Dynatronics (DYNT) Q4 2025 earnings summary

Executive summary

• Net sales for fiscal year 2025 declined 15.8% to $27.4 million, primarily due to reduced OEM volume and lower demand for orthopedic soft bracing products.

• Gross profit margin fell to 21.9% from 23.5% year-over-year, reflecting the sales decline.

• Operating loss increased to $2.5 million, and net loss attributable to common stockholders widened to $11.6 million ($1.43/share) from $3.4 million ($1.00/share) in the prior year.

• Significant impairment charges were recorded: $950,000 for intangible assets and $7.1 million for goodwill.

• Substantial doubt exists about the company's ability to continue as a going concern due to recurring losses, negative cash flows, and reduced liquidity.

Financial highlights

• Net sales: $27.4 million in 2025 vs. $32.5 million in 2024 (down 15.8%).

• Gross profit: $6.0 million (21.9% margin) in 2025 vs. $7.6 million (23.5%) in 2024.

• Operating loss: $2.5 million in 2025 vs. $2.3 million in 2024.

• Net loss: $10.9 million in 2025 vs. $2.7 million in 2024.

• Net loss attributable to common stockholders: $11.6 million ($1.43/share) in 2025 vs. $3.4 million ($1.00/share) in 2024.

• Cash and cash equivalents: $326,000 at June 30, 2025, down from $484,000 a year earlier.

• Working capital: $718,000 at June 30, 2025, down from $2.85 million at June 30, 2024.

Outlook and guidance

• Management is implementing cost reduction, operational streamlining, product diversification, and shifting production in-house to improve performance and liquidity.

• The company is pursuing new revenue streams and evaluating inventory reduction strategies.

• Substantial doubt remains about the ability to continue as a going concern despite these actions.