Biomerica Posts $1.31M Q3 Loss as Revenue Falls 12% to $987,000

Biomerica, Inc. (NASDAQ: BMRA), a diagnostic test manufacturer, reported a net loss of $1.31 million for the three months ending February 28, 2026, compared with a net loss of $1.16 million in the same quarter a year earlier. Revenue for the quarter fell 12% to $987,000 from $1.12 million. Read more earnings reports.

For the nine months ending February 28, 2026, the company posted a net loss of $2.63 million on revenue of $3.58 million, versus a net loss of $3.43 million on revenue of $4.56 million in the prior-year period. The narrower nine-month loss reflects a 23% improvement year-over-year despite the 22% revenue decline.

Quarterly Performance Deteriorates

The company recorded an operating loss of $1.30 million for the December-to-February quarter, versus an operating loss of $1.21 million a year earlier. Gross profit turned negative at $44,000 for the quarter, down from a $19,000 gross profit in the prior-year quarter, as cost of revenue at $1.03 million nearly matched total revenue.

Operating expenses held relatively flat at $1.25 million compared with $1.23 million in the year-ago quarter. Research and development expenses dropped to $178,000 from $217,000, while selling, general and administrative costs rose to $1.08 million from $1.01 million.

Nine-Month Figures Show Margin Pressure

For the nine months ending February 28, 2026, Biomerica generated gross profit of $433,000 on revenue of $3.58 million, yielding a gross margin of 12%. This compares with gross profit of $742,000 on revenue of $4.56 million in the prior-year period, a margin of 16%. Cost of revenue totaled $3.15 million versus $3.82 million a year earlier.

Operating expenses for the nine-month period totaled $4.22 million, down slightly from $4.32 million. The operating loss widened to $3.79 million from $3.57 million as the lower gross profit more than offset the modest expense reduction.

Balance Sheet and Cash Position

Total assets stood at $4.88 million as of February 28, 2026, down from $5.95 million as of May 31, 2025. Cash and cash equivalents declined to $1.34 million from $2.40 million over the same period. Inventory increased to $1.65 million from $1.49 million.

Total liabilities fell to $1.56 million from $1.84 million, while stockholders' equity declined to $3.32 million from $4.11 million. The company's accumulated deficit widened to $55.80 million from $53.17 million.

Cash used in operations totaled $2.51 million for the nine months, an improvement from $3.18 million used in the prior-year period. Cash from financing activities provided $1.46 million, down from $2.12 million a year earlier. The company's share count increased to 3.03 million shares outstanding from 2.55 million at the end of fiscal 2025.

Financial Summary