Executive Summary
Biomerica reported Q2 2025 revenue of $1.636 million, up 4.4% year-over-year but down 9.46% quarter-over-quarter. The company continued to operate below profitability, with EBITDA of -$0.993 million and net income of -$0.95 million, translating to an EPS of -$0.0555. Despite the negative income trajectory on a current-quarter basis, Biomerica shows structural strengthening in liquidity: cash and cash equivalents totaled $2.372 million, and total debt remained modest at $0.626 million, producing a negative net debt position of -$1.746 million. The gross margin stood at 26.7% (gross profit $0.437 million on revenue $1.636 million), indicating a meaningful improvement in product gross profitability relative to the company’s operating expense burden, which remains elevated due to SG&A and R&D spend. On a two-quarter basis, revenue declined QoQ but remains resilient given the small base, while YoY growth reflects a modest rebound in activity versus the prior year. The quarter highlights Biomerica’s ongoing emphasis on pipeline development (notably InFoods IBS therapy and Helicobacter pylori diagnostic initiatives) as the primary driver of longer-term value, even as near-term profitability remains constrained by high fixed costs and a continued need for revenue scale. Investors should monitor pipeline progression, monetization milestones, and any shifts in SG&A efficiency which will be critical to translating top-line gains into sustained earnings power.
Key Performance Indicators
Key Insights
Revenue: $1.636 million; YoY +4.40%, QoQ -9.46%. Gross Profit: $0.437 million; YoY +34.46%, QoQ +51.21%; Gross Margin: 26.7%. Operating Income: -$0.993 million; YoY +38.25%, QoQ +27.41%. Net Income: -$0.95 million; YoY +36.96%, QoQ +27.81%. EPS: -$0.0555; YoY +38.06%, QoQ +29.03%. Cash from operating activities: -$0.791 million; Free cash flow: -$0.791 million. Cash balance: $2.372 million; Net debt: -$1.746 million. Current ratio: 3.17; Quick ratio: 2.22; Cash ratio: 1.264. DSO: 72.95 days; DIO...
Financial Highlights
Revenue: $1.636 million; YoY +4.40%, QoQ -9.46%. Gross Profit: $0.437 million; YoY +34.46%, QoQ +51.21%; Gross Margin: 26.7%. Operating Income: -$0.993 million; YoY +38.25%, QoQ +27.41%. Net Income: -$0.95 million; YoY +36.96%, QoQ +27.81%. EPS: -$0.0555; YoY +38.06%, QoQ +29.03%. Cash from operating activities: -$0.791 million; Free cash flow: -$0.791 million. Cash balance: $2.372 million; Net debt: -$1.746 million. Current ratio: 3.17; Quick ratio: 2.22; Cash ratio: 1.264. DSO: 72.95 days; DIO: 134.29 days; CCC: 207.23 days. Revenue growth remains modest, with profitability a function of scale and operating leverage.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
1.64M |
4.40% |
-9.46% |
| Gross Profit |
437.00K |
34.46% |
51.21% |
| Operating Income |
-993.00K |
38.25% |
27.41% |
| Net Income |
-950.00K |
36.96% |
27.81% |
| EPS |
-0.06 |
38.06% |
29.03% |
Key Financial Ratios
operatingProfitMargin
-60.7%
operatingCashFlowPerShare
$-0.05
freeCashFlowPerShare
$-0.05
priceEarningsRatio
-14.06
Management Commentary
No earnings call transcript was provided in the data set. As a result, there are no management quotes or consolidated transcript themes available to cite. If a transcript becomes available, a themes section could be added to cover strategy, operations, market conditions, and execution milestones.
Forward Guidance
No formal forward guidance was issued in the filing. Biomerica continues to emphasize pipeline development, including InFoods IBS therapy and Helicobacter pylori diagnostics, which could unlock revenue expansion over multi-year horizons. Near-term performance will hinge on the ability to commercialize pipeline opportunities, rationalize SG&A spend as revenue scales, and secure partnerships or licensing that monetize diagnostic innovations. Key factors to monitor: progress on InFoods development and regulatory/commercial milestones, trajectory of SG&A efficiency with revenue growth, and any signs of revenue diversification beyond core GI diagnostics.