FONAR Corporation reported a 2% decrease in total net revenues to $25.0 million for the second quarter of fiscal 2025, compared to $25.4 million in the corresponding quarter of the prior year. Income from operations saw a substantial 48% decline to $2.6 million, down from $4.9 million, while net income also decreased 48% to $2.4 million.
The significant decline in profitability was primarily driven by a 24% increase in selling, general, and administrative (SG&A) expenses, which rose to $6.9 million. This increase included a substantial reserve against accounts receivables related to American Transit Insurance Company, which has indicated it is approaching insolvency, and costs from a new outside billing contract.
Despite the financial pressures, HMCA-managed MRI centers recorded 53,114 scans in the second quarter, a 3.65% increase from the second quarter of fiscal 2024. The first-half scan volume for fiscal 2025 reached 106,168, marking a 4.1% increase over the prior year's first half. The company continues to manage 43 MRI scanners across New York and Florida.
As of December 31, 2024, cash and cash equivalents stood at $53.7 million, a decrease from $56.5 million at June 30, 2024. Working capital increased 2% to $125.4 million, and net book value per common share rose 4% to $25.66. FONAR continued its stock repurchase program, having spent $5,607,486 to repurchase 343,485 shares.
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.