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Shares of FONAR Corporation FONR have rallied 15.4% since the company released its earnings results for the fiscal third quarter ended March 31, 2025, significantly outperforming the S&P 500 Index, which gained just 0.7% during the same period. Over the past month, FONR stock has appreciated 16.9%, again outpacing the S&P 500’s 12.1% advance.
FONR’s Financial Performance Overview
For the quarter ended March 31, 2025, FONAR Corporation reported a 5.6% year-over-year increase in total net revenues, reaching $27.2 million from $25.7 million in the prior-year period. Net income attributable to the company climbed 25.8% to $3.1 million from $2.5 million a year earlier despite a 2.2% decline in income from operations to $3.66 million from $3.75 million. FONR’s diluted net income per common share available to stockholders surged 37% to $0.37, up from $0.27 in the third quarter of fiscal 2024. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Segmentally, FONAR Corporation generated $12.9 million in management and other fees, a 6.4% increase over the year-ago figure of $12.1 million. Service and repair fees rose 26.2% year over year to $2.3 million from the year-ago figure of $1.8 million, while patient fee revenues increased 2.8% to $8.9 million from $8.6 million. However, product sales dropped 50% to $55,000 from $110,000 in the comparable period last year.
FONAR Corporation’s Operational Efficiency and Business Metrics
FONAR Corporation maintained tight control over its expenses, although total costs and expenses increased 6.9% to $23.5 million from $21.9 million. Selling, general and administrative (SG&A) expenses rose 5.2% to $7.9 million from $7.6 million. Despite these increases, FONR reported a solid net margin improvement due to its revenue growth and a significantly lower tax provision of $1 million, down from $1.8 million in the prior year.
The balance sheet remained healthy, with total assets edging up slightly to $214.9 million as of March 31, 2025 from $214.2 million as of June 30, 2024, and total liabilities declining to $54.7 million from $57.5 million. FONAR Corporation’s current ratio improved to 10.0 as of March 31, 2025, up from 7.9 as of June 30, 2024, indicating robust short-term liquidity. Working capital also increased 4% to $127.1 million as of March 31, 2025 from $122.5 million as of June 30, 2024, and net book value per common share rose 5% to $25.98 as of March 31, 2025 from $24.78 per share March 31, 2024.
Operating cash flow for the nine months ended March 31, 2025 was $7 million, down from $9.5 million in the prior year, largely due to greater provisioning for credit losses and a decrease in net receivables.