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Sonendo Inc (SONX)
:SONX
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Sonendo
(OTC:SONX)
Rating:43Neutral
Price Target:
$1.00
▼(-13.04%Downside)
Sonendo (SONX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$491.51K
Dividend YieldN/A
Average Volume (3M)152.00
Price to Earnings (P/E)―
Beta (1Y)0.02
Revenue Growth-27.73%
EPS Growth45.38%
CountryUS
Employees129
SectorHealthcare
Sector Strength40
IndustryMedical - Devices
Share Statistics
EPS (TTM)N/A
Shares Outstanding427,401
10 Day Avg. Volume122
30 Day Avg. Volume152
Financial Highlights & Ratios
PEG Ratio-0.25
Price to Book (P/B)16.45
Price to Sales (P/S)0.00
P/FCF Ratio-0.03
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Sonendo Business Overview & Revenue Model
Company DescriptionSonendo, Inc., a commercial-stage medical technology company, develops, manufactures, and commercializes devices for root canal therapy in the United States and Canada. It provides GentleWave, a tooth decay treatment device for cleaning and disinfecting the microscopic spaces within teeth without the need to remove tooth structure. The company also offers SoundSeal, a material used to build and create a sealing platform on the top of the crown; and Sonendo-branded liquid solution of EDTA that is used to help debride and disinfect the root canal system. In addition, it provides The Digital Office, a practice management software to enable an integrated digital office for dental practitioners. The company was formerly known as Dentatek Corporation and changed its name to Sonendo, Inc. in March 2011. Sonendo, Inc. was incorporated in 2006 and is headquartered in Laguna Hills, California.
How the Company Makes MoneySonendo generates revenue primarily through the sale of its GentleWave System, which includes both the capital equipment and the consumables used in each procedure. Additionally, the company may earn income from service contracts and warranties associated with the GentleWave System. Partnerships with dental practices and endodontic specialists are key to expanding their market presence. The company may also engage in educational and training programs to enhance adoption rates among dental professionals, thus driving further sales of its products.
Sonendo Earnings Call Summary
Earnings Call Date:Jun 04, 2025
(Q2-2024)
| % Change Since: -4.17%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Positive
The earnings call for Sonendo reflects a positive sentiment overall, with significant improvements in gross margins, operating expenses, and adjusted EBITDA loss, despite challenges in PI sales and total revenue decline. The company is optimistic about its strategic reset and future growth prospects.Q2-2024 Updates
Positive Updates
Strong Growth in Console Sales
Sonendo experienced a 7% year-over-year growth in console sales, selling more consoles compared to the second quarter of 2023, and maintaining a healthy unit backlog.
Gross Margin Improvement
GAAP gross margin for Q2 2024 increased to 37.5%, up from 28.4% in Q1 2024 and negative 5.5% in Q2 2023. Adjusted gross margin also rose to 40.7% from 34.8% in Q1 2024 and 28.7% in Q2 2023.
Reduction in Operating Expenses
Operating expenses decreased by $7.1 million to $9.8 million, marking a 42% reduction compared to the prior year, with significant cuts in sales, marketing, R&D, and G&A costs.
Improved Revenue Guidance
Revenue guidance for the full year 2024 was raised to $31 million to $32 million, up from the prior guidance of $29 million to $31 million.
Adjusted EBITDA Loss Reduction
Adjusted EBITDA loss improved by 53% year-over-year, decreasing by $6.4 million to $5.7 million for Q2 2024, with expectations to further reduce the loss in the second half of 2024.
Negative Updates
Decrease in PI Revenue
PI revenue for Q2 2024 totaled $4.7 million, down from $5.6 million in Q2 2023, with the decline primarily volume-related.
Challenges in PI Sales and Utilization
PI sales decreased 15% year-over-year, with a focus on aligning sales with utilization, which decreased by 3.1% year-over-year.
Total Revenue Decline
Total revenue for Q2 2024 was $8.3 million, compared to $8.8 million in Q2 2023, driven by lower PI sales volumes and a lower console ASP.
Company Guidance
During the Sonendo Q2 2024 earnings call, the company provided updated guidance and highlighted several key metrics illustrating their progress. Sonendo raised their full-year 2024 revenue guidance to a range of $31 million to $32 million, up from the previous $29 million to $31 million. They reported a significant improvement in gross margins, with adjusted gross margin increasing to 40.7% in Q2 2024 from 28.7% in the prior year quarter. The company also achieved a 53% reduction in year-over-year adjusted EBITDA loss, reporting a loss of $5.7 million for the quarter. Sonendo's strategic reset focused on commercial execution, gross margin expansion, and cash conservation, with a notable 42% reduction in operating expenses compared to the prior year. Despite a decrease in PI sales by 15% year-over-year, the company emphasized stabilizing utilization rates and anticipates low single-digit growth in PI sales for the second half of the year. Additionally, Sonendo aims to achieve adjusted gross margins in the 40% to 41% range for the latter half of 2024, with long-term aspirations of reaching 60% as they continue to enhance their operational and financial performance.Sonendo Financial Statement Overview
Summary
Sonendo faces significant financial hurdles, with negative profitability margins and high leverage. While there is a slight improvement in cash flows and gross profit margin, the company remains loss-making with high debt levels. Continued focus on revenue growth and cost control will be crucial for financial recovery.Income Statement
The income statement shows a consistent decline in revenue from previous years, with the TTM revenue at $35.1M compared to $43.9M in 2023. Gross profit margin slightly improved to 34.9% TTM from 24.4% in 2023, indicating better cost management. However, the net profit margin remains negative at -92.7% TTM, reflecting ongoing losses. EBIT and EBITDA margins are also negative, highlighting continued operational challenges.45
Neutral
Balance Sheet
The balance sheet reveals a high debt-to-equity ratio of 1.21 TTM due to significant liabilities and relatively low stockholders' equity. Despite a positive equity ratio of 28.8% TTM, the company struggles with high leverage and declining equity. Return on equity is negative, driven by persistent net losses, indicating a risk to financial stability.40
Negative
Cash Flow
The cash flow statement shows improvement in free cash flow from -$46.9M in 2023 to -$31.5M TTM, reflecting better cash management. However, the operating cash flow remains negative, and the operating cash flow to net income ratio is slightly below 1, suggesting cash flow challenges. The free cash flow to net income ratio is close to 1, indicating alignment with reported losses.50
Neutral
| Breakdown | TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 35.09M | 43.87M | 41.66M | 33.20M | 23.35M | 34.73M |
| Gross Profit | 12.26M | 10.72M | 10.48M | 8.34M | 3.88M | 9.07M |
| EBITDA | -31.77M | -54.77M | -51.00M | -41.29M | -39.13M | -43.46M |
| Net Income | -32.54M | -60.92M | -57.05M | -48.50M | -46.66M | -49.30M |
Balance Sheet | ||||||
| Total Assets | 0.00 | 78.16M | 137.28M | 115.50M | 76.14M | 119.45M |
| Cash, Cash Equivalents and Short-Term Investments | 92.17M | 46.78M | 91.45M | 84.64M | 51.72M | 92.17M |
| Total Debt | 0.00 | 40.35M | 38.95M | 29.20M | 31.77M | 28.88M |
| Total Liabilities | 0.00 | 49.74M | 55.33M | 43.44M | 330.03M | 328.37M |
| Stockholders Equity | 72.43M | 28.42M | 81.95M | 72.06M | -253.89M | -208.91M |
Cash Flow | ||||||
| Free Cash Flow | -31.47M | -46.99M | -62.43M | -50.58M | -39.46M | -52.77M |
| Operating Cash Flow | -31.22M | -46.06M | -61.07M | -48.60M | -38.54M | -49.07M |
| Investing Cash Flow | 54.46M | 42.40M | -74.43M | -1.97M | -916.00K | -3.69M |
| Financing Cash Flow | -22.23M | 4.00K | 68.53M | 83.50M | -983.00K | 111.98M |
Sonendo Technical Analysis
Negative
1.15
Price Trends
1.23
Negative
1.50
Negative
3.20
Negative
Market Momentum
-0.03
Negative
43.39
Neutral
>-0.01
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SONX, the sentiment is Negative. The current price of 1.15 is below the 20-day moving average (MA) of 1.15, below the 50-day MA of 1.23, and below the 200-day MA of 3.20, indicating a bearish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 43.39 is Neutral, neither overbought nor oversold. The STOCH value of >-0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SONX.
Sonendo Risk Analysis
Sonendo disclosed 85 risk factors in its most recent earnings report. Sonendo reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Sonendo Peers Comparison
Overall Rating
UnderperformOutperform
Sector (46)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
59 Neutral | $499.16M | ― | -7.22% | ― | 18.81% | 67.41% | |
57 Neutral | $38.88M | ― | -276.15% | ― | 41.54% | 42.59% | |
54 Neutral | $10.66M | 0.84 | -499.57% | ― | -33.92% | ― | |
46 Neutral | C$194.85M | -4.28 | -8.56% | 2.84% | 13.52% | -1.74% | |
43 Neutral | $491.51K | ― | -199.60% | ― | -27.73% | 45.38% | |
43 Neutral | $1.05M | ― | -440.77% | ― | -1.21% | 93.72% | |
42 Neutral | $8.00M | ― | -155.20% | ― | 9.90% | 94.56% |
* Healthcare Sector Average
Performance Comparison
SONX
Sonendo
1.15
-14.13
-92.47%
NUWE
Nuwellis
0.22
-3.80
-94.53%
SINT
Sintx Technologies
3.33
-1.17
-26.00%
AXGN
AxoGen
11.06
3.52
46.68%
ECOR
Electrocore
5.36
-1.03
-16.12%
PAVM
PAVmed
0.59
-0.12
-16.90%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.