0001294133-26-000016
SEC filingRevenue and gross profit grew year-over-year, reflecting international demand strength and manufacturing efficiencies; however, operating losses narrowed only modestly, and net loss widened due to higher operating expenses.
Revenue for the quarter ended March 31, 2026, was $85.1 million, an increase of 9.1% compared to $78.0 million in the prior-year period. This growth reflects higher international sales—driven by increased demand from partners in Europe and the favorable impact of foreign exchange rates—partially offset by a decline in U.S. sales attributable to channel mix shifts versus the comparable period in 2025.
Gross profit increased 10.2% to $37.9 million, and gross margin improved to 44.5%, up from 44.0% in Q1 FY2025. The improvement was driven by manufacturing cost leverage and lower cost premiums associated with open-market purchases of semiconductor chips used in portable oxygen concentrators. These operational efficiencies contributed meaningfully to gross profit growth despite ongoing pricing and input cost dynamics.
Operating income improved to a loss of $9.3 million, narrowing from a loss of $16.3 million in Q1 FY2025—a 42.6% reduction in the magnitude of the loss. However, the improvement was constrained by higher operating expenses overall. As noted in management commentary, the increase in net loss was primarily related to an increase in operating expense, though specific components such as R&D or restructuring were not quantified in the authoritative financial packet and therefore are not cited here.
Net income was a loss of $8.3 million, or $-0.30 per diluted share, compared to a loss of $6.2 million, or $-0.62 per diluted share, in Q1 FY2025. While EPS improved 51.6% year-over-year due to the reduced loss magnitude and share count dynamics, the absolute net loss widened, underscoring continued pressure on profitability despite top-line and gross margin progress.