Sonoma Pharmaceuticals Reports First Fiscal Quarter 2026 Financial Results

Rhea-AI Summary

Sonoma Pharmaceuticals (NASDAQ:SNOA) reported its Q1 FY2026 financial results, showing significant growth with total revenue reaching $4.0 million, an 18% increase year-over-year. The company demonstrated strong performance in key markets, with U.S. revenue surging 57% and European revenue growing 14%.

Notable achievements include expanded partnerships with major U.S. retailers, launch of acne products in 1,200+ U.K. stores, and new regulatory approval in Ukraine. Despite revenue growth, the company reported a net loss of $1.2 million and held cash reserves of $3.6 million as of June 30, 2025. Gross profit margin slightly decreased to 36% from 39% in the previous year.

Positive

• Total revenue increased 18% year-over-year to $4.0 million
• U.S. revenue grew significantly by 57%
• European revenue increased by 14%
• Expanded distribution network with major U.S. retailer partnership
• Successfully launched products in 1,200+ UK stores
• Net loss per share decreased 43% compared to previous year

Negative

• Net loss of $1.2 million for the quarter
• Gross profit margin declined to 36% from 39% year-over-year
• Operating expenses increased to $2.6 million from $2.5 million
• Latin America revenue declined due to timing of customer orders

Insights

Financial Analyst

Sonoma shows strong revenue growth but remains unprofitable despite improvements in net loss metrics.

Sonoma Pharmaceuticals delivered 18% year-over-year revenue growth in Q1 FY2026, reaching $4.0 million compared to $3.4 million in the prior year period. The growth was primarily driven by impressive 57% expansion in U.S. sales, which increased by $363,000 due to higher demand for human healthcare and OTC animal health products. European revenues also contributed significantly with a 14% increase ($180,000).

Despite the revenue improvement, Sonoma's gross margin contracted from 39% to 36%, suggesting potential pricing pressures or an unfavorable product mix shift. The company's operating expenses increased slightly to $2.6 million, with higher R&D investment – a necessary expense for future product development but one that impacts near-term profitability.

While quarterly net loss remained relatively stable at $1.2 million (versus $1.1 million in Q1 FY2025), the 43% reduction in net loss per share indicates share dilution has occurred. EBITDA loss was unchanged at $1.0 million, highlighting that operational efficiency hasn't materially improved despite the revenue growth.

With $3.6 million in cash reserves and quarterly losses around $1.2 million, Sonoma's runway extends to approximately three quarters without additional financing. The company's strategic initiatives – expanding consumer products, growing partner networks, and securing new regulatory approvals – are showing traction but have yet to translate into profitability.

• Revenues increased 18% compared to same period last year

• U.S. revenue increased 57% compared to same period last year

• Net loss per share decreased 43% compared to same period last year

BOULDER, COLORADO / ACCESS Newswire / August 7, 2025 / Sonoma Pharmaceuticals, Inc. (Nasdaq:SNOA), a global healthcare leader developing and producing patented Microcyn^® technology-based stabilized hypochlorous acid (HOCl) products for a wide range of applications including wound care, eye care, dermatological conditions, podiatry, animal health care and non-toxic disinfectants, today announced financial results for its first fiscal quarter ended June 30, 2025.

"We are pleased to report continued substantial revenue growth as we begin our fiscal year 2026," remarked Amy Trombly, CEO of Sonoma. "Several of our strategic initiatives contributed to this result including expanding our consumer-focused product portfolio, increasing our number of partners and broadening our regulatory portfolio. Additionally, our existing business showed organic growth. Sonoma continues to lead the industry by innovating safe, effective products that consumers want with an unparalleled global regulatory portfolio."

Business Highlights

Sonoma continued to grow its distribution network, expand its product offerings and expand regulatory approvals in its first fiscal quarter of 2026:

• In July 2025, Sonoma expanded its recent partnership for the sale of Microcyn technology-based products to one of the largest retailers in the United States to include additional consumer-focused products.

• In April 2025, Sonoma launched the sale of its hypochlorous acid-based acne products in over 1,200 stores in the United Kingdom through a leading U.K. health and beauty retailer and pharmacy chain.

• In April 2025, Sonoma received regulatory approval for the sale of its wound care products in Ukraine as a Class IIb medical device.

Results for the Quarter Ended June 30, 2025

Total revenues for the quarter ended June 30, 2025 of $4.0 million were up $0.6 million as compared to $3.4 million for the same period last year. The increase in United States revenue of $363,000, or 57%, for the three months ended June 30, 2025 was primarily as a result of an increase in revenue related to the sale of human health care products and over-the-counter animal health care products. Revenues in Europe increased $180,000, or 14%, compared to the same period last year as the result of increased demand for Sonoma's products. Revenues increased in Asia and Rest of World when compared to the same period last year. These revenues tend to be choppy when viewed on a quarterly basis due to customers placing larger, but less frequent, orders to benefit from quantity discounts and reduced shipping costs. Latin America revenue declined for the quarter ended June 30, 2025, compared to the same period last year due to timing of customer orders for overflow manufacturing.

During the quarter ended June 30, 2025, Sonoma reported revenues of $4.0 million and cost of revenues of $2.5 million resulting in gross profit of $1.5 million, or 36% of revenue, compared to a gross profit of $1.3 million, or 39% of revenue, in the same period last year.

Total operating expenses during the quarter ended June 30, 2025 were $2.6 million compared to $2.5 million in the same period last year due to an increase in research and development expenses.

Net loss for the quarter of $1.2 million was nearly flat when compared to a net loss of $1.1 million for the quarter ended June 30, 2024. EBITDA loss for the quarter ended June 30, 2025 of $1.0 million remained approximately flat compared to an EBITDA loss of $1.0 million for the same period last year.

As of June 30, 2025, Sonoma had cash and cash equivalents of $3.6 million.

About Sonoma Pharmaceuticals, Inc.

Sonoma Pharmaceuticals is a global healthcare leader for developing and producing stabilized hypochlorous acid (HOCl) products for a wide range of applications, including wound care, eye care, dermatological conditions, podiatry, animal health care and non-toxic disinfectants. The company's products are clinically proven to reduce itch, pain, scarring, and irritation safely and without damaging healthy tissue. In-vitro and clinical studies of HOCl show it to safely manage skin abrasions, lacerations, minor irritations, cuts, and intact skin. The company's products are sold either directly or via partners in over 55 countries worldwide and the company actively seeks new distribution partners. The company's principal office is in Boulder, Colorado, with manufacturing operations in Guadalajara, Mexico. European marketing and sales are headquartered in Roermond, Netherlands. More information can be found at www.sonomapharma.com. For partnership opportunities, please contact businessdevelopment@sonomapharma.com.

Forward-Looking Statements

Except for historical information herein, matters set forth in this press release are forward-looking within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including statements about the commercial and technology progress and future financial performance of Sonoma Pharmaceuticals, Inc. and its subsidiaries (the "company"). These forward-looking statements are identified by the use of words such as "continue," "reduce," "develop," "aim," and "expand," among others. Forward-looking statements in this press release are subject to certain risks and uncertainties inherent in the company's business that could cause actual results to vary, including such risks that regulatory clinical and guideline developments may change, scientific data may not be sufficient to meet regulatory standards or receipt of required regulatory clearances or approvals, clinical results may not be replicated in actual patient settings, protection offered by the company's patents and patent applications may be challenged, invalidated or circumvented by its competitors, the available market for the company's products will not be as large as expected, the company's products will not be able to penetrate one or more targeted markets, revenues will not be sufficient to meet the company's cash needs or fund further development, as well as uncertainties relative to the recent pandemic and economic development, varying product formulations and a multitude of diverse regulatory and marketing requirements in different countries and municipalities, and other risks detailed from time to time in the company's filings with the Securities and Exchange Commission. The company disclaims any obligation to update these forward-looking statements, except as required by law.

Sonoma Pharmaceuticals™ and Microcyn^® are trademarks or registered trademarks of Sonoma Pharmaceuticals, Inc. All other trademarks and service marks are the property of their respective owners.

Media and Investor Contact:

Sonoma Pharmaceuticals, Inc.
ir@sonomapharma.com

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SONOMA PHARMACEUTICALS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share amounts)

		June 30, 2025				March 31, 2025
		(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents		$	3,605			$	5,374
Accounts receivable, net			2,602				2,232
Inventories, net			3,802				2,915
Prepaid expenses and other current assets			2,868				1,915
Current portion of deferred consideration, net of discount			230				212
Total current assets			13,107				12,648
Property and equipment, net			301				225
Operating lease, right of use assets			536				84
Deferred tax asset, net			546				589
Deferred consideration, net of discount, less current portion			24				73
Other assets			80				74
Total assets		$	14,594			$	13,693
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable		$	2,046			$	953
Accrued expenses and other current liabilities			1,836				2,224
Deferred revenue, current portion			731				641
Short-term debt			139				220
Operating lease liabilities, current portion			96				58
Total current liabilities			4,848				4,096
Deferred revenue, net of current portion			4				17
Withholding tax payable			5,246				5,142
Operating lease liabilities, less current portion			440				27
Total liabilities			10,538				9,282
Commitments and Contingencies
Stockholders' Equity:
Convertible preferred stock, $0.0001 par value; 714,286 shares authorized at June 30, 2025 and March 31, 2025, no shares issued and outstanding at June 30, 2025 and March 31, 2025			-				-
Common stock, $0.0001 par value; 50,000,000 shares authorized at June 30, 2025 and March 31, 2025, 1,642,765 and 1,634,265 shares issued and outstanding at June 30, 2025 and March 31, 2025, respectively			-				-
Additional paid-in capital			206,673				206,593
Accumulated deficit			(199,047	)			(197,806	)
Accumulated other comprehensive loss			(3,570	)			(4,376	)
Total stockholders' equity			4,056				4,411
Total liabilities and stockholders' equity		$	14,594			$	13,693

SONOMA PHARMACEUTICALS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(In thousands, except per share amounts)
(Unaudited)

		Three Months Ended June 30,
		2025				2024
Revenues		$	4,015			$	3,391
Cost of revenues			2,551				2,085
Gross profit			1,464				1,306
Operating expenses:
Research and development			594				470
Selling, general and administrative			1,965				2,009
Total operating expenses			2,559				2,479
Loss from operations			(1,095	)			(1,173	)
Other (expense) income, net			(147	)			176
Loss from operations before income taxes			(1,242	)			(997	)
Income tax benefit (expense)			1				(146	)
Net loss		$	(1,241	)		$	(1,143	)
Net loss per share: basic and diluted		$	(0.76	)		$	(1.34	)
Weighted-average shares outstanding: basic and diluted			1,641				851
Other comprehensive loss:
Net loss		$	(1,241	)		$	(1,143	)
Foreign currency translation adjustments			806				(881	)
Comprehensive loss		$	(435	)		$	(2,024	)

SONOMA PHARMACEUTICALS, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES
(In thousands)
(Unaudited)

		Three Months Ended June 30,
		2025				2024
(1) Loss from operations adjusted for non-cash items and one-time events, or EBITDA loss:
GAAP loss from operations as reported		$	(1,095	)		$	(1,173	)
Non-cash adjustments:
Stock-based compensation			57				107
Depreciation and amortization			36				39
Non-GAAP loss from operations minus non-cash expenses EBITDA loss		$	(1,002	)		$	(1,027	)
(2) Net loss adjusted for non-cash items and one-time events:
GAAP net loss as reported		$	(1,241	)		$	(1,143	)
Non-cash adjustments:
Stock-based compensation			57				107
Non-cash foreign exchange transaction (gains) losses			549				(177	)
Income taxes			(1	)			146
Depreciation and amortization			36				39
Non-GAAP net loss adjusted for non-cash items		$	(600	)		$	(1,028	)
(3) Operating expenses minus non-cash expenses
GAAP operating expenses as reported		$	2,559			$	2,479
Non-cash adjustments:
Stock-based compensation			(57	)			(107	)
Depreciation and amortization			(36	)			(39	)
Non-GAAP operating expenses minus non-cash expenses		$	2,466			$	2,333

(1)	Loss from operations minus non-cash expenses EBITDA loss is a non-GAAP financial measure. The Company defines this as GAAP reported operating income (loss) minus operating depreciation and amortization and operating stock-based compensation. The Company uses this measure for the purpose of modifying the operating loss to reflect normal direct cash related transactions during the measurement period. Non-GAAP measures should not be considered a substitute for financial measures presented in accordance with GAAP. Non-GAAP measures are not always consistent across, or comparable with, non-GAAP measures disclosed by other companies.
(2)	Net loss adjusted for non-cash items and one-time events is a non-GAAP financial measure. The Company defines this as GAAP reported net loss minus depreciation and amortization, stock-based compensation, income taxes and non-cash foreign exchange transaction losses. The Company uses this measure for the purpose of modifying the net loss to reflect only those expenses to reflect normal direct cash transactions during the measurement period. Non-GAAP measures should not be considered a substitute for financial measures presented by GAAP. Non-GAAP measures are not always consistent across, or comparable with, non-GAAP measures disclosed by other companies.
(3)	Operating expenses minus non-cash expenses is a non-GAAP financial measure. The Company defines operating expenses minus non-cash expenses as GAAP reported operating expenses minus operating depreciation and amortization, and operating stock-based compensation. The Company uses this measure for the purpose of identifying total operating expenses involving cash transactions during the measurement period. Non-GAAP measures should not be considered a substitute for financial measures presented in accordance with GAAP. Non-GAAP measures are not always consistent across, or comparable with, non-GAAP measures disclosed by other companies.

SONOMA PHARMACEUTICALS, INC. AND SUBSIDIARIES
PRODUCT RELATED REVENUE SCHEDULES
(In thousands)
(Unaudited)

The following table shows consolidated total revenue and revenue by geographic region for the three months ended June 30, 2025 and 2024:

		Three Months Ended June 30,
(In thousands)		2025				2024				$ Change				% Change
United States		$	1,005			$	642			$	363				57	%
Europe			1,468				1,288				180				14	%
Asia			662				477				185				39	%
Latin America			564				880				(316	)			(36	%)
Rest of the World			316				104				212				204	%
Total		$	4,015			$	3,391			$	624				18	%

SOURCE: Sonoma Pharmaceuticals, Inc.

View the original press release on ACCESS Newswire

FAQ

What were Sonoma Pharmaceuticals (SNOA) Q1 2026 earnings results?

Sonoma reported total revenue of $4.0 million (up 18% YoY), with a net loss of $1.2 million. U.S. revenue increased 57%, while gross profit margin was 36%.

How much cash does Sonoma Pharmaceuticals (SNOA) have as of Q1 2026?

As of June 30, 2025, Sonoma Pharmaceuticals had $3.6 million in cash and cash equivalents.

What new markets did Sonoma Pharmaceuticals expand into during Q1 2026?

Sonoma expanded its presence in the UK with acne products in over 1,200 stores and received regulatory approval for wound care products in Ukraine as a Class IIb medical device.

What drove Sonoma Pharmaceuticals' U.S. revenue growth in Q1 2026?

The 57% U.S. revenue growth was primarily driven by increased sales of human health care products and over-the-counter animal health care products, along with expanded partnerships with major U.S. retailers.

How did Sonoma's operating expenses change in Q1 2026?

Operating expenses increased to $2.6 million from $2.5 million in the same period last year, primarily due to higher research and development expenses.