Earth Science Tech Reports Revenue Increase to $8.76 Million, Net Income Declines

Earth Science Tech, Inc. (ETST) reported its financial results for the three months ending June 30, 2025, revealing a revenue of $8.76 million, a slight increase from $8.57 million in the same period last year. The company's gross profit for the quarter was $6.09 million, down from $6.41 million in the previous year, reflecting a rise in the cost of goods sold, which increased to $2.67 million from $2.16 million. The net income attributable to stockholders was $465,039, a decrease from $1.08 million in the prior year, resulting in earnings per share of $0.001 compared to $0.003 in 2024.

The financial performance indicates several significant changes compared to the previous fiscal period. Total expenses rose to $5.85 million from $5.35 million, driven by increased salaries, general and administrative expenses, and marketing costs. Salaries expenses alone increased to $3.80 million from $3.34 million, while general and administrative expenses surged to $980,172 from just $60,596. The company also reported a net realized gain on the sale of investments amounting to $81,586, contributing to other income.

Strategically, ETST has been active in expanding its operations through acquisitions and product launches. The company acquired 100% of Las Villas Health Care, Inc. and DOConsultations, LLC, as well as an 80% interest in MagneChef. These acquisitions are part of ETST's strategy to enhance its presence in the health and wellness sector. The company also operates several subsidiaries, including RxCompoundStore.com, which is a licensed compounding pharmacy, and Peaks Curative, a telemedicine platform.

Operationally, ETST has seen changes in its customer base and inventory management. As of June 30, 2025, the company had three significant customers accounting for approximately 26% of its revenue. The accounts receivable balance increased to $341,644 from $129,064, indicating a growing customer base. Inventory levels also rose to $811,859 from $503,938, reflecting the company's efforts to meet demand. The total assets of the company increased to $7.78 million from $7.07 million, while total liabilities rose to $3.49 million from $3.22 million.

Looking ahead, ETST's management remains optimistic about future growth, particularly through the expansion of its pharmacy operations and telemedicine services. The company is actively pursuing licensure in additional states to broaden its market reach. Additionally, the ongoing share repurchase program and strategic acquisitions are expected to enhance shareholder value. However, management cautions that the interim operating results may not be indicative of the full year's performance, emphasizing the need for continued monitoring of market conditions and operational efficiencies.