Earth Science Tech, Inc. announced its financial results for the fiscal year ended March 31, 2025, reporting a significant increase in revenue and a transition to profitability. Total revenue for the year surged to $33.12 million, marking a 177% increase compared to $11.95 million in the prior fiscal year. This growth was primarily driven by increased demand for compounded medications and the introduction of shipping income.
The company's gross profit saw an even more impressive increase of 210%, reaching $24.30 million, which resulted in a gross margin expansion from 65% in fiscal year 2024 to 73% in fiscal year 2025. This margin improvement is attributed to the subsidiaries' increased buying power, allowing for better negotiation on raw ingredient costs. ETST successfully transitioned to profitability, reporting a net income of approximately $3.25 million for fiscal year 2025, a significant improvement from $812,000 in the previous year.
Operating expenses increased to $20.85 million from $6.94 million, primarily due to higher salaries expense of $14.12 million, a significant jump in selling, general, and administrative expenses to $4.15 million, and increased marketing costs of $836,860. Despite these increased expenses, the company generated $4.37 million in net cash from operating activities, a substantial increase from $1.21 million in the prior year. Cash on hand increased to $1.47 million, and management stated it does not anticipate needing any future financing.
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