Pharma-Bio Serv Reports Q2 Fiscal 2025 Revenue Growth to $2.42 Million

Pharma-Bio Serv, Inc. reported its financial results for the second quarter of fiscal year 2025, revealing total revenues of $2.42 million for the three months ended April 30, 2025, a slight increase from $2.38 million in the same period last year. For the six-month period, revenues reached $4.89 million, up from $4.76 million year-over-year. The company achieved a gross profit of $818,726 for the quarter, compared to $618,475 in the prior year, reflecting an increase in gross profit margin from 26% to 33.9%. Despite these improvements, Pharma-Bio recorded a loss from operations of $98,322, an improvement from a loss of $313,375 in the same quarter last year.

The company’s financial position showed significant changes compared to the previous fiscal period. As of April 30, 2025, total assets decreased to $13.90 million from $16.29 million as of October 31, 2024. Current liabilities also decreased to $1.78 million from $2.58 million, contributing to a reduction in total liabilities. Stockholders' equity fell to $12.12 million from $13.72 million, primarily due to a decrease in retained earnings, which dropped from $12.35 million to $10.74 million.

Operationally, Pharma-Bio Serv has been focusing on expanding its market presence, particularly in Europe, where revenues increased significantly. The European consulting segment generated $532,695 in revenue for the quarter, a substantial rise from $70,836 in the same period last year. However, the Puerto Rico and U.S. consulting segments experienced declines in revenue, which were partially offset by the growth in Europe. The company continues to maintain a diverse customer base, with four customers accounting for over 52% of total revenues in the latest quarter.

Looking ahead, Pharma-Bio Serv is optimistic about its growth prospects, particularly in the European market, where it has seen favorable project margins. The company is also actively pursuing the renewal of its tax grant with the Puerto Rico Industrial Development Company, which could provide continued tax relief for its operations. Management remains cautious about potential challenges, including economic conditions and industry trends, but believes that its current working capital of approximately $11.6 million is sufficient to meet anticipated expenses and contractual commitments over the next twelve months.