Sonoma Pharmaceuticals, Inc.: Sonoma Pharmaceuticals Delivers 141% U.S. Revenue Growth in FY Q1, 60% Total Revenue Growth and First-Ever Positive Adjusted EBITDA

• Total revenue increased 60% year over year to $6.4 million

• Net loss per share decreased 88% compared to the prior-year quarter

• Gross margin expanded to 40% as operating expenses remained stable

• FDA clearance and new global distributors support continued commercial growth

BOULDER, CO / ACCESS Newswire / August 6, 2026 / Sonoma Pharmaceuticals, Inc. (NASDAQ:SNOA), a global healthcare leader developing and producing patented Microcyn technology-based stabilized hypochlorous acid (HOCl) products for a wide range of applications including wound care, eye care, dermatological conditions, podiatry, animal health care and non-toxic disinfectants, today announced financial results for its first fiscal quarter ended June 30, 2026.

"Our first quarter results demonstrate that Sonoma has reached an important inflection point," said Amy Trombly, CEO of Sonoma. "We delivered record quarterly revenue, more than doubled our U.S. business, expanded gross margins to 40%, and achieved positive adjusted EBITDA for the first time in the company's history-all while keeping operating expenses essentially flat. These results reflect the strength of our commercial strategy, the growing global adoption of hypochlorous acid products, and the operating leverage built into our business model. With new FDA clearances, expanding distribution partnerships, and a strong pipeline of commercial opportunities, we believe we are well positioned to continue delivering profitable growth."

Business Highlights

Sonoma continued to expand regulatory approvals and grow its global distribution network:

• In June 2026, Sonoma received a new 510(k) clearance from the U.S. Food and Drug Administration (FDA) for its Microdacyn Wound Irrigation Solution, including expanded claims, clearance for multiple use, and additional packaging configurations.

• Since the start of fiscal year 2027, Sonoma has added new distributors to its network in Taiwan, Vietnam and the United States.

Results for the Quarter Ended June 30, 2026

Total revenues for the quarter ended June 30, 2026 of $6.4 million were up $2.4 million as compared to $4.0 million for the same period last year. The increase in United States revenue of $1.4 million, or 141%, for the three months ended June 30, 2026 was primarily the result of an increase in revenue related to the sale of over-the-counter products and increased sales by new and existing distributors. Revenues in Europe increased $0.5 million, or 34%, compared to the same period last year as the result of increased demand for Sonoma's products and favorable exchange rates. Revenues increased in Asia and Rest of World when compared to the same period last year. These revenues tend to be choppy when viewed on a quarterly basis due to customers placing larger, but less frequent, orders to benefit from quantity discounts and reduced shipping costs. Latin America revenue increased for the quarter ended June 30, 2026, compared to the same period last year, due to timing of customer orders for overflow manufacturing.

During the quarter ended June 30, 2026, Sonoma reported revenues of $6.4 million and cost of revenues of $3.8 million resulting in gross profit of $2.6 million, or 40% of revenue, compared to a gross profit of $1.5 million, or 36% of revenue, in the same period last year.

Total operating expenses during the quarter ended June 30, 2026 were $2.6 million compared to $2.6 million in the same period last year, demonstrating the operating leverage in Sonoma's business model as the company grows revenue and gross profit while keeping operating expenses stable.

Net loss for the quarter ended June 30, 2026 of $0.3 million declined significantly compared to a net loss of $1.2 million for the quarter ended June 30, 2025. EBITDA gain for the quarter ended June 30, 2026 of $0.1 million was positive compared to an EBITDA loss of $1.0 million for the same period last year.

As of June 30, 2026, Sonoma had cash and cash equivalents of $5.3 million.

About Sonoma Pharmaceuticals, Inc.

Sonoma Pharmaceuticals is a global healthcare leader for developing and producing stabilized hypochlorous acid (HOCl) products for a wide range of applications, including wound care, eye care, dermatological conditions, podiatry, animal health care and non-toxic disinfectants. The company's products are clinically proven to reduce itch, pain, scarring, and irritation safely and without damaging healthy tissue. In-vitro and clinical studies of HOCl show it to safely manage skin abrasions, lacerations, minor irritations, cuts, and intact skin. The company's products are sold either directly or via partners in over 55 countries worldwide and the company actively seeks new distribution partners. The company's principal office is in Boulder, Colorado, with manufacturing operations in Guadalajara, Mexico. European marketing and sales are headquartered in Roermond, Netherlands. More information can be found at www.sonomapharma.com. For partnership opportunities, please contact [e-mail].

Forward-Looking Statements

Except for historical information herein, matters set forth in this press release are forward-looking within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including statements about the commercial and technology progress and future financial performance of Sonoma Pharmaceuticals, Inc. and its subsidiaries (the "company"). These forward-looking statements are identified by the use of words such as "continue," "reduce," "develop," "aim," and "expand," among others. Forward-looking statements in this press release are subject to certain risks and uncertainties inherent in the company's business that could cause actual results to vary, including such risks that regulatory clinical and guideline developments may change, scientific data may not be sufficient to meet regulatory standards or receipt of required regulatory clearances or approvals, clinical results may not be replicated in actual patient settings, protection offered by the company's patents and patent applications may be challenged, invalidated or circumvented by its competitors, the available market for the company's products will not be as large as expected, the company's products will not be able to penetrate one or more targeted markets, revenues will not be sufficient to meet the company's cash needs or fund further development, as well as uncertainties relative to the recent pandemic and economic development, varying product formulations and a multitude of diverse regulatory and marketing requirements in different countries and municipalities, and other risks detailed from time to time in the company's filings with the Securities and Exchange Commission. The company disclaims any obligation to update these forward-looking statements, except as required by law.

Sonoma Pharmaceuticals Microcyn and Microdacyn are trademarks or registered trademarks of Sonoma Pharmaceuticals, Inc. All other trademarks and service marks are the property of their respective owners.

Media and Investor Contact:

Sonoma Pharmaceuticals, Inc.

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SONOMA PHARMACEUTICALS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share amounts)

		June 30,				March 31,
		2026				2026
		(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents		$	5,338			$	2,399
Accounts receivable, net			3,182				2,527
Inventories, net			3,786				3,651
Prepaid expenses and other current assets			3,962				3,523
Total current assets			16,268				12,100
Property and equipment, net			290				310
Operating lease, right of use assets			578				602
Deferred tax asset, net			905				884
Other assets			66				64
Total assets		$	18,107			$	13,960
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable		$	2,191			$	1,923
Accrued expenses and other current liabilities			2,674				2,252
Deferred revenue			282				284
Short-term debt			140				222
Operating lease liabilities, current portion			160				151
Total current liabilities			5,447				4,832
Withholding tax payable			5,627				5,564
Operating lease liabilities, less current portion			439				469
Total liabilities			11,513				10,865
Commitments and Contingencies
Stockholders' Equity:
Convertible preferred stock, $0.0001 par value; 714,286 shares authorized at June 30, 2026 and March 31, 2026, respectively, no shares issued and outstanding at June 30, 2026 and March 31, 2026			-				-
Common stock, $0.0001 par value; 50,000,000 shares authorized at June 30, 2026 and March 31, 2026, 4,785,801 and 1,799,057 shares issued and outstanding at June 30, 2026 and March 31, 2026, respectively			-				-
Additional paid-in capital			210,913				207,319
Accumulated deficit			(201,311	)			(200,981	)
Accumulated other comprehensive loss			(3,008	)			(3,243	)
Total stockholders' equity			6,594				3,095
Total liabilities and stockholders' equity		$	18,107			$	13,960

SONOMA PHARMACEUTICALS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(In thousands, except per share amounts)
(Unaudited)

		Three Months Ended June 30,
		2026				2025
Revenues		$	6,406			$	4,015
Cost of revenues			3,829				2,551
Gross profit			2,577				1,464
Operating expenses:
Research and development			597				594
Selling, general and administrative			2,020				1,965
Total operating expenses			2,617				2,559
Loss from operations			(40	)			(1,095	)
Other expense, net			(290	)			(147	)
Loss from operations before income taxes			(330	)			(1,242	)
Income tax benefit							1
Net loss		$	(330	)		$	(1,241	)
Net loss per share: basic and diluted		$	(0.09	)		$	(0.76	)
Weighted-average shares outstanding: basic and diluted			3,846				1,641
Other comprehensive loss:
Net loss		$	(330	)		$	(1,241	)
Foreign currency translation adjustments			235				806
Comprehensive loss		$	(95	)		$	(435	)

SONOMA PHARMACEUTICALS, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES
(In thousands)
(Unaudited)

		Three Months Ended June 30,
		2026				2025
(1) Loss from operations adjusted for non-cash items and one-time events, or EBITDA loss:
GAAP loss from operations as reported		$	(40	)		$	(1,095	)
Non-cash adjustments:
Stock-based compensation			58				57
Depreciation			32				36
Non-GAAP loss from operations minus non-cash expenses EBITDA gain (loss)		$	50			$	(1,002	)
(2) Net loss adjusted for non-cash items and one-time events:
GAAP net loss as reported		$	(330	)		$	(1,241	)
Non-cash adjustments:
Stock-based compensation			58				57
Non-cash foreign exchange transaction gains			314				549
Income taxes							(1	)
Depreciation			32				36
Non-GAAP net income (loss) adjusted for non-cash items		$	74			$	(600	)
(3) Operating expenses minus non-cash expenses
GAAP operating expenses as reported		$	2,617			$	2,559
Non-cash adjustments:
Stock-based compensation			(58	)			(57	)
Depreciation			(32	)			(36	)
Non-GAAP operating expenses minus non-cash expenses		$	2,527			$	2,466

1. Loss from operations minus non-cash expenses EBITDA gain (loss) is a non-GAAP financial measure. The Company defines this as GAAP reported operating income (loss) minus operating depreciation and amortization and operating stock-based compensation. The Company uses this measure for the purpose of modifying the operating loss to reflect normal direct cash related transactions during the measurement period. Non-GAAP measures should not be considered a substitute for financial measures presented in accordance with GAAP. Non-GAAP measures are not always consistent across, or comparable with, non-GAAP measures disclosed by other companies.

2. Net loss adjusted for non-cash items and one-time events is a non-GAAP financial measure. The Company defines this as GAAP reported net loss minus depreciation and amortization, stock-based compensation, income taxes and non-cash foreign exchange transaction losses. The Company uses this measure for the purpose of modifying the net loss to reflect only those expenses to reflect normal direct cash transactions during the measurement period. Non-GAAP measures should not be considered a substitute for financial measures presented in accordance with GAAP. Non-GAAP measures are not always consistent across, or comparable with, non-GAAP measures disclosed by other companies.

3. Operating expenses minus non-cash expenses is a non-GAAP financial measure. The Company defines operating expenses minus non-cash expenses as GAAP reported operating expenses minus operating depreciation and amortization, and operating stock-based compensation. The Company uses this measure for the purpose of identifying total operating expenses involving cash transactions during the measurement period. Non-GAAP measures should not be considered a substitute for financial measures presented in accordance with GAAP. Non-GAAP measures are not always consistent across, or comparable with, non-GAAP measures disclosed by other companies.

SOURCE: Sonoma Pharmaceuticals, Inc.

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