Earth Science Tech Reports 8% Revenue Increase to $35.7 Million for Fiscal Year Ending March 31, 2026

Earth Science Tech, Inc. (ETST) reported a revenue increase of 8% for the fiscal year ending March 31, 2026, generating $35.7 million compared to $33.1 million in the previous year. The company's gross profit also rose to $25.5 million, although the gross margin slightly decreased from 73% to 71%. This decline in margin was attributed to competitive market conditions and changes in product mix, which led to lower average selling prices. The cost of goods sold increased by 16%, reflecting higher ingredient costs and fulfillment expenses.

In terms of operational changes, ETST has expanded its state licensure, allowing its pharmacy and telehealth services to reach a near-national footprint. The company has also made strategic acquisitions, including 100% ownership of Las Villas Health Care and DOConsultations, as well as an 80% stake in MagneChef. These acquisitions are expected to enhance ETST's integrated healthcare platform, which combines compounding pharmacy operations, telemedicine, and clinical support.

The company reported a net income of approximately $3.6 million for the year, an increase of 11% from the previous year's net income of $3.25 million. This growth was supported by a reduction in operating expenses, particularly in salaries and general administrative costs, which decreased by 2% and 14%, respectively. Marketing expenses, however, saw a significant increase of 239%, reflecting the company's investment in digital marketing initiatives aimed at driving customer acquisition and prescription volumes.

ETST's total assets increased to $8.97 million as of March 31, 2026, up from $7.07 million the previous year. The company also reported a significant reduction in total liabilities, which decreased from $3.22 million to $1.93 million, primarily due to the repayment of long-term debt. The stockholders' equity improved to $7.04 million, bolstered by the net income available to common stockholders and the repurchase of shares under its buyback program.

Looking ahead, ETST anticipates that its current cash flow from operations will be sufficient to meet its anticipated operating and capital requirements for the next 12 months. The company does not foresee the need for additional dilutive financing in the near future. However, it acknowledges the potential risks associated with market conditions, regulatory changes, and competition in the healthcare sector, which could impact its growth trajectory.