Sonendo (SONX)
OTHER OTC:SONX
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Sonendo
(OTC:SONX)
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Rating:45Neutral
Price Target:
$0.38
▲(90.00% Upside)
Action:ReiteratedDate:01/21/26
The score is primarily driven by weak financial performance (losses, leverage concerns, and negative operating cash flow), partially offset by somewhat improved cash burn and a mixed technical picture. Valuation remains a headwind due to a negative P/E and no dividend yield support.
Positive Factors
Recurring revenue model
Sonendo's business centers on capital sales of the GentleWave System plus single-use consumables tied to each procedure. This creates a durable, annuity-like revenue stream once systems are installed, supporting predictable follow-on revenue and higher customer lifetime value over months.
Negative Factors
High leverage / weak equity
A leveraged balance sheet with low shareholders' equity raises solvency and refinancing risk. Elevated debt obligations limit capital allocation for sales, training, or R&D, increase interest burden, and reduce resilience to demand variability over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring revenue model
Sonendo's business centers on capital sales of the GentleWave System plus single-use consumables tied to each procedure. This creates a durable, annuity-like revenue stream once systems are installed, supporting predictable follow-on revenue and higher customer lifetime value over months.
Read all positive factors
Sonendo (SONX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$141.04K
Dividend YieldN/A
Average Volume (3M)389.00
Price to Earnings (P/E)―
Beta (1Y)-0.40
Revenue Growth-27.73%
EPS Growth45.38%
CountryUS
Employees129
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)N/A
Shares Outstanding427,401
10 Day Avg. Volume222
30 Day Avg. Volume389
Financial Highlights & Ratios
PEG Ratio0.33
Price to Book (P/B)16.56
Price to Sales (P/S)2.71
P/FCF Ratio-3.46
Enterprise Value/Market Cap62.73
Enterprise Value/Revenue0.28
Enterprise Value/Gross Profit0.75
Enterprise Value/Ebitda-0.32
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)-46.56
Revenue Forecast (FY)$42.30M
Sonendo Business Overview & Revenue Model
Company Description
Sonendo, Inc. (SONX) is a medical technology company specializing in the development of advanced dental technologies, specifically focused on endodontics, or root canal treatments. The company's flagship product, the GentleWave System, utilizes a ...
How the Company Makes Money
Sonendo generates revenue primarily through the sales of its GentleWave System and the associated disposable instruments needed for its operation. The company sells the GentleWave systems directly to dental practices, which can be a significant up...
Sonendo Earnings Call Summary
Earnings Call Date:Aug 07, 2024
(Q2-2024)
| % Change Since: |
Next Earnings Date:May 12, 2026
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.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.
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.
Read all updates
Q2-2024 Updates
Positive
Negative
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.
Read all positive updates
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
Income Statement
45
Neutral
Balance Sheet
40
Negative
Cash Flow
50
Neutral
| 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 | 18.93M | 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
Positive
0.20
Price Trends
0.19
Positive
0.20
Positive
0.33
Positive
Market Momentum
0.05
Negative
58.89
Neutral
42.82
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SONX, the sentiment is Positive. The current price of 0.2 is below the 20-day moving average (MA) of 0.24, above the 50-day MA of 0.19, and below the 200-day MA of 0.33, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 58.89 is Neutral, neither overbought nor oversold. The STOCH value of 42.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
52 Neutral | $18.14M | -382.08 | -647.90% | ― | -44.57% | 55.97% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
50 Neutral | $50.20M | -2.73 | -2072.11% | ― | 27.90% | 1.62% | |
49 Neutral | $50.97M | -0.55 | 129.49% | ― | -25.18% | -9.71% | |
46 Neutral | $9.87M | -4.03 | -127.95% | ― | -2.02% | -32.93% | |
45 Neutral | $141.04K | >-0.01 | -199.60% | ― | -27.73% | 45.38% | |
45 Neutral | $62.81M | -1.01 | 1.02% | ― | -99.28% | -46.17% |
* Healthcare Sector Average
SONX
Sonendo
0.33
-0.88
-72.73%
LFWD
Lifeward
6.46
-10.22
-61.27%
ECOR
Electrocore
6.21
0.69
12.50%
PAVM
PAVmed
9.84
-10.56
-51.76%
MOVE
Movano
11.05
5.23
89.96%
COCH
Envoy Medical
0.66
-0.60
-47.38%
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.