Biomerica’s QQ1 2026 results show a small top-line expansion on a trailing basis but continued negative operating leverage at the reported quarter level. Revenue for QQ1 2026 was 1.38 million USD, with gross profit of 424 thousand USD (gross margin ~30.7%), and an operating loss of 1.118 million USD. EBITDA stood at 107 thousand USD, while net income was essentially flat at 2 thousand USD for the quarter, yielding a net margin of roughly 0.15%. The quarter benefited from a non-operating uplift of 1.123 million USD from other income/expenses, but core operating performance remained negative, underscoring limited scale and ongoing fixed cost absorption. Cash flow from operations was negative at 268 thousand USD, driven by working capital pressure (net outflow ~550 thousand USD) and non-cash items such as stock-based compensation (460 thousand USD). Financing activities provided a meaningful offset (net cash from financing of 920 thousand USD) via common stock issuances, lifting the cash balance to about 3.02 million USD at period end. The balance sheet remains liquid with a strong current ratio (~3.48) and minimal debt (total debt of ~373 thousand USD, net debt negative by ~2.68 million USD), supporting a cautious but constructive investment stance given the company’s strategic focus on GI diagnostics and InFoods-related therapies. Management commentary is not reflected in the provided transcript data; where available, the implications center on leveraging the InFoods and diagnostics pipeline to achieve scale, while navigating expense structure and the need for external financing to fund operations.
Key Performance Indicators
Revenue
Increasing
1.38M
QoQ: 23.32% | YoY: 23.66%
Gross Profit
Increasing
424.00K
30.72% margin
QoQ: 2 131.58% | YoY: 2 020.00%
Operating Income
Increasing
-1.12M
QoQ: 7.60% | YoY: 26.83%
Net Income
Increasing
2.00K
QoQ: 100.17% | YoY: 100.14%
EPS
Increasing
0.00
QoQ: 104.42% | YoY: 103.55%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue: 1.38 million USD (YoY and QoQ commentary provided in the data show a 23.66% YoY and 23.32% QoQ change in income metrics, but the explicit quarter revenue numbers suggest a decline from Q1 2025’s 1.81–1.83 million range to 1.38 million in QQ1 2026, implying a negative YoY in actual revenue. Investors should treat the reported YoY figure with caution given data alignment issues.)
Gross Profit: 424 thousand USD; Gross Margin: 30.7% (424k / 1.38M). Indicates a below-peer margin in some diagnostics segments but a meaningful level given product mix and scale.
Operating Income: -1.118 million USD; Operating Margin: -81.0% (operating income / revenue). EBITDA: 0.107 million USD; EBITDA Margin: 7.8% of revenue. EBITDARatio: 0.0775.
Net Income / Margin: 2 thousand USD / 0.15%.
EPS / Shares: 0.003 USD basic and diluted; Weighted Average Shares Outstanding: 2.6387 million.
Cash Flow: Net cash from operating activities -268 thousand USD; Depreciation & Amortization: 102 thousand USD; Stock-based compensation: 460 thousand USD; Change in Working Capital: -550 thousand USD; CFO as reported: -268 thousand USD; Investing activities: -37 thousand USD; Financing activities: +920 thousand USD; Net increase in cash: +617 thousand USD; Cash at end of period: 3.016 million USD.
Balance Sheet:
- Cash & equivalents: ~3.053 million USD
- Total current assets: ~5.899 million USD; Total assets: ~6.854 million USD
- Total current liabilities: ~1.693 million USD; Total liabilities: ~1.699 million USD
- Long-term debt: 6 thousand USD; Total debt: 373 thousand USD; Net debt: -2.68 million USD (net cash position)
- Stockholders’ equity: ~5.155 million USD; Retained earnings: -53.166 million USD; Accumulated other comprehensive income (loss): -102 thousand USD
Liquidity and ratios: Current ratio 3.48; Quick ratio 2.61; Cash ratio 1.80; DSO 78.6 days; DIO 138.7 days; CCC 217.3 days. Price-to-book ~1.60; P/E ~1,032x (reflective of the net income scale); Enterprise value multiple ~52.14x. Four-quarter revenue trend (approximate trailing): ~1.81M (Q1 2025) → ~1.64M (Q2 2025) → ~1.12M (Q3 2025) → ~1.38M (Q1 2026).
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
1.38M
23.66%
23.32%
Gross Profit
424.00K
2 020.00%
2 131.58%
Operating Income
-1.12M
26.83%
7.60%
Net Income
2.00K
100.14%
100.17%
EPS
0.00
103.55%
104.42%
Key Financial Ratios
Gross Profit Margin
Fair
30.70%
Gross profit margin is moderate, room for improvement in cost management
Operating Profit Margin
Weak
-0.81%
Operating margin is below industry norms, profitability concerns
Net Profit Margin
Weak
0.15%
Net profit margin is below industry norms, profitability concerns
Return on Assets
Weak
0.03%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
0.04%
Return on equity suggests inefficient capital allocation
Current Ratio
Strong
3.48
Current ratio indicates excellent liquidity and financial flexibility
Debt to Equity
Conservative
0.07
Debt-to-equity shows conservative leverage and low financial risk
P/E Ratio
High Growth
1,032.39x
Very high P/E indicates aggressive growth expectations, higher risk
Price to Book
Fair Value
1.60x
Price-to-book ratio reasonable for profitable companies
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