS) established a national Medicare payment rate"

The Centers for Medicare & Medicaid Services (CMS) is the U.S. federal agency that sets rules, payment rates and coverage decisions for major public health insurance programs; think of it as both a giant insurer and the rulebook maker for how many healthcare providers and drug makers get paid by government programs. Its policy changes and reimbursement decisions can materially affect revenue, profit forecasts and valuations for hospitals, insurers, device makers and drug companies, so investors watch CMS announcements closely.

employee retention credit financial

"received approximately $1.10 million in Employee Retention Credit (ERC) refunds"

A government-provided payroll tax credit that reimburses employers for a portion of wages paid to staff during qualifying downturns or disruptions, designed to encourage businesses to keep employees on the payroll. For investors, it matters because the credit improves a company’s cash flow and reduces payroll expenses—like a temporary government subsidy that boosts short-term profits and may change the company’s reported tax liabilities and cash reserves, which can affect valuation and risk assessments.

cdmo technical

"contract development and manufacturing organization (CDMO) expansion leverages existing infrastructure"

A contract development and manufacturing organization (CDMO) is a company that provides specialized services to help develop and produce pharmaceutical products for other businesses. Think of it as a contract factory that takes a company's recipe and makes the product on their behalf. For investors, CDMOs are important because they support the growth of pharmaceutical companies and can be key partners in bringing new medicines to market.

AI-generated analysis. Not financial advice.

• Operating Expenses Decline 4% Year-to-Date
  
• Balance Sheet Strengthens and Working Capital Improves by 14.7%
  

IRVINE, Calif., Jan. 14, 2026 (GLOBE NEWSWIRE) -- Biomerica, Inc. (Nasdaq: BMRA), (the “Company”) a global provider of advanced medical diagnostic and therapeutic products today reported financial results for the second quarter of fiscal 2026 ended November 30, 2025.

Key Highlights:

	1.	Biomerica Expands Commercialization of inFoods® IBS Through Collaboration with Henry Schein
		During the second quarter, Biomerica entered into a marketing services agreement with Henry Schein to support the commercialization of the Company’s inFoods® IBS test in the United States. In addition, inFoods® IBS was featured in a Henry Schein publication highlighting a precision-based approach to the management of Irritable Bowel Syndrome. Together, these initiatives expand awareness of inFoods® IBS among healthcare providers and support broader adoption of the test in clinical practice.
	2.	Biomerica Launches AI-Backed inFoods® IBS Trigger Food Navigator to Support Personalized IBS Therapy and Improve Patient Outcomes
		The launch of its inFoods® IBS Trigger Food Navigator, a comprehensive AI-backed digital companion tool designed to improve patient dietary compliance and treatment success for individuals with Irritable Bowel Syndrome (IBS). The inFoods® IBS test identifies, on average, two to four specific foods that trigger a patient’s IBS symptoms, leading to a simple, highly targeted and actionable dietary plan. The new AI-backed Trigger Food Navigator builds on this approach by making it even easier for patients to follow their personalized dietary plan through smart meal suggestions, ingredient substitutions, and simplified meal planning tools.
Subsequent to Quarter End
	3.	CMS Establishes National Medicare Payment Rate for inFoods® IBS Test
		Subsequent to the quarter-ended November 30, 2025, the Centers for Medicare & Medicaid Services (CMS) established a national Medicare payment rate of $300 for Biomerica’s inFoods® IBS test, effective January 1, 2026. This milestone provides reimbursement clarity and represents an important step toward expanding patient access to the inFoods® IBS product through the Medicare system.
	4.	Egyptian Drug Authority Authorizes Biomerica’s Complete Screening Test Portfolio
		Subsequent to quarter end, the Egyptian Drug Authority authorized Biomerica’s complete screening test portfolio. This regulatory approval expands access to the Company’s rapid diagnostic solutions in Egypt and supports continued international expansion of Biomerica’s diagnostic products.

Management Commentary

Zack Irani, CEO said, "We are executing a deliberate strategic pivot from legacy, lower-margin products to higher-value, higher-margin diagnostic-guided therapy products. The current revenue softness reflects this transition, not fundamental business deterioration. With our fixed cost structure largely in place, we believe incremental revenue from inFoods^® IBS and new partnerships such as Henry Schein as well as hp+detect™ opportunities should drive significant margin expansion. Additionally, our contract development and manufacturing organization (CDMO) expansion leverages existing infrastructure to generate higher-margin revenue while diversifying our revenue base."

"While second quarter revenue reflected expected variability across our established product lines, Biomerica continued to strengthen its financial foundation through successful capital raising activities and disciplined cost management,” said Gary Lu, CFO of Biomerica. “Earlier in the fiscal year, the Company also received approximately $1.10 million in Employee Retention Credit (ERC) refunds, which, together with our financing initiatives, contributed to a $457,000 year-to-date improvement in working capital and an increase in our cash position to $2.5 million. As we advance key programs from development into commercialization, we are prudently reallocating resources, which resulted in a 27% reduction in research and development expenses, while continuing to invest in the commercial launch of high-value diagnostic programs, including inFoods^® IBS and hp+detect™. We maintain access to additional capital through our existing shelf registration to support future growth initiatives.”

Second Quarter and Year-to-Date Fiscal 2026 Financial Results

Net sales for the second quarter of fiscal 2026 were $1.21 million, compared to $1.64 million in the prior year quarter. The decrease primarily reflects the absence of large initial distributor stocking orders in the Middle East and North Africa (“MENA”) region recorded in the prior year period, as the Company’s regional partner ramped up its initial market rollout. While Biomerica continues to generate recurring revenue from the region, the prior year quarter benefited from these upfront inventory purchases. The quarter also reflects normal timing variability in international shipments as well as lower contract manufacturing activity. These impacts were partially offset by continued growth in inFoods^® IBS sales.

For the six months ended November 30, 2025, net sales were $2.59 million, compared to $3.44 million in the prior year period. Gross margin for the six-month period was 18%, compared to 21% in the prior year, reflecting lower overall sales volume as the Company transitions from legacy products to higher-margin diagnostic-guided therapy offerings. Management expects gross margins to expand as inFoods^® IBS and hp+detect™ sales scale and added CDMO services.

Operating expenses for the second quarter of fiscal 2026 were $1.42 million, compared to $1.43 million in the same period last year. For the six months ended November 30, 2025, operating expenses decreased approximately 4% to $2.96 million, compared to $3.09 million in the prior year period. This performance reflects Biomerica’s continued focus on cost discipline and operational efficiency, including targeted reductions across administrative, research, and manufacturing. Notably, when excluding professional service fees related to Employee Retention Tax Credit (ERTC) filings, which contributed to the Company's increase in cash, normalized operating expenses for the six-month period decreased by approximately 7% compared to the prior year. With the Company's fixed cost structure now largely optimized, management expects incremental revenue from new product launches and strategic partnerships to drive meaningful operating leverage and margin expansion.

Net loss for the second quarter of fiscal 2026 was $1.32 million, compared to $0.95 million in the prior year quarter, reflecting lower revenue and gross margin during the period. For the six months ended November 30, 2025, net loss improved to $1.31 million, compared to $2.27 million in the prior year period, primarily due to sustained expense discipline and the recognition of a non-recurring tax credit earlier in the fiscal year. Biomerica continues to prioritize operational efficiency and disciplined cost management while selectively investing in core diagnostic programs designed to drive long term value. The Company's strategic focus on transitioning its revenue mix toward higher-margin products, combined with its optimized cost structure, positions Biomerica to benefit from significant operating leverage as inFoods^® IBS, hp+detect™, and CDMO services gain commercial traction.

Selected Financial Results	Three Months Ended				Three Months Ended				Six Months Ended				Six Months Ended
	November 30, 2025				November 30, 2024				November 30, 2025				November 30, 2024
($ in millions, except percentages)
Revenue	$1.21				$1.64				$2.59				$3.44
Gross margin		4	%			27	%			18	%			21	%
Operating expenses	$1.42				$1.43				$2.96				$3.09
Operating loss	($1.37		)		($0.99		)		($2.48		)		($2.36		)
Net Loss	($1.32		)		($0.95		)		($1.31		)		($2.27		)

About Biomerica (NASDAQ: BMRA)

Biomerica, Inc. (www.biomerica.com ) is a global biomedical technology company that develops, patents, manufactures and markets advanced diagnostic and therapeutic products used at the point-of-care (in home and in physicians' offices) and in hospital/clinical laboratories for detection and/or treatment of medical conditions and diseases. The Company's products are designed to enhance the health and well-being of people, while reducing total healthcare costs. Biomerica primarily focuses on gastrointestinal and inflammatory diseases where the Company has multiple diagnostic and therapeutic products in development.

About inFoods^®
The inFoods IBS test involves a simple blood collection procedure and is designed to assess a patient’s above normal immunoreactivity to specific foods. Instead of difficult to manage broad dietary restrictions, physicians can now use the inFoods IBS information to make targeted, patient-specific recommendations about specific foods that, when removed from the diet, may alleviate IBS symptoms such as pain, bloating, diarrhea and constipation. Further information about Biomerica’s patented inFoods^® Technology Platform can be found at: https://biomerica.com/inFoods/our-technology/. The inFoods IBS clinical study was performed at several prominent centers including Mayo Clinic, Beth Israel Deaconess Medical Center Inc. - a Harvard Medical School Teaching Hospital, Houston Methodist Hospital, and the University of Michigan. The clinical results for improvement in the Abdominal Pain Intensity (API) responder endpoint of >30%, for IBS patients in the treatment diet arm had a statistically significant improvement over patients in the placebo diet arm (p-value of 0.0246). The improvement for patients in the treatment arm versus the placebo arm is considered clinically significant and is similar and, in some cases, better than the current drugs in the market.

The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements. Certain information included in this press release contains statements that are forward-looking, such as statements relating to the Company’s current and future cash position, balance sheet, cost savings, sales, revenues, overhead, expenses, cost of goods, operations, and earnings; the Company's need for raising additional capital; the Company's expected sales growth for the Company's inFoods^® IBS product, hp+detect™ product and other existing products; and diversification of the Company's revenue streams. Such forward-looking information is based upon the current beliefs and expectations of management and involves important risks and uncertainties that could significantly affect anticipated results. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. Accordingly, such results may differ materially from those expressed in any forward-looking statements made by or on behalf of Biomerica. Factors that could cause actual results to differ from those expressed in the forward-looking statements are discussed in the "Risk Factors" section of the Company's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other reports filed with the SEC, and available on the SEC's website (www.sec.gov).

The Company is under no obligation to update any forward-looking statements after the date of this release.

Corporate Contact:

Zack Irani
949-645-2111
investors@biomerica.com

Source: Biomerica, Inc.

FAQ

What were Biomerica (BMRA) Q2 fiscal 2026 revenues and dates?

Biomerica reported Q2 revenue of $1.21M for the quarter ended November 30, 2025.

How did Biomerica's six‑month revenue and net loss change for FY2026?

Six‑month revenue was $2.59M versus $3.44M prior year; six‑month net loss improved to $1.31M.

What is the Medicare reimbursement decision for Biomerica's inFoods IBS (BMRA)?

CMS established a national Medicare payment rate of $300 for inFoods IBS, effective Jan 1, 2026.

What cost actions did Biomerica (BMRA) report in the Jan 14, 2026 release?

Management cited disciplined cost management, a 27% reduction in R&D, and lower year‑to‑date operating expenses.

How did Biomerica's working capital and cash position change in FY2026?

Working capital improved by 14.7% (~$457k) and cash increased to $2.5M.

What commercial partnerships and launches did Biomerica announce for inFoods IBS?

Biomerica began a marketing services agreement with Henry Schein and launched an AI‑backed inFoods IBS Trigger Food Navigator digital tool.