Executive Summary
Sonoma Pharmaceuticals reported QQ1 2026 revenue of $4.02 million, up 16.8% year-over-year and 12.7% quarter-over-quarter, driven by its stabilized HOCl products portfolio. Gross profit was $1.464 million, yielding a gross margin of 36.5%, a positive indicator of product mix stability amid a modest revenue base. Despite the top-line growth, the company posted an EBITDA loss of $1.095 million and a net loss of $1.241 million, translating to an EPS of -$0.76. The operating backdrop remains margin-compressed as the company continues to invest in R&D and SG&A to scale its HOCl platform and commercial footprint, with a reported weighted-average shares outstanding of 1.641 million. Cash flow from operations was negative at $2.015 million for the quarter, contributing to a net decrease in cash of $1.769 million; however, the company ended the period with $3.606 million in cash and cash equivalents and a net cash position of approximately $2.93 million (cash plus equivalents minus debt). Accumulated deficits persist, but accumulated other comprehensive income remains modestly positive, highlighting a fragile but advancing balance-sheet trajectory. Management commentary on the call, if available, would be critical to validate execution milestones around product launches, field sales effectiveness, and any near-term financing actions. Overall, the QQ1 2026 results reflect a growth-leaning but cash-burned environment typical of early-stage specialty pharma businesses; investors should monitor top-line traction, gross-margin progression, cost discipline, and liquidity runway going forward.
Key Performance Indicators
QoQ: -33.73% | YoY:-16.31%
QoQ: -20.63% | YoY:44.41%
Key Insights
Revenue: $4.015 million (YoY +16.75%, QoQ +12.65); Gross Profit: $1.464 million (YoY +34.19%, QoQ +15.28%); Operating Income: -$1.095 million (YoY +22.29%, QoQ -6.21%); Net Income: -$1.241 million (YoY -16.31%, QoQ -33.73%); EPS: -$0.76 (YoY +44.41%, QoQ -20.63%); Gross Margin: 36.46%; EBITDA: -$1.095 million; EBITDA Margin: -27.27%; Net Margin: -30.91%; Weighted Avg Shares: 1.641 million; Weighted Avg Diluted: 1.641 million; Cash Flow from Operations: -$2.015 million; Free Cash Flow: -$2.121 mi...
Financial Highlights
Revenue: $4.015 million (YoY +16.75%, QoQ +12.65); Gross Profit: $1.464 million (YoY +34.19%, QoQ +15.28%); Operating Income: -$1.095 million (YoY +22.29%, QoQ -6.21%); Net Income: -$1.241 million (YoY -16.31%, QoQ -33.73%); EPS: -$0.76 (YoY +44.41%, QoQ -20.63%); Gross Margin: 36.46%; EBITDA: -$1.095 million; EBITDA Margin: -27.27%; Net Margin: -30.91%; Weighted Avg Shares: 1.641 million; Weighted Avg Diluted: 1.641 million; Cash Flow from Operations: -$2.015 million; Free Cash Flow: -$2.121 million; Cash End of Period: $3.606 million; Cash Beginning of Period: $5.374 million; Net Change in Cash: -$1.769 million; Total Current Assets: $13.107 million; Total Assets: $14.594 million; Total Current Liabilities: $4.848 million; Total Liabilities: $10.538 million; Total Stockholders’ Equity: $4.056 million; Accumulated Deficit: -$199.047 million; Net Cash Position (Cash minus Debt): approximately -$2.93 million.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
4.02M |
16.75% |
12.65% |
| Gross Profit |
1.46M |
34.19% |
15.28% |
| Operating Income |
-1.10M |
22.29% |
-6.21% |
| Net Income |
-1.24M |
-16.31% |
-33.73% |
| EPS |
-0.76 |
44.41% |
-20.63% |
Management Commentary
Transcripts not provided in the data set. No management call quotes are available to extract key themes or quotes for this QQ1 2026 analysis.
Forward Guidance
No explicit forward guidance is contained in the provided data. Given the quarterly trajectory, management would typically need to articulate targets for revenue ramp, gross-margin improvement, and cash-burn reduction to extend liquidity runway. In the absence of stated guidance, investors should watch: (1) cadence of new product commercialization and price/mix effects on gross margin, (2) quarterly operating expense control and potential SG&A rationalization, (3) working capital dynamics (receivables, payables, and inventory), and (4) any financing actions or licensing/partnerships that could meaningfully extend liquidity or provide revenue scale. The sturdier liquidity position (net cash position around $2.93 million) provides a modest cushion but is sensitive to sustained negative operating cash flow if the revenue trend stalls.