Escalon Medical Corp
ESMC
$0.160 0.00%
Exchange: OTC | Sector: Healthcare | Industry: Medical Devices
Q2 2025
Published: Feb 14, 2025

Earnings Highlights

  • Revenue of $3.22M up 12.2% year-over-year
  • EPS of $0.02 increased by 294.2% from previous year
  • Gross margin of 48.9%
  • Net income of 246.02K
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ESMC
Company ESMC

Executive Summary

Escalon Medical Corp reported a solid Q2 2025 with revenue of $3.220–million, up 12.2% year-over-year and 15.8% quarter-over-quarter, driven by favorable product mix and volume in its ophthalmology device portfolio. The company posted a gross profit of $1.574–million resulting in a gross margin of 48.9%, and an operating income of $0.256–million, yielding an operating margin of 7.95%. Net income was $0.246–million, translating to basic earnings per share of $0.02. Aggregate EBITDA stood at $0.261–million with an EBITDA margin of about 8.1%. Operating cash flow was $0.301–million, and free cash flow matched operating cash flow at $0.301–million, underscoring a positive cash-generating core.

From a balance-sheet perspective, Escalon continues to exhibit a favorable liquidity profile for a microcap: cash and equivalents around $0.52–$0.78 million on different line items, total debt of about $0.33 million, and net debt of approximately negative $0.19 million, indicating net cash on hand. Working capital metrics show a current ratio near 1.95x and a quick ratio near 1.17x, with a reasonable inventory level and receivables balance supporting short-term needs. However, reported retained earnings are negative, and the equity base is relatively modest, signaling a need for continued operating leverage and prudent capital management to support growth.

Management commentary for QQ2 2025 is not captured in the provided transcript data, limiting the ability to quote direct guidance or specific strategic signals. As a result, the forward outlook rests on quantitative indicators and historical performance, with a caveat that the company operates in a small-cap, OTC market environment where liquidity and visibility can influence valuation and execution risk.

Key Performance Indicators

Revenue
Increasing
3.22M
QoQ: 15.79% | YoY: 12.24%
Gross Profit
Increasing
1.57M
48.87% margin
QoQ: 29.74% | YoY: 24.78%
Operating Income
Increasing
255.90K
QoQ: 1 049.37% | YoY: 462.86%
Net Income
Increasing
246.02K
QoQ: 863.64% | YoY: 422.35%
EPS
Increasing
0.02
QoQ: 565.12% | YoY: 294.17%

Revenue Trend

Margin Analysis

Historical Earnings Comparison

PeriodRevenue ($M)EPS ($)YoY GrowthReport
Q1 2026 2,675.32 -0.03 +76.0% View
Q3 2025 3.47 0.02 +28.9% View
Q2 2025 3.22 0.02 +12.2% View
Q1 2025 2.78 -0.01 -5.6% View
Q4 2024 3.47 0.02 +10.7% View