Sonoma Pharmaceuticals (SNOA) reported QQ4 2024 revenue of $3.439 million, up 14.1% year over year and 9.6% sequentially from QQ3 2024, signaling modest top-line momentum in its HOCl-based product portfolio. Despite the revenue gain, the company posted an operating loss of $1.409 million and a net loss of $1.067 million for the quarter, with EBITDA of $(1.368) million and an EBITDA margin of approximately −39.8%. The gross margin was 31.7% (gross profit of $1.091 million on $3.439 million in revenue), reflecting a combination of product mix effects and ongoing investments in the portfolio. Cash flow was modestly positive from operations: $0.152 million, contributing to an end-of-period cash balance of $3.129 million. Free cash flow totaled $0.155 million for the period, underscoring a controlled cash burn despite escalating operating expenses.
The balance sheet remains structurally healthy for a small-cap specialty pharma: current assets of $12.286 million and current liabilities of $3.719 million yield a robust current ratio of 3.30 and a quick ratio of 2.57. Total liabilities stood at $8.756 million against total equity of $6.137 million, producing a conservative leverage profile (debt to equity roughly 0.10 and debt to total capitalization around 9%). Net debt is negative on a cash-rich basis due to cash holdings versus debt, at approximately $(2.52) million.
Looking ahead, near-term profitability remains a challenge given the ongoing investment cycle in the HOCl portfolio, R&D intensity, and SG&A burn. However, the company’s cash runway and improving top-line trajectory offer optionality if operating leverage improves and if revenue composition shifts toward higher-margin HOCl products with favorable mix. Management commentary from the QQ4 2024 period is not captured in the provided transcript, limiting explicit forward-guidance; investors should monitor product adoption in Microcyn/Microcyn-based lines, international expansion opportunities, and any cost-control initiatives that could drive EBITDA improvement.