Executive Summary
FONAR reported QQ3 2024 revenue of $25.718 million, up modestly on a year-over-year basis and sequentially, with a gross margin of 45.7%. The quarter delivered EBITDA of $6.02 million and operating income of $3.75 million, yielding a net income of $1.87 million and basic earnings per share of $0.28. The company maintained solid liquidity, ending the period with about $53.98 million in cash and cash equivalents and a net cash position (net debt negative) of roughly $13.08 million after accounting for long-term and short-term borrowings. Operationally, FONAR generated positive cash flow from operations of $2.86 million and free cash flow of about $2.68 million, supporting a resilient balance sheet despite a relatively small revenue base in the Medical Equipment and Diagnostic services segments. Valuation metrics remain modestly favorable, with a price-to-book around 0.78 and a price-to-earnings near 17x, reflecting a small-cap healthcare exposure with substantial cash versus modest near-term top-line growth potential. Management commentary is not included in the provided transcript data for QQ3 2024, limiting the ability to quote direct remarks from the earnings call. Investors should monitor quarterly receivables dynamics, given an elevated Days Sales Outstanding profile, as well as ongoing reimbursement and market adoption trends for upright MRI technology.
Key Performance Indicators
QoQ: -23.32% | YoY:-10.10%
QoQ: -50.20% | YoY:-51.50%
QoQ: -49.09% | YoY:-50.00%
Key Insights
Revenue: $25.718 million (YoY +1.16%, QoQ +1.31%). Gross profit: $11.753 million (gross margin 45.7%). Operating income: $3.746 million (operating margin 14.57%). EBITDA: $6.015 million. Net income: $1.872 million (net margin 7.28%; YoY -51.5%, QoQ -50.2%). EPS: $0.28 (Diluted $0.28). Weighted average shares: 6.335 million. Cash and equivalents: $53.982 million. Net debt: negative $13.079 million. CFO: $2.862 million; FCF: $2.675 million. Total assets: $209.631 million; Total liabilities: $52.60...
Financial Highlights
Revenue: $25.718 million (YoY +1.16%, QoQ +1.31%). Gross profit: $11.753 million (gross margin 45.7%). Operating income: $3.746 million (operating margin 14.57%). EBITDA: $6.015 million. Net income: $1.872 million (net margin 7.28%; YoY -51.5%, QoQ -50.2%). EPS: $0.28 (Diluted $0.28). Weighted average shares: 6.335 million. Cash and equivalents: $53.982 million. Net debt: negative $13.079 million. CFO: $2.862 million; FCF: $2.675 million. Total assets: $209.631 million; Total liabilities: $52.601 million; Total stockholders’ equity: $165.759 million. DSO: 271.09 days; DIO: 18.92 days; CCC: 290.01 days. Current ratio: 9.37; Quick ratio: 9.16; Cash ratio: 3.72. Long-term debt: $36.998 million; Short-term debt: $7.764 million; Total debt: $40.903 million; Total cash and equivalents: $53.982 million. EBITDA margin: 23.39%; Net income margin: 7.28%; ROA: 0.893%; ROE: 1.13%; Debt to capitalization: 19.8%; Debt to equity: 0.247; Interest coverage: 416x. Price-to-book: 0.78; Price-to-sales: 5.03; EV/EBITDA: 19.33; P/E: 17.28; Price to free cash flows: 48.36.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
25.72M |
1.16% |
1.31% |
| Gross Profit |
11.75M |
0.07% |
7.94% |
| Operating Income |
3.75M |
-10.10% |
-23.32% |
| Net Income |
1.87M |
-51.50% |
-50.20% |
| EPS |
0.28 |
-50.00% |
-49.09% |
Key Financial Ratios
operatingProfitMargin
14.6%
operatingCashFlowPerShare
$0.45
freeCashFlowPerShare
$0.42
Management Commentary
No QQ3 2024 earnings call transcript was provided in the data set. As a result, there are no management quotes or theme-based highlights available from the QQ3 2024 call in this analysis. If a transcript becomes available, quotes can be integrated under the transcriptHighlights section with themes such as strategy, operations, and market conditions.
Forward Guidance
Management did not publish formal forward guidance in the provided data. Given the modest revenue base and the long-term potential of Upright MRI adoption, the near-term trajectory will likely hinge on incremental patient volumes at owned and managed facilities, reimbursement environment for upright MRI, and the pace of new facility integrations or partnerships. Industry tailwinds for advanced imaging modalities and noninvasive diagnostics could support low-to-mid single-digit revenue growth in the medium term, assuming stable reimbursement and continued demand for upright MRI services. Key factors to monitor include: (1) utilization trends at existing facilities and any expansion plans; (2) changes in payer mix and reimbursement rates; (3) capital deployment for facility expansion or capex in MRI hardware; (4) regulatory developments affecting imaging services and diagnostic workflows.