Astrotech Corporation Reports Q3 Revenue Surge to $534,000 Amid Mixed Nine-Month Results

Astrotech Corporation reported its financial results for the third quarter and nine months ended March 31, 2025, revealing a significant increase in revenue compared to the same period last year. The company generated $534,000 in revenue for the three months ended March 31, 2025, a substantial rise from $50,000 in the same quarter of 2024. However, for the nine-month period, total revenue decreased to $829,000 from $1.59 million in the prior year. The gross profit for the latest quarter was $237,000, with a gross margin of 44%, compared to a gross margin of 16% in the previous year. The net loss for the quarter was $3.63 million, compared to a loss of $3.15 million in the same quarter of 2024.

The financial performance reflects a mixed picture, with a notable increase in quarterly revenue driven primarily by sales of the TRACER 1000 explosives trace detector, government grants, and ongoing maintenance services. In contrast, the nine-month revenue decline was attributed to fewer device sales compared to the previous year. Operating expenses rose to $4.1 million for the latest quarter, up from $3.54 million a year earlier, largely due to increased selling, general, and administrative expenses, as well as higher research and development costs.

Astrotech has made strategic advancements in its product offerings, particularly with the TRACER 1000, which has been certified for use in air cargo security by the Transportation Security Administration (TSA). The company is also actively pursuing additional certifications and has received a purchase order valued at $429,000 for the TRACER 1000 from a TSA contractor. Furthermore, Astrotech has expanded its operations by forming new subsidiaries, including EN-SCAN for environmental testing and Pro-Control for industrial process control applications, which are expected to enhance its market presence.

Operationally, Astrotech's cash and cash equivalents decreased to $2.81 million as of March 31, 2025, down from $10.44 million at the end of the previous fiscal year. The company reported a net cash outflow from operating activities of $10.59 million for the nine months ended March 31, 2025, compared to $7.19 million in the same period last year. The increase in cash used in operations is attributed to funding operating losses and working capital needs. The company continues to assess its liquidity and capital requirements, with no material updates since its last annual report.

Looking ahead, Astrotech remains focused on expanding its product lines and market reach, particularly in the mass spectrometry sector. The company acknowledges potential risks, including inflationary pressures and market acceptance of its products, but is optimistic about its strategic initiatives and ongoing development efforts. The management's outlook emphasizes the importance of successful execution of its business plan and the potential for growth in both domestic and international markets.