FONAR reported mixed financial results for Q2 FY2026, with revenue and operating income showing modest year-over-year growth for the quarter, but declining for the six-month period. While the company's primary subsidiary, HMCA, continues to grow its MRI scanner base and scan volumes, a significant decrease in operating cash flow and a decline in net income and EPS for the six-month period raise concerns about overall performance sustainability.
Total Revenues - Net increased by 2% to $25.5 million for the quarter ended December 31, 2025, versus the corresponding quarter one year earlier.
positiveIncome from Operations for the quarter ended December 31, 2025, increased 23% to $3.0 million as compared to $2.4 million for the corresponding quarter ended December 31, 2024.
positiveNet Income increased 15% to $2.5 million for the quarter ended December 31, 2025, versus the corresponding quarter one year earlier.
positiveDiluted Net Income per Common Share Available to Common Stockholders for the quarter ended December 31, 2025, increased 7% to $0.31 as compared to $0.29 for the corresponding quarter ended December 31, 2024.
positiveHMCA continues to grow its MRI scanner base, managing 45 MRI scanners, and scan volume in the second quarter of Fiscal 2026 was 3.3% higher than that of the corresponding quarter of Fiscal 2025.
positiveSelling, general & administrative expenses (SG&A) for the quarter ended December 31, 2025, decreased 10% to $6.2 million as compared to $6.9 million for the corresponding quarter ended December 31, 2024.
positiveNet Income decreased by 16% to $5.2 million for the six-month period ended December 31, 2025, versus the corresponding six-month period one year earlier.
negativeDiluted Net Income per Common Share Available to Common Stockholders decreased 11% to $0.66 for the six-month period ended December 31, 2025, versus the corresponding six-month period one year earlier.
negativeOperating Cash Flow for the six-month period ended December 31, 2025, decreased 52% to $1.9 million, compared to $3.9 million for the six-month period ended December 31, 2024.
negativeTotal Revenues - Net increased by 3% to $51.6 million for the six-month period ended December 31, 2025, versus the corresponding six-month period one year earlier, a deceleration from quarterly growth.
attentionIncome from Operations for the six-month period ended December 31, 2025, decreased 12% to $6.2 million as compared to $7.0 million for the corresponding six-month period ended December 31, 2024.
negativeSG&A for the six-month period ended December 31, 2025, increased 8% to $13.1 million as compared to $12.1 million for the corresponding six-month period ended December 31, 2024.
attentionMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
| Segment | Current | Prior Yr | YoY | % Total |
|---|---|---|---|---|
Health Management Company of America (HMCA) | N/A | — | — | — |
| Total Revenue | $0.00M | — | — | 100.0% |
Segment performance shows business unit health and growth drivers.
HMCA continues to grow its MRI scanner base and scan volume, with Q2 FY2026 scan volume being the third highest quarterly scan volume in HMCA history.
The addition of a high-field MRI at an existing site has led to a 30% increase in scan volume at that location.
The company is strategically adding second or third MRIs at existing sites to reduce patient backlogs and improve patient access.
Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.
Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.