Sonoma Pharmaceuticals Reports Fiscal Year and Fourth Quarter 2025 Financial Results
- Revenue growth of 12% year-over-year to $14.3M in FY2025
- Net loss improved significantly by 29% in FY2025
- EBITDA loss reduced by 59% in Q4 2025
- Gross profit margin improved to 41% in Q4 2025 from 32% year-over-year
- Successfully transitioned products to new EU Medical Device Regulation ahead of 2028 deadline
- Expanded distribution network with launch in 1,200+ UK stores
- Operating expenses reduced by 13% in Q4 2025
- Continued net losses despite improvements ($3.5M loss in FY2025)
- Decline in U.S. revenue due to fluctuating demand for animal health care products
- Decreased revenues in Asia due to timing of customer orders
Insights
Sonoma shows revenue growth and narrowing losses, with strategic expansions in EU and UK markets positioning for future growth.
Sonoma Pharmaceuticals' latest quarterly results show continued financial improvement, with
Particularly encouraging is the gross margin expansion from
The company's cash position of
Regulatory achievements are creating new market opportunities, with the company successfully transitioning products to the new EU Medical Device Regulation ahead of schedule and securing MHRA registration in the UK. The launch of acne products in over 1,200 UK stores through a major pharmacy chain and expanded U.S. retail partnerships creates additional growth vectors beyond the company's existing markets. Ukraine approval adds another potential revenue stream.
The consistent improvements in financial metrics across consecutive periods suggest that Sonoma's strategy of geographic expansion, regulatory approvals, and cost containment is gaining traction in the market for its Microcyn hypochlorous acid technology.
Revenues increased
9% in Q4 2025 compared to Q4 2024, and12% in FY 2025 compared to FY 2024Net loss improved
27% in Q4 2025 compared to Q4 2024, and29% in FY 2025 compared to FY 2024EBITDA loss improved
59% in Q4 2025 compared to Q4 2024, and17% in FY 2025 compared to FY 2024
BOULDER, CO / ACCESS Newswire / June 17, 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, eye, oral and nasal care, dermatological conditions, podiatry, animal health care and non-toxic disinfectants, today announced financial results for fiscal year 2025 and the fourth quarter ended March 31, 2025.
"We are very pleased to report the results of our 2025 fiscal year and fourth fiscal quarter, which show continued revenue growth and consistent progress towards profitability," said Amy Trombly, CEO of Sonoma. "The successful transitioning of our products to the new Medical Device Regulation in the EU, well ahead of the 2028 deadline, and the registration of our products with the MHRA in the United Kingdom represent significant achievements for the Sonoma. We believe the strategic expansion of our sales and distribution network in the U.S. and internationally, supported by aggressive pursuit of worldwide regulatory approvals in new markets, is a winning formula."
Recent Business Highlights
Sonoma continued to expand regulatory approvals for its products, grow its distribution network, and expand its product offerings:
Sonoma successfully transitioned all of its commercialized products in Europe to the new European Union (EU) Medical Device Regulation (MDR) ahead of the deadline for compliance, including its eye care, wound care, scar gel, acne, and atopic dermatitis products.
Sonoma's manufacturing facility and five of its products were successfully registered with the Medicines & Healthcare products Regulatory Agency (MHRA) in the United Kingdom, including its wound irrigation solution, scar management products, wound hydrogel, and skin exfoliant.
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 March 2025 and June 2025, Sonoma expanded its recent partnership for the sale of Microcyn technology-based products to large retailers in the United States to include additional consumer-focused products.
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 March 31, 2025
Total revenue of
During the quarter ended March 31, 2025, Sonoma reported cost of revenues of
Total operating expenses during the fourth quarter of fiscal year 2025 were
Net loss for the fourth quarter of fiscal year 2025 was
As of March 31, 2025, Sonoma had cash and cash equivalents of
Results for the Year Ended March 31, 2025
Total revenues for the year ended March 31, 2025 of
For the year ended March 31, 2025, Sonoma reported total revenues of
Total operating expenses during fiscal year 2025 were
Net loss during fiscal year 2025 was
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, nasal care, oral 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 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," "anticipate," "expect" 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 fluctuations in foreign currency exchange rates, global economic conditions, prospective tariffs or changes to trade policies, 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.
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SONOMA PHARMACEUTICALS, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(In thousands, except share amounts)
March 31, 2025 | March 31, 2024 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 5,374 | $ | 3,128 | ||||
Accounts receivable, net | 2,232 | 2,898 | ||||||
Inventories, net | 2,915 | 2,719 | ||||||
Prepaid expenses and other current assets | 1,915 | 3,541 | ||||||
Current portion of deferred consideration, net of discount | 212 | 262 | ||||||
Total current assets | 12,648 | 12,548 | ||||||
Property and equipment, net | 225 | 365 | ||||||
Operating lease, right of use assets | 84 | 286 | ||||||
Deferred tax asset | 589 | 1,145 | ||||||
Deferred consideration, net of discount, less current portion | 73 | 330 | ||||||
Other assets | 74 | 66 | ||||||
Total assets | $ | 13,693 | $ | 14,740 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 953 | $ | 607 | ||||
Accrued expenses and other current liabilities | 2,224 | 2,113 | ||||||
Deferred revenue | 641 | 478 | ||||||
Short-term debt | 220 | 323 | ||||||
Operating lease liabilities, current portion | 58 | 198 | ||||||
Total current liabilities | 4,096 | 3,719 | ||||||
Deferred revenue, net of current portion | 17 | 87 | ||||||
Withholding tax payable | 5,142 | 4,710 | ||||||
Operating lease liabilities, less current portion | 27 | 87 | ||||||
Total liabilities | 9,282 | 8,603 | ||||||
Commitments and Contingencies | ||||||||
Stockholders' Equity: | ||||||||
Convertible preferred stock, | - | - | ||||||
Common stock, | - | - | ||||||
Additional paid-in capital | 206,593 | 203,209 | ||||||
Accumulated deficit | (197,806 | ) | (194,349 | ) | ||||
Accumulated other comprehensive loss | (4,376 | ) | (2,723 | ) | ||||
Total stockholders' equity | 4,411 | 6,137 | ||||||
Total liabilities and stockholders' equity | $ | 13,693 | $ | 14,740 | ||||
SONOMA PHARMACEUTICALS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(In thousands, except per share amounts)
Three Months Ended March 31, | Year Ended March 31, | |||||||||||||||
2025 | 2024 | 2025 | 2024 | |||||||||||||
(Unaudited) | ||||||||||||||||
Revenues | $ | 3,754 | $ | 3,439 | $ | 14,288 | $ | 12,735 | ||||||||
Cost of revenues | 2,226 | 2,348 | 8,823 | 7,990 | ||||||||||||
Gross profit | 1,528 | 1,091 | 5,465 | 4,745 | ||||||||||||
Operating expenses | ||||||||||||||||
Research and development | 411 | 409 | 1,814 | 1,871 | ||||||||||||
Selling, general and administrative | 1,773 | 2,091 | 7,361 | 7,575 | ||||||||||||
Total operating expenses | 2,184 | 2,500 | 9,175 | 9,446 | ||||||||||||
Loss from operations | (656 | ) | (1,409 | ) | (3,710 | ) | (4,701 | ) | ||||||||
Other income (expense), net | 128 | 50 | 803 | (330 | ) | |||||||||||
Loss before income taxes | (528 | ) | (1,359 | ) | (2,907 | ) | (5,031 | ) | ||||||||
Income tax (expense) benefit | (248 | ) | 292 | (550 | ) | 196 | ||||||||||
Net loss | $ | (776 | ) | $ | (1,067 | ) | $ | (3,457 | ) | $ | (4,835 | ) | ||||
Net loss per share: basic and diluted | $ | (0.48 | ) | $ | (1.39 | ) | $ | (2.79 | ) | $ | (10.63 | ) | ||||
Weighted-average number of shares: basic and diluted | 1,619 | 769 | 1,241 | 455 | ||||||||||||
Other comprehensive loss | ||||||||||||||||
Net loss | $ | (776 | ) | $ | (1,067 | ) | $ | (3,457 | ) | $ | (4,835 | ) | ||||
Foreign currency translation adjustments | 178 | 100 | (1,653 | ) | 695 | |||||||||||
Comprehensive loss | $ | (598 | ) | $ | (967 | ) | $ | (5,110 | ) | $ | (4,140 | ) | ||||
SONOMA PHARMACEUTICALS, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES
(In thousands)
(Unaudited)
Three Months Ended March 31, | Year Ended March 31, | |||||||||||||||
2025 | 2024 | 2025 | 2024 | |||||||||||||
(1) Loss from operations minus non-cash expenses EBITDA loss: | ||||||||||||||||
GAAP loss from operations as reported | $ | (656 | ) | $ | (1,409 | ) | $ | (3,710 | ) | $ | (4,701 | ) | ||||
Non-cash adjustments: | ||||||||||||||||
Stock-based compensation | 90 | 69 | 224 | 516 | ||||||||||||
Depreciation and amortization | 31 | 41 | 138 | 176 | ||||||||||||
Non-GAAP loss from operations minus non-cash expenses EBITDA loss | $ | (535 | ) | $ | (1,299 | ) | $ | (3,348 | ) | $ | (4,009 | ) | ||||
(2) Net loss minus non-cash and one-time expenses: | ||||||||||||||||
GAAP net loss as reported | $ | (776 | ) | $ | (1,067 | ) | $ | (3,457 | $ | (4,835 | ) | |||||
Non-cash adjustments: | ||||||||||||||||
Stock-based compensation | 90 | 69 | 224 | 516 | ||||||||||||
Non-cash foreign exchange transaction losses (gains) | 162 | 199 | (243 | 825 | ||||||||||||
Income tax expense (benefit) | 248 | (292 | ) | 550 | (196 | ) | ||||||||||
Depreciation and amortization | 31 | 41 | 138 | 176 | ||||||||||||
Non-GAAP net loss minus non-cash expenses | $ | (245 | ) | $ | (1,050 | ) | $ | (2,788 | $ | (3,514 | ) | |||||
(3) Operating expenses minus non-cash expenses | ||||||||||||||||
GAAP operating expenses as reported | $ | 2,184 | $ | 2,500 | $ | 9,175 | $ | 9,446 | ||||||||
Non-cash adjustments: | ||||||||||||||||
Stock-based compensation | (90 | (69 | ) | (224 | (516 | ) | ||||||||||
Depreciation and amortization | (31 | (41 | ) | (138 | (176 | ) | ||||||||||
Non-GAAP operating expenses minus non-cash expenses | $ | 2,063 | $ | 2,390 | $ | 8,813 | $ | 8,754 | ||||||||
(1) Loss from operations minus non-cash expenses (EBITDA) is a non-GAAP financial measure. The Company defines operating loss minus non-cash expenses as GAAP reported operating 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 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 minus non-cash and one-time expenses is a non-GAAP financial measure. The company defines net loss minus non-cash expenses 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 direct 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.
(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
REVENUE SCHEDULES
(In thousands)
The following table shows the Company's revenues by geographic region:
Three Months Ended March 31, | ||||||||||||||||
2025 | 2024 | $ Change | % Change | |||||||||||||
(Unaudited) | ||||||||||||||||
United States | $ | 681 | $ | 769 | $ | (88 | ) | (11 | %) | |||||||
Europe | 1,580 | 1,293 | 287 | 22 | % | |||||||||||
Asia | 485 | 568 | (83 | ) | (15 | %) | ||||||||||
Latin America | 788 | 636 | 152 | 24 | % | |||||||||||
Rest of the World | 220 | 173 | 47 | 27 | % | |||||||||||
Total | $ | 3,754 | $ | 3,439 | $ | 315 | 9 | % | ||||||||
Year Ended March 31, | ||||||||||||||||
2025 | 2024 | $ Change | % Change | |||||||||||||
United States | $ | 2,611 | $ | 3,058 | $ | (447 | ) | (15 | %) | |||||||
Europe | 5,523 | 4,781 | 742 | 16 | % | |||||||||||
Asia | 2,317 | 2,298 | 19 | 1 | % | |||||||||||
Latin America | 2,962 | 1,726 | 1,236 | 72 | % | |||||||||||
Rest of the World | 875 | 872 | 3 | 0 | % | |||||||||||
Total | $ | 14,288 | $ | 12,735 | $ | 1,553 | 12 | % | ||||||||
SOURCE: Sonoma Pharmaceuticals, Inc.
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FAQ
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