Escalon Medical Swings to $142,175 Loss in First Half of Fiscal 2026

Escalon Medical Corp. posted a net loss of $142,175 for the six months ending December 31, 2025, a sharp reversal from net income of $213,804 in the prior-year period. The medical device company reported revenue of $6.27 million, up 4.4% from $6.00 million a year earlier. Read more earnings reports.

Operating income swung to a loss of $104,013 from a profit of $228,949 in the first half of fiscal 2025. The company's gross margin deteriorated as cost of goods sold climbed to $3.59 million from $3.21 million, outpacing the revenue gain.

Selling, general and administrative expenses jumped 7.6% to $2.43 million from $2.26 million. Research and development spending increased 17% to $347,280 from $296,799.

For the three months ending December 31, 2025, Escalon reported net income of $97,677, down 60% from $246,021 in the second quarter of fiscal 2025. Second-quarter revenue totaled $3.59 million, up 11.5% from $3.22 million.

Cash flow from operations was negative $432,407 for the six-month period, compared to positive $334,270 a year earlier. The company's cash position fell to $337,434 at December 31, 2025, down from $545,835 at the fiscal year start and $520,584 at December 31, 2024.

Total assets stood at $4.98 million at December 31, 2025, essentially flat from $4.99 million at June 30, 2025. Stockholders' equity declined to $1.77 million from $1.92 million at the beginning of the fiscal year.

Accounts receivable climbed 48.9% to $2.24 million from $1.50 million at June 30, 2025. Inventory decreased 28.8% to $1.52 million from $2.14 million. Total liabilities increased to $3.21 million from $3.08 million.

The company reported basic and diluted loss per share of $0.02 for the six-month period, compared to earnings per share of $0.01 in the prior year. For the second quarter, basic and diluted earnings per share were $0.01, down from $0.02. The company had 7.4 million shares outstanding throughout both periods.