Femasys (FEMY) Q1 2026 earnings summary

Executive summary

• Achieved net income of $846,100 for Q1 2026, reversing a net loss of $5.9 million in Q1 2025, driven by increased sales and substantial non-cash gains from fair value adjustments on derivative liabilities.

• Sales grew 24.5% year-over-year to $424,889, primarily due to higher FemVue and FemBloc sales.

• Advanced commercialization and regulatory milestones for FemBloc and FemaSeed, including new product launches, pivotal clinical trial enrollment, and expanded partnerships in the U.S., Israel, and Switzerland.

• Accelerated commercialization of FemaSeed Complete and introduced the FemSperm product family, enabling integrated in-office fertility care.

• Enhanced leadership with new COO and Board appointments.

Financial highlights

• Sales increased by $83,625 (24.5%) year-over-year; cost of sales rose 35.3% to $158,606.

• Operating expenses decreased 21% to $4.49 million, mainly due to lower R&D costs as products transitioned to commercialization.

• Research and development expenses decreased 55.9% to $1,309,401, reflecting transition to commercialization.

• Other income (expense), net, improved by $5.5 million, primarily from fair value gains on conversion option and warrants liabilities.

• Cash and cash equivalents were $5.4 million as of March 31, 2026; accumulated deficit stood at $145.0 million.

Outlook and guidance

• Current cash and anticipated revenues expected to fund operations into Q3 2026; additional financing will be required to sustain operations and fund product development beyond that period.

• Ongoing investments planned in commercialization, pivotal clinical trials, and R&D for FemBloc and fertility portfolio.

• Substantial doubt exists about the ability to continue as a going concern without new capital.

• Focus remains on scaling a broad portfolio of women's health solutions globally.