Biomerica 2026 Q1 Earnings Strong Turnaround as Net Income Surges 100.2%

Biomerica(BMRA) reported its fiscal 2026 Q1 earnings on Oct 14th, 2025. The company delivered a notable improvement in profitability despite a revenue decline, with net income turning positive for the first time in 11 years. Biomerica did not provide quantitative guidance for future periods, but management emphasized continued cost discipline and operational efficiency to sustain operations in the near term.

Revenue
The total revenue of Biomerica decreased by 23.6% to $1.38 million in 2026 Q1, down from $1.81 million in 2025 Q1. The decline was driven by underperformance in the company’s core segments, particularly Clinical Lab and Contract Manufacturing, which saw significant year-over-year sales erosion.

Earnings/Net Income
Biomerica maintained stable EPS at $0.00 in 2026 Q1 compared to 2025 Q1. The company achieved a remarkable turnaround with net income of $2,000 in 2026 Q1, representing a 100.2% positive swing from the net loss of $-1.32 million in the prior-year period. This marked a significant, albeit modest, improvement in profitability.

Price Action
The stock price of Biomerica has climbed 3.60% during the latest trading day, edged up 1.41% during the most recent full trading week, and dropped 3.36% month-to-date.

Post-Earnings Price Action Review
CEO Steve Kingsley acknowledged the company’s urgent financial challenges, noting insufficient cash to meet operating needs and strategic objectives over the next twelve months. A 24% year-over-year decline in net sales was attributed to weak performance in core business lines, while cost-cutting measures, including a 29% reduction in R&D spending, were emphasized as essential to preserving liquidity. Though the reported net income of $2,000 was partly driven by a one-time $1.1 million ERC refund, Kingsley stressed that the underlying business remains unprofitable. He expressed cautious optimism about the potential of inFoods® IBS and hp+detect™, though funding limitations continue to delay progress.

CEO Commentary
Management expects ongoing sales pressure and cash burn without meaningful revenue growth from core or new product lines in the near term, and continues to focus on cost control, operational efficiency, and securing near-term financing to sustain operations.

Guidance
The company did not provide specific quantitative guidance for future periods but indicated ongoing reliance on cost control, operational efficiency, and near-term financing to sustain operations. Management expects continued sales pressure and cash burn without significant revenue growth from core or new product lines in the near term.

Additional News
In the three weeks following the earnings release, Biomerica announced the appointment of a new Chief Financial Officer, Jane Delgado, bringing over 15 years of financial leadership in the diagnostics and life sciences sectors. The company also announced a strategic partnership with a European healthcare distribution firm to expand its reach in the Clinical Lab segment. Lastly, Biomerica launched a new sustainability initiative, pledging to reduce its carbon footprint by 25% over the next three years.