Biotech News
Sonoma Pharmaceuticals Delivers 141% U.S. Revenue Growth in FY Q1, 60% Total Revenue Growth and First-Ever Positive Adjusted EBITDA
Total revenue increased 60% year over year to $6.4 million
Net loss per share decreased 88% compared to the prior-year quarter
Gross margin expanded to 40% as operating expenses remained stable
FDA clearance and new global distributors support continued commercial growth
Sonoma Pharmaceuticals, Inc. (NASDAQ:SNOA), a global healthcare leader developing and producing patented Microcyn ® technology-based stabilized hypochlorous acid (HOCl) products for a wide range of applications including wound care, eye care, dermatological conditions, podiatry, animal health care and non-toxic disinfectants, today announced financial results for its first fiscal quarter ended June 30, 2026.
"Our first quarter results demonstrate that Sonoma has reached an important inflection point," said Amy Trombly, CEO of Sonoma. "We delivered record quarterly revenue, more than doubled our U.S. business, expanded gross margins to 40%, and achieved positive adjusted EBITDA for the first time in the company's history-all while keeping operating expenses essentially flat. These results reflect the strength of our commercial strategy, the growing global adoption of hypochlorous acid products, and the operating leverage built into our business model. With new FDA clearances, expanding distribution partnerships, and a strong pipeline of commercial opportunities, we believe we are well positioned to continue delivering profitable growth."
Business Highlights
Sonoma continued to expand regulatory approvals and grow its global distribution network:
In June 2026, Sonoma received a new 510(k) clearance from the U.S. Food and Drug Administration (FDA) for its Microdacyn ® Wound Irrigation Solution, including expanded claims, clearance for multiple use, and additional packaging configurations.
Since the start of fiscal year 2027, Sonoma has added new distributors to its network in Taiwan, Vietnam and the United States.
Results for the Quarter Ended June 30, 2026
Total revenues for the quarter ended June 30, 2026 of $6.4 million were up $2.4 million as compared to $4.0 million for the same period last year. The increase in United States revenue of $1.4 million, or 141%, for the three months ended June 30, 2026 was primarily the result of an increase in revenue related to the sale of over-the-counter products and increased sales by new and existing distributors. Revenues in Europe increased $0.5 million, or 34%, compared to the same period last year as the result of increased demand for Sonoma's products and favorable exchange rates. Revenues increased in Asia and Rest of World when compared to the same period last year. These revenues tend to be choppy when viewed on a quarterly basis due to customers placing larger, but less frequent, orders to benefit from quantity discounts and reduced shipping costs. Latin America revenue increased for the quarter ended June 30, 2026, compared to the same period last year, due to timing of customer orders for overflow manufacturing.
During the quarter ended June 30, 2026, Sonoma reported revenues of $6.4 million and cost of revenues of $3.8 million resulting in gross profit of $2.6 million, or 40% of revenue, compared to a gross profit of $1.5 million, or 36% of revenue, in the same period last year.
Total operating expenses during the quarter ended June 30, 2026 were $2.6 million compared to $2.6 million in the same period last year, demonstrating the operating leverage in Sonoma's business model as the company grows revenue and gross profit while keeping operating expenses stable.
Net loss for the quarter ended June 30, 2026 of $0.3 million declined significantly compared to a net loss of $1.2 million for the quarter ended June 30, 2025. EBITDA gain for the quarter ended June 30, 2026 of $0.1 million was positive compared to an EBITDA loss of $1.0 million for the same period last year.
As of June 30, 2026, Sonoma had cash and cash equivalents of $5.3 million.
About Sonoma Pharmaceuticals, Inc.
Sonoma Pharmaceuticals is a global healthcare leader for developing and producing stabilized hypochlorous acid (HOCl) products for a wide range of applications, including wound care, eye care, dermatological conditions, podiatry, animal health care and non-toxic disinfectants. The company's products are clinically proven to reduce itch, pain, scarring, and irritation safely and without damaging healthy tissue. In-vitro and clinical studies of HOCl show it to safely manage skin abrasions, lacerations, minor irritations, cuts, and intact skin. The company's products are sold either directly or via partners in over 55 countries worldwide and the company actively seeks new distribution partners. The company's principal office is in Boulder, Colorado, with manufacturing operations in Guadalajara, Mexico. European marketing and sales are headquartered in Roermond, Netherlands. More information can be found at www.sonomapharma.com . For partnership opportunities, please contact [email protected] .
Forward-Looking Statements
Except for historical information herein, matters set forth in this press release are forward-looking within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including statements about the commercial and technology progress and future financial performance of Sonoma Pharmaceuticals, Inc. and its subsidiaries (the "company"). These forward-looking statements are identified by the use of words such as "continue," "reduce," "develop," "aim," and "expand," among others. Forward-looking statements in this press release are subject to certain risks and uncertainties inherent in the company's business that could cause actual results to vary, including such risks that regulatory clinical and guideline developments may change, scientific data may not be sufficient to meet regulatory standards or receipt of required regulatory clearances or approvals, clinical results may not be replicated in actual patient settings, protection offered by the company's patents and patent applications may be challenged, invalidated or circumvented by its competitors, the available market for the company's products will not be as large as expected, the company's products will not be able to penetrate one or more targeted markets, revenues will not be sufficient to meet the company's cash needs or fund further development, as well as uncertainties relative to the recent pandemic and economic development, varying product formulations and a multitude of diverse regulatory and marketing requirements in different countries and municipalities, and other risks detailed from time to time in the company's filings with the Securities and Exchange Commission. The company disclaims any obligation to update these forward-looking statements, except as required by law.
Sonoma Pharmaceuticals™ Microcyn ® and Microdacyn ® are trademarks or registered trademarks of Sonoma Pharmaceuticals, Inc. All other trademarks and service marks are the property of their respective owners.
Media and Investor Contact:
Sonoma Pharmaceuticals, Inc.
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SONOMA PHARMACEUTICALS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except share amounts)
| June 30, | March 31, | |||||||
|---|---|---|---|---|---|---|---|---|
| 2026 | 2026 | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 5,338 | $ | 2,399 | ||||
| Accounts receivable, net | 3,182 | 2,527 | ||||||
| Inventories, net | 3,786 | 3,651 | ||||||
| Prepaid expenses and other current assets | 3,962 | 3,523 | ||||||
| Total current assets | 16,268 | 12,100 | ||||||
| Property and equipment, net | 290 | 310 | ||||||
| Operating lease, right of use assets | 578 | 602 | ||||||
| Deferred tax asset, net | 905 | 884 | ||||||
| Other assets | 66 | 64 | ||||||
| Total assets | $ | 18,107 | $ | 13,960 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 2,191 | $ | 1,923 | ||||
| Accrued expenses and other current liabilities | 2,674 | 2,252 | ||||||
| Deferred revenue | 282 | 284 | ||||||
| Short-term debt | 140 | 222 | ||||||
| Operating lease liabilities, current portion | 160 | 151 | ||||||
| Total current liabilities | 5,447 | 4,832 | ||||||
| Withholding tax payable | 5,627 | 5,564 | ||||||
| Operating lease liabilities, less current portion | 439 | 469 | ||||||
| Total liabilities | 11,513 | 10,865 | ||||||
| Commitments and Contingencies | ||||||||
| Stockholders' Equity: | ||||||||
| Convertible preferred stock, $0.0001 par value; 714,286 shares authorized at June 30, 2026 and March 31, 2026, respectively, no shares issued and outstanding at June 30, 2026 and March 31, 2026 | - | - | ||||||
| Common stock, $0.0001 par value; 50,000,000 shares authorized at June 30, 2026 and March 31, 2026, 4,785,801 and 1,799,057 shares issued and outstanding at June 30, 2026 and March 31, 2026, respectively | - | - | ||||||
| Additional paid-in capital | 210,913 | 207,319 | ||||||
| Accumulated deficit | (201,311 | ) | (200,981 | ) | ||||
| Accumulated other comprehensive loss | (3,008 | ) | (3,243 | ) | ||||
| Total stockholders' equity | 6,594 | 3,095 | ||||||
| Total liabilities and stockholders' equity | $ | 18,107 | $ | 13,960 |
SONOMA PHARMACEUTICALS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (In thousands, except per share amounts) (Unaudited)
| Three Months Ended June 30, | ||||||||
|---|---|---|---|---|---|---|---|---|
| 2026 | 2025 | |||||||
| Revenues | $ | 6,406 | $ | 4,015 | ||||
| Cost of revenues | 3,829 | 2,551 | ||||||
| Gross profit | 2,577 | 1,464 | ||||||
| Operating expenses: | ||||||||
| Research and development | 597 | 594 | ||||||
| Selling, general and administrative | 2,020 | 1,965 | ||||||
| Total operating expenses | 2,617 | 2,559 | ||||||
| Loss from operations | (40 | ) | (1,095 | ) | ||||
| Other expense, net | (290 | ) | (147 | ) | ||||
| Loss from operations before income taxes | (330 | ) | (1,242 | ) | ||||
| Income tax benefit | 1 | |||||||
| Net loss | $ | (330 | ) | $ | (1,241 | ) | ||
| Net loss per share: basic and diluted | $ | (0.09 | ) | $ | (0.76 | ) | ||
| Weighted-average shares outstanding: basic and diluted | 3,846 | 1,641 | ||||||
| Other comprehensive loss: | ||||||||
| Net loss | $ | (330 | ) | $ | (1,241 | ) | ||
| Foreign currency translation adjustments | 235 | 806 | ||||||
| Comprehensive loss | $ | (95 | ) | $ | (435 | ) |
SONOMA PHARMACEUTICALS, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES (In thousands) (Unaudited)
| Three Months Ended June 30, | ||||||||
|---|---|---|---|---|---|---|---|---|
| 2026 | 2025 | |||||||
| (1) Loss from operations adjusted for non-cash items and one-time events, or EBITDA loss: | ||||||||
| GAAP loss from operations as reported | $ | (40 | ) | $ | (1,095 | ) | ||
| Non-cash adjustments: | ||||||||
| Stock-based compensation | 58 | 57 | ||||||
| Depreciation | 32 | 36 | ||||||
| Non-GAAP loss from operations minus non-cash expenses EBITDA gain (loss) | $ | 50 | $ | (1,002 | ) | |||
| (2) Net loss adjusted for non-cash items and one-time events: | ||||||||
| GAAP net loss as reported | $ | (330 | ) | $ | (1,241 | ) | ||
| Non-cash adjustments: | ||||||||
| Stock-based compensation | 58 | 57 | ||||||
| Non-cash foreign exchange transaction gains | 314 | 549 | ||||||
| Income taxes | (1 | ) | ||||||
| Depreciation | 32 | 36 | ||||||
| Non-GAAP net income (loss) adjusted for non-cash items | $ | 74 | $ | (600 | ) | |||
| (3) Operating expenses minus non-cash expenses | ||||||||
| GAAP operating expenses as reported | $ | 2,617 | $ | 2,559 | ||||
| Non-cash adjustments: | ||||||||
| Stock-based compensation | (58 | ) | (57 | ) | ||||
| Depreciation | (32 | ) | (36 | ) | ||||
| Non-GAAP operating expenses minus non-cash expenses | $ | 2,527 | $ | 2,466 |
Loss from operations minus non-cash expenses EBITDA gain (loss) is a non-GAAP financial measure. The Company defines this as GAAP reported operating income (loss) minus operating depreciation and amortization and operating stock-based compensation. The Company uses this measure for the purpose of modifying the operating loss to reflect normal direct cash related transactions during the measurement period. Non-GAAP measures should not be considered a substitute for financial measures presented in accordance with GAAP. Non-GAAP measures are not always consistent across, or comparable with, non-GAAP measures disclosed by other companies.
Net loss adjusted for non-cash items and one-time events is a non-GAAP financial measure. The Company defines this as GAAP reported net loss minus depreciation and amortization, stock-based compensation, income taxes and non-cash foreign exchange transaction losses. The Company uses this measure for the purpose of modifying the net loss to reflect only those expenses to reflect normal direct cash transactions during the measurement period. Non-GAAP measures should not be considered a substitute for financial measures presented in accordance with GAAP. Non-GAAP measures are not always consistent across, or comparable with, non-GAAP measures disclosed by other companies.
Operating expenses minus non-cash expenses is a non-GAAP financial measure. The Company defines operating expenses minus non-cash expenses as GAAP reported operating expenses minus operating depreciation and amortization, and operating stock-based compensation. The Company uses this measure for the purpose of identifying total operating expenses involving cash transactions during the measurement period. Non-GAAP measures should not be considered a substitute for financial measures presented in accordance with GAAP. Non-GAAP measures are not always consistent across, or comparable with, non-GAAP measures disclosed by other companies.
SOURCE: Sonoma Pharmaceuticals, Inc.
View the original press release on ACCESS Newswire
Released August 6, 2026