Exchange: OTC | Sector: Healthcare | Industry: Medical Devices
Q1 2025
Published: Aug 14, 2024
Earnings Highlights
Revenue of $0.12M up 5.6% year-over-year
EPS of $-0.11 increased by 56% from previous year
Gross margin of 89.5%
Net income of -2.05M
"Our revenues in the fiscal first quarter of 2025 increased 6% to $124,000 largely due to distribution channel expansion and broader adoption of our Spryng product. This included sales to our distributors increasing 102% year-over-year to $68,000." - Garry Lowenthal, CFO
PetVivo Holdings Inc (PETV) QQ1 2025 Results — Modest Revenue Progress, Sustained High Gross Margin, and Early Spryng Adoption in Veterinary Joint Health
Executive Summary
PetVivo delivered a modest top-line improvement in QQ1 2025 with revenue of approximately $123.8 thousand, up 5.6% year-over-year and 156% quarter-over-quarter, driven by expanding distributor channels. The quarter sustained a high gross margin of 89.5% (gross profit of $111 thousand on revenue of $123.8 thousand), but the company operated at a substantial net loss of approximately $2.05 million as operating expenses remained elevated at $2.16 million, reflecting ongoing investments in sales, marketing, and R&D. A strategic restructuring and cost-reduction program reduced General & Administrative expenses by about $0.53 million and Sales & Marketing by about $0.41 million versus the prior-year quarter, contributing to an improved bottom-line trajectory versus the prior year, even as profitability remains negative.
Management highlighted accelerating Spryng adoption across a growing distribution network (800 clinics in 50 states, over 10,000 animals treated) and stressed the shift from equine-only to companion animals (dogs and cats), underpinned by a broader clinical study agenda. The company executed a balance-sheet and liquidity maneuver by raising net proceeds of roughly $1.2 million post-quarter to support growth initiatives. Management reaffirmed a near-term pipeline of product and market-expansion activities (new senior sales/marketing leadership, planned additional sales hires, CE programs, and ongoing studies with Colorado State University, Ethos, Orthobiologics Innovation, LLC) that could unlock a larger market opportunity.
The core investment takeaway is that PetVivo is early in its revenue maturity with a strong gross margin profile, but remains heavily dependent on external financing and continued adoption to reach meaningful profitability. The long-run opportunity hinges on Spryng’s ability to convert a large addressable market into recurring clinic adoption and animal-owner demand, supported by clinical evidence and favorable payer dynamics. Investors should monitor cadence of distributor-driven sales, clinic adoption velocity, additional financing needs, and progress on clinical studies that drive distribution endorsements and catalog endorsements.
Key Performance Indicators
Revenue
123.75K
QoQ: 156.39% | YoY:5.60%
Gross Profit
110.76K
89.50% margin
QoQ: -50.85% | YoY:217.23%
Operating Income
-2.04M
QoQ: 22.85% | YoY:29.35%
Net Income
-2.05M
QoQ: 22.77% | YoY:29.25%
EPS
-0.11
QoQ: 42.11% | YoY:56.00%
Revenue Trend
Margin Analysis
Key Insights
Revenue: $123,751 (QQ1 2025) vs. prior-year level, representing a YoY increase of 5.60% and a QoQ increase of 156.39% as per provided metrics. Managed growth was led by distributor sales (+102% YoY to $68,000) and direct clinic sales of $55,000 (down 33% YoY).
Gross profit and margin: Gross profit $110,757, margin 89.50% (flat YoY margin basis at 89.5% of revenue).
Operating expenses: Total operating expenses $2,155,189, down 28% YoY due to cost-reduction and restructuring efforts (G&A down by $0.53 million; S&M down by $0.41 million; R&D up by $0.094 million).
EBITDA and margins: EBITDA is negative at $(2,010,935); EBITDA margin —16.25%. Operating income margin: −16.52%; Net income margin: −16.54%.
Net income and EPS: Net income of $(2,047,063); basic/diluted EPS of $(0.11).
Financial Highlights
Revenue and profitability trend drivers:
- Revenue: $123,751 (QQ1 2025) vs. prior-year level, representing a YoY increase of 5.60% and a QoQ increase of 156.39% as per provided metrics. Managed growth was led by distributor sales (+102% YoY to $68,000) and direct clinic sales of $55,000 (down 33% YoY).
- Gross profit and margin: Gross profit $110,757, margin 89.50% (flat YoY margin basis at 89.5% of revenue).
- Operating expenses: Total operating expenses $2,155,189, down 28% YoY due to cost-reduction and restructuring efforts (G&A down by $0.53 million; S&M down by $0.41 million; R&D up by $0.094 million).
- EBITDA and margins: EBITDA is negative at $(2,010,935); EBITDA margin —16.25%. Operating income margin: −16.52%; Net income margin: −16.54%.
- Net income and EPS: Net income of $(2,047,063); basic/diluted EPS of $(0.11).
- Cash flow and liquidity: Net cash used in operating activities $(1,530,469); free cash flow $(1,545,647); cash at period-end $12,414. Post-quarter, the company raised net proceeds of about $1.2 million to bolster growth initiatives. Net cash used for financing activities was $1,470,658, with a small net decrease in cash of $(74,989) for the period. Balance sheet shows total assets $2,888,930 and total liabilities $2,059,427; cash and cash equivalents on hand $12,414; long-term debt $968,246; total debt $1,166,689; retained earnings negative at $(84,846,387).
- Key liquidity takeaway: The company ended the quarter with limited cash on hand but secured additional financing to support near-term growth, a typical dynamic for a development-stage medical device company with an R&D and commercialization-heavy spend profile.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
123.75K
5.60%
156.39%
Gross Profit
110.76K
217.23%
-50.85%
Operating Income
-2.04M
29.35%
22.85%
Net Income
-2.05M
29.25%
22.77%
EPS
-0.11
56.00%
42.11%
Key Financial Ratios
currentRatio
0.81
grossProfitMargin
89.5%
operatingProfitMargin
-1652%
netProfitMargin
-1654%
returnOnAssets
-70.9%
returnOnEquity
-247%
debtEquityRatio
1.41
operatingCashFlowPerShare
$-0.08
freeCashFlowPerShare
$-0.08
priceToBookRatio
7.91
priceEarningsRatio
-0.8
Net Income vs. Revenue
Expense Breakdown
Management Commentary
Management insights and strategic themes from the earnings call:
- Market adoption and product strategy: Spryng adoption continues to expand through distributors and veterinary clinics, with coverage across 800 clinics and more than 10,000 animals treated nationwide. Management notes that companion animal opportunities are larger than the prior equine focus, supported by a growing body of independent clinical studies and ongoing trials to broaden evidence and drive adoption at veterinary practices.
- Leadership and go-to-market execution: The company restructured and realigned its sales and marketing teams. Senior hires include Bryan Monninger (VP of Sales) and April Boyce (VP of Marketing) with Fortune 500 backgrounds, designed to accelerate market penetration in the smaller animal space. Plans include adding 10 more sales reps within 12 months and expanding CE education for veterinarians.
- Financial discipline and liquidity: A cost-reduction program reduced G&A by about $0.53 million and S&M by about $0.41 million year-over-year, while maintaining core R&D investment in studies. Management disclosed a post-quarter net proceeds raise of approximately $1.2 million, improving liquidity to support growth initiatives. Cash burn narrowed with a 29% improvement in operating cash flow year-over-year.
- Clinical program and partnerships: Multiple studies are in progress (Colorado State University elbow OA, Ethos-supported 40-dog coxofemoral OA study, and collaboration with Orthobiologics Innovation) to bolster clinical evidence, a critical enabler for distributor catalogs and larger national players. Data readouts are anticipated in 2025, with ongoing publication and conference presentations to bolster adoption.
- Market dynamics and competitive landscape: The management outlined a sizable TAM in veterinary OA (market size discussed around $3.7–$5.0B current with projections to $11B by 2030) and highlighted competition from nerve-growth-factor inhibitors (Zoetis’ Librela and Solensia) as symptom-focused therapies. Spryng’s differentiated value proposition—bone-on-bone joint function and longer-lasting intra-articular effects—was positioned as a complementary, multimodal option to current standards of care.
Our revenues in the fiscal first quarter of 2025 increased 6% to $124,000 largely due to distribution channel expansion and broader adoption of our Spryng product. This included sales to our distributors increasing 102% year-over-year to $68,000.
— Garry Lowenthal, CFO
Under this new leadership of Bryan and April, we got the alignment of marketing and sales and education TSV. We plan to add 10 additional sales reps within the next 12 months in the small animal space.
— John Lai, CEO
Forward Guidance
Management guidance reinforces a narrative of rapid clinic adoption and revenue acceleration, albeit from a very small base. The company discussed a near-term forecast of approximately $1.5 million in revenue for the period ending September, implying a 50% YoY growth, with potential to reach up to $2.0 million (100% YoY growth) as Spryng adoption expands through the fall season. These figures reflect an aggressive ramp in distributor and clinic channels, supported by new sales and marketing leadership and ongoing education programs. Key factors to monitor for forward guidance include: (1) cadence of new clinic onboarding and distributor contributions, (2) the pace and outcomes of the ongoing and planned clinical studies that may unlock further distribution opportunities, (3) the effectiveness of cost-control measures in converting higher gross margins toward profitability, and (4) the company’s ability to raise further working capital if required to fund the expansion. Risk considerations include continued reliance on a relatively small revenue base, execution risk in scaling a specialized veterinary device in a fragmented market, and potential delays in clinical results or regulatory approvals for any human-use expansion.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
PETV Focus
89.50%
-16.52%
-2.47%
-80.10%
AZYO
42.50%
-1.27%
35.80%
-1.03%
AIMD
-29.10%
-150.52%
-14.60%
-49.60%
SRDX
42.80%
-1.05%
-0.64%
-163.04%
LNSR
50.90%
-26.90%
-4.73%
-4.46%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
PetVivo is at an early, high-uncertainty growth inflection. The business model shows compelling gross margin and a large, underpenetrated market, with Spryng adoption accelerating through distributor channels and veterinary clinics. The near-term investment thesis hinges on: (1) sustained top-line expansion from distributor-driven and direct sales channels, (2) successful execution of cost-control measures to improve operating leverage, and (3) continued validation of Spryng through clinical studies that unlock broader catalog presence and potential insurance coverage advantages. The company’s reliance on capital raises to fund growth adds a financing risk baton that investors should monitor. If the company can convert its pipeline and clinic adoption into meaningful revenue growth and eventually profitability, the long-run upside could be substantial given the projected market growth to potentially $11B by 2030. In the near term, risk premiums remain elevated due to the negative earnings trajectory and liquidity concentration, but the narrative is tethered to tangible gross margin resilience and a clear strategic path to scale in a large OA market for companion animals.
Key Investment Factors
Growth Potential
Large addressed market with meaningful unmet needs in osteoarthritis for dogs, cats, and horses. Spryng adoption broadened from equine to companion animals, supported by a growing distributor network (800 clinics) and more than 10,000 treated animals. Management targets expanded sales force (add 10 reps in the next 12 months) and ongoing clinical studies to drive evidence-based adoption and catalog inclusion. Potential human applications could unlock additional upside if translational results are favorable.
Profitability Risk
Reliance on a small revenue base and distributor-driven sales, with negative near-term profitability and ongoing cash burn. Liquidity constraints requiring periodic capital raises. Competitive landscape includes nerve growth factor inhibitors (Zoetis Librela and Solensia) that address pain rather than joint function; integration of Spryng with existing therapies remains a key challenge. Dependence on ongoing clinical studies to bolster go-to-market credibility and distributor endorsements.
Financial Position
Weak near-term profitability with negative EBITDA and net income. High operating expenses relative to revenue but with meaningful gross margins (89.5%). Cash position fragile (cash ≈ $12k at quarter-end) but bolstered by a $1.2M financing event post-quarter. Leverage includes substantial long-term debt and net debt positions; liquidity runway hinges on continued fundraising or accelerated sales growth.
SWOT Analysis
Strengths
Very high gross margin at 89.5% indicating strong product economics once sales reach scale.
Growing Spryng deployment across 800 clinics and 10,000 treated animals demonstrates meaningful market traction.
Strategic leadership enhancements (VP of Sales and VP of Marketing with Fortune 500 backgrounds) aimed at accelerating adoption in the companion-animal market.
Robust clinical study pipeline that supports distribution endorsements and potential future catalog inclusion.
Weaknesses
Current quarter net loss of approximately $2.05 million and negative EBITDA; profitability not yet achieved.
Liquidity remains constrained with minimal cash on hand; reliance on external financing to fund growth.
Revenue base is still meager relative to large addressable markets; high customer acquisition costs implied by S&M investments.
Opportunities
Expansion into companion-animal market (dogs/cats) representing a larger addressable market than equine-focused sales.
Ongoing and planned clinical studies that can drive additional distributor endorsements and veterinary physician adoption.
Potential human medical device applications for osteoarthritis could unlock a broader market if translational results are favorable.
Threats
Intense competition from established pharmacologic OA therapies (e.g., Zoetis Librela/Solensia) that target pain management rather than joint restoration.
Execution risk in scaling a niche high-margin medical device in a fragmented veterinary market.
Regulatory and reimbursement dynamics (pet insurance) that could influence adoption rates and pricing.
PetVivo Holdings Inc (PETV) QQ1 2026 Results — Revenue Acceleration from Spryng and PrecisePRP; Mexico Distribution Expansion; AI Partnerships Posit...
PetVivo Holdings Inc (PETV) QQ4 2024 Earnings Analysis: Revenue Contraction, Large Net Loss, and Liquidity Tightness in a Niche Veterinary Medical Dev...