BMRA earnings analysis
What we found in BMRA's 10-K: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Biomerica’s fiscal 2026 report shows a commercialization pipeline with meaningful milestones for inFoods IBS, hp+detect and a CDMO agreement targeting more than $1,750,000 of fees, but the existing business continued to contract. Revenue fell 16% to $4,453,000, gross margin was approximately 8.1%, operating margin was approximately negative 119.5%, and operating cash burn remained $3,421,000. The going-concern warning, $1,308,000 of year-end cash, reliance on equity financing and subsequent dilution outweigh the product and reimbursement progress.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- inFoods reimbursement milestone
- The company continued phased commercialization of inFoods IBS, obtained a dedicated CPT PLA code, and received a national Medicare payment rate of $300 for approved claims with dates of service beginning January 1, 2026. Initial valid Medicare claims submitted after year-end were paid at the full CMS price of $300, although individual claim payment is not guaranteed.
- hp+detect gains UK market access
- Biomerica received UK MHRA registration for hp+detect in February 2026 and obtained its first commercial order from a large UK clinical laboratory chain during fiscal 2026. The company continues marketing the product in the United States and Europe.
- CDMO pipeline adds revenue opportunity
- The new CDMO Master Services Agreement carries initial target fees exceeding $1,750,000 over an estimated 19-to-25-month period. Management expects the work to use existing Irvine personnel, equipment and infrastructure and require minimal incremental costs.
- Operating cash burn improved
- Net cash used in operating activities improved 11% to $3,421,000 in fiscal 2026 from $3,842,000 in fiscal 2025. Research and development expense declined 23% to $788,000, while the company continued reallocating resources toward commercialization and manufacturing.
- Loss per share improved
- Net loss narrowed to $3,775,000 from $4,973,000, or diluted loss per share of $(1.30) versus $(2.16). The improvement was aided by $1,233,000 of dividend, interest and other income, including a $1,100,000 Employee Retention Credit, and a $335,000 unrealized investment gain.
- Manufacturing infrastructure retained
- The company extended its 22,000-square-foot Irvine headquarters lease for five years through August 31, 2031 at approximately $28,400 monthly base rent, supporting continued use of its FDA-licensed and ISO 13485-certified infrastructure.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Going-concern and liquidity pressure
- Management states that current cash and cash equivalents are insufficient to meet operating cash requirements and strategic growth objectives for the next twelve months, and the company’s recurring losses and negative operating cash flows raise substantial doubt about its ability to continue as a going concern. Cash fell to $1,308,000 from $2,399,000 while fiscal 2026 operating cash usage was $3,421,000.
- Core revenue contraction
- Fiscal 2026 net sales declined 16% to $4,453,000 from $5,311,000. Clinical laboratory revenue fell 14% to $2,732,000, contract manufacturing declined 17% to $891,000, and over-the-counter revenue declined 22% to $821,000; inFoods IBS revenue remained in the early commercialization stage and only partially offset established-business declines.
- Financing dependence and dilution
- The company remains dependent on external financing while operating at a substantial loss: it raised $1,827,000 net through the ATM in fiscal 2026 and subsequently issued 1,393,705 shares in a private placement for approximately $2,230,000 gross proceeds. The post-year-end issuance adds dilution, while the company states that SEC regulations limit the amount of equity it can raise; as of filing, the Form S-3 offering limit was $2,123,163.
- Customer and supplier concentration
- Customer and supplier concentration remains material: one distributor accounted for 31% of net sales in both fiscal 2026 and 2025, three distributors represented 59% of gross accounts receivable at May 31, 2026, and one vendor represented approximately 12% of raw-material purchases.
- Reimbursement uncertainty
- InFoods IBS reimbursement is not assured despite the $300 Medicare payment rate: the filing states that the rate does not guarantee coverage, utilization or payment, and claims are currently reviewed individually. Failure to secure broader Medicare and private-payer reimbursement could limit adoption.
- Inventory and margin risk
- Inventory increased to $1,707,000 net from $1,490,000, while inventory reserves remained $394,000, or approximately 19% of gross inventory. Lower sales volume reduced absorption of fixed manufacturing costs and could increase obsolescence or margin pressure if commercialization does not accelerate.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $-1.3
- Gross margin
- 8.1%
- Operating margin
- -119.5%
- Segment
- Single reportable segment: diagnostic products and related services; clinical laboratory revenue $2,732,000, down 14% year over year
- Segment
- Contract manufacturing revenue $891,000, down 17% year over year
- Segment
- Over-the-counter revenue $821,000, down 22% year over year
- Segment
- Physician’s office revenue $9,000, down 18% year over year
- Segment
- Geographic revenue: North America $1,466,000 (33%), Asia $1,409,000 (32%), Europe $1,117,000 (25%), Middle East $446,000 (10%), and South America $15,000
What they said about what is next.
No quantitative revenue or EPS guidance was provided in the 10-K. Management discusses commercialization, reimbursement, cost reduction, financing and strategic alternatives but does not provide annual numeric guidance.
The filing reads worse than the one before it.
What came before.
- 10-Q · April 13, 2026
- Biomerica reported Q3 net sales of $987,000 and GAAP EPS of $(0.44). Revenue declined versus the prior-year quarter (from $1,119,000 to $987,000), gross margin turned negative for the quarter (-4.46%) and operating loss…
- 10-Q · January 14, 2026
- Biomerica reported Q2 net sales of $1,210,000 and a net loss of $1,320,000 (EPS $(0.45)). Gross margin compressed to 4.2% and operating loss widened to $(1,373,000) versus the prior-year quarter. Liquidity was supported…
- 10-Q · October 14, 2025
- Biomerica reported net sales of $1,380,000 for the three months ended August 31, 2025, down from $1,807,000 a year earlier, but recorded net income of $2,000 versus a net loss of $(1,316,000) in the prior year quarter…
- 10-Q · January 14, 2025
- Biomerica reported revenue of $1,636,000 for the three months ended November 30, 2024, up from $1,567,000 a year earlier, with gross profit improving to $437,000 (26.7% gross margin). Operating loss narrowed to…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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