Earth Science Tech Reports 177% Revenue Growth to $33.1 Million in Fiscal Year 2025

Earth Science Tech, Inc. (ETST) reported significant financial growth in its fiscal year ending March 31, 2025, with total revenue reaching $33.1 million, a 177% increase from $12 million in the previous year. The company achieved a gross profit of $24.3 million, resulting in a gross margin of 73%, up from 65% in the prior year. This increase in revenue and profitability is attributed to heightened demand for compounded medications, as well as improved purchasing power that allowed for better pricing on raw materials. The net income for the year was approximately $3.3 million, compared to $812,000 in the previous fiscal year, marking a substantial increase in profitability.

In terms of operational changes, ETST has expanded its business through strategic acquisitions, including 100% ownership of Las Villas Health Care, Inc. and DOConsultations, LLC, as well as an 80% stake in MagneChef. These acquisitions are part of the company's strategy to diversify its offerings in the health and wellness sector, particularly in telemedicine and consumer products. The company also reported an increase in employee headcount to 76 as of March 31, 2025, reflecting its growth and operational expansion.

ETST's operational metrics indicate a strong market presence, with RxCompound, its compounding pharmacy, licensed to operate in multiple states and actively pursuing further licensure. The telemedicine platform, Peaks, has also expanded its services, including a new veterinary market through the acquisition of Zoolzy.com. The company’s marketing efforts have intensified, with advertising expenses rising significantly to support online sales initiatives. The total operating expenses for the year were $20.9 million, a 67% increase from the previous year, driven primarily by higher salaries and marketing costs.

The company’s balance sheet shows total assets of $7.1 million as of March 31, 2025, up from $3.9 million the previous year. This increase is largely due to the acquisition of new assets and investments in property and equipment, which totaled approximately $1.4 million. Current liabilities also rose to $3.2 million, reflecting increased operational activity and accrued expenses. ETST has implemented a $5 million share repurchase program, which has contributed to a reduction in outstanding shares.

Looking ahead, ETST anticipates continued growth driven by its expanding product lines and market reach. The company plans to leverage its recent acquisitions to enhance service offerings and improve customer engagement. However, it acknowledges potential risks, including regulatory challenges and market competition, which could impact future performance. The management remains optimistic about the company's trajectory, emphasizing its commitment to operational efficiency and strategic growth initiatives.