Biomerica, Inc. (BMRA) reported a difficult QQ3 2024 quarter characterized by a sharp QoQ revenue decline and a negative gross margin, resulting in an operating and net loss. Revenue came in at $1.017 million, down 35.1% QoQ from $1.568 million in QQ2 2024, and down 8.5% year over year to $1.018 million versus $1.111 million in QQ3 2023. The quarter produced a gross loss of $149,000 (gross margin of -14.65%), driven by cost of revenue exceeding sales, and an operating loss of approximately $2.0 million as R&D and SG&A investments continued to weigh on profitability. EBITDA stood at approximately -$1.907 million, with net income of -$1.918 million and basic/diluted EPS of -$0.11.
From a liquidity and balance-sheet perspective, the company held $5.32 million in cash at period-end, with total debt reported at $0.862 million and net debt of approximately -$4.458 million, implying a net cash position that supports near-term liquidity despite a negative earnings trajectory. The current ratio was robust at 4.44, with a quick ratio of 3.37 and a cash ratio of 2.67, underscoring balance-sheet resilience relative to current obligations. However, working capital metrics point to a protracted operating cycle: DSO around 100 days, DIO around 164 days, and a cash conversion cycle near 196–264 days depending on the measure, reflecting inventory and collection dynamics typical of a small-cap diagnostic player.
Management commentary (where available) did not accompany the provided data set with explicit forward-looking guidance. The results, however, suggest continued emphasis on product development (notably InFoods IBS therapies, Helicobacter pylori diagnostics/therapeutics) and potential strategic partnerships to monetize early-stage pipelines. Investors should monitor progress in the InFoods/H. pylori initiatives, cost optimization, and any meaningful margin improvement as the company scales its core diagnostic offerings. Overall, BMRA presents a high-uncertainty, high-burn scenario in the near term but with a defined path to optionality if the pipeline can be monetized and maintained within a tighter cost structure.
Key Performance Indicators
Revenue
1.02M
QoQ: -35.10% | YoY:-8.50%
Gross Profit
-149.00K
-14.65% margin
QoQ: -145.85% | YoY:-223.88%
Operating Income
-2.00M
QoQ: -24.38% | YoY:-21.13%
Net Income
-1.92M
QoQ: -27.27% | YoY:-16.25%
EPS
-0.11
QoQ: -22.77% | YoY:8.33%
Revenue Trend
Margin Analysis
Key Insights
Revenue: $1.017 million in QQ3 2024, down 35.10% QoQ from $1.568 million (QQ2 2024) and down 8.50% YoY from QQ3 2023 ($1.111 million). YoY revenue change: -8.5%.
Gross Profit: -$149 thousand; Gross Margin: -14.65% (vs. flat to negative margins in prior year/quarter depending on mix).
Operating Income: -$2.000 million; Operating Margin: -1.97% (negative due to elevated R&D and SG&A relative to revenue).
EBITDA: -$1.906 million; EBITDA Margin: -1.87%.
Net Income / EPS: Net income -$1.918 million; EPS -$0.11 (diluted).
Financial Highlights
Revenue and profitability:
- Revenue: $1.017 million in QQ3 2024, down 35.10% QoQ from $1.568 million (QQ2 2024) and down 8.50% YoY from QQ3 2023 ($1.111 million). YoY revenue change: -8.5%.
- Gross Profit: -$149 thousand; Gross Margin: -14.65% (vs. flat to negative margins in prior year/quarter depending on mix).
- Operating Income: -$2.000 million; Operating Margin: -1.97% (negative due to elevated R&D and SG&A relative to revenue).
- EBITDA: -$1.906 million; EBITDA Margin: -1.87%.
- Net Income / EPS: Net income -$1.918 million; EPS -$0.11 (diluted).
Cost structure and expenses:
- Cost of revenue: $1.167 million (released in QQ3 2024), creating a gross loss rather than a gross profit.
- R&D Expenses: $343 thousand; SG&A (selling/general & administrative): $1.508 million; total operating expenses: $1.851 million.
Cash flow and liquidity:
- Net cash used in operating activities: -$1.801 million; free cash flow: -$1.817 million.
- Cash balance: $5.319 million at period end; net cash position after debt: -$4.458 million (net debt).
- Cash burn is reflected in both operating cash flow and capex (CapEx: $16 thousand). The company generated a modest level of non-operating cash items (net other income/expenses) of $86 thousand.
Balance sheet and leverage:
- Total assets: $10.342 million; total liabilities: $2.534 million; total stockholders’ equity: $7.809 million.
- Cash and cash equivalents: $5.319 million; short-term debt: $0.638 million; long-term debt: $0.543 million; total debt: $0.862 million.
- Liquidity ratios: current ratio 4.44, quick ratio 3.37, cash ratio 2.67, indicating solid near-term liquidity despite ongoing losses.
- Efficiency indicators: DSO ~100 days, DIO ~164 days, CCC ~264 days, highlighting a lengthy working-capital cycle typical for a small diagnostics company with R&D-driven investments.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
1.02M
-8.50%
-35.10%
Gross Profit
-149.00K
-223.88%
-145.85%
Operating Income
-2.00M
-21.13%
-24.38%
Net Income
-1.92M
-16.25%
-27.27%
EPS
-0.11
8.33%
-22.77%
Key Financial Ratios
currentRatio
4.44
grossProfitMargin
-14.7%
operatingProfitMargin
-196.7%
netProfitMargin
-188.6%
returnOnAssets
-18.5%
returnOnEquity
-24.6%
debtEquityRatio
0.11
operatingCashFlowPerShare
$-0.11
freeCashFlowPerShare
$-0.11
priceToBookRatio
21.03
priceEarningsRatio
-21.4
Net Income vs. Revenue
Expense Breakdown
Management Commentary
Note: The earnings-transcript dataset provided with these results is empty (earningsTranscript: []). As a result, there are no management quotes captured in this dataset to group by themes. If/when a verbatim transcript or management Q&A is supplied, the Highlights section should be updated to summarize themes by strategy, operations, and market conditions with context and significance for investors.
N/A
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N/A
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Forward Guidance
There is no formal forward guidance disclosed in the provided dataset for QQ4 2024 or beyond. Given the current quarter’s revenue contraction and margin compression, the near-term guidance would logically hinge on monetizing the InFoods platform and Helicobacter pylori initiatives, achieving scale in diagnostics, and optimizing the cost base to reduce operating losses. Management commentary (when available) should address: (1) expected timing and trajectory for revenue infusion from InFoods and HPylori lines, (2) planned cost-reduction or restructuring actions, (3) any anticipated changes in working-capital dynamics, and (4) capex plan and runway. Investor watchpoints include pipeline progression, regulatory milestones, partnerships, reimbursement dynamics in key markets, and the pace at which the company can convert its cash runway into sustainable gross margins and cash flow.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
BMRA Focus
-14.65%
-1.97%
-24.60%
-21.40%
SRDX
69.30%
-17.70%
-6.39%
-19.65%
MOVE
0.00%
0.00%
-1.81%
-1.54%
AIMD
-2.59%
-109.26%
-10.80%
-1.06%
INVO
40.40%
-90.90%
-3.35%
-28.10%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
BMRA presents a high-uncertainty, small-cap opportunity with optionality in its InFoods and H. pylori initiatives. The QQ3 2024 results show meaningful near-term earnings weakness and margin compression, which weighs on current earnings power. However, the company maintains a solid liquidity buffer and meaningful optionality if its pipeline monetizes and costs are brought under control. The key to a constructive longer-term investment will be successful commercialization or partnering of the InFoods program and HPylori products, accompanied by a step-change in gross margin and operating cash flow. Until such milestones materialize, the stock carries elevated risk given the negative profitability trajectory and extended working-capital cycle. Investors should monitor pipeline development timelines, regulatory/regulatory milestones, and any strategic announcements related to partnerships or licensing deals that could unlock value and reduce the earnings volatility implied by quarterly results.
Key Investment Factors
Growth Potential
Potentially meaningful upside if InFoods and HPylori programs progress to commercialization. The company operates in a specialized GI diagnostics/therapeutics niche with potential licensing or partnering opportunities that could accelerate revenue growth beyond the current base. A successful monetization could unlock margin leverage once fixed R&D costs are absorbed and scale efficiencies take hold.
Profitability Risk
Near-term earnings volatility driven by a negative gross margin and operating losses. Revenue is still relatively small, exposing BMRA to product mix risk and cyclicality in healthcare diagnostics. Execution risk around pipeline monetization, regulatory approvals, reimbursement cycles, and potential dilution or financing requirements if burn persists beyond cash on hand. Long lead times for diagnostic product adoption and competition from larger players heighten risk.
Financial Position
Solid liquidity relative to current obligations with $5.32M in cash and a net cash position of approximately -$4.46M, supporting near-term operations. However, accumulated deficits and a modest equity base imply elevated sensitivity to any sustained negative operating cash flow. Balance-sheet metrics show low leverage (total debt $0.862M) and favourable liquidity ratios (C/R 4.44, Q/R 3.37), but earnings quality remains negative with ongoing losses.
SWOT Analysis
Strengths
Net cash position (approximately -$4.46 million) providing liquidity runway for near-term operations.