Sonoma Pharmaceuticals Reports First-ever Net Income Before Tax
News related to:Sonoma Pharmaceuticals, Inc · 2 min read
Sonoma Pharmaceuticals, a global healthcare leader, reported its second fiscal quarter of 2027 financial results, marking a significant milestone for the company. For the quarter ended September 30, 2026, Sonoma achieved its first-ever net income before income tax, a first for the firm. The company's total revenue for the quarter increased by $1.6 million, or 28%, to $7.2 million, compared to $5.6 million for the same period last year. U.S. revenue saw a substantial 93% increase, contributing significantly to the overall growth.
The company's gross profit for the quarter was $2.8 million, representing a 39% of revenue, up from $2.1 million, or 38% of revenue, in the same period last year. This improvement in gross margin is attributed to an increase in revenue and improvements in manufacturing processes. Operating expenses remained stable at $2.5 million, demonstrating the company's ability to maintain control over costs as it grows.
Net loss for the quarter improved by $0.4 million, or 88%, to $0.1 million, compared to a net loss of $0.5 million for the quarter ended September 30, 2025. EBITDA income for the quarter was $0.4 million, an increase of $0.6 million compared to an EBITDA loss of $0.2 million for the same period last year. These results reflect the company's progress in growing revenue while improving gross margins and maintaining disciplined control over operating expenses.
Sonoma's financial performance for the six months ended September 30, 2026, also showed significant improvement. Total revenues for the six months increased by $4.0 million, or 41%, to $13.6 million, compared to $9.6 million for the same period last year. U.S. revenue increased 113%, primarily due to increased sales by new and existing distributors. Revenues in Europe increased 14%, and in Latin America, they increased 33%, driven by the timing of customer orders.
Gross profit for the six months was $5.4 million, or 40% of revenue, up from $3.6 million, or 37% of revenue, in the same period last year. This improvement is attributed to improvements in manufacturing processes and a better customer mix. Operating expenses for the six months remained steady at $5.1 million, compared to $5.0 million in the same period last year.
As of September 30, 2026, Sonoma had cash and cash equivalents of $4.6 million, providing a solid financial foundation for the company's continued growth and expansion.
Sonoma Pharmaceuticals continues to advance its product innovation capabilities and expand its global distribution network. Recent business highlights include a co-formulation project with a U.S.-based professional skincare company, the expansion of its presence in the Taiwan market, and a new commercial relationship with a U.S.-based wound-care company. Additionally, the company is expanding its commercial presence in the senior-care market, targeting an attractive and growing market segment.
These developments underscore Sonoma's commitment to building a stronger, more profitable company.
Sonoma Pharmaceuticals remains focused on its mission to develop and produce stabilized hypochlorous acid (HOCl) products for a wide range of applications, including wound care, eye care, dermatological conditions, podiatry, and animal health care.