Sonoma Pharmaceuticals Reports Second Fiscal Quarter 2027 Financial Results, Delivering First-ever Net Income Before Income Tax

A $448,000 income tax expense kept quarterly results in a net loss despite the first quarterly pretax profit.

Rhea-AI Summary

Sonoma Pharmaceuticals (SNOA) reported its first quarterly pretax profit, earning $382,000 in its fiscal second quarter ended September 30, 2026. Revenue rose 28% year over year to $7.174 million, with U.S. sales up 93%. Gross margin increased to 39% from 38%, and operating income reached $290,000 versus a $337,000 loss. A $448,000 income tax expense left a net loss of $66,000, compared with $534,000 a year earlier.

For the six months ended September 30, revenue increased 41% to $13.580 million, while net loss narrowed to $396,000 from $1.775 million. Cash reached $4.609 million versus $2.399 million at March 31, 2026. Outstanding common shares increased to 5,057,755 from 1,799,057 over that period. Business developments included a paid skincare formulation project, an initial Taiwan purchase order and new U.S. wound-care and senior-care customer relationships.

25 points · 1 major

PositiveiHow this balance works

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1 major · 8 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Major pointQuarterly pretax results reached $382,000 profit, versus a $731,000 loss a year earlier.
• Moderate pointQuarterly revenue rose 28% year over year to $7.174 million.
• Moderate pointQuarterly operating results reached $290,000 income, versus a $337,000 loss a year earlier.
• Moderate pointCash increased to $4.609 million at September 30, 2026, from $2.399 million at March 31.
• Minor pointQuarterly gross profit increased to $2.807 million; margin rose to 39% from 38% year over year.

20 minor points

• Minor pointQuarterly net loss narrowed to $66,000, or $0.01 per share, from $534,000, or $0.32.
• Minor pointCompany-defined adjusted EBITDA reached $447,000 for the quarter, versus a $220,000 loss a year earlier.
• Minor pointQuarterly U.S. revenue increased 93% year over year to $2.796 million.
• Minor pointQuarterly Latin American revenue increased 57% year over year to $835,000.
• Minor pointQuarterly Rest of World revenue increased 43% year over year to $594,000.
• Minor pointSix-month revenue increased 41% year over year to $13.580 million.
• Minor pointSix-month gross profit reached $5.384 million; margin increased to 40% from 37% year over year.
• Minor pointSix-month operating results reached $250,000 income, versus a $1.432 million loss a year earlier.
• Minor pointSix-month pretax results reached $52,000 profit, versus a $1.973 million loss a year earlier.
• Minor pointSix-month net loss narrowed to $396,000, or $0.09 per share, from $1.775 million, or $1.08.
• Minor pointCompany-defined adjusted EBITDA reached $521,000 for six months, versus an $820,000 loss a year earlier.
• Minor pointSix-month U.S. revenue increased 113% year over year.
• Minor pointSix-month European revenue increased 14% year over year.
• Minor pointSix-month Latin American revenue increased 33% year over year.
• Minor pointShort-term debt declined to $57,000 at September 30, 2026, from $222,000 at March 31.
• Minor pointStockholders' equity increased to $6.614 million at September 30, 2026, from $3.095 million at March 31.
• Minor pointA U.S. skincare company engaged Sonoma for a paid formulation co-development project.
• Minor pointTaiwan's new distribution partner submitted an initial purchase order for wound-care products.
• Minor pointA new U.S. wound-care commercial relationship adds a customer specializing in bandage products.
• Minor pointA new U.S. senior-care customer relationship expands Sonoma's commercial presence for hypochlorous acid products.

Negative

• Major pointOutstanding common shares increased to 5,057,755 at September 30, 2026, from 1,799,057 at March 31, diluting holders.
• Moderate pointIncome tax expense was $448,000 for both the quarter and six-month period. 8.3% of market cap
• Moderate pointTaiwan commercialization remains dependent on regulatory requirements being finalized.
• Minor pointQuarterly Asian revenue declined 24% year over year to $801,000.
• Minor pointQuarterly operating expenses increased to $2.517 million from $2.457 million a year earlier.

3 minor points

• Minor pointSix-month operating expenses increased to $5.134 million from $5.016 million a year earlier.
• Minor pointWithholding tax payable increased to $5.692 million at September 30, 2026, from $5.564 million at March 31.
• Minor point. Forward-looking: it has not happened yet and may not happen.Potential skincare launch in summer 2027 depends on successful formulation development and partner acceptance.

News Explained

At September 30, 2026, Sonoma reported $4.6 million in cash; compared with the latest reported quarterly operating cash use of $736,000, that equals 576.1 days of use at the same rate—a historical sizing, not a forecast.

Sources and calculations

• Sonoma Pharmaceuticals second-quarter fiscal 2027 results release (2026-11-10)
• Sonoma Pharmaceuticals quarterly fundamentals, 2027Q2 (2026-09-30)

• Available liquidity against the last reported quarterly operating outflow, in days at that rate $4,609,000 / ($736,000 / 92) = 576.1 days

Key Figures

Quarterly revenue: $7.2 million; +28% U.S. revenue growth: +93% Gross profit and margin: $2.8 million; 39% +5 more

Quarterly revenue

$7.2 million; +28%

Quarter ended September 30, 2026, compared with $5.6 million a year earlier

U.S. revenue growth

+93%

Quarter ended September 30, 2026, year over year

Gross profit and margin

$2.8 million; 39%

Quarter ended September 30, 2026; prior-year margin was 38%

Income before income taxes

$382,000

Quarter ended September 30, 2026; first positive result before income taxes

Net loss

$0.1 million; improved 88%

Quarter ended September 30, 2026, compared with a $0.5 million loss a year earlier

EBITDA income

$0.4 million

Quarter ended September 30, 2026, compared with an EBITDA loss of $0.2 million a year earlier

Six-month revenue

$13.6 million; +41%

Six months ended September 30, 2026, compared with $9.6 million a year earlier

Cash and cash equivalents

$4.6 million

As of September 30, 2026

Previous Earnings Reports

2 past events · Latest: Aug 06

Same Type 2 events

1. Aug 06

   Q1 earnings

   24h Move

   +10.6%

   Revenue rose 60%, and adjusted EBITDA turned positive for the first time.

2. Nov 04

   Q2 earnings

   24h Move

   -0.5%

   Fiscal Q2 revenue increased 57% year over year, while the reported reaction was negative.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

hocl, hypochlorous acid, ebitda, non-gaap

4 terms

hocl medical

"stabilized hypochlorous acid (HOCl) products"

Hypochlorous acid (HOCl) is a weak, fast‑acting disinfectant chemical that is produced by the immune system and formulated for use in wound care, surface sanitizers, and medical devices. Investors watch HOCl products because their safety profile, regulatory approvals, and manufacturing scalability determine how widely they can replace harsher cleaners or be adopted in healthcare and consumer markets — think of it as a gentler, quick‑acting sanitizer that can open or close market opportunities.

hypochlorous acid medical

"stabilized hypochlorous acid (HOCl) products"

A mild, naturally occurring chemical formed when chlorine dissolves in water that acts as a fast-acting disinfectant and antiseptic. Think of it like a gentle, short-lived version of bleach that kills bacteria and viruses without strong fumes or persistent chemical residue. Investors watch it because demand, regulatory approvals, production capacity and safety perceptions directly affect sales in cleaning, healthcare and water-treatment markets, influencing product lines and revenue.

ebitda financial

"EBITDA income for the quarter ended September 30, 2026"

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It measures a company's profitability by focusing on the money it makes from its core operations, ignoring expenses like taxes and accounting adjustments. Investors use EBITDA to compare how well different companies are performing financially, as it provides a clearer picture of operational success without the influence of financial structure or accounting choices.

View in glossary

non-gaap financial

"Non-GAAP measures should not be considered a substitute for financial measures"

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

View in glossary

AI-generated analysis. How Rhea-AI works. Not financial advice.

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BOULDER, CO / ACCESS Newswire / November 10, 2026 / 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, and animal health care, today announced financial results for its second fiscal quarter ended September 30, 2026.

"We are very pleased to report another significant milestone for Sonoma: following our achievement of positive EBITDA last quarter, in the second fiscal quarter of 2027, Sonoma has delivered positive net income before income taxes for the first time in its history," said Amy Trombly, CEO of Sonoma. "Our results reflect the progress we are making in growing revenue while improving gross margins and maintaining disciplined control over operating expenses. U.S. revenue increased 93% this quarter, and total revenue grew 28%, demonstrating the growing contribution of our commercial efforts. We believe these results underscore the potential of our business model and our continued focus on building a stronger, more profitable company."

Business Highlights

Sonoma continues to advance its product innovation capabilities and expand its global distribution network, while pursuing opportunities in attractive specialty markets.

• HOCl Formulation Co-Development: Sonoma was engaged by a U.S.-based professional skincare company to participate in a paid co-formulation project evaluating the integration of specialized skincare ingredients with Sonoma's HOCl technology platform. Sonoma's extensive experience in HOCl formulation and manufacturing provides specialized expertise in creating new formulations. The project expands Sonoma's role beyond the production of traditional HOCl solutions and gels into more advanced formulation development. If a successful formulation is developed and accepted by the partner, the parties anticipate a potential product launch in summer 2027.

• Taiwan Market Expansion: Sonoma's new distribution partner in Taiwan is finalizing the regulatory requirements necessary to commercialize Sonoma wound-care products and has submitted an initial purchase order. The partner has already established distribution channels serving hospitals in Taiwan, providing Sonoma with an opportunity to expand its presence in this attractive healthcare market.

• Expansion in Specialized Wound Care: Sonoma entered into a new commercial relationship with a U.S.-based wound-care company that specializes in innovative bandage products.

• Growth in Senior Care: Sonoma is expanding its commercial presence in the senior-care market through a new U.S. customer relationship for HOCl products. Senior care represents an attractive and growing market segment, with potential applications for HOCl in supporting skin health and care needs among older populations.

Results for the Quarter Ended September 30, 2026

Total revenues for the quarter ended September 30, 2026 of $7.2 million increased by $1.6 million, or 28%, as compared to $5.6 million for the same period last year. Revenues in the United States increased 93% primarily as a result of an increase in demand for our products and increased sales by new and existing distributors. Revenues in Europe were flat compared to the same period last year. Revenues in Latin America increased 57% as a result of increased demand for our products. Revenues decreased in Asia and increased in Rest of World when compared to the same period last year. Revenues from these regions tend to fluctuate when viewed on a quarterly basis due to customers placing larger, but less frequent, orders to benefit from quantity discounts and reduced shipping costs when ordering larger quantities.

During the quarter ended September 30, 2026, Sonoma reported revenues of $7.2 million and cost of revenues of $4.4 million resulting in gross profit of $2.8 million, or 39% of revenue, compared to a gross profit of $2.1 million, or 38% of revenue in the same period last year. The increase is primarily the result of an increase in revenue as compared to the same period last year, improvements in manufacturing processes, and customer mix.

Total operating expenses during the quarter ended September 30, 2026 were $2.5 million, compared to $2.5 million in the same period last year, demonstrating the operating leverage in Sonoma's business model as the company grows revenue and gross profit while keeping operating expenses stable.

Net loss for the quarter ended September 30, 2026 of $0.1 million improved by $0.4 million, or 88%, when compared to a net loss of $0.5 million for the quarter ended September 30, 2025. EBITDA income for the quarter ended September 30, 2026 of $0.4 million increased $0.6 million, compared to an EBITDA loss of $0.2 million for the same period last year.

Results for the Six Months Ended September 30, 2026

Total revenues for the six months ended September 30, 2026 of $13.6 million increased by $4.0 million, or 41%, as compared to $9.6 million for the same period last year. Revenues in the United States increased 113% primarily as a result of increased sales by new and existing distributors. Revenues in Europe increased 14% compared to the same period last year as the result of increased demand for Sonoma's products. Revenues in Latin America increased 33% as a result of timing of customer orders. Revenues were essentially flat in Asia and increased in Rest of World when compared to the same period last year. Revenues from these regions tend to fluctuate when viewed on a quarterly basis due to customers placing larger, but less frequent, orders to benefit from quantity discounts and reduced shipping costs when ordering larger quantities.

During the six months ended September 30, 2026, Sonoma reported revenues of $13.6 million and cost of revenues of $8.2 million, resulting in gross profit of $5.4 million, or 40% of revenue, compared to a gross profit of $3.6 million, or 37% of revenue in the same period last year. The increase was the result of improvements in manufacturing processes and customer mix.

Total operating expenses during the six months ended September 30, 2026 were $5.1 million compared to $5.0 million in the same period last year.

Net loss for the six months ended September 30, 2026 of $396,000 improved by $1.4 million when compared to a net loss of $1.8 million for the six months ended September 30, 2025. EBITDA income for the six months ended September 30, 2026 of $0.5 million increased $1.3 million, compared to an EBITDA loss of $0.8 million for the same period last year.

As of September 30, 2026, Sonoma had cash and cash equivalents of $4.6 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, eye, oral and nasal care, dermatological conditions, podiatry, animal health care and non-toxic disinfectants. Sonoma'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. Sonoma'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 busdev@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 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.
ir@sonomapharma.com

Website: www.sonomapharma.com

Follow us on LinkedIn: https://www.linkedin.com/company/sonoma-pharmaceuticals

Follow us on Instagram: https://www.instagram.com/sonomapharma_us/

Follow us on Facebook: https://www.facebook.com/sonomapharma/

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

		September 30,				March 31,
		2026				2026
		(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents		$	4,609			$	2,399
Accounts receivable, net			3,582				2,527
Inventories, net			3,508				3,651
Prepaid expenses and other current assets			3,644				3,523
Total current assets			15,343				12,100
Property and equipment, net			294				310
Operating lease, right of use assets			522				602
Deferred tax asset, net			880				884
Other assets			64				64
Total assets		$	17,103			$	13,960
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable		$	1,552			$	1,923
Accrued expenses and other current liabilities			2,598				2,252
Deferred revenue			45				284
Short-term debt			57				222
Operating lease liabilities, current portion			163				151
Total current liabilities			4,415				4,832
Withholding tax payable			5,692				5,564
Operating lease liabilities, less current portion			382				469
Total liabilities			10,489				10,865
Commitments and Contingencies
Stockholders' Equity:
Convertible preferred stock, $0.0001 par value; 714,286 shares authorized at September 30, 2026 and March 31, 2026, respectively, no shares issued and outstanding at September 30, 2026 and March 31, 2026			-				-
Common stock, $0.0001 par value; 50,000,000 shares authorized at September 30, 2026 and March 31, 2026, 5,057,755, and 1,799,057 shares issued and outstanding at September 30, 2026 and March 31, 2026, respectively			-				-
Additional paid-in capital			211,323				207,319
Accumulated deficit			(201,377	)			(200,981	)
Accumulated other comprehensive loss			(3,332	)			(3,243	)
Total stockholders' equity			6,614				3,095
Total liabilities and stockholders' equity		$	17,103			$	13,960

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

		Three Months Ended September 30,								Six Months Ended September 30,
		2026				2025				2026				2025
Revenues		$	7,174			$	5,604			$	13,580			$	9,619
Cost of revenues			4,367				3,484				8,196				6,035
Gross profit			2,807				2,120				5,384				3,584
Operating expenses:
Research and development			469				575				1,066				1,169
Selling, general and administrative			2,048				1,882				4,068				3,847
Total operating expenses			2,517				2,457				5,134				5,016
Income (loss) from operations			290				(337	)			250				(1,432	)
Other income (expense), net			92				(394	)			(198	)			(541	)
Net income (loss) before income taxes			382				(731	)			52				(1,973	)
Income tax benefit (expense)			(448	)			197				(448	)			198
Net loss		$	(66	)		$	(534	)		$	(396	)		$	(1,775	)
Net loss per share:
Basic and Diluted		$	(0.01	)		$	(0.32	)		$	(0.09	)		$	(1.08	)
Weighted average shares outstanding:
Basic and Diluted			4,909				1,646				4,381				1,643
Other comprehensive income loss:
Net loss		$	(66	)		$	(534	)		$	(396	)		$	(1,775	)
Foreign currency translation adjustments			(324	)			205				(89	)			1,011
Comprehensive loss		$	(390	)		$	(329	)		$	(485	)		$	(764	)

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

		Three Months Ended September 30,								Six Months Ended September 30,
		2026				2025				2026				2025
(1) Net income (loss) adjusted for non-cash items and one-time events or EBITDA loss:
GAAP net income (loss) as reported		$	(66	)		$	(534	)		$	(396	)		$	(1,775	)
Non-cash adjustments:
Stock-based compensation			95				39				153				96
Non-cash foreign exchange transaction losses (gains)			(60	)			436				254				985
Income tax (benefit) expense			448				(197	)			448				(198	)
Depreciation			30				36				62				72
Non-GAAP net income (loss) adjusted for non-cash items and one-time events or EBITDA income (loss)		$	447			$	(220	)		$	521			$	(820	)
(2) Operating expenses minus non-cash expenses
GAAP operating expenses as reported		$	2,517			$	2,457			$	5,134			$	5,016
Non-cash adjustments:
Stock-based compensation			(95	)			(39	)			(153	)			(96	)
Depreciation			(30	)			(36	)			(62	)			(72	)
Non-GAAP operating expenses minus non-cash expenses		$	2,392			$	2,382			$	4,919			$	4,848

(1) Net loss adjusted for non-cash items and one-time events, or EBITDA loss, 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 in accordance with GAAP. Non-GAAP measures are not always consistent across, or comparable with, non-GAAP measures disclosed by other companies.

(2) 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 our consolidated total revenue and revenue by geographic region for the three and six months ended September 30, 2026 and 2025:

		Three Months Ended September 30,
(In thousands)		2026				2025				$ Change				% Change
United States		$	2,796			$	1,449			$	1,347				93	%
Europe			2,148				2,151				(3	)			0	%
Asia			801				1,057				(256	)			(24	%)
Latin America			835				532				303				57	%
Rest of the World			594				415				179				43	%
Total		$	7,174			$	5,604			$	1,570				28	%

		Six Months Ended September 30,
(In thousands)		2026				2025				$ Change				% Change
United States		$	5,222			$	2,454			$	2,768				113	%
Europe			4,112				3,619				493				14	%
Asia			1,711				1,719				(8	)			0	%
Latin America			1,461				1,096				365				33	%
Rest of the World			1,074				731				343				47	%
Total		$	13,580			$	9,619			$	3,961				41	%

SOURCE: Sonoma Pharmaceuticals, Inc.

View the original press release on ACCESS Newswire

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

Did Sonoma Pharmaceuticals make a profit in its fiscal second quarter of 2027?

Sonoma earned its first quarterly pretax profit of $382,000, but recorded a net loss of $66,000 after $448,000 in income tax expense. The quarter ended September 30, 2026. A year earlier, pretax loss was $731,000 and net loss was $534,000.

How much did Sonoma Pharmaceuticals revenue grow in its fiscal second quarter of 2027?

Sonoma's quarterly revenue increased 28% year over year to $7.174 million, from $5.604 million. U.S. revenue rose 93%, Latin American revenue increased 57%, and Asian revenue declined 24%.

When could Sonoma Pharmaceuticals launch the product from its skincare co-development project?

The parties anticipate a potential launch in summer 2027 if a successful formulation is developed and accepted by the partner. The paid project evaluates combining specialized skincare ingredients with Sonoma's hypochlorous acid technology.

What remains before Sonoma Pharmaceuticals can commercialize its wound-care products in Taiwan?

Sonoma's new Taiwan distribution partner is finalizing the necessary regulatory requirements for commercialization. The partner has submitted an initial purchase order and already has distribution channels serving hospitals in Taiwan.