FONAR Corporation reported a 1% increase in total net revenues to $104.4 million for the fiscal year ended June 30, 2025, compared to $102.9 million in the prior fiscal year. However, income from operations decreased significantly by 30% to $11.6 million, and net income fell 24% to $10.7 million, resulting in diluted net income per common share decreasing 20% to $1.23.
The decline in profitability was primarily due to a 7% increase in total costs and expenses, with selling, general, and administrative (SG&A) expenses rising 11% to $29.7 million. This increase included an additional $2.3 million reserve related to a New York-based motor vehicle insurer facing a $650 million shortfall. Florida's tort reform also impacted scan volumes and payments in that region.
Despite financial pressures, the HMCA segment achieved a new company record of 216,317 MRI scans in fiscal 2025, a 3.3% increase from the previous year. HMCA now manages 44 MRI scanners, with two high-field MRIs added in Naples, Florida, and Melville, New York, during the fiscal year. Plans for fiscal 2026 include further high-field MRI installations and a new HMCA-managed center in Nassau County, Long Island.
As of June 30, 2025, cash and cash equivalents remained stable at $56.5 million, and working capital increased 4% to $127.5 million. The company had repurchased 373,942 shares for $6,071,935 under its stock repurchase plan. However, share repurchases were temporarily suspended due to the potential 'take private' transaction announced on July 18, 2025.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.