Executive Summary
FONAR Corporation delivered a modest top-line performance in QQ2 2025, with revenue of $24.95 million and net income of $1.964 million, translating to earnings per share of $0.29. While revenue declined slightly year-over-year (-1.72%) and quarter-over-quarter (-0.04%), the company maintained positive profitability, generating an EBITDA of $3.175 million and an operating margin of 9.76%. The quarterly results reflect a conservative operating profile consistent with a small-cap medical devices player focused on MRI technology and related services. Net cash position remains robust, with cash and equivalents of $53.58 million and a net cash balance of approximately ($14.81) million, supporting balance sheet resilience as the company contends with a high receivable balance and extended working capital cycles.
Key Performance Indicators
QoQ: -3.04% | YoY:-10.56%
QoQ: -47.13% | YoY:-50.15%
QoQ: -37.35% | YoY:-47.75%
QoQ: -38.30% | YoY:-47.27%
Key Insights
Revenue: $24.95m (YoY -1.72%, QoQ -0.04%); Gross Profit: $9.738m; Gross Margin: 39.03%; Operating Income: $2.435m; Operating Margin: 9.76%; EBITDA: $3.175m; Net Income: $1.964m; Net Margin: 7.87%; EPS: $0.29; D&A: $0.202m; Interest: $0.006m; Tax Expense: $0.762m; Free Cash Flow (FCF): $1.495m; Operating Cash Flow: $2.242m; Capex: $0.747m; Cash and Cash Equivalents: $53.583m; Total Assets: $207.957m; Total Liabilities: $49.006m; Total Equity: $169.839m; Current Ratio: 11.24; Quick Ratio: 11.0...
Financial Highlights
Revenue: $24.95m (YoY -1.72%, QoQ -0.04%); Gross Profit: $9.738m; Gross Margin: 39.03%; Operating Income: $2.435m; Operating Margin: 9.76%; EBITDA: $3.175m; Net Income: $1.964m; Net Margin: 7.87%; EPS: $0.29; D&A: $0.202m; Interest: $0.006m; Tax Expense: $0.762m; Free Cash Flow (FCF): $1.495m; Operating Cash Flow: $2.242m; Capex: $0.747m; Cash and Cash Equivalents: $53.583m; Total Assets: $207.957m; Total Liabilities: $49.006m; Total Equity: $169.839m; Current Ratio: 11.24; Quick Ratio: 11.01; Cash Ratio: 4.38; DSO: 285.36 days; DIO: 16.91 days; CCC: 302.27 days; P/E: 12.15x; P/B: 0.56x; P/S: 3.82x; Enterprise Value/Revenue: 25.39x
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
24.95M |
-1.72% |
-0.04% |
| Gross Profit |
9.74M |
-10.56% |
-3.04% |
| Operating Income |
2.44M |
-50.15% |
-47.13% |
| Net Income |
1.96M |
-47.75% |
-37.35% |
| EPS |
0.29 |
-47.27% |
-38.30% |
Key Financial Ratios
operatingProfitMargin
9.76%
operatingCashFlowPerShare
$0.36
freeCashFlowPerShare
$0.24
Management Commentary
Note: No earnings call transcript data provided in the dataset. As a result, management quotes or thematic quotes by speakers could not be extracted. The analysis below therefore relies on reported financials and available balance sheet metrics. If a transcript becomes available, a follow-up addendum can incorporate quoted management insights on strategy, operations, and market conditions.
Forward Guidance
No explicit forward guidance was disclosed in the provided dataset for QQ3 2025 or beyond. Given the modest revenue trajectory and stable profitability, the near-term growth potential appears tied to scale efficiencies in MRI operations and the continued deployment of Upright MRI capabilities. Industry trends toward expanded private imaging networks and potential reimbursement dynamics could influence growth. Key sensitivities to monitor include: (i) utilization of Upright MRI assets and patient mix, (ii) changes in reimbursement for diagnostic imaging and ancillary services, (iii) cadence of capital expenditures to expand imaging facilities, and (iv) ongoing working capital management given elevated receivables days.