Dynatronics (DYNT) Q3 2025 earnings summary

Executive summary

• Net sales for the quarter ended March 31, 2025, decreased 19.7% year-over-year to $6.15 million, primarily due to lower OEM volume and reduced demand for orthopedic soft bracing products.

• Gross profit margin declined to 17.8% from 23.7% year-over-year, reflecting lower sales volume.

• Net loss attributable to common stockholders increased to $1.19 million for the quarter, up from $0.85 million in the prior year period.

• Management implemented cost reductions, including workforce reductions and facility optimization, to address liquidity concerns and expects continued effects into fiscal 2026.

Financial highlights

• Net sales for the nine months ended March 31, 2025, were $21.05 million, down 16.3% year-over-year.

• Gross profit for the nine months was $4.72 million (22.4% of sales), down from $5.94 million (23.6%) year-over-year.

• SG&A expenses for the nine months decreased 14.0% to $6.58 million.

• Net loss for the nine months was $2.14 million, compared to $2.01 million in the prior year.

• Cash and cash equivalents at March 31, 2025, were $174,000, down from $484,000 at June 30, 2024.

Outlook and guidance

• Management expects cost-control initiatives and facility optimization to yield annualized expense reductions of $1.7 million.

• The company forecasts sufficient liquidity for the next twelve months, assuming continued realization of cost savings.

• Anticipates significant adverse impact on cost of goods sold if universal tariffs announced in April 2025 are implemented.