Sonoma Pharmaceuticals (SNOA) AI Stock Analysis

• Market Cap: $6.64M
• Dividend Yield: N/A
• Average Volume (3M): 2.46M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.48
• Revenue Growth: 17.43%
• EPS Growth: 75.52%
• Country: US
• Employees: 10
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.37
• Shares Outstanding: 1,643,265
• 10 Day Avg. Volume: 37,113
• 30 Day Avg. Volume: 2,460,140
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.26
• Enterprise Value/Revenue: 0.12
• Enterprise Value/Gross Profit: 0.31
• Enterprise Value/Ebitda: -0.49
• 1Y Price Target: $4.00
• Price Target Upside: -0.99% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 45 Neutral
• Price Target: $4.00 ▼(-0.99% Downside)

Sonoma Pharmaceuticals' overall stock score is primarily influenced by its financial performance, which shows strong revenue growth but significant challenges in profitability and cash flow management. Technical analysis indicates weak momentum, and the valuation is concerning due to the negative P/E ratio and lack of dividend yield. These factors collectively suggest caution for potential investors.

Sonoma Pharmaceuticals Business Overview & Revenue Model

Company Description

Sonoma Pharmaceuticals (SNOA) is a biopharmaceutical company focused on developing and commercializing innovative therapies for dermatology and other medical applications. The company specializes in the development of topical prescription and over-the-counter products that leverage its proprietary formulations, primarily centered around the use of stabilized hypochlorous acid. Sonoma's core products are aimed at treating various skin conditions, including acne, eczema, and wound care, catering to both healthcare professionals and consumers.

How the Company Makes Money

Sonoma Pharmaceuticals generates revenue primarily through the sale of its pharmaceutical products, which include prescription medications and over-the-counter solutions. The company has established distribution agreements with various partners to enhance market reach and drive sales. Additionally, Sonoma may generate income through licensing agreements for its proprietary technologies and formulations, collaborating with other companies to expand its product offerings. The revenue model is supported by ongoing research and development efforts to introduce new products and improve existing ones, which can lead to increased market penetration and sales growth.

Sonoma Pharmaceuticals Financial Statement Overview

Summary

Sonoma Pharmaceuticals is facing significant financial challenges with declining revenues and persistent unprofitability. Although there is some balance sheet stability with reduced debt, the equity position is weakening. Negative cash flows indicate poor cash management.

Income Statement

Sonoma Pharmaceuticals has faced consistent revenue challenges, with a notable decline in revenue over the years. The revenue growth rate is negative, indicating a shrinking top line. The company also struggles with profitability, as evidenced by negative profit margins across gross, net, and EBIT. Despite some improvements in gross profit margin, the overall performance remains weak.

Balance Sheet

The balance sheet indicates a moderate financial position with challenges. The debt-to-equity ratio has improved due to reduced debt, yet the stockholders' equity has also decreased, reflecting a weakening financial foundation. The equity ratio is moderate, suggesting a balanced asset structure, but not particularly strong.

Cash Flow

Cash flow performance is concerning, with consistently negative operating and free cash flows. The company has managed financing inflows, yet the free cash flow growth has been negative, pointing to ongoing operational cash challenges. The cash flow to net income ratios reflect struggles in converting revenue into cash.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	14.91M	14.29M	12.73M	13.27M	12.63M	18.63M
Gross Profit	5.62M	5.46M	4.75M	4.48M	3.99M	6.56M
EBITDA	-3.53M	-3.57M	-4.53M	-4.45M	-5.70M	-3.22M
Net Income	-3.56M	-3.46M	-4.83M	-5.15M	-5.09M	-3.95M
Balance Sheet
Total Assets	14.59M	13.69M	14.74M	16.23M	18.84M	14.99M
Cash, Cash Equivalents and Short-Term Investments	3.60M	5.37M	3.13M	3.82M	7.40M	4.22M
Total Debt	675.00K	305.00K	608.00K	849.00K	1.37M	2.67M
Total Liabilities	10.54M	9.28M	8.60M	8.25M	10.15M	9.62M
Stockholders Equity	4.06M	4.41M	6.14M	7.98M	8.70M	5.36M
Cash Flow
Free Cash Flow	-1.37M	-168.00K	-2.42M	-6.42M	-4.38M	-3.56M
Operating Cash Flow	-1.19M	-88.00K	-2.40M	-6.15M	-4.25M	-3.38M
Investing Cash Flow	-181.00K	-80.00K	-2.00K	-258.00K	-99.00K	388.00K
Financing Cash Flow	2.34M	3.03M	1.68M	2.49M	7.40M	3.31M

Sonoma Pharmaceuticals Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.04
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SNOA, the sentiment is Negative. The current price of 4.04 is below the 20-day moving average (MA) of 4.36, below the 50-day MA of 4.07, and above the 200-day MA of 3.18, indicating a neutral trend. The MACD of -0.05 indicates Positive momentum. The RSI at 43.23 is Neutral, neither overbought nor oversold. The STOCH value of 38.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SNOA.

Sonoma Pharmaceuticals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CPHI	46 Neutral	6.11M	-1.24	-61.13%	―	-29.64%	73.63%
EVOK	46 Neutral	7.64M	-1.71	―	―	70.02%	82.33%
SBFM	46 Neutral	6.65M	-0.56	-24.55%	―	19.22%	98.73%
SNOA	45 Neutral	$6.64M	―	-78.73%	―	17.43%	75.52%
RDHL	41 Neutral	6.13M	―	―	―	―	―
SHPH	32 Underperform	4.29M	-0.07	―	―	―	31.53%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Sonoma Pharmaceuticals Corporate Events

Sonoma Pharmaceuticals Holds Annual Stockholders Meeting

On August 27, 2025, Sonoma Pharmaceuticals held its annual stockholders meeting where several key proposals were voted on. Dr. Jay Birnbaum was elected as a Class II director, executive compensation for the year ended March 31, 2025, was approved, Frazier & Deeter, LLC was ratified as the independent registered public accounting firm for the fiscal year ending March 31, 2026, and a proposal to adjourn the meeting for further proxy solicitation was also approved.