Biomerica Reports Third Quarter Fiscal 2025 Financial Results
Rhea-AI Summary
Biomerica (NASDAQ: BMRA) reported Q3 fiscal 2025 financial results with 10% year-over-year revenue growth to $1.10 million. The company achieved significant improvements in financial metrics, including a gross margin increase from -15% to +2% and a 37% reduction in operating expenses to $1.20 million.
Key developments include UAE regulatory approval for the Fortel® PSA Screening Test, publication of positive inFoods® IBS clinical trial results in Gastroenterology journal, and CE-IVDR certification for new food intolerance products targeting Ulcerative Colitis.
The company reached its cost savings target early, delivering $1.1 million in savings (16% of annual operating expenses) within the first nine months. Cash burn improved by over 55% to $800,000 quarterly, with cash and equivalents at $3.06 million as of February 28, 2025.
Positive
- Revenue increased 10% year-over-year to $1.10 million
- Gross margin improved from -15% to +2%
- Operating expenses reduced by 37% year-over-year
- Cash burn reduced by over 55% to $800,000 quarterly
- Achieved $1.1 million in cost savings (16% of annual operating expenses)
- Secured UAE regulatory approval for Fortel® PSA test
- Obtained CE-IVDR certification for new food intolerance products
Negative
- Still operating at a net loss of $1.20 million
- Low gross margin at 2%
- Reliance on ATM equity program for cash position improvement
News Market Reaction
On the day this news was published, BMRA gained 3.06%, reflecting a moderate positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
- Total Revenue Increases
10% Year-Over-Year - Delivers Improved Gross Margins, Achieves Annual Cost Savings Target Early, and Reduces Cash Burn Over
55%
IRVINE, Calif., April 15, 2025 (GLOBE NEWSWIRE) -- Biomerica, Inc. (Nasdaq: BMRA), (the “Company”) a global provider of advanced medical diagnostic and therapeutic products today reported financial results for the third quarter of fiscal 2025 ended February 28, 2025.
Key Highlights:
1. Fortel® PSA Screening Test Approved by UAE Ministry of Health & Prevention:
Biomerica’s Fortel® Prostate Specific Antigen (PSA) Screening Test has received regulatory approval from the United Arab Emirates Ministry of Health & Prevention (MOHAP). The Fortel® test offers fast, accurate PSA results in just 10 minutes using a simple finger-prick blood sample. By enabling earlier detection of prostate cancer and other prostate conditions, this easy-to-use diagnostic tool aims to enhance preventative care, reduce pressure on healthcare systems, and support improved patient outcomes.
2. inFoods® IBS Clinical Trial Results Published in Gastroenterology:
New clinical data published in Gastroenterology, the leading peer-reviewed journal for gastrointestinal medicine, demonstrated that patients with Irritable Bowel Syndrome (IBS) experienced statistically significant reductions in abdominal pain and bloating when following a personalized diet therapy plan guided by Biomerica’s inFoods® IBS test. Unlike other IBS products, inFoods® IBS uniquely identifies specific foods that trigger elevated Immunoglobulin G (IgG) responses—a marker of inflammation linked to IBS symptoms—using a
3. CE-IVDR Certification Achieved for Food Intolerance Products Targeting Ulcerative Colitis:
Biomerica’s new food intolerance products targeting Ulcerative Colitis have been awarded CE-marking under the European Union’s In Vitro Diagnostic Medical Devices Regulation (IVDR), a stringent regulatory framework designed to enhance diagnostic safety and performance across Europe. This IVDR certification highlights Biomerica’s continued leadership in developing non-invasive, personalized diagnostic tools for chronic gastrointestinal conditions. The newly approved tests will help meet the increasing demand for individualized approaches to managing diseases such as Ulcerative Colitis, which affects millions globally.
4. Achieved Full-Year Cost Savings Target Nine Months Into Fiscal 2025:
Biomerica reached its annual cost savings target ahead of schedule, delivering approximately
Financial Highlights for the Third Quarter of Fiscal 2025
Biomerica’s third quarter results reflect continued execution against its strategic priorities, delivering year-over-year revenue growth, expanded gross margins, and substantial reductions in both operating expenses and cash burn.
Revenue and Sales Performance: For the fiscal third quarter of 2025, Biomerica reported net sales of
Cost Management and Margin Enhancement: Gross margin improved from negative
Operating expenses decreased
Biomerica continued to make significant progress with its cost-saving initiatives, targeting an annual expense reduction of
Reduced Net Losses & Improved Cash Burn: Operating loss improved to (
Liquidity and Capital Resources: As of February 28, 2025, Biomerica’s cash and cash equivalents totaled
Importantly, excluding ATM proceeds, the Company’s underlying quarterly cash burn improved to approximately
“Our third quarter results reflect the meaningful progress we’ve made in strengthening our financial foundation while continuing to serve customers and grow our business,” said Zack Irani, CEO of Biomerica. “We are particularly pleased with the significant reduction in our cash burn and operating expenses, which positions us well as we continue to focus on driving revenue growth and moving closer to achieving cash flow break-even.”
| Selected Financial Results | Three Months Ended | Three Months Ended | |||||||
| February 28, 2025 | February 29, 2024 | ||||||||
| ($ in millions, except percentages) | |||||||||
| Revenue | $1.10 | $1.00 | |||||||
| Gross margin | 2% | - | |||||||
| Operating expenses | $1.20 | $1.90 | |||||||
| Operating loss | ($1.20) | ($2.00) | |||||||
| Net Loss | ($1.20) | ($1.90) | |||||||
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 >
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.
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