Revenue Performance: The reported revenue for Q3 2025 was $5.19 million, a drop from $5.68 million in Q3 2024, marking a year-over-year decline of 8.78%. On a quarter-over-quarter basis, revenue improved slightly by 0.56% from Q2 2025, which was $5.16 million.
Profitability: Gross profit for the quarter amounted to $2.34 million, with a gross profit margin of 45.14%, down from 51.42% in Q3 2024. The operating income was recorded at $197,637, representing a stark reduction of 72.57% year-over-year. Net income for Q3 2025 fell to $274,178, resulting in earnings per share (EPS) of $0.0174, a decrease of 60.27% year-over-year.
Balance Sheet Health: The company maintained a strong liquidity position with cash and cash equivalents totaling $8.10 million and total assets of approximately $24.34 million. The current ratio stood at 2.99, indicating solid short-term financial health.
Cash Flow: Cash provided by operating activities was robust at $1.29 million, contributing to a free cash flow of approximately $1.08 million. This strong cash generation underpins SonoTek's ability to invest in growth initiatives despite current profitability challenges.