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FONAR (FONR) investor relations material
FONAR Q1 2026 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Net income for Q1 FY2026 was $2.7M on revenues of $26.0M, down 33% and up 4% year-over-year, respectively, with operating income declining to $3.2M from $4.6M.
Revenue growth was driven by increases in management and other fees, product sales, and service and repair fees, but costs and SGA expenses rose at a higher rate, impacting profitability.
A non-binding proposal was received to take the company private, with ongoing negotiations and no assurance of completion.
The company’s primary revenue and profit source is its diagnostic imaging management subsidiary, which managed 44 MRI scanners.
Cash and cash equivalents plus short-term investments totaled $54.3M at quarter-end, down from $56.3M at June 30, 2025.
Financial highlights
Revenues increased 4.3% year-over-year to $26.0M, while costs and expenses rose 12.2% to $22.8M.
Operating income decreased to $3.2M from $4.6M year-over-year; net income attributable to shareholders was $2.3M, down from $3.1M.
Basic and diluted EPS for common stockholders were $0.34, compared to $0.47 and $0.46, respectively, in the prior year.
FONAR segment revenues rose 14% year-over-year to $2.5M; HMCA segment revenues increased 3% to $23.5M.
Net cash flow from operating activities was $1.7M, flat year-over-year.
Outlook and guidance
Management expects to complete installation of a new high field scanner and open a new location in Long Island, NY in FY2026, with capital expenditures of approximately $2.4M planned.
Plans include adding a second MRI at an existing center and opening a new MRI center in Nassau County during the fiscal year.
Ongoing search for new locations to expand the MRI network in New York and Florida.
The company believes existing cash balances and internal cash generation are sufficient to fund operations and capital needs for at least the next twelve months.
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