FONAR (FONR) Q3 2026 earnings summary

Executive summary

• Net income for the nine months ended March 31, 2026 was $7.5 million on revenues of $78.1 million, down from $9.3 million on $77.1 million in the prior year period.

• Operating income decreased to $8.6 million from $10.7 million year-over-year, mainly due to higher costs and expenses outpacing revenue growth.

• Diluted net income per common share dropped 35% to $0.24 for the quarter and 21% to $0.89 for the nine-month period.

• The primary revenue and profit driver remains the diagnostic imaging management subsidiary, which managed a record 45 MRI scanners and achieved record scan volumes.

• A proposed going-private transaction is pending, with a merger agreement signed and a special meeting scheduled for May 28, 2026.

Financial highlights

• Revenues for the nine months ended March 31, 2026 increased 1.3% to $78.1 million, driven by higher management and other fees and product/service sales, offset by a decline in patient fee revenue.

• Net income for the three months ended March 31, 2026 was $2.3 million on $26.5 million in revenue, compared to $3.1 million on $27.2 million in the prior year quarter.

• Total costs and expenses for the quarter increased to $24.0 million from $23.5 million year-over-year.

• Selling, general & administrative expenses rose 5% for the quarter and 7% for the nine-month period.

• Net cash provided by operating activities for the nine-month period was $3.4 million, down from $7.0 million year-over-year.

Outlook and guidance

• Management expects to complete the going-private merger in the fourth fiscal quarter of 2026, subject to shareholder and regulatory approvals.

• Management expects continued growth in scan volume, driven by the addition of high-field MRIs and expansion into new locations.

• The company plans to open a new MRI center on Long Island, NY, with expected costs of $900,000.

• Plans are underway to manage a new MRI center in Nassau County before fiscal year-end.

• Management believes existing cash and internal cash generation are sufficient for at least the next 12 months.