Sonoma Pharmaceuticals Reports Fiscal Year and Fourth Quarter 2025 Financial Results

• Revenues increased 9% in Q4 2025 compared to Q4 2024, and 12% in FY 2025 compared to FY 2024

• Net loss improved 27% in Q4 2025 compared to Q4 2024, and 29% in FY 2025 compared to FY 2024

• EBITDA loss improved 59% in Q4 2025 compared to Q4 2024, and 17% in FY 2025 compared to FY 2024

BOULDER, CO / ACCESS Newswire / June 17, 2025 / Sonoma Pharmaceuticals, Inc. (NASDAQ:SNOA),a global healthcare leader developing and producing patented Microcyn^® technology-based stabilized hypochlorous acid (HOCl) products for a wide range of applications including wound, eye, oral and nasal care, dermatological conditions, podiatry, animal health care and non-toxic disinfectants, today announced financial results for fiscal year 2025 and the fourth quarter ended March 31, 2025.

"We are very pleased to report the results of our 2025 fiscal year and fourth fiscal quarter, which show continued revenue growth and consistent progress towards profitability," said Amy Trombly, CEO of Sonoma. "The successful transitioning of our products to the new Medical Device Regulation in the EU, well ahead of the 2028 deadline, and the registration of our products with the MHRA in the United Kingdom represent significant achievements for the Sonoma. We believe the strategic expansion of our sales and distribution network in the U.S. and internationally, supported by aggressive pursuit of worldwide regulatory approvals in new markets, is a winning formula."

Recent Business Highlights

Sonoma continued to expand regulatory approvals for its products, grow its distribution network, and expand its product offerings:

Results for the Quarter Ended March 31, 2025

Total revenue of $3.8 million for the fourth quarter ended March 31, 2025 increased by $0.4 million, or 9%, from $3.4 million for the same period last year. This increase was primarily due to increased revenues in Europe and Latin America, partially offset by a decline in U.S. revenue due to fluctuations in demand for over-the-counter animal health care products and decreased revenues in Asia due to timing of customer orders.

During the quarter ended March 31, 2025, Sonoma reported cost of revenues of $2.2 million resulting in total gross profit of $1.5 million, or 41% of total revenue, compared to a gross profit of $1.1 million, or 32% of total revenue, in the same period last year.

Total operating expenses during the fourth quarter of fiscal year 2025 were $2.2 million, down $0.3 million, or 13%, as compared to the same period in the prior year. This decrease was primarily due to ongoing efforts to contain expenses across all parts of the company.

Net loss for the fourth quarter of fiscal year 2025 was $0.8 million, down by $0.3 million, or 27%, compared to the same period last year. EBITDA loss for the fourth quarter of fiscal year 2025 of $0.5 million was down by $0.8 million, or 59%, compared to an EBITDA loss of $1.3 million for the same period last year.

As of March 31, 2025, Sonoma had cash and cash equivalents of $5.4 million.

Results for the Year Ended March 31, 2025

Total revenues for the year ended March 31, 2025 of $14.3 million increased by $1.6 million as compared to $12.7 million for the year ended March 31, 2024. The increase in revenue was driven primarily by increased revenues in Europe and Latin America, partially offset by a decline in U.S. revenue due to fluctuations in demand for over-the-counter animal health care products.

For the year ended March 31, 2025, Sonoma reported total revenues of $14.3 million and total cost of revenues of $8.8 million, resulting in total gross profit of $5.5 million, or 38% of total revenues, compared to a gross profit of $4.7 million, or 37% of total revenues, for the same period in the prior year.

Total operating expenses during fiscal year 2025 were $9.2 million, down $0.3 million, or 3%, as compared to the same period in the prior year. This decrease was primarily due to ongoing efforts to contain expenses across all parts of the company.

Net loss during fiscal year 2025 was $3.5 million, down $1.4 million, or 29%, compared to the same period last year. EBITDA loss for fiscal year 2025 of $3.3 million was down $0.7 million, or 17%, compared to an EBITDA loss of $4.0 million for the same period last year.

About Sonoma Pharmaceuticals, Inc.

Sonoma Pharmaceuticals is a global healthcare leader for developing and producing stabilized hypochlorous acid (HOCl) products for a wide range of applications, including wound care, eye care, nasal care, oral care, dermatological conditions, podiatry, animal health care and non-toxic disinfectants. The company's products are clinically proven to reduce itch, pain, scarring, and irritation safely and without damaging healthy tissue. In-vitro and clinical studies of HOCl show it to safely manage skin abrasions, lacerations, minor irritations, cuts, and intact skin. The company's products are sold either directly or via partners in 55 countries worldwide and the company actively seeks new distribution partners. The company's principal office is in Boulder, Colorado, with manufacturing operations in Guadalajara, Mexico. European marketing and sales are headquartered in Roermond, Netherlands. More information can be found at www.sonomapharma.com. For partnership opportunities, please contact businessdevelopment@sonomapharma.com.

Forward-Looking Statements

Except for historical information herein, matters set forth in this press release are forward-looking within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including statements about the commercial and technology progress and future financial performance of Sonoma Pharmaceuticals, Inc. and its subsidiaries (the "company"). These forward-looking statements are identified by the use of words such as "continue," "reduce," "develop," "anticipate," "expect" and "expand," among others. Forward-looking statements in this press release are subject to certain risks and uncertainties inherent in the company's business that could cause actual results to vary, including such risks that regulatory clinical and guideline developments may change, scientific data may not be sufficient to meet regulatory standards or receipt of required regulatory clearances or approvals, clinical results may not be replicated in actual patient settings, protection offered by the company's patents and patent applications may be challenged, invalidated or circumvented by its competitors, the available market for the company's products will not be as large as expected, the company's products will not be able to penetrate one or more targeted markets, revenues will not be sufficient to meet the company's cash needs or fund further development, as well as uncertainties relative to fluctuations in foreign currency exchange rates, global economic conditions, prospective tariffs or changes to trade policies, varying product formulations and a multitude of diverse regulatory and marketing requirements in different countries and municipalities, and other risks detailed from time to time in the company's filings with the Securities and Exchange Commission. The company disclaims any obligation to update these forward-looking statements, except as required by law.

Sonoma Pharmaceuticals™ and Microcyn^® are trademarks or registered trademarks of Sonoma Pharmaceuticals, Inc. All other trademarks and service marks are the property of their respective owners.

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SONOMA PHARMACEUTICALS, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(In thousands, except share amounts)

SONOMA PHARMACEUTICALS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(In thousands, except per share amounts)

SONOMA PHARMACEUTICALS, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES
(In thousands)
(Unaudited)

(1) Loss from operations minus non-cash expenses (EBITDA) is a non-GAAP financial measure. The Company defines operating loss minus non-cash expenses as GAAP reported operating loss minus operating depreciation and amortization, and operating stock-based compensation. The Company uses this measure for the purpose of modifying the operating loss to reflect direct cash related transactions during the measurement period. . Non-GAAP measures should not be considered a substitute for financial measures presented in accordance with GAAP. Non-GAAP measures are not always consistent across, or comparable with, non-GAAP measures disclosed by other companies.

(2) Net loss minus non-cash and one-time expenses is a non-GAAP financial measure. The company defines net loss minus non-cash expenses as GAAP reported net loss minus depreciation and amortization, stock-based compensation, income taxes, and non-cash foreign exchange transaction losses. The company uses this measure for the purpose of modifying the net loss to reflect only those expenses to reflect direct cash transactions during the measurement period. Non-GAAP measures should not be considered a substitute for financial measures presented in accordance with GAAP. Non-GAAP measures are not always consistent across, or comparable with, non-GAAP measures disclosed by other companies.

(3) Operating expenses minus non-cash expenses is a non-GAAP financial measure. The Company defines operating expenses minus non-cash expenses as GAAP reported operating expenses minus operating depreciation and amortization, and operating stock-based compensation. The Company uses this measure for the purpose of identifying total operating expenses involving cash transactions during the measurement period. . Non-GAAP measures should not be considered a substitute for financial measures presented in accordance with GAAP. Non-GAAP measures are not always consistent across, or comparable with, non-GAAP measures disclosed by other companies.

SONOMA PHARMACEUTICALS, INC. AND SUBSIDIARIES
REVENUE SCHEDULES
(In thousands)

The following table shows the Company's revenues by geographic region:

SOURCE: Sonoma Pharmaceuticals, Inc.