Astrotech Corporation (ASTC) Q2 2025 Earnings Report

Astrotech Corporation delivered a QQ2 2025 quarterly result characterized by a very small top-line while continuing to incur substantial operating expenses centered in research and development (R&D) and selling/general and administrative (SG&A) costs. Revenue for QQ2 2025 stood at 261,000 USD, with gross profit of 155,000 USD and a gross margin of approximately 59.4%. However, EBITDA and net income were negative, with EBITDA at -4.05 million USD and net income at -4.01 million USD, yielding a diluted EPS of -2.45. The quarter exhibits a pronounced burn driven by corporate-level R&D investment and SG&A spend against a modest revenue base, implying limited near-term profitability absent a revenue uplift or strategic monetization of assets.

On the balance sheet, Astrotech remains cash/near-cash rich, reporting cash and short-term investments totaling about 24.7 million USD and a net cash position of roughly -3.0 million USD (net debt). The company carried virtually no debt and generated negative operating cash flow in the quarter (-3.04 million USD), resulting in a free cash flow of -3.36 million USD. This creates a liquidity runway that management can leverage to advance its three-segment strategy (Astrotech Technologies ATI, 1st Detect Corporation, and AgLAB) toward near-term productization/licensing opportunities, though execution risk remains elevated given the small revenue base and ongoing investment cycle.

Qualitatively, the QQ2 2025 results imply that the business remains at a transition phase, with potential upside if ATI licensing, 1st Detect deployment, or AgLAB monetization accelerates. Absent explicit management guidance in the materials, the investment case hinges on the ability to convert R&D into scalable revenue streams and to monetize the AMS mass spectrometry platform across ATI/1st Detect/AgLAB and related markets.