- Encision reported Q2 2025 revenue of $1.756 million with gross profit of $0.828 million and a gross margin of 47.2%. The quarter produced a net loss of $0.170 million and an EBITDA loss of $0.136 million, with operating income of −$0.159 million. Despite the negative bottom line, operating cash flow was positive at $0.075 million and free cash flow was $0.035 million, aided by a favorable working capital swing.
- The company exhibits an improving, but still tight, liquidity position and a modest cash balance of $0.230 million against total debt of $1.219 million. Net debt stood at roughly $0.989 million, yielding a debt ratio of 0.35 and a debt-to-capitalization of 0.417. The current ratio is 2.00, indicating short-term liquidity is adequate but not expansive.
- Profitability remains challenged by high operating expenses relative to scale, with SG&A and R&D totaling ~$0.831 million and ~$0.156 million respectively, pushing operating expenses to $0.987 million against gross profit of $0.828 million. The company’s net income and earnings per share remain negative, a condition that is not unusual for a small-cap medical device company at this scale but is a critical hurdle for near-term valuation upside.
- On a trailing basis, Encision’s gross margin (~47.2%) sits favorably versus several medical-device peers in the same band, yet profitability remains the primary overhang. The market valuation metrics show a negative P/E (~−6.28) and a price-to-book around 2.51, signaling a discounted equity value that reflects the earnings volatility and scale. Investors should monitor working capital dynamics, product adoption of AEM instruments, and any shifts in reimbursements or hospital capex cycles that affect instrument purchases and monitoring equipment uptake.