Escalon Medical Corp. Reports 11.4% Revenue Growth for Nine Months Ending March 31, 2025

Escalon Medical Corp. reported a significant increase in financial performance for the nine months ending March 31, 2025, with net revenues rising to approximately $9.48 million, an increase of 11.4% compared to $8.51 million for the same period in the previous fiscal year. The growth was primarily driven by increased sales of Trek's gas products, which contributed $546,000, and Sonomed's ultrasound products, which added $337,000. For the three months ending March 31, 2025, revenues also saw a notable increase of 28.9%, reaching $3.47 million, up from $2.70 million in the prior year.

The company's cost of goods sold (COGS) for the nine-month period was approximately $5.09 million, representing 53.7% of total revenue, a decrease from 56.8% in the previous year. This reduction in COGS as a percentage of revenue is attributed to a favorable product sales mix and geographic differences, as well as adjustments in inventory valuation. Marketing, general, and administrative expenses increased slightly by 0.6% to $3.42 million, while research and development expenses decreased by 10.3% to $462,000, reflecting a reduction in consulting expenses related to product development.

Escalon's balance sheet showed total assets of $5.22 million as of March 31, 2025, up from $4.76 million at the end of June 2024. Current assets increased to $4.84 million, primarily due to higher cash reserves, which rose to $540,908 from $209,033. The company’s total liabilities decreased slightly to $2.92 million, resulting in total shareholders' equity of $2.29 million, an increase from $1.81 million in the previous fiscal period. The current ratio improved to 1.92, indicating better short-term financial health.

Operationally, Escalon Medical Corp. has been focusing on enhancing its product offerings and expanding its market presence. The company reported a positive cash flow from operations of approximately $365,000 for the nine months ended March 31, 2025, compared to a cash outflow of $263,000 in the same period last year. Despite these improvements, the company continues to face challenges, including an accumulated deficit of approximately $68.1 million and ongoing concerns regarding its ability to maintain operations without additional capital.

Looking ahead, Escalon Medical Corp. is actively pursuing strategic partnerships and cost-cutting measures to address its financial challenges. The company remains committed to enhancing its product lines and exploring new market opportunities, although it acknowledges the uncertainty surrounding global economic conditions and potential impacts from recent geopolitical events. The management's outlook emphasizes the need for continued vigilance in managing costs and seeking additional funding sources to support ongoing operations.