Escalon Medical Corp reported Q3 2024 revenue of $2.70 million, marking a sequential decline and a year-over-year drop of approximately 21%. The quarter delivered a gross margin of about 41.4%, but operating profitability remained negative with EBITDA of roughly -$0.15 million and net income of -$0.16 million, translating to an EPS of -$0.022. Despite persistent margin headwinds, the company generated positive operating cash flow of $0.18 million and finished the period with a cash balance of $0.82 million and net debt well-positioned at negative levels due to cash heft versus debt.
From a balance-sheet perspective, Escalon maintains a modest asset base (~$4.60 million) and a total debt load of ~$0.61 million, with cash and equivalents exceeding gross debt, resulting in net debt of about -$0.21 million. However, large accumulated deficit (retained earnings deeply negative) and a relatively thin equity base underscore ongoing profitability and capital-structure challenges despite liquidity strength. The four-quarter revenue trajectory shows a downshift from $3.14 million in 2023 Q4 to ~$2.70–$2.95 million in the following quarters, signaling discipline required around product mix, pricing, and cost control to stabilize earnings.
With no explicit forward guidance provided in the available data, the near-term investment thesis hinges on whether Escalon can stabilize top-line growth, improve gross margins, and convert operating leverage, while preserving cash. The company’s cash-rich position and limited near-term debt are favorable for liquidity, but meaningful earnings power will likely depend on sustaining product demand in ophthalmology, optimizing SG&A, and advancing higher-margin offerings.