Sonendo (SONX) Q1 2025 earnings summary

Executive summary

• Achieved $7.4 million in total revenue for Q1 2025, a 5% increase year-over-year.

• Substantial improvement in gross margin to 44%, up from 28% in the prior year period.

• Adjusted EBITDA loss improved by 48% year-over-year to $3.9 million.

• Free cash flow burn reduced by 58% to $4.5 million compared to the prior year.

Financial highlights

• Q1 2025 revenue reached $7.4 million, up 5% from Q1 2024.

• Gross margin expanded to 44%, a 1600 basis point increase year-over-year.

• Adjusted EBITDA loss narrowed to $3.9 million, a 48% improvement year-over-year.

• Free cash flow burn decreased to $4.5 million, down 58% year-over-year.

Outlook and guidance

• 2025 revenue guidance set at $31–$32 million.

• Mid-term (2027) revenue expected to grow at a 9% CAGR (2024–2029).

• GAAP gross margin projected at 44–46% for 2025, 57–59% by 2027, and 65%+ long-term.

• Adjusted EBITDA loss for 2025 expected at $(11)–$(14) million; positive adjusted EBITDA anticipated starting FY 2028.

• Free cash flow guidance for 2025 is $(12)–$(15) million, with positive free cash flow expected mid-term.