FONAR Corporation reported QQ1 2025 revenue of $24.96 million, up 1,133.81% year-over-year, but down -3.79% quarter-over-quarter, illustrating a steep base effect from the prior-year period. Gross profit reached $10.04 million with a gross margin of 40.24%, representing a substantial YoY margin improvement of 517.76%, while QoQ margins declined by 5.21%. Operating income was $4.61 million (operating margin 18.45%), and the company generated net income of $3.14 million (net margin 12.56%), with EPS of $0.47 for QQ1 2025. EBITDA stood at $7.35 million, yielding an EBITDA margin of 29.46%, signaling healthy operating leverage despite the revenue volatility.
The balance sheet showcases strong liquidity and a net cash position, with cash and cash equivalents of $54.19 million and total debt of $41.18 million. The company reported a net debt position of $(13.02) million, implying modest net cash after accounting for debt, and a robust current ratio of 9.64x. However, working capital metrics reveal extended receivables collection cycles, with days sales outstanding around 289 days and a cash conversion cycle of about 305 days, indicating potential working capital compression risk if volumes do not sustain.
Management commentary is not captured in the provided transcript data, limiting the ability to quote specific guidance or strategic remarks. Nonetheless, the quarter’s top-line strength combined with solid margins and a strong liquidity position suggests FONAR is progressing along its niche strategy around Upright MRI platforms and related clinical/administrative services. Investors should monitor utilization of existing MRI facilities, ramp of managed services, and any changes in reimbursement or vendor arrangements that could influence profitability and cash flow in subsequent quarters.