Dynatronics (DYNT) Q1 2025 earnings summary

Executive summary

• Net sales for Q1 FY2025 decreased 18.7% year-over-year to $7.6M, driven by lower OEM volume and reduced demand for orthopedic soft bracing products.

• Gross profit margin improved to 26.1% from 24.7% year-over-year, despite a $325K decrease in gross profit.

• Net loss attributable to common stockholders was $534K, or $0.09 per share, compared to $528K, or $0.12 per share, in the prior year quarter.

• SG&A expenses declined 12.3% year-over-year due to lower salaries, sales expenses, and maintenance costs.

Financial highlights

• Net sales: $7.6M (down from $9.4M year-over-year).

• Gross profit: $2.0M (down from $2.3M year-over-year); gross margin 26.1%.

• Net loss: $367K (vs. $331K year-over-year); net loss per share $0.09 (vs. $0.12).

• Cash and cash equivalents: $278K as of September 30, 2024 (down from $484K at June 30, 2024).

• Working capital: $2.5M; current ratio 1.3 as of September 30, 2024.

Outlook and guidance

• Management believes current liquidity and capital resources are sufficient for the next 12 months but notes ongoing economic and supply chain uncertainties could impact liquidity.

• No formal guidance provided for future quarters.