Sonoma Pharmaceuticals, Inc. (SNOA) AI Stock Analysis
SNOA AI stock analysis summary
AI ResearchSonoma Pharmaceuticals, Inc. (SNOA) is a specialty healthcare company focused on stabilized hypochlorous acid products for medical and animal care. While revenue expanded 36.7% in FY2026 to $19.5M and reached $21.9M trailing twelve months, the company remained unprofitable with a net loss of -$3.2M. The stock trades at a market capitalization of $5.4M with a net cash position of $4.6M.
- Market cap
- $5.4M
- Revenue (TTM)
- $21.9M
- P/E
- — fwd 46.1x
- 1Y return
- -72.5% S&P 500 16.8%
- Avg. target
- $12.00 971.4% vs last close
Bull case
- Quarterly revenue grew 59.6% year-over-year in the period ended June 30, 2026, lifting trailing twelve months revenue to $21.9M.
- The company maintains a net cash position of $4.6M with a current ratio of 2.99 as of June 30, 2026.
- The single analyst following the stock projects a price target of $12.00, which is 971.4% above the last close of $1.12.
Bear case
- The company generated negative free cash flow of -$4.1M in FY2026 and posted a trailing twelve months net loss of -$1.22 per share.
- The five-year share count change shows significant dilution of 1148.7%.
- SNOA shares have dropped 72.5% over the past year and 99.1% over five years, trading 38.7% below their 200-day average.
What Sonoma Pharmaceuticals does
Sonoma Pharmaceuticals, Inc. specializes in the development and manufacturing of stabilized hypochlorous acid (HOCl) products designed for diverse healthcare applications. Headquartered in Woodstock, Georgia, the company serves markets across the United States, Latin America, Europe, and globally. Its human health product portfolio includes Epicyn, Levicyn, Celacyn gel, SebuDerm, Acuicyn, Microcyn for wound healing, MucoClyns for emergency mucous membrane care, and Gramaderm for acne treatment. The company also supports veterinary care with MicrocynAH, an HOCl-based solution designed to treat hot spots, scratches, and other skin irritations in animals.
Growth and profitability
Revenue rose from $12.6M in FY2022 to $19.5M in FY2026, delivering 36.7% growth in FY2026 following 12.2% growth in FY2025. Gross margin expanded from 31.6% in FY2022 to 38.0% in FY2026. Operating margin improved from -46.6% in FY2022 to -12.6% in FY2026, while net margin improved to -16.3% with net income of -$3.2M. Over the trailing twelve months ended June 30, 2026, revenue totaled $21.9M with a net profit margin of -10.3% and EPS of -$1.22. Quarterly revenue growth for the latest quarter was 59.6% year-over-year.
Balance sheet and cash flow
As of June 30, 2026, Sonoma Pharmaceuticals held $5.3M in cash and short-term investments against total debt of $739,000, leaving a net cash balance of $4.6M. The current ratio was 2.99, and the debt-to-equity ratio was 0.11 on shareholders' equity of $6.6M. Operating cash flow in FY2026 was -$3.9M, while capital expenditures were $192,000, resulting in free cash flow of -$4.1M. Over the trailing five years, the company's share count increased by 1148.7%.
Valuation and performance
Sonoma Pharmaceuticals trades at an enterprise value to EBITDA multiple of 11.5x, slightly below the 12.0x median of its US-listed Healthcare peers. Its price-to-sales ratio is 0.2x compared to the peer median of 4.1x, and its forward P/E is 46.1x compared to the peer group median of 17.3x. SNOA's enterprise value stands at $1.4M. Over the past year, the stock declined 72.5%, trailing the S&P 500 return of 16.8%, and is down 99.1% over five years compared to an 83.0% gain for the benchmark.
What analysts expect
One analyst covers Sonoma Pharmaceuticals and sets a mean price target of $12.00, compared to the October 16, 2026 closing price of $1.12. For the next fiscal year, consensus estimates project revenue of $23.9M, representing 15.8% growth, and EPS of -$0.56, representing a 65.2% improvement. Over the last four quarters, the company beat EPS estimates once. The next earnings date is November 3, 2026.
Key risks and what to watch
- Continued cash burn remains a risk after FY2026 operating cash flow came in at -$3.9M.
- Substantial past dilution is evidenced by a 1148.7% rise in share count over 5 years.
- Earnings volatility has seen the company beat quarterly EPS estimates only 1 time in the last 4 quarters.
- The stock displays elevated volatility with a beta of 1.30 and a 52-week trading range of $0.85 to $4.10.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this SNOA AI stock analysis
This page is an AI-written research summary of Sonoma Pharmaceuticals, Inc. (SNOA). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: SNOA income statement, SNOA balance sheet, SNOA key metrics, SNOA analyst forecast, SNOA chart. See the SNOA stock overview for the latest quote and news.
SNOA AI stock analysis FAQ
What products does Sonoma Pharmaceuticals sell?
Sonoma Pharmaceuticals develops stabilized hypochlorous acid products. Key offerings include prescription and skincare brands like Epicyn, Levicyn, Celacyn, SebuDerm, Acuicyn, Microcyn, and Gramaderm, alongside the MicrocynAH line for animal skin care.
Is Sonoma Pharmaceuticals profitable?
No, the company is not profitable. In FY2026 it reported a net loss of -$3.2M, and its trailing twelve months net margin stands at -10.3%.
Does Sonoma Pharmaceuticals pay a dividend?
No, Sonoma Pharmaceuticals does not pay a dividend.
What is Sonoma Pharmaceuticals' balance sheet position?
As of June 30, 2026, the company held $5.3M in cash and short-term investments against $739,000 in total debt, yielding a net cash balance of $4.6M and a current ratio of 2.99.