FONAR (FONR) investor relations material

Executive summary

• Net income for the nine months ended March 31, 2026 was $7.5 million on revenues of $78.1 million, down from $9.3 million on $77.1 million in the prior year period.

• Operating income decreased to $8.6 million from $10.7 million year-over-year, mainly due to higher costs and expenses outpacing revenue growth.

• A proposed going-private transaction is pending, with a merger agreement signed and a special meeting scheduled for May 28, 2026.

Financial highlights

• Revenues for the nine months ended March 31, 2026 increased 1.3% to $78.1 million, driven by higher management and other fees and product/service sales, offset by a decline in patient fee revenue.

• Net income for the three months ended March 31, 2026 was $2.3 million on $26.5 million in revenue, compared to $3.1 million on $27.2 million in the prior year quarter.

• Cash and cash equivalents plus short-term investments totaled $53.8 million at March 31, 2026, down from $56.5 million at June 30, 2025.

• Working capital increased to $131.9 million from $127.5 million sequentially.

Outlook and guidance

• Management expects to complete the going-private merger in the fourth fiscal quarter of 2026, subject to shareholder and regulatory approvals.

• The company plans to open a new MRI center on Long Island, NY, with expected costs of $900,000.

• Management believes existing cash and internal cash generation are sufficient for at least the next 12 months.