Thu, May 15, 6:17 PM (60 days ago)
**FONAR Corporation (FONR) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** Q1 2025 revenue was $27.2 million, up 5.8% from Q1 2024 ($25.7 million). The increase was driven by management and other fees (up $780,000) and service and repair fees (up $400,000). However, patient fee revenue decreased by $1.2 million. - **Profit Margins:** Operating income remained constant at $3.7 million, with costs and expenses increasing at a similar rate to revenues. - **Cash Flow:** Operating activities provided $7.0 million, while investing and financing activities used $3.2 million and $6.0 million, respectively. Cash and cash equivalents decreased to $54.3 million. - **Earnings Changes:** Net income increased to $3.1 million, up from $2.5 million in Q1 2024. **Segment Performance:** - **Medical Equipment:** Revenue decreased to $2.4 million (Q1 2024: $2.0 million), with operating losses widening to $1.4 million (Q1 2024: $1.2 million). - **Diagnostic Imaging Centers:** Revenue increased by 4.2% to $24.8 million, with operating income decreasing to $14.4 million (Q1 2024: $18.1 million). **Trends & Uncertainties:** - **Reimbursement Rates:** Continued reductions in reimbursement rates from Medicare, other government programs, and private insurance companies. - **Inflation:** Increased costs for materials and labor, impacting profitability. - **Cybersecurity Threats:** Potential disruptions and costs associated with data incidents. - **Regulatory Changes:** Potential impacts from healthcare legislation and changes in Florida insurance law. **Future Operations:** - FONAR plans to install an additional scanner in New York and continues to focus on improving and expanding MRI facilities. - The company aims to increase demand for Upright® scanning and promote wider market recognition of its scanner products. - FONAR expects its existing cash balances and internal cash-generating capabilities to be sufficient to finance capital expenditures and other operating activities for at least the next twelve months. **Ticker:** FONR **Note:** Amounts are in thousands, except per share amounts.