- Operating Expenses Decline 4% Year-to-Date
- Balance Sheet Strengthens and Working Capital Improves by 14.7%
IRVINE, Calif., Jan. 14, 2026 (GLOBE NEWSWIRE) -- Biomerica, Inc. (Nasdaq: BMRA), (the "Company") a global provider of advanced medical diagnostic and therapeutic products today reported financial results for the second quarter of fiscal 2026 ended November 30, 2025.
Key Highlights:
| 1. | Biomerica Expands Commercialization of inFoods IBS Through Collaboration with Henry Schein | |
| During the second quarter, Biomerica entered into a marketing services agreement with Henry Schein to support the commercialization of the Company's inFoods IBS test in the United States. In addition, inFoods IBS was featured in a Henry Schein publication highlighting a precision-based approach to the management of Irritable Bowel Syndrome. Together, these initiatives expand awareness of inFoods® IBS among healthcare providers and support broader adoption of the test in clinical practice. | ||
| 2. | Biomerica Launches AI-Backed inFoods IBS Trigger Food Navigator to Support Personalized IBS Therapy and Improve Patient Outcomes | |
| The launch of its inFoods IBS Trigger Food Navigator, a comprehensive AI-backed digital companion tool designed to improve patient dietary compliance and treatment success for individuals with Irritable Bowel Syndrome (IBS). The inFoods IBS test identifies, on average, two to four specific foods that trigger a patient's IBS symptoms, leading to a simple, highly targeted and actionable dietary plan. The new AI-backed Trigger Food Navigator builds on this approach by making it even easier for patients to follow their personalized dietary plan through smart meal suggestions, ingredient substitutions, and simplified meal planning tools. | ||
| Subsequent to Quarter End | ||
| 3. | CMS Establishes National Medicare Payment Rate for inFoods IBS Test | |
| Subsequent to the quarter-ended November 30, 2025, the Centers for Medicare & Medicaid Services (CMS) established a national Medicare payment rate of $300 for Biomerica's inFoods IBS test, effective January 1, 2026. This milestone provides reimbursement clarity and represents an important step toward expanding patient access to the inFoods IBS product through the Medicare system. | ||
| 4. | Egyptian Drug Authority Authorizes Biomerica's Complete Screening Test Portfolio | |
| Subsequent to quarter end, the Egyptian Drug Authority authorized Biomerica's complete screening test portfolio. This regulatory approval expands access to the Company's rapid diagnostic solutions in Egypt and supports continued international expansion of Biomerica's diagnostic products. | ||
Management Commentary
Zack Irani, CEO said, "We are executing a deliberate strategic pivot from legacy, lower-margin products to higher-value, higher-margin diagnostic-guided therapy products. The current revenue softness reflects this transition, not fundamental business deterioration. With our fixed cost structure largely in place, we believe incremental revenue from inFoods IBS and new partnerships such as Henry Schein as well as hp+detect opportunities should drive significant margin expansion. Additionally, our contract development and manufacturing organization (CDMO) expansion leverages existing infrastructure to generate higher-margin revenue while diversifying our revenue base."
"While second quarter revenue reflected expected variability across our established product lines, Biomerica continued to strengthen its financial foundation through successful capital raising activities and disciplined cost management," said Gary Lu, CFO of Biomerica. "Earlier in the fiscal year, the Company also received approximately $1.10 million in Employee Retention Credit (ERC) refunds, which, together with our financing initiatives, contributed to a $457,000 year-to-date improvement in working capital and an increase in our cash position to $2.5 million. As we advance key programs from development into commercialization, we are prudently reallocating resources, which resulted in a 27% reduction in research and development expenses, while continuing to invest in the commercial launch of high-value diagnostic programs, including inFoods IBS and hp+detect. We maintain access to additional capital through our existing shelf registration to support future growth initiatives."
Second Quarter and Year-to-Date Fiscal 2026 Financial Results
Net sales for the second quarter of fiscal 2026 were $1.21 million, compared to $1.64 million in the prior year quarter. The decrease primarily reflects the absence of large initial distributor stocking orders in the Middle East and North Africa ("MENA") region recorded in the prior year period, as the Company's regional partner ramped up its initial market rollout. While Biomerica continues to generate recurring revenue from the region, the prior year quarter benefited from these upfront inventory purchases. The quarter also reflects normal timing variability in international shipments as well as lower contract manufacturing activity. These impacts were partially offset by continued growth in inFoods IBS sales.
For the six months ended November 30, 2025, net sales were $2.59 million, compared to $3.44 million in the prior year period. Gross margin for the six-month period was 18%, compared to 21% in the prior year, reflecting lower overall sales volume as the Company transitions from legacy products to higher-margin diagnostic-guided therapy offerings. Management expects gross margins to expand as inFoods IBS and hp+detect sales scale and added CDMO services.
Operating expenses for the second quarter of fiscal 2026 were $1.42 million, compared to $1.43 million in the same period last year. For the six months ended November 30, 2025, operating expenses decreased approximately 4% to $2.96 million, compared to $3.09 million in the prior year period. This performance reflects Biomerica's continued focus on cost discipline and operational efficiency, including targeted reductions across administrative, research, and manufacturing. Notably, when excluding professional service fees related to Employee Retention Tax Credit (ERTC) filings, which contributed to the Company's increase in cash, normalized operating expenses for the six-month period decreased by approximately 7% compared to the prior year. With the Company's fixed cost structure now largely optimized, management expects incremental revenue from new product launches and strategic partnerships to drive meaningful operating leverage and margin expansion.
Net loss for the second quarter of fiscal 2026 was $1.32 million, compared to $0.95 million in the prior year quarter, reflecting lower revenue and gross margin during the period. For the six months ended November 30, 2025, net loss improved to $1.31 million, compared to $2.27 million in the prior year period, primarily due to sustained expense discipline and the recognition of a non-recurring tax credit earlier in the fiscal year. Biomerica continues to prioritize operational efficiency and disciplined cost management while selectively investing in core diagnostic programs designed to drive long term value. The Company's strategic focus on transitioning its revenue mix toward higher-margin products, combined with its optimized cost structure, positions Biomerica to benefit from significant operating leverage as inFoods IBS, hp+detect, and CDMO services gain commercial traction.
| Selected Financial Results | Three Months Ended | Three Months Ended | Six Months Ended | Six Months Ended | |||||||||||
| November 30, 2025 | November 30, 2024 | November 30, 2025 | November 30, 2024 | ||||||||||||
| ($ in millions, except percentages) | |||||||||||||||
| Revenue | - 1.21 | - 1.64 | - 2.59 | - 3.44 | |||||||||||
| Gross margin | 4 | - | 27 | - | 18 | - | 21 | - | |||||||
| Operating expenses | - 1.42 | - 1.43 | - 2.96 | - 3.09 | |||||||||||
| Operating loss | ($1.37 | - | ($0.99 | - | ($2.48 | - | ($2.36 | - | |||||||
| Net Loss | ($1.32 | - | ($0.95 | - | ($1.31 | - | ($2.27 | - | |||||||
About Biomerica (NASDAQ: BMRA-
Biomerica, Inc. (www.biomerica.com) is a global biomedical technology company that develops, patents, manufactures and markets advanced diagnostic and therapeutic products used at the point-of-care (in home and in physicians' offices) and in hospital/clinical laboratories for detection and/or treatment of medical conditions and diseases. The Company's products are designed to enhance the health and well-being of people, while reducing total healthcare costs. Biomerica primarily focuses on gastrointestinal and inflammatory diseases where the Company has multiple diagnostic and therapeutic products in development.
About inFoods
The inFoods IBS test involves a simple blood collection procedure and is designed to assess a patient's above normal immunoreactivity to specific foods. Instead of difficult to manage broad dietary restrictions, physicians can now use the inFoods IBS information to make targeted, patient-specific recommendations about specific foods that, when removed from the diet, may alleviate IBS symptoms such as pain, bloating, diarrhea and constipation. Further information about Biomerica's patented inFoods Technology Platform can be found at: https://biomerica.com/inFoods/our-technology/. The inFoods IBS clinical study was performed at several prominent centers including Mayo Clinic, Beth Israel Deaconess Medical Center Inc. - a Harvard Medical School Teaching Hospital, Houston Methodist Hospital, and the University of Michigan. The clinical results for improvement in the Abdominal Pain Intensity (API) responder endpoint of >30%, for IBS patients in the treatment diet arm had a statistically significant improvement over patients in the placebo diet arm (p-value of 0.0246). The improvement for patients in the treatment arm versus the placebo arm is considered clinically significant and is similar and, in some cases, better than the current drugs in the market.
The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements. Certain information included in this press release contains statements that are forward-looking, such as statements relating to the Company's current and future cash position, balance sheet, cost savings, sales, revenues, overhead, expenses, cost of goods, operations, and earnings; the Company's need for raising additional capital; the Company's expected sales growth for the Company's inFoods IBS product, hp+detect product and other existing products; and diversification of the Company's revenue streams. Such forward-looking information is based upon the current beliefs and expectations of management and involves important risks and uncertainties that could significantly affect anticipated results. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. Accordingly, such results may differ materially from those expressed in any forward-looking statements made by or on behalf of Biomerica. Factors that could cause actual results to differ from those expressed in the forward-looking statements are discussed in the "Risk Factors" section of the Company's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other reports filed with the SEC, and available on the SEC's website (www.sec.gov).
The Company is under no obligation to update any forward-looking statements after the date of this release.
Corporate Contact:
Zack Irani
949-645-2111
investors@biomerica.com
Source: Biomerica, Inc.
