Sonoma Pharmaceuticals Reports Second Fiscal Quarter 2027 Financial Results, Delivering First-ever Net Income Before Income Tax

Sonoma Pharmaceuticals Reports Second Fiscal Quarter 2027 Financial Results, Delivering First-ever Net Income Before Income Tax BOULDER, CO / ACCESS Newswire / November 10, 2026 / Sonoma Pharmaceuticals, Inc. (Nasdaq:SNOA), a global healthcare leader developing and producing patented Microcyn ® technology-based stabilized hypochlorous acid (HOCl) products for a wide range of applications, including wound care, eye care, dermatological conditions, podiatry, and animal health care, today announced financial results for its second fiscal quarter ended September 30, 2026.

"We are very pleased to report another significant milestone for Sonoma: following our achievement of positive EBITDA last quarter, in the second fiscal quarter of 2027, Sonoma has delivered positive net income before income taxes for the first time in its history," said Amy Trombly, CEO of Sonoma. "Our results reflect the progress we are making in growing revenue while improving gross margins and maintaining disciplined control over operating expenses. U.S. revenue increased 93% this quarter, and total revenue grew 28%, demonstrating the growing contribution of our commercial efforts. We believe these results underscore the potential of our business model and our continued focus on building a stronger, more profitable company."

Business Highlights

Sonoma continues to advance its product innovation capabilities and expand its global distribution network, while pursuing opportunities in attractive specialty markets.

Results for the Quarter Ended September 30, 2026

Total revenues for the quarter ended September 30, 2026 of $7.2 million increased by $1.6 million, or 28%, as compared to $5.6 million for the same period last year. Revenues in the United States increased 93% primarily as a result of an increase in demand for our products and increased sales by new and existing distributors. Revenues in Europe were flat compared to the same period last year. Revenues in Latin America increased 57% as a result of increased demand for our products. Revenues decreased in Asia and increased in Rest of World when compared to the same period last year. Revenues from these regions tend to fluctuate when viewed on a quarterly basis due to customers placing larger, but less frequent, orders to benefit from quantity discounts and reduced shipping costs when ordering larger quantities.

During the quarter ended September 30, 2026, Sonoma reported revenues of $7.2 million and cost of revenues of $4.4 million resulting in gross profit of $2.8 million, or 39% of revenue, compared to a gross profit of $2.1 million, or 38% of revenue in the same period last year. The increase is primarily the result of an increase in revenue as compared to the same period last year, improvements in manufacturing processes, and customer mix.

Total operating expenses during the quarter ended September 30, 2026 were $2.5 million, compared to $2.5 million in the same period last year, demonstrating the operating leverage in Sonoma's business model as the company grows revenue and gross profit while keeping operating expenses stable.

Net loss for the quarter ended September 30, 2026 of $0.1 million improved by $0.4 million, or 88%, when compared to a net loss of $0.5 million for the quarter ended September 30, 2025. EBITDA income for the quarter ended September 30, 2026 of $0.4 million increased $0.6 million, compared to an EBITDA loss of $0.2 million for the same period last year.

Results for the Six Months Ended September 30, 2026

Total revenues for the six months ended September 30, 2026 of $13.6 million increased by $4.0 million, or 41%, as compared to $9.6 million for the same period last year. Revenues in the United States increased 113% primarily as a result of increased sales by new and existing distributors. Revenues in Europe increased 14% compared to the same period last year as the result of increased demand for Sonoma's products. Revenues in Latin America increased 33% as a result of timing of customer orders. Revenues were essentially flat in Asia and increased in Rest of World when compared to the same period last year. Revenues from these regions tend to fluctuate when viewed on a quarterly basis due to customers placing larger, but less frequent, orders to benefit from quantity discounts and reduced shipping costs when ordering larger quantities.

During the six months ended September 30, 2026, Sonoma reported revenues of $13.6 million and cost of revenues of $8.2 million, resulting in gross profit of $5.4 million, or 40% of revenue, compared to a gross profit of $3.6 million, or 37% of revenue in the same period last year. The increase was the result of improvements in manufacturing processes and customer mix.

Total operating expenses during the six months ended September 30, 2026 were $5.1 million compared to $5.0 million in the same period last year.

Net loss for the six months ended September 30, 2026 of $396,000 improved by $1.4 million when compared to a net loss of $1.8 million for the six months ended September 30, 2025. EBITDA income for the six months ended September 30, 2026 of $0.5 million increased $1.3 million, compared to an EBITDA loss of $0.8 million for the same period last year.

As of September 30, 2026, Sonoma had cash and cash equivalents of $4.6 million.

About Sonoma Pharmaceuticals, Inc.

Sonoma Pharmaceuticals is a global healthcare leader for developing and producing stabilized hypochlorous acid (HOCl) products for a wide range of applications, including wound, eye, oral and nasal care, dermatological conditions, podiatry, animal health care and non-toxic disinfectants. Sonoma's products are clinically proven to reduce itch, pain, scarring, and irritation safely and without damaging healthy tissue. In-vitro and clinical studies of HOCl show it to safely manage skin abrasions, lacerations, minor irritations, cuts, and intact skin. Sonoma's products are sold either directly or via partners in over 55 countries worldwide and the company actively seeks new distribution partners. The company's principal office is in Boulder, Colorado, with manufacturing operations in Guadalajara, Mexico. European marketing and sales are headquartered in Roermond, Netherlands. More information can be found at www.sonomapharma.com. For partnership opportunities, please contact [email protected].

Forward-Looking Statements

Except for historical information herein, matters set forth in this press release are forward-looking within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including statements about the commercial and technology progress and future financial performance of Sonoma Pharmaceuticals, Inc. and its subsidiaries (the "company"). These forward-looking statements are identified by the use of words such as "continue," "reduce," "develop," "aim," and "expand," among others. Forward-looking statements in this press release are subject to certain risks and uncertainties inherent in the company's business that could cause actual results to vary, including such risks that regulatory clinical and guideline developments may change, scientific data may not be sufficient to meet regulatory standards or receipt of required regulatory clearances or approvals, clinical results may not be replicated in actual patient settings, protection offered by the company's patents and patent applications may be challenged, invalidated or circumvented by its competitors, the available market for the company's products will not be as large as expected, the company's products will not be able to penetrate one or more targeted markets, revenues will not be sufficient to meet the company's cash needs or fund further development, as well as uncertainties relative fluctuations in foreign currency exchange rates, global economic conditions, prospective tariffs or changes to trade policies, varying product formulations and a multitude of diverse regulatory and marketing requirements in different countries and municipalities, and other risks detailed from time to time in the company's filings with the Securities and Exchange Commission. The company disclaims any obligation to update these forward-looking statements, except as required by law.

Sonoma Pharmaceuticals™ and Microcyn ® are trademarks or registered trademarks of Sonoma Pharmaceuticals, Inc. All other trademarks and service marks are the property of their respective owners.

Media and Investor Contact:

Sonoma Pharmaceuticals, Inc.

[email protected]

Website: www.sonomapharma.com

SONOMA PHARMACEUTICALS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share amounts)

SONOMA PHARMACEUTICALS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(In thousands, except per share amounts)

(Unaudited)

SONOMA PHARMACEUTICALS, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES

(In thousands)

(Unaudited)

(1) Net loss adjusted for non-cash items and one-time events, or EBITDA loss, is a non-GAAP financial measure. The Company defines this as GAAP reported net loss minus depreciation and amortization, stock-based compensation, income taxes and non-cash foreign exchange transaction losses. The Company uses this measure for the purpose of modifying the net loss to reflect only those expenses to reflect normal direct cash transactions during the measurement period. Non-GAAP measures should not be considered a substitute for financial measures presented in accordance with GAAP. Non-GAAP measures are not always consistent across, or comparable with, non-GAAP measures disclosed by other companies.

(2) Operating expenses minus non-cash expenses is a non-GAAP financial measure. The Company defines operating expenses minus non-cash expenses as GAAP reported operating expenses minus operating depreciation and amortization, and operating stock-based compensation. The Company uses this measure for the purpose of identifying total operating expenses involving cash transactions during the measurement period. Non-GAAP measures should not be considered a substitute for financial measures presented in accordance with GAAP. Non-GAAP measures are not always consistent across, or comparable with, non-GAAP measures disclosed by other companies.

SONOMA PHARMACEUTICALS, INC. AND SUBSIDIARIES

PRODUCT RELATED REVENUE SCHEDULES

(In thousands)

(Unaudited)

The following table shows our consolidated total revenue and revenue by geographic region for the three and six months ended September 30, 2026 and 2025:

SOURCE: Sonoma Pharmaceuticals, Inc.