Operating margins have experienced significant compression, falling from 19.2% in 2024Q2 to 9.2% in 2026Q3, as the company faces stagnant revenue growth and rising overhead costs.
| Metric | TTM | Jun'25 | Jun'24 | Jun'23 | Jun'22 | Jun'21 | Jun'20 | Jun'19 | Jun'18 | Jun'17 | Jun'16 | Jun'15 | Jun'14 | Jun'13 | Jun'12 | Jun'11 | Jun'10 | Jun'09 | Jun'08 | Jun'07 | Jun'06 | Jun'05 | Jun'04 | Jun'03 | Jun'02 | Jun'01 | Jun'00 | Jun'99 | Jun'98 | Jun'97 | Jun'96 |
|---|
| Sales/Revenue | 105.34M | 104.35M | 102.88M | 98.65M | 97.59M | 89.93M | 85.69M | 87.19M | 81.52M | 78.04M | 73.37M | 69.05M | 68.51M | 49.14M | 39.44M | 33.14M | 31.82M | 39.72M | 35.57M | 33.21M | 33.08M | 104.9M | 71.61M | 52.89M | 44.68M | 46.46M | 39.07M | 36.9M | 27.6M | 17.6M | 13.1M |
| Revenue Growth % | 2.25% | 1.43% | 4.3% | 1.08% | 8.52% | 4.95% | -1.72% | 6.96% | 4.46% | 6.36% | 6.25% | 0.8% | 39.4% | 24.59% | 19.04% | 4.15% | -19.91% | 11.68% | 7.1% | 0.41% | -68.47% | 46.49% | 35.39% | 18.38% | -3.83% | 18.9% | 5.89% | 33.7% | 56.82% | 34.35% | -7.09% |
| Cost of Goods Sold | 62.93M | 61.44M | 57.74M | 52.9M | 50.58M | 46.46M | 43.3M | 43.98M | 41.95M | 38.05M | 38.87M | 38.4M | 37.25M | 26.12M | 21.2M | 18.48M | 18.62M | 22.12M | 24.89M | 26.66M | 26.95M | 66.72M | 44.41M | 32.48M | 26.24M | 31.98M | 26.98M | 25.9M | 21.3M | 11.8M | 6.7M |
| COGS % of Revenue | - | 58.88% | 56.13% | 53.62% | 51.83% | 51.66% | 50.53% | 50.45% | 51.46% | 48.76% | 52.98% | 55.62% | 54.37% | 53.16% | 53.74% | 55.77% | 58.53% | 55.69% | 69.99% | 80.27% | 81.48% | 63.6% | 62.01% | 61.4% | 58.74% | 68.84% | 69.05% | 70.19% | 77.17% | 67.05% | 51.14% |
| Gross Profit | 42.41M | 42.91M | 45.14M | 45.75M | 47.01M | 43.47M | 42.39M | 43.21M | 39.57M | 39.98M | 34.5M | 30.65M | 31.26M | 23.02M | 18.25M | 14.66M | 13.2M | 17.6M | 10.68M | 6.55M | 6.13M | 38.18M | 27.2M | 20.41M | 18.43M | 14.48M | 12.09M | 11M | 6.3M | 5.8M | 6.4M |
| Gross Margin % | 40.26% | 41.12% | 43.87% | 46.38% | 48.17% | 48.34% | 49.47% | 49.55% | 48.54% | 51.24% | 47.02% | 44.38% | 45.63% | 46.84% | 46.26% | 44.23% | 41.47% | 44.31% | 30.01% | 19.73% | 18.52% | 36.4% | 37.99% | 38.6% | 41.26% | 31.16% | 30.95% | 29.81% | 22.83% | 32.95% | 48.85% |
| Gross Profit Growth % | - | -4.94% | -1.33% | -2.69% | 8.14% | 2.55% | -1.89% | 9.21% | -1.05% | 15.91% | 12.56% | -1.96% | 35.78% | 26.15% | 24.51% | 11.08% | -25.02% | 64.86% | 62.95% | 6.93% | -83.95% | 40.35% | 33.25% | 10.74% | 27.34% | 19.69% | 9.95% | 74.6% | 8.62% | -9.38% | -14.67% |
| Operating Expenses | 32.88M | 31.31M | 28.6M | 30.96M | 25.01M | 26.38M | 28.74M | 21.07M | 19.88M | 20.89M | 20.14M | 17.75M | 18.96M | 15.48M | 11.04M | 10.87M | 15.78M | 18.3M | 36.13M | 32M | 35.85M | 36.52M | 35.67M | 35.56M | 38.16M | 30.69M | 28.52M | 26.6M | 23.9M | 30.2M | 15.4M |
| OpEx % of Revenue | - | 30% | 27.8% | 31.38% | 25.62% | 29.33% | 33.54% | 24.17% | 24.39% | 26.77% | 27.45% | 25.7% | 27.67% | 31.51% | 27.99% | 32.79% | 49.59% | 46.08% | 101.57% | 96.36% | 108.39% | 34.81% | 49.82% | 67.23% | 85.41% | 66.06% | 72.99% | 72.09% | 86.59% | 171.59% | 117.56% |
| Selling, General & Admin | 21.42M | 29.73M | 0 | 29.39M | 0 | 0 | 0 | 19.26M | 18.13M | 19.41M | 18.71M | 13.46M | 15.39M | 12.5M | 8.75M | 8.46M | 11.94M | 13.42M | 22.6M | 26.31M | 27.35M | 29.88M | 29.55M | 28.91M | 31.84M | 23.61M | 18.32M | 15.3M | 14.5M | 24.3M | 9.5M |
| SG&A % of Revenue | - | 28.49% | - | 29.79% | - | - | - | 22.09% | 22.24% | 24.87% | 25.5% | 19.49% | 22.46% | 25.44% | 22.18% | 25.54% | 37.53% | 33.79% | 63.53% | 79.22% | 82.68% | 28.48% | 41.26% | 54.65% | 71.26% | 50.81% | 46.88% | 41.46% | 52.54% | 138.07% | 72.52% |
| Research & Development | 1.77M | 1.58M | 1.74M | 1.57M | 1.49M | 1.64M | 2.03M | 1.81M | 1.76M | 1.48M | 1.63M | 1.81M | 1.76M | 1.44M | 1.24M | 1.44M | 2.46M | 3.59M | 5.01M | 5.69M | 6.87M | 6.01M | 5.49M | 5.16M | 5.1M | 5.87M | 5.53M | 6.6M | 6.5M | 3.9M | 3.6M |
| R&D % of Revenue | - | 1.51% | 1.69% | 1.59% | 1.53% | 1.82% | 2.36% | 2.08% | 2.15% | 1.9% | 2.22% | 2.62% | 2.57% | 2.93% | 3.15% | 4.35% | 7.73% | 9.05% | 14.08% | 17.14% | 20.76% | 5.73% | 7.67% | 9.76% | 11.41% | 12.63% | 14.16% | 17.89% | 23.55% | 22.16% | 27.48% |
| Other Operating Expenses | 1000K | 0 | 26.87M | 0 | 23.51M | 24.74M | 26.72M | 1.06K | -4.27K | -1.16K | 0 | 394.81K | -608.6K | -141.96K | 1.05M | 963.01K | 1.38M | 1.29M | 8.53M | 0 | 1.64M | 633.58K | 633.58K | 1.49M | 1.22M | 1.22M | 4.67M | 4.7M | 2.9M | 2M | 2.3M |
| Operating Income | 9.53M | 11.6M | 16.54M | 14.79M | 22.01M | 17.1M | 13.65M | 22.13M | 19.68M | 19.1M | 14.36M | 12.9M | 12.3M | 7.54M | 7.21M | 3.79M | -2.58M | -703.94K | -25.45M | -25.45M | -29.72M | 1.66M | -8.47M | -15.15M | -19.72M | -16.21M | -16.43M | -15.6M | -17.6M | -24.4M | -9M |
| Operating Margin % | 9.05% | 11.12% | 16.07% | 14.99% | 22.55% | 19.01% | 15.93% | 25.39% | 24.15% | 24.47% | 19.57% | 18.68% | 17.96% | 15.33% | 18.27% | 11.44% | -8.11% | -1.77% | -71.56% | -76.64% | -89.87% | 1.59% | -11.83% | -28.64% | -44.15% | -34.9% | -42.04% | -42.28% | -63.77% | -138.64% | -68.7% |
| Operating Income Growth % | - | -29.85% | 11.81% | -32.8% | 28.71% | 25.25% | -38.33% | 12.45% | 3.08% | 33.02% | 11.28% | 4.85% | 63.26% | 4.57% | 90.07% | 246.91% | -266.61% | 97.23% | 0% | 14.37% | -1887.08% | 119.64% | 44.08% | 23.2% | -21.64% | 1.29% | -5.3% | 11.36% | 27.87% | -171.11% | -38.46% |
| EBITDA | 14.05M | 16.3M | 21.13M | 23.59M | 26.54M | 21.18M | 17.56M | 25.97M | 23.58M | 22.63M | 17.65M | 16.44M | 16.12M | 9.96M | 9.44M | 5.86M | -1.14M | 1.03M | -22.66M | -22.78M | -26.44M | 3.32M | -6.93M | -13.05M | -16.66M | -13.84M | -11.76M | -10.9M | -14.7M | -22.4M | -6.7M |
| EBITDA Margin % | 13.34% | 15.62% | 20.54% | 23.92% | 27.2% | 23.55% | 20.49% | 29.79% | 28.93% | 29% | 24.06% | 23.81% | 23.53% | 20.26% | 23.92% | 17.7% | -3.57% | 2.59% | -63.7% | -68.58% | -79.93% | 3.16% | -9.68% | -24.68% | -37.28% | -29.79% | -30.09% | -29.54% | -53.26% | -127.27% | -51.14% |
| EBITDA Growth % | -15.49% | -22.88% | -10.44% | -11.11% | 25.32% | 20.61% | -32.39% | 10.12% | 4.22% | 28.19% | 7.35% | 2.01% | 61.9% | 5.51% | 60.91% | 616.39% | -210.31% | 104.54% | 0.52% | 13.85% | -897.5% | 147.84% | 46.92% | 21.63% | -20.34% | -17.74% | -7.85% | 25.85% | 34.38% | -234.33% | -63.41% |
| D&A (Non-Cash Add-back) | 4.52M | 4.7M | 4.6M | 8.8M | 4.54M | 4.08M | 3.91M | 3.84M | 3.9M | 3.53M | 3.3M | 3.54M | 3.82M | 2.42M | 2.23M | 2.07M | 1.45M | 1.73M | 2.79M | 2.68M | 3.29M | 1.65M | 1.54M | 2.09M | 3.07M | 2.37M | 4.67M | 4.7M | 2.9M | 2M | 2.3M |
| EBIT | 9.53M | 11.6M | 16.54M | 15.81M | 22.01M | 17.1M | 13.65M | 22.62M | 19.68M | 19.1M | 14.36M | 12.9M | 12.3M | 8.48M | 7.49M | 3.9M | -2.62M | 1.49M | -12.98M | -25.45M | -29.72M | 2.36M | -8.47M | -15.15M | -19.72M | -16.21M | -16.43M | -15.6M | -17.6M | -24.4M | -13.7M |
| Net Interest Income | 1.8M | 2.15M | -77K | -50.13K | -346.55K | -248.66K | 427.82K | 383.94K | -160.07K | 28.3K | -262.19K | -702.1K | -884.54K | -500.36K | -478.66K | -290.36K | -127.69K | -312.41K | -501.52K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 1.81M | 2.17M | 0 | 0 | 0 | 0 | 502.14K | 482.57K | 0 | 28.3K | 0 | 0 | 0 | 0 | 0 | 228.17K | 10.93K | 20.82K | 33.8K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 12.61K | 25.61K | 77K | 50.13K | 346.55K | 248.66K | 74.32K | 98.64K | 160.07K | 0 | 262.19K | 702.1K | 884.54K | 500.36K | 478.66K | 518.53K | 387.9K | 333.23K | 535.32K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 1.84M | 2.18M | 2.73M | 969.33K | 761.69K | 567.72K | 498.6K | 385K | 98.22K | 220.28K | 152.63K | -82.02K | -1.25M | 442.72K | -190.35K | -406.98K | -432.01K | 1.87M | 3.41M | -86.3K | 854.3K | 466.55K | -994.2K | -757.49K | -3.13M | 1.07M | 5.51M | 800K | 11.4M | 83.5M | 10.3M |
| Pretax Income | 11.38M | 13.78M | 19.27M | 15.76M | 22.77M | 17.67M | 14.15M | 22.52M | 19.78M | 19.32M | 14.51M | 12.82M | 11.05M | 7.98M | 7.02M | 3.38M | -3.01M | 1.16M | -13.52M | -25.54M | -29.91M | 1.08M | -9.46M | -15.9M | -22.86M | -15.14M | -10.91M | -14.8M | -6.2M | 59.1M | -3.4M |
| Pretax Margin % | 10.8% | 13.21% | 18.73% | 15.97% | 23.33% | 19.64% | 16.51% | 25.83% | 24.27% | 24.75% | 19.77% | 18.56% | 16.13% | 16.24% | 17.79% | 10.21% | -9.47% | 2.91% | -38% | -76.9% | -90.43% | 1.03% | -13.22% | -30.07% | -51.15% | -32.6% | -27.93% | -40.11% | -22.46% | 335.8% | -25.95% |
| Income Tax | 2.5M | 3.11M | 5.17M | 3.63M | 5.53M | 3.99M | 2.44M | 2.01M | -5.67M | -4.36M | -4.29M | -2.61M | -2.35M | -2.28M | 141.13K | 75.47K | 0 | 35.93K | -6.94K | 86.3K | 54.03K | 64.04K | 29.89K | -703.87K | 27.04K | 40K | 43.68K | -600K | -500K | 3M | 3.4M |
| Effective Tax Rate % | 21.94% | 22.55% | 26.83% | 23.05% | 24.31% | 22.6% | 17.28% | 8.91% | -28.66% | -22.58% | -29.55% | -20.38% | -21.25% | -28.55% | 2.01% | 2.23% | 0% | 3.11% | 0.05% | -0.34% | -0.18% | 5.94% | -0.32% | 4.43% | -0.12% | -0.26% | -0.4% | 4.05% | 8.06% | 5.08% | -100% |
| Net Income | 6.69M | 8.33M | 10.57M | 9.38M | 12.44M | 10.21M | 8.24M | 15.32M | 21.23M | 19.62M | 15.72M | 12.91M | 10.4M | 8.68M | 5.78M | 3.16M | -3.01M | 1.12M | -13.51M | -25.54M | -29.96M | 1.01M | -9.49M | -15.01M | -22.88M | -15.18M | -10.96M | -14.2M | -5.7M | 56.1M | -3.4M |
| Net Margin % | 6.35% | 7.99% | 10.27% | 9.5% | 12.75% | 11.35% | 9.62% | 17.57% | 26.05% | 25.14% | 21.43% | 18.7% | 15.18% | 17.66% | 14.64% | 9.54% | -9.47% | 2.82% | -37.98% | -76.9% | -90.59% | 0.97% | -13.26% | -28.37% | -51.22% | -32.68% | -28.04% | -38.48% | -20.65% | 318.75% | -25.95% |
| Net Income Growth % | -20.69% | -21.13% | 12.71% | -24.64% | 21.88% | 23.88% | -46.2% | -27.85% | 8.21% | 24.78% | 21.8% | 24.19% | 19.79% | 50.24% | 82.75% | 204.92% | -368.69% | 108.3% | 47.11% | 14.77% | -3053.77% | 110.68% | 36.73% | 34.42% | -50.7% | -38.59% | 22.85% | -149.12% | -110.16% | 1750% | -88.89% |
| Net Income (Continuing) | 8.88M | 10.67M | 14.1M | 12.13M | 17.23M | 13.67M | 11.7M | 20.51M | 25.45M | 23.68M | 18.8M | 15.43M | 13.4M | 10.26M | 6.88M | 3.31M | -3.01M | 1.12M | -13.51M | -25.54M | -28.92M | 1.01M | -9.49M | -15.2M | -22.88M | -15.18M | -10.96M | -14.2M | -5.7M | 56.1M | -11.4M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | -14.11M | -12.5M | -9.18M | -7.08M | -4.05M | -3.05M | 55.25K | 2.16M | 3.56M | 5.47M | 8.4M | 12.39M | 20.59M | 23.69M | 6.1M | 7.31M | 0 | 63.81K | 166.97K | 531.94K | 696.86K | 522.56K | 381.02K | 345.12K | 272.31K | 152.97K | 21.52K | 0 | 100K | 200K | 100K |
| EPS (Diluted) | 1.06 | 1.23 | 1.53 | 1.32 | 1.75 | 1.45 | 1.75 | 3.11 | 3.31 | 2.92 | 2.38 | 1.95 | 1.58 | 1.34 | 0.91 | 0.55 | -0.61 | 0.21 | -2.76 | -5.30 | -6.78 | 0.25 | -2.50 | -4.95 | -9.01 | -6.50 | -4.15 | -5.54 | -2.32 | 25.00 | -1.64 |
| EPS Growth % | -19.35% | -19.61% | 15.91% | -24.57% | 20.69% | -17.14% | -43.73% | -6.04% | 13.36% | 22.69% | 22.05% | 23.42% | 17.91% | 47.25% | 65.45% | 190.16% | -390.48% | 107.61% | 47.92% | 21.83% | -2812% | 110% | 49.49% | 45.06% | -38.62% | -56.63% | 25.09% | -138.79% | -109.28% | 1624.39% | -64% |
| EPS (Basic) | - | 1.26 | 1.56 | 1.35 | 1.78 | 1.47 | 1.79 | 3.18 | 3.38 | 2.98 | 2.43 | 2.00 | 1.62 | 1.37 | 0.93 | 0.56 | -0.61 | 0.21 | -2.76 | -5.30 | -6.78 | 0.25 | -2.50 | -4.95 | -9.01 | -6.50 | -4.97 | -5.54 | -2.33 | 25.00 | -1.64 |
| Diluted Shares Outstanding | 6.3M | 6.55M | 6.48M | 6.77M | 6.68M | 6.74M | 6.68M | 6.59M | 6.42M | 6.67M | 6.56M | 6.31M | 6.26M | 6.19M | 6.03M | 5.39M | 4.93M | 5.03M | 4.9M | 4.82M | 4.42M | 4.01M | 3.8M | 3.03M | 2.54M | 2.34M | 2.64M | 2.56M | 2.46M | 2.24M | 2.07M |
| Basic Shares Outstanding | 6.17M | 6.32M | 6.35M | 6.65M | 6.55M | 6.61M | 6.55M | 6.46M | 6.29M | 6.54M | 6.43M | 6.18M | 6.14M | 6.06M | 5.91M | 5.26M | 4.93M | 4.9M | 4.9M | 4.82M | 4.42M | 4.06M | 3.8M | 3.03M | 2.54M | 2.34M | 2.2M | 2.56M | 2.45M | 2.24M | 2.07M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | 2.05% | - | - | - | - | - | - | - | - | - | - | - | - | - |
Regional regulatory reimbursement dependency
As reported in recent financial filings, FONR's revenue growth has remained largely stagnant, with the most recent quarter showing a 2.6% decline, suggesting that the company's niche diagnostic imaging model may be reaching a saturation point within its core New York and Florida geographic footprint.
The lack of consistent top-line expansion indicates that the company is struggling to scale its proprietary upright MRI technology beyond its existing facility base. Investors should monitor whether this trend reflects a broader decline in elective spinal imaging demand or an inability to capture new referral networks in a competitive healthcare landscape.
Based on the provided income statement data, gross margins have fluctuated between 37.9% and 45.7% over the last ten quarters, reflecting the inherent difficulty in maintaining consistent profitability within a service-heavy model that relies on specialized labor and high-fixed-cost diagnostic imaging equipment maintenance.
The variability in gross margins suggests that the company lacks significant pricing power, likely due to its reliance on fixed reimbursement rates for specific CPT codes. This volatility warrants further investigation into whether rising operational costs or shifts in payer mix are exerting persistent pressure on the company's core service profitability.
According to the company's historical income statements, operating margins have experienced significant compression, dropping from 19.2% in 2024Q2 to 9.2% in 2026Q3, which suggests that the company is failing to achieve meaningful operating leverage as SG&A expenses continue to consume a larger share of gross profit.
The inconsistent scaling of operating income relative to gross profit implies that administrative and management expenses are not being managed with sufficient discipline to offset revenue stagnation. This trend may indicate that the company's current cost structure is too rigid to adapt to the low-growth environment it currently faces.
While the company maintains a fortress-like balance sheet with $56 million in cash, the lack of reinvestment into growth initiatives, as evidenced by the stagnant revenue figures, suggests that the firm may be prioritizing liquidity at the expense of long-term value creation for its shareholders.
Short-sellers might argue that the company's refusal to deploy its substantial cash reserves indicates a lack of confidence in the future viability of its upright MRI niche. Investors should consider whether this conservative capital allocation is a defensive necessity or a sign of strategic paralysis in a rapidly evolving medical imaging market.
Quick answers to the most common questions about buying FONR stock.
For fiscal year 2025, FONAR Corporation (FONR) reported total revenue of $104.4M. This represents a 696.6% increase compared to $13.1M in 1996.
FONAR Corporation (FONR) is profitable, generating $8.3M in net income for the fiscal year ending 2025 with a net profit margin of 8.0%.
FONAR Corporation (FONR) reported an operating income of $11.6M, resulting in an operating profit margin of 11.1%. This margin reflects the operational efficiency of the business before interest and taxes.
FONAR Corporation (FONR) generated $42.9M in gross profit for the year, representing a gross profit margin of 41.1%. This demonstrates the company's core pricing power and production efficiency.