Scientific Industries, Inc. reported third‑quarter fiscal 2025 results that marked a sharp turnaround, with net revenue rising 52.2% to $1.404 million and net income turning from a $1.180 million loss to $3.994 million. Earnings per share improved from a loss of $0.11 to $0.34, and gross profit margin fell to 45.5% from 51.0% in the same quarter last year, reflecting the impact of the Genie Division sale and higher material costs in the Torbal OEM line.
The Bioprocessing Systems Operations segment posted a $141,700 decline in revenue compared with the same period a year earlier, while the Torbal Division—home to the VIVID pill‑counter line—recorded a 15% increase over the nine‑month period, driven by strong demand for its automated pharmacy products. The company’s net income benefit was largely attributable to the $3.994 million gain realized from the August 7, 2025 sale of the Genie Division, which had previously contributed higher margins to the consolidated results.
Management reiterated its fiscal‑year guidance, maintaining the revenue and margin targets set earlier in 2025 and emphasizing a continued focus on recurring revenue streams. The company highlighted the launch of AI‑powered features for the VIVID WORKSTATION and the planned second‑generation VIVID‑ONE, positioning the business for higher‑margin growth in the pharmacy‑automation market. The guidance also underscored confidence in sustaining profitability as the company scales its AI and bioprocessing platforms.
Scientific Industries faces headwinds in the bioprocessing market, including customer budget constraints, tariff‑driven material cost increases, and a softer demand environment that has pressured the Bioprocessing segment’s margins. Conversely, the company benefits from tailwinds such as robust demand for VIVID pill counters, the strategic divestiture of the Genie Division, and the introduction of AI features that enhance product differentiation and customer adoption. These dynamics suggest a shift toward higher‑margin, recurring‑revenue business lines while the company navigates short‑term market softness.
"The divestiture of the Genie brand portfolio has allowed us to concentrate on high‑growth segments like pharmacy automation and to invest in AI capabilities that will drive future profitability," said CEO Helena Santos. Chairman John Moore added, "Our focus on the DOTS platform and pH‑sensor development positions us to capture new opportunities in the bioprocessing space."
The company reported $8.3 million in cash, cash equivalents, and investments as of September 30, 2025, and the sale of the Genie Division has significantly increased shareholders’ equity, providing a stronger balance sheet to support ongoing strategic investments.
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