Mon, Jun 16, 8:27 PM (33 days ago)
**Pharma-Bio Serv, Inc. (PBSV) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $2.42 million (Q1 2025) vs. $2.38 million (Q1 2024), showing a slight increase. - **Gross Profit:** $819,000 (33.9% margin) vs. $618,500 (26.0% margin), indicating improved profitability. - **Net Income:** $95,400 vs. a loss of $213,800, marking a significant turnaround. - **Cash Flow:** Negative operating cash flow of $301,600 due to marketable securities settlement and repurchase of common stock. **Profit Margins & Earnings:** - **Gross Margin:** Improved to 33.9% from 26.0%, driven by higher-margin projects in Europe. - **Net Margin:** Positive at 3.9% compared to -9.0%, reflecting better cost management and revenue growth. - **Earnings per Share (EPS):** Basic and diluted EPS of $0.004 vs. -$0.009, showing improved earnings. **Cash Flow & Trends:** - **Operating Cash Flow:** Negative due to significant marketable securities settlement and stock repurchases. - **Investing Cash Flow:** Negative due to acquisitions of property and equipment, and marketable securities. - **Financing Cash Flow:** Negative due to stock repurchases and dividends paid. **Future Operations & Uncertainties:** - **Tax Grant Renewal:** Pending renewal of the Puerto Rico Industrial Development Company (PRIDCO) tax grant, crucial for maintaining tax benefits. - **Economic Factors:** Global conflicts, inflation, and industry consolidations pose risks to future performance. - **Market Dependence:** High concentration of revenue from a few customers and regions, particularly Europe. **Segment Performance:** - **Puerto Rico:** Revenue declined but maintained positive gross profit. - **United States:** Revenue and gross profit showed slight improvements. - **Europe:** Significant revenue and gross profit growth, driving overall company performance. **Conclusion:** Pharma-Bio Serv, Inc. demonstrated improved financial health in Q1 2025 with increased revenue, higher profit margins, and a turnaround in net income. However, negative cash flow from operations and investing activities, along with uncertainties related to tax grants and economic factors, present challenges. The company's performance is heavily reliant on the European market, highlighting the need for diversification.