Fonar(US:FONR) Newsfile·2025-11-10 13:00Core Viewpoint - FONAR Corporation reported its financial results for the first quarter of fiscal 2026, showing a mixed performance with revenue growth but significant declines in income metrics [2][5][8]. Financial Performance - Revenues from the FONAR segment increased by 14% to $2.5 million for the quarter ended September 30, 2025, compared to $2.2 million for the same quarter in 2024 [3]. - Revenues from the Health Management Corporation of America (HMCA) segment rose by 3% to $23.5 million for the quarter ended September 30, 2025, compared to $22.8 million in the same quarter of 2024 [4]. - Total net revenues increased by 4% to $26.0 million for the first fiscal quarter ended September 30, 2025, compared to $25.0 million for the same quarter in 2024 [5][8]. - Selling, general and administrative (S, G & A) expenses surged by 33% to $6.8 million for the quarter ended September 30, 2025, compared to $5.1 million for the same quarter in 2024 [5]. - Total costs and expenses increased by 12% to $22.8 million for the quarter ended September 30, 2025, compared to $20.4 million for the same quarter in 2024 [6]. Income Metrics - Income from operations decreased by 30% to $3.2 million for the quarter ended September 30, 2025, compared to $4.6 million for the same quarter in 2024 [9]. - Consolidated net income fell by 33% to $2.7 million for the quarter ended September 30, 2025, compared to $4.0 million for the same quarter in 2024 [9]. - Diluted net income per common share decreased by 26% to $0.34 for the quarter ended September 30, 2025, compared to $0.46 for the same quarter in 2024 [10]. Cash and Balance Sheet - Cash and cash equivalents decreased by 4% to $54.3 million at September 30, 2025, compared to $56.3 million at June 30, 2025 [8][11]. - Total assets increased to $218.4 million at September 30, 2025, compared to $216.9 million at June 30, 2025 [11]. - Total liabilities were $57.0 million at September 30, 2025, compared to $56.8 million at June 30, 2025 [11][12]. - Total equity increased to $161.4 million at September 30, 2025, compared to $160.1 million at June 30, 2025 [12]. Operational Insights - The HMCA segment managed 44 MRI scanners, with a scan volume of 55,106 in the first quarter of fiscal 2026, which is 3.9% higher than the corresponding quarter of fiscal 2025 [14]. - The company plans to add a second MRI at one of its Stand-Up MRI centers and manage a new MRI center later in the fiscal year [14]. - The company is engaged in negotiations for a potential going private transaction, with a special committee established to consider the proposal [15].