Sonoma Pharmaceuticals Sees 18% Rise in Q1 Revenue

Sonoma Pharmaceuticals reported an 18% increase in Q1 revenue. The company's earnings results for FY22 were announced on June 17. Sonoma Pharmaceuticals, Inc. Auditor raised "going concern" doubt on June 16. The company entered into an amendment to the Master Supply Agreement with WellSpring Pharmaceutical Corporation on March 25.

Title: Sonoma Pharmaceuticals Reports Strong Q1 Revenue Growth, Despite Unprofitability

Sonoma Pharmaceuticals (NASDAQ: SNOA) reported its Q1 FY2026 financial results, showing significant revenue growth with total revenue reaching $4.0 million, an 18% increase year-over-year [1]. The company demonstrated strong performance in key markets, with U.S. revenue surging 57% and European revenue growing 14% [1].

Notable achievements include expanded partnerships with major U.S. retailers, the launch of acne products in 1,200+ U.K. stores, and new regulatory approval in Ukraine [1]. Despite revenue growth, the company reported a net loss of $1.2 million and held cash reserves of $3.6 million as of June 30, 2025 [1].

Sonoma Pharmaceuticals delivered an 18% year-over-year revenue growth in Q1 FY2026, reaching $4.0 million compared to $3.4 million in the prior year period [1]. The growth was primarily driven by impressive 57% expansion in U.S. sales, which increased by $363,000 due to higher demand for human healthcare and OTC animal health products [1]. European revenues also contributed significantly with a 14% increase ($180,000) [1].

However, the company's gross margin contracted from 39% to 36%, suggesting potential pricing pressures or an unfavorable product mix shift [1]. The company's operating expenses increased slightly to $2.6 million, with higher R&D investment – a necessary expense for future product development but one that impacts near-term profitability [1].

While quarterly net loss remained relatively stable at $1.2 million (versus $1.1 million in Q1 FY2025), the 43% reduction in net loss per share indicates share dilution has occurred [1]. EBITDA loss was unchanged at $1.0 million, highlighting that operational efficiency hasn't materially improved despite the revenue growth [1].

With $3.6 million in cash reserves and quarterly losses around $1.2 million, Sonoma's runway extends to approximately three quarters without additional financing [1]. The company's strategic initiatives – expanding consumer products, growing partner networks, and securing new regulatory approvals – are showing traction but have yet to translate into profitability [1].

On June 17, Sonoma Pharmaceuticals, Inc. announced its FY22 earnings results [1]. On June 16, the company's auditor raised "going concern" doubts [1]. Additionally, on March 25, Sonoma Pharmaceuticals entered into an amendment to the Master Supply Agreement with WellSpring Pharmaceutical Corporation [1].

References:
[1] https://www.stocktitan.net/news/SNOA/sonoma-pharmaceuticals-reports-first-fiscal-quarter-2026-financial-eid9md0adwpl.html