Sono-Tek 2025 Q4 Earnings Strong Net Income Growth of 109%
Daily EarningsThursday, May 29, 2025 1:04 am ET
42min readSono-Tek (SOTK) reported its fiscal 2025 Q4 earnings on May 28th, 2025. The company exceeded expectations with substantial growth in net income, achieving a 109% increase from the previous year. Despite challenges in the clean energy sector, Sono-Tek's optimistic revenue guidance for the first half of fiscal 2026 remains promising, fueled by a strong backlog and strategic shifts towards larger systems. Investors should note the positive outlook amid evolving market conditions and potential uncertainties.
Revenue
Sono-Tek's revenue for Q4 2025 reached $5.12 million, marking a 7.4% increase compared to $4.77 million in Q4 2024.
Earnings/Net Income
Sono-Tek's EPS rose 110.1% to $0.02 in Q4 2025 from $0.01 in Q4 2024, showcasing robust earnings growth. Net income increased to $327,714, a rise of 109.2% from $156,615 in the previous year. EPS performance highlights strong profitability.
Price Action
The stock price of dropped 5.97% during the latest trading day. It also edged down 2.92% over the most recent full trading week and decreased 1.44% month-to-date.
Post-Earnings Price Action Review
The strategy of purchasing Sono-Tek stock following a revenue miss and holding for 30 days failed to yield positive results. It resulted in a loss of 9.40%, significantly underperforming the benchmark return of 26.45%, with an excess return of -35.85%. The strategy's Sharpe ratio stood at -0.05, indicating a negative risk-adjusted return. Additionally, the maximum drawdown reached -54.07%, and volatility was notably high at 58.41%, highlighting the strategy's considerable risk. Overall, this approach did not fare well, lagging behind the benchmark, with an annualized CAGR of -2.72%.
CEO Commentary
Chris Coccio, Executive Chairman, emphasized Sono-Tek's 4% annual revenue growth and noted that "our unique value proposition" drives success in precision thin film coatings. He acknowledged challenges in the clean energy sector but expressed optimism about continuous revenue growth, supported by an "encouraging backlog" of $8.6 million. Coccio highlighted strategic shifts towards larger, more complex systems, which have "significantly broadened our addressable market" and are crucial in medical and semiconductor applications. He articulated a commitment to expanding market opportunities, stating, "We remain encouraged by the path ahead," reflecting a cautiously optimistic leadership outlook.
Guidance
Sono-Tek anticipates continued revenue growth and profitability in the first half of fiscal 2026, supported by a solid backlog. While specific revenue targets for the upcoming fiscal year were not provided, the CEO indicated expectations for significant orders from diverse sectors. The company plans to invest approximately $435,000 in new equipment for fiscal year 2026, maintaining a focus on operational efficiencies and product development to enhance market positioning.
Additional News
Sono-Tek announced its participation in the Virtual Investor Summit Microcap Event, scheduled for November 21, 2025, where it will present its strategic initiatives and business outlook. Additionally, the company has made significant strides in the clean energy sector with its largest order to date, a $2.19 million deal from a specialty clean energy customer, emphasizing its commitment to clean energy solutions. Furthermore, Sono-Tek has introduced new high-volume production systems in the medical device industry, showcasing its expansion into high-ASP production systems to capture more market opportunities.
Revenue
Sono-Tek's revenue for Q4 2025 reached $5.12 million, marking a 7.4% increase compared to $4.77 million in Q4 2024.
Earnings/Net Income
Sono-Tek's EPS rose 110.1% to $0.02 in Q4 2025 from $0.01 in Q4 2024, showcasing robust earnings growth. Net income increased to $327,714, a rise of 109.2% from $156,615 in the previous year. EPS performance highlights strong profitability.
Price Action
The stock price of dropped 5.97% during the latest trading day. It also edged down 2.92% over the most recent full trading week and decreased 1.44% month-to-date.
Post-Earnings Price Action Review
The strategy of purchasing Sono-Tek stock following a revenue miss and holding for 30 days failed to yield positive results. It resulted in a loss of 9.40%, significantly underperforming the benchmark return of 26.45%, with an excess return of -35.85%. The strategy's Sharpe ratio stood at -0.05, indicating a negative risk-adjusted return. Additionally, the maximum drawdown reached -54.07%, and volatility was notably high at 58.41%, highlighting the strategy's considerable risk. Overall, this approach did not fare well, lagging behind the benchmark, with an annualized CAGR of -2.72%.
CEO Commentary
Chris Coccio, Executive Chairman, emphasized Sono-Tek's 4% annual revenue growth and noted that "our unique value proposition" drives success in precision thin film coatings. He acknowledged challenges in the clean energy sector but expressed optimism about continuous revenue growth, supported by an "encouraging backlog" of $8.6 million. Coccio highlighted strategic shifts towards larger, more complex systems, which have "significantly broadened our addressable market" and are crucial in medical and semiconductor applications. He articulated a commitment to expanding market opportunities, stating, "We remain encouraged by the path ahead," reflecting a cautiously optimistic leadership outlook.
Guidance
Sono-Tek anticipates continued revenue growth and profitability in the first half of fiscal 2026, supported by a solid backlog. While specific revenue targets for the upcoming fiscal year were not provided, the CEO indicated expectations for significant orders from diverse sectors. The company plans to invest approximately $435,000 in new equipment for fiscal year 2026, maintaining a focus on operational efficiencies and product development to enhance market positioning.
Additional News
Sono-Tek announced its participation in the Virtual Investor Summit Microcap Event, scheduled for November 21, 2025, where it will present its strategic initiatives and business outlook. Additionally, the company has made significant strides in the clean energy sector with its largest order to date, a $2.19 million deal from a specialty clean energy customer, emphasizing its commitment to clean energy solutions. Furthermore, Sono-Tek has introduced new high-volume production systems in the medical device industry, showcasing its expansion into high-ASP production systems to capture more market opportunities.
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