Sonoma Pharmaceuticals Reports 60% Revenue Growth to $6.4 Million for Q2 2026

Sonoma Pharmaceuticals, Inc. reported a significant increase in financial performance for the three months ended June 30, 2026, with total revenues reaching $6.4 million, a 60% increase from $4.0 million in the same period last year. The company achieved a gross profit of $2.6 million, up 76% from $1.5 million, driven by improved manufacturing processes and a favorable customer mix. The cost of revenues increased by 50% to $3.8 million, but the gross profit margin improved to 40% from 36% in the prior year. Despite these gains, Sonoma reported a net loss of $330,000, a notable reduction from the $1.2 million loss recorded in the previous year.

The company’s operational metrics indicate a positive trend, with cash and cash equivalents increasing to $5.3 million from $2.4 million at the end of the previous quarter. Working capital also improved to $10.8 million, up from $7.3 million. The increase in cash was bolstered by net proceeds of $3.5 million from a recent public offering, which involved the issuance of nearly 2.96 million shares of common stock. This capital infusion is expected to support the company’s operational needs for at least the next twelve months.

Sonoma's revenue growth was particularly strong in the U.S. market, where sales surged by 141% to $2.4 million, attributed to increased demand for over-the-counter products and expanded distributor sales. European revenues rose by 34% to $2.0 million, while revenues from Asia and the Rest of the World also saw significant increases of 37% and 52%, respectively. The company continues to expand its product offerings, including the recent launch of new dermatology products and a distribution agreement with Medline Industries for wound care products in the U.S. and Canada.

The company’s employee headcount has also seen growth, reflecting its expansion efforts. As of June 30, 2026, Sonoma had 4,785,801 shares of common stock outstanding, a substantial increase from 1,799,057 shares at the end of the previous quarter. This increase in shares is indicative of the company's strategic initiatives to raise capital and support its growth trajectory. Looking ahead, Sonoma Pharmaceuticals remains focused on leveraging its stabilized hypochlorous acid technology across various healthcare applications, with management expressing confidence in the company’s ability to navigate market conditions and achieve profitability in the future.