Exchange: NASDAQ | Sector: Healthcare | Industry: Medical Devices
Q1 2025
Published: Oct 15, 2024
Earnings Highlights
Revenue of $1.81M up 5.5% year-over-year
EPS of $-0.08 decreased by 16.2% from previous year
Gross margin of 16.0%
Net income of -1.32M
"Transcript not available for QQ1 2025 BMRA; management quotes could not be retrieved from the provided data." - N/A
Biomerica Inc (BMRA) QQ1 2025 Results: Revenue Uptick Amid Margin Pressures and Ongoing Pipeline Development in GI Diagnostics
Executive Summary
Biomerica reported QQ1 2025 revenue of $1.807 million, delivering a modest year-over-year gain of 5.5% but a sharp sequential jump of approximately 61.9% from the prior quarter, signaling a potential early-season rebound or favorable mix within a very small base. Despite the top-line uptick, profitability remained extensively negative with EBITDA of $(1.271) million and net income of $(1.316) million, translating to an EPS of $(0.0782). The quarter highlighted a lean gross profit of $289k on $1.808 million of revenue, implying a gross margin of roughly 16.0%, while operating expenses of $1.657 million and R&D of $0.297 million kept the company in a loss position.
Cash-flow dynamics remained challenging, with operating cash flow of $(1.344) million and free cash flow of $(1.344) million, contributing to a trailing cash balance of $2.82 million and a net cash position that dwarfs short-term debt. The balance sheet depicts a modest asset base (total assets of $7.87 million) with liabilities of about $2.52 million and equity of $5.35 million; retained earnings are deeply negative at $(49.51) million, underscoring a long-running cumulative deficit typical of a development-stage healthcare technology company.
Management commentary is not captured in the provided transcript dataset for QQ1 2025, limiting the ability to quote specific remarks. Nonetheless, the company’s near-term emphasis appears to remain on optimizing product mix to improve gross margins, preserving liquidity to fund pipeline advancement (including InFoods IBS therapy, Helicobacter pylori diagnostics, and COVID-related initiatives), and pursuing strategic partnerships or licensing that could accelerate commercial adoption. Absent explicit quarterly guidance, investors should monitor operating expense control, milestone-driven pipeline progress, and any potential financing actions to sustain liquidity while advancing core product development.
Key Performance Indicators
Revenue
1.81M
QoQ: 61.92% | YoY:5.49%
Gross Profit
289.00K
15.99% margin
QoQ: 1 345.00% | YoY:-29.85%
Operating Income
-1.37M
QoQ: 10.47% | YoY:-11.04%
Net Income
-1.32M
QoQ: 7.39% | YoY:-16.25%
EPS
-0.08
QoQ: 7.46% | YoY:-16.20%
Revenue Trend
Margin Analysis
Key Insights
Net cash provided by operating activities: $(1.344) million
Free cash flow: $(1.344) million
Cash and cash equivalents: $2.82 million
Net debt: $(2.11) million (net cash position is positive via cash exceeding debt)
Liquidity and cash flow:
- Net cash provided by operating activities: $(1.344) million
- Free cash flow: $(1.344) million
- Cash and cash equivalents: $2.82 million
- Net debt: $(2.11) million (net cash position is positive via cash exceeding debt)
Balance sheet highlights:
- Total assets: $7.87 million
- Total liabilities: $2.52 million; current liabilities $2.15 million; long-term debt $0.373 million
- Shareholders’ equity: $5.346 million; Retained earnings: $(49.511) million
- Current ratio: 3.00; Quick ratio: 2.09; Cash ratio: 1.31
Valuation and profitability ratios (summary):
- Gross margin: 16.0%; Operating margin: -75.7%; Net margin: -72.8%
- P/B: 11.08x; P/S: 32.77x; P/Earnings: negative (lossing year); Enterprise value multiple: negative to -44.92x
- ROA: -16.7%; ROE: -24.6%; ROCE: -23.9%
Note: All figures in USD and are period-specific to QQ1 2025 as presented in the provided data set.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
1.81M
5.49%
61.92%
Gross Profit
289.00K
-29.85%
1 345.00%
Operating Income
-1.37M
-11.04%
10.47%
Net Income
-1.32M
-16.25%
7.39%
EPS
-0.08
-16.20%
7.46%
Key Financial Ratios
currentRatio
3
grossProfitMargin
16%
operatingProfitMargin
-75.7%
netProfitMargin
-72.8%
returnOnAssets
-16.7%
returnOnEquity
-24.6%
debtEquityRatio
0.13
operatingCashFlowPerShare
$-0.08
freeCashFlowPerShare
$-0.08
priceToBookRatio
11.08
priceEarningsRatio
-11.25
Net Income vs. Revenue
Expense Breakdown
Management Commentary
No earnings-call transcript data available for QQ1 2025 BMRA in the provided dataset. As such, no management quotes or theme-based insights from the call can be quoted or summarized here.
Transcript not available for QQ1 2025 BMRA; management quotes could not be retrieved from the provided data.
— N/A
Transcript not available for QQ1 2025 BMRA; management quotes could not be retrieved from the provided data.
— N/A
Forward Guidance
There is no formal forward guidance included in the provided data for QQ1 2025. A qualitative assessment suggests several potential catalysts and risks:
- Catalysts to watch: advancement of InFoods IBS therapy, Helicobacter pylori product development, and other diagnostic tests; potential regulatory milestones or partnerships that could convert pipeline assets into revenue.
- Risks: continued operating losses and reliance on a small revenue base; potential need for additional capital to sustain R&D and commercialization efforts; competitive pressures in GI diagnostics from larger players; regulatory and reimbursement uncertainties impacting near-term monetization.
- Outlook assessment: absent explicit guidance, the company faces a high-beta profile with meaningful optionality if pipeline milestones translate into commercial traction. Investors should monitor quarterly cadence of revenue improvements, gross-margin expansion, and any financing activities that would support ongoing development and commercialization.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
BMRA Focus
15.99%
-75.70%
-24.60%
-11.25%
SRDX
75.20%
-8.29%
-3.27%
-38.59%
MOVE
-42.60%
-6.75%
3.87%
-16.16%
AIMD
-29.10%
-150.52%
-14.60%
-49.60%
INVO
31.70%
-60.00%
-157.21%
-60.10%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
Biomerica presents a high-risk, high-reward profile typical of a small-cap biotech/diagnostics developer. The QQ1 2025 data show revenue growth on a small base but continued profitability stress and negative cash flow. The bull case hinges on successful progression and monetization of the InFoods IBS therapy and H. pylori diagnostic/therapy initiatives, complemented by potential strategic partnerships that could provide revenue leverage and distribution scale. The bear case centers on persistent losses, dilution risk, and a need for external financing to sustain pipeline investment. For risk-aware investors, a watchlist approach is recommended: (1) quarterly revenue growth and gross margin expansion, (2) pipeline milestones and potential early-readouts, (3) viability of cost controls to improve operating leverage, and (4) any financing actions that could affect share count or dilute existing holders.
Key Investment Factors
Growth Potential
InFoods IBS therapy and Helicobacter pylori diagnostic/therapy portfolio could unlock near- to mid-term revenue if clinical development progresses and regulatory approvals occur; incremental revenue could arise from expanding GI diagnostics beyond current offerings, leveraging any strategic partnerships to scale manufacturing and distribution.
Profitability Risk
Sustained net losses and negative free cash flow in QQ1 2025; small revenue base with high fixed costs; reliance on a limited product set; potential need for external financing; regulatory and reimbursement headwinds in GI diagnostics; competitive dynamics with larger, better-funded diagnostic players.
Financial Position
Strong near-term liquidity with $2.82M cash and a net cash position (cash exceeds debt). However, a deep accumulated deficit and ongoing operating losses suggest dependence on future financing or milestone-driven monetization to achieve profitability. Balance-sheet liquidity provides runway to progress pipeline initiatives, but does not guarantee near-term profitability.
SWOT Analysis
Strengths
Niche GI diagnostics and early-stage pipeline (InFoods, H. pylori) with potential long-term monetization.
Liquidity runway with net cash position and modest debt; cash balance of $2.82M provides liquidity to fund R&D and development activities.
Technical expertise in diagnostic and therapeutic development targeting GI conditions.
Weaknesses
Sustained net losses and negative EBITDA; limited revenue scale in QQ1 2025.
High recurring operating expenses relative to revenue (R&D coupled with SG&A totaling $1.66M in the quarter).
Deep accumulated deficit and reliance on future milestones or financing to fund ongoing development.
Opportunities
Advancement and potential monetization of InFoods IBS therapy and related diagnostics.
Expansion of Helicobacter pylori diagnostic/therapy products and potential COVID-related diagnostics.
Strategic partnerships or licensing to accelerate commercialization and scale production.
Threats
Regulatory and reimbursement risks in GI diagnostics and therapy.
Competition from larger, more capitalized medical device and diagnostics companies.
Macro uncertainties and potential need for additional capital to sustain development and commercialization.
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