Sonendo (SONX) AI Stock Analysis

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Sonendo

(OTC:SONX)

Rating:41Neutral

Price Target:

$0.00

▼(-100.00% Downside)

Sonendo's overall stock score is driven primarily by its financial performance and technical analysis. The company's financial struggles, including high leverage and negative profitability, are major concerns. Technical indicators suggest bearish momentum, further impacting the score. Valuation metrics show an absence of profitability, which is a significant risk. Despite some positive signs such as reduced cash burn, the overall outlook remains challenging.

Sonendo (SONX) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$9.40K

Dividend YieldN/A

Average Volume (3M)101.00

Price to Earnings (P/E)―

Beta (1Y)0.58

Revenue Growth-27.73%

EPS Growth45.38%

CountryUS

Employees129

SectorHealthcare

Sector Strength43

IndustryMedical - Devices

Share Statistics

EPS (TTM)N/A

Shares Outstanding427,401

10 Day Avg. Volume257

30 Day Avg. Volume101

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)0.00

Price to Sales (P/S)0.00

P/FCF Ratio0.00

Enterprise Value/Market Cap736.64

Enterprise Value/Revenue0.22

Enterprise Value/Gross Profit0.58

Enterprise Value/Ebitda-0.25

Forecast

1Y Price Target

$1.00

Price Target Upside4900.00% Upside

Rating ConsensusHold

Number of Analyst Covering1

Sonendo Business Overview & Revenue Model

Company DescriptionSonendo, Inc. (SONX) is a medical technology company focused on designing and developing innovative solutions for the endodontic marketplace. The company is renowned for its GentleWave System, which is a technology-driven platform aimed at transforming root canal therapy by using a minimally invasive approach that preserves tooth structure while providing superior cleaning and disinfection capabilities.

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: 0.00%|

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 challenges, including negative profitability, high leverage, and cash flow constraints. Despite these issues, there are some positive indicators, such as a reduction in cash burn and improvements in gross profit, which suggest potential for financial recovery.

Income Statement

Neutral

Sonendo's income statement reveals a company struggling with profitability and revenue growth. The gross profit margin has been inconsistent, and the net profit margin is negative, indicating substantial losses. Revenue has decreased from the previous year, highlighting growth challenges. Margins like EBIT and EBITDA are also negative, suggesting operational inefficiencies. Despite these challenges, there is a slight improvement in gross profit, which may indicate some potential for margin recovery.

Balance Sheet

Negative

The balance sheet of Sonendo indicates high leverage with a concerning debt-to-equity ratio due to low stockholders' equity. The equity ratio is low, suggesting a heavy reliance on debt financing. While total assets have decreased, liabilities remain high, posing a risk to financial stability. The return on equity is negative, reflecting ongoing profitability issues. Overall, the balance sheet highlights financial instability and the need for improved capital management.

Cash Flow

Neutral

Sonendo's cash flow statement shows some positive signs with a significant decrease in free cash flow losses. However, operating cash flow remains negative, indicating ongoing operational cash constraints. The company has managed to reduce its capital expenditures, which helps in conserving cash. While the free cash flow to net income ratio remains unfavorable, the reduction in cash burn is a positive sign for future financial health.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	31.70M	43.87M	41.66M	33.20M	23.35M
Gross Profit	11.84M	10.72M	10.48M	8.34M	3.88M
EBITDA	-26.61M	-54.77M	-51.00M	-41.29M	-39.13M
Net Income	-28.03M	-60.92M	-57.05M	-48.50M	-46.66M
Balance Sheet
Total Assets	31.27M	78.16M	137.28M	115.50M	76.14M
Cash, Cash Equivalents and Short-Term Investments	11.63M	46.78M	91.45M	84.64M	51.72M
Total Debt	17.85M	40.35M	38.95M	29.20M	31.77M
Total Liabilities	26.07M	49.74M	55.33M	43.44M	330.03M
Stockholders Equity	5.19M	28.42M	81.95M	72.06M	-253.89M
Cash Flow
Free Cash Flow	-24.81M	-46.99M	-62.43M	-50.58M	-39.46M
Operating Cash Flow	-24.65M	-46.06M	-61.07M	-48.60M	-38.54M
Investing Cash Flow	45.81M	42.40M	-74.43M	-1.97M	-916.00K
Financing Cash Flow	-24.95M	4.00K	68.53M	83.50M	-983.00K

Sonendo Technical Analysis

Technical Analysis Sentiment

Negative

Last Price0.02

Price Trends

50DMA

0.93

Negative

100DMA

1.14

Negative

200DMA

2.13

Negative

Market Momentum

MACD

-0.32

Positive

RSI

4.09

Positive

STOCH

27.54

Neutral

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 0.02 is below the 20-day moving average (MA) of 0.58, below the 50-day MA of 0.93, and below the 200-day MA of 2.13, indicating a bearish trend. The MACD of -0.32 indicates Positive momentum. The RSI at 4.09 is Positive, neither overbought nor oversold. The STOCH value of 27.54 is Neutral, 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 (51)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AXGN	69 Neutral	$685.59M	―	-4.48%	―	17.17%	72.68%
ECOR	51 Neutral	$39.74M	―	-210.58%	―	30.16%	22.51%
Sector *	51 Neutral	$7.44B	-0.20	-46.00%	2.26%	22.80%	-2.27%
PAVM	46 Neutral	$7.65M	0.65	-499.57%	―	-73.36%	―
NUWE	44 Neutral	$641.98K	―	-440.77%	―	-1.21%	93.72%
SINT	42 Neutral	$7.50M	―	-155.20%	―	-7.42%	96.65%
SONX	41 Neutral	$9.40K	―	-199.60%	―	-27.73%	45.38%

* Healthcare Sector Average

Performance Comparison

SONX

Sonendo

0.02

-14.81

-99.87%

NUWE

Nuwellis

5.64

-72.06

-92.74%

SINT

Sintx Technologies

3.05

-1.40

-31.46%

AXGN

AxoGen

14.90

3.17

27.02%

ECOR

Electrocore

5.24

-0.86

-14.10%

PAVM

PAVmed

0.46

-0.22

-32.35%

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.Date of analysis: Jul 30, 2025