Psychemedics (PMD) Q4 2024 earnings summary

Executive summary

• Psychemedics Corporation specializes in patented hair-based drug testing, serving corporate, school, and government clients in the US and internationally.

• 2024 revenue declined 11% year-over-year to $19.7 million, mainly due to lower domestic testing volumes.

• The company completed a reverse/forward stock split and delisted from Nasdaq, now trading on the OTC Pink Market.

• Management believes current liquidity is sufficient for at least 12 months, but no fixed credit lines remain.

Financial highlights

• Revenue: $19.7M in 2024, down from $22.1M in 2023 (-11%); US revenue fell 12%, international rose 22%.

• Net loss: $(1.9)M in 2024, improved from $(4.2)M in 2023.

• Gross profit: $7.1M in 2024, down 16% year-over-year.

• Operating loss: $(1.9)M in 2024, improved from $(2.9)M in 2023.

• Cash at year-end: $1.4M (down from $2.0M); positive operating cash flow of $929K in 2024.

Outlook and guidance

• Management expects current cash and future operating profits to cover working capital and capital expenditures for at least the next year.

• No formal revenue or earnings guidance provided; future growth depends on customer acquisition and market conditions.