Sonoma Pharmaceuticals 2025 Q4 Earnings Mixed Results as Net Loss Improves 27%

Sonoma Pharmaceuticals (SNOA) reported its fiscal 2025 Q4 earnings on June 17th, 2025. The company's performance was mixed, with revenue growth of 9% compared to the same period last year, driven by increases in Europe and Latin America. However, the net loss position improved by 27%, signaling progress towards profitability. Sonoma also raised its revenue guidance for fiscal year 2026, projecting $15 million to $16 million. Despite this, the stock saw a decline due to market volatility.

Revenue

Sonoma Pharmaceuticals reported a total revenue increase of 9.2% to $3.75 million in 2025 Q4, compared to $3.44 million in 2024 Q4.

Earnings/Net Income

Sonoma Pharmaceuticals' losses widened to $0.47 per share in Q4 2025 from $0.07 per share in Q4 2024. The company narrowed its net loss to $776,000 in Q4 2025, a 27.3% reduction from the $1.07 million net loss reported in Q4 2024. The EPS reflects unfavorable results.

Price Action

The stock price of Sonoma Pharmaceuticals dropped 4.22% during the latest trading day, fell 10.88% over the last week, and declined 7.23% month-to-date.

Post-Earnings Price Action Review

The post-earnings strategy of purchasing Sonoma Pharmaceuticals' shares following a quarter-over-quarter revenue drop and holding for 30 days led to significant underperformance. The calculated CAGR was -66.24%, with an overall return of -96.03% and an excess return of -154.97%. This approach resulted in a substantial maximum drawdown of -98.32%, and the Sharpe ratio was measured at -0.45, underscoring the strategy’s inability to generate positive returns or manage risk effectively. This performance indicates that the strategy was not successful in capitalizing on price movements following earnings announcements.

CEO Commentary

"We are very pleased to report the results of our 2025 fiscal year and fourth fiscal quarter, which show continued revenue growth and consistent progress towards profitability," said Amy Trombly, CEO of Sonoma Pharmaceuticals. She highlighted that revenues increased by 9% in Q4 2025 compared to the same period last year, driven by growth in Europe and Latin America. Trombly emphasized the successful transition of products to the new EU Medical Device Regulation ahead of schedule and the expansion of the sales and distribution network. She expressed confidence in their strategic approach, aiming for regulatory approvals in new markets to enhance their market positioning.

Guidance

Sonoma Pharmaceuticals expects to continue its revenue growth trajectory, with a target to achieve revenue in the range of $15 million to $16 million for the fiscal year 2026. The company anticipates focusing on expanding its product offerings and sales channels while managing operating expenses to maintain an efficient cost structure. Trombly indicated that they aim to further improve their net loss position, projecting a reduced net loss compared to fiscal year 2025.

Additional News

In recent weeks, Sonoma Pharmaceuticals has made notable business moves, including expanding its partnership with Medline Industries, LP, to include additional consumer-focused products in the U.S. market. Additionally, Sonoma received regulatory approval for the sale of its wound care products in Ukraine as a Class IIb medical device. The company also launched its hypochlorous acid-based acne products in over 1,200 stores in the United Kingdom through a leading U.K. health and beauty retailer and pharmacy chain, marking a significant expansion in its international distribution network. These developments underscore Sonoma's strategy to broaden its market presence and enhance its product reach globally.