Sonoma Pharmaceuticals Inc. Common Stock (SNOA)

FairStock Score: 58/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses that earn consistent profits and generate cash. Sonoma does not yet meet those tests. In fiscal Q1 2027, the quarter ended 2026-06-30, revenue was $6.4 million and net loss was $330,000. That is better than fiscal Q1 2026, when revenue was $4.0 million and net loss was $1.2 million. For FY2026, ended 2026-03-31, revenue was $19.5 million and net loss was $3.2 million, versus FY2025 revenue of $14.3 million and net loss of $3.5 million. Sales are moving in the right direction, and the loss is narrowing. But the company still burned $2.7 million of free cash flow over the trailing twelve months, a -47.0% FCF yield by FairStock's calculation. At the 2026-10-13 close of $1.18, FairStock's P/B is 0.69, which looks low against book value, but book value can shrink with continued losses. FairStock's Altman Z-Score of -14.21 signals financial distress, and its Piotroski score of 4/9 is mediocre. Debt to equity is only 0.11, so leverage is not the immediate problem; profitability is. With 10 employees and no profits in the last four years, the Lynch category is none. I see no durable moat in these numbers. The stock is a small, speculative turnaround: revenue growth is real, but until free cash flow turns positive, the margin of safety is thin.

In plain English: Sonoma Pharmaceuticals makes stabilized hypochlorous acid products for uses such as wound, eye, oral, nasal, podiatry, animal and skin care. The business is very small and has lost money for years, though sales are growing and losses have been getting smaller. At the 2026-10-13 close of $1.18, the shares look low relative to the company's stated net assets, but the company is still burning cash, so the low price is not clearly supported by profits.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q1 2027 10-Q (period ended 2026-06-30) · fiscal Q3 2026 10-Q (period ended 2025-12-31) · fiscal Q2 2026 10-Q (period ended 2025-09-30) · fiscal Q1 2026 10-Q (period ended 2025-06-30) · FY2026 10-K (period ended 2026-03-31) · FY2025 10-K (period ended 2025-03-31) · FY2024 10-K (period ended 2024-03-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer