Sonoma Pharmaceuticals (SNOA) AI Stock Analysis

• Market Cap: $6.20M
• Dividend Yield: N/A
• Average Volume (3M): 65.28K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.88
• Revenue Growth: 25.02%
• EPS Growth: 55.11%
• Country: US
• Employees: 10
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.13
• Shares Outstanding: 1,649,765
• 10 Day Avg. Volume: 126,678
• 30 Day Avg. Volume: 65,281
• PEG Ratio: 0.02
• Price to Book (P/B): 0.62
• Price to Sales (P/S): 0.19
• P/FCF Ratio: -16.18
• Enterprise Value/Market Cap: 0.28
• Enterprise Value/Revenue: 0.10
• Enterprise Value/Gross Profit: 0.27
• Enterprise Value/Ebitda: -0.51
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 41 Neutral
• Price Target: $3.00 ▼(-7.41% Downside)

Sonoma Pharmaceuticals faces significant financial and market challenges. The company's financial performance is hindered by profitability and liquidity issues, while technical indicators reflect bearish sentiment. Valuation metrics further underscore the financial difficulties, resulting in a low overall stock score.

Positive Factors

Revenue Growth

The significant increase in revenue reflects successful expansion efforts and product launches, indicating strong market demand and potential for sustained growth.

Product Innovation

Listing products under new regulatory frameworks like FDA’s MoCRA enhances credibility and can drive adoption, supporting long-term growth and market presence.

Distribution Network Expansion

Expanding distribution channels increases market reach and sales potential, which is crucial for sustaining revenue growth and competitive positioning.

Negative Factors

Profitability Challenges

Ongoing profitability issues indicate operational inefficiencies, which can hinder reinvestment and growth, posing a risk to long-term financial health.

Liquidity Concerns

Liquidity challenges due to negative operating cash flow can limit the company's ability to fund operations and growth initiatives, impacting stability.

Operational Inefficiencies

Operational inefficiencies leading to persistent losses and negative cash flows may require strategic changes to improve financial performance and sustainability.

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 shows positive revenue growth but struggles with profitability and liquidity. The company has a conservative leverage position, yet persistent losses and negative cash flows indicate operational inefficiencies and liquidity constraints.

Income Statement

Sonoma Pharmaceuticals shows a positive revenue growth rate of 13.58% TTM, indicating some recovery in sales. However, the company struggles with profitability, as evidenced by negative net profit and EBIT margins, which suggest ongoing operational challenges. The gross profit margin remains moderate, but the consistent negative net income highlights the need for cost management improvements.

Balance Sheet

The balance sheet reflects a relatively low debt-to-equity ratio of 0.14 TTM, indicating conservative leverage. However, the negative return on equity suggests inefficiencies in generating returns from equity investments. The equity ratio is not provided, but the overall financial stability appears moderate with room for improvement in asset utilization.

Cash Flow

Cash flow analysis reveals a significant free cash flow growth of 70.92% TTM, yet the company continues to experience negative operating cash flow, indicating cash management issues. The free cash flow to net income ratio above 1 suggests that cash flow generation is better than accounting profits, but the negative operating cash flow coverage ratio highlights liquidity concerns.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	16.94M	14.29M	12.73M	13.27M	12.63M	18.63M
Gross Profit	6.38M	5.46M	4.75M	4.48M	3.99M	6.56M
EBITDA	-3.38M	-3.57M	-4.53M	-4.45M	-5.70M	-3.22M
Net Income	-3.48M	-3.46M	-4.83M	-5.15M	-5.09M	-3.95M
Balance Sheet
Total Assets	13.86M	13.69M	14.74M	16.23M	18.84M	14.99M
Cash, Cash Equivalents and Short-Term Investments	3.04M	5.37M	3.13M	3.82M	7.40M	4.22M
Total Debt	535.00K	305.00K	608.00K	849.00K	1.37M	2.67M
Total Liabilities	10.07M	9.28M	8.60M	8.25M	10.15M	9.62M
Stockholders Equity	3.79M	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: 3.24
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 3.24 is below the 20-day moving average (MA) of 3.56, below the 50-day MA of 3.83, and below the 200-day MA of 3.42, indicating a bearish trend. The MACD of -0.19 indicates Positive momentum. The RSI at 34.72 is Neutral, neither overbought nor oversold. The STOCH value of 15.01 is Positive, 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
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
EVOK	46 Neutral	$16.61M	-3.72	-134.88%	―	67.40%	78.51%
SNOA	41 Neutral	$6.20M	-1.53	-76.14%	―	25.02%	55.11%
CPHI	41 Neutral	$5.07M	-1.03	-42.47%	―	-26.92%	69.90%
SBFM	41 Neutral	$7.70M	-0.65	-24.34%	―	13.24%	98.80%
RDHL	38 Underperform	$3.60M	―	―	―	―	―
SHPH	32 Underperform	$2.16M	―	-9999.00%	―	―	79.31%

Sonoma Pharmaceuticals Corporate Events

Sonoma Pharmaceuticals Highlights Growth in Healthcare Sector

Sonoma Pharmaceuticals has released an updated investor presentation highlighting its continued growth and innovation in the healthcare industry. The company has expanded its wound care business through partnerships with major distributors like Medline Industries, and has introduced new applications for its Microcyn technology. With over 20 years of experience, Sonoma maintains a strong regulatory portfolio and a diverse global partner network, positioning itself as a leader in the billion-dollar markets of dermatology, wound care, and other healthcare segments.

The most recent analyst rating on (SNOA) stock is a Hold with a $4.00 price target. To see the full list of analyst forecasts on Sonoma Pharmaceuticals stock, see the SNOA Stock Forecast page.

Sonoma Pharmaceuticals Enters Sales Agreement with Ladenburg

On September 26, 2025, Sonoma Pharmaceuticals, Inc. entered into an At Market Issuance Sales Agreement with Ladenburg Thalmann & Co. Inc. to offer and sell shares of its common stock. This agreement allows for the sale of shares through various methods, including at-the-market offerings, with Ladenburg acting as the agent. The company is not obligated to sell shares, and the agreement will terminate upon the sale of all shares or as otherwise provided. The sales will be made under a registration statement declared effective by the SEC on November 20, 2023, with a related prospectus supplement filed on September 26, 2025, for an aggregate offering price of up to $2,070,463.

The most recent analyst rating on (SNOA) stock is a Hold with a $4.00 price target. To see the full list of analyst forecasts on Sonoma Pharmaceuticals stock, see the SNOA Stock Forecast page.

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.

The most recent analyst rating on (SNOA) stock is a Hold with a $5.50 price target. To see the full list of analyst forecasts on Sonoma Pharmaceuticals stock, see the SNOA Stock Forecast page.