Sonoma Pharmaceuticals, Inc.

What they do

Sonoma develops and produces stabilized hypochlorous acid (HOCl) products for wound care, eye care, dermatological conditions, podiatry, animal health care and non-toxic disinfectants, with in-vitro and clinical studies cited for managing abrasions, lacerations, minor irritations, cuts and intact skin. It sells either directly or via partners in over 55 countries and operates two active wholly-owned subsidiaries, Oculus Technologies of Mexico, S.A. de C.V. and Sonoma Pharmaceuticals Netherlands, B.V. The company has been in business over 20 years, was incorporated in 1999 as Micromed Laboratories, became Oculus Innovative Sciences in 2001 and took the Sonoma name in December 2016, and reports on a March 31 fiscal year end.

Revenue drivers

• HOCl wound care and disinfectant products — Core stabilized hypochlorous acid products sold into wound care and non-toxic disinfectant applications; the October 2025 Medline Industries wound cleanser launch targets U.S. hospital systems and home healthcare, and April 2025 approval was received to sell wound care products in Ukraine as a Class IIb medical device.
• Consumer retail and dermatology lines — HOCl-based acne products launched April 2025 in over 1,200 U.K. health and beauty retail/pharmacy stores, diaper rash products launched August 2025 into Walmart and other large U.S. retailers, and an advanced HOCl burn relief hydrogel launched March 2026 in CVS and Walmart stores.
• Partner-branded and distributor products — Products developed for third parties, including the March 2026 Aquanil AD dermatology line for sensitive skin made exclusively for Pers n & Covey, Inc. for U.S. over-the-counter dermatology channels, and the July 2025 expansion of a U.S. distributor partnership for Microcyn technology-based products into large retailers.
• International partner sales — Sales into over 55 countries through distributors, with the company stating its core strategy is to work with partners in the U.S. and worldwide rather than build direct sales forces in each market; no individual country or product revenue breakdown was disclosed in the excerpts.

Recent performance

Annual revenue rose from $14.3M in fiscal 2025 to $19.5M in fiscal 2026, following $12.6M (2022), $13.3M (2023) and $12.7M (2024). Recent quarterly revenue was $5.6M (2025-09-30), $4.3M (2025-12-31), $5.6M (2026-03-31) and $6.4M (2026-06-30). Reported annual net income was $3,175 in fiscal 2026, $3,457 in fiscal 2025 and $4,835 in fiscal 2024, versus net losses of $5.1M (2022) and $5.2M (2023). Operating cash flow was negative $3.9M in fiscal 2026 and negative $88,000 in fiscal 2025. At 2026-06-30, total assets were $18.1M, total liabilities $11.5M, shareholder equity $6.6M and cash and equivalents $5.3M.

Strategy

Management states it is focused on increasing revenues and continuing progress toward profitability, with fiscal 2026 growth attributed to expansion of its distribution network and customer base, increasing expansion into consumer markets, new product introductions across multiple markets, and organic growth from existing customers and distributors. The company says it continues to invest in research and development in the U.S. and internationally for its core performance-stabilized HOCl technology and intends to seek new regulatory clearances to expand potential markets. Recent actions include retail placements with CVS, Walmart and a U.K. health and beauty chain, new partner products for Medline and Pers n & Covey, and FDA MoCRA registration of its manufacturing facility and listing of a Microcyn-based facial spray announced October 2025. The company relies on distributor and partner arrangements rather than building direct sales forces in most markets.

Risks

• Distributor dependence — Sonoma uses distributors for most of its products and states it has limited control over the amount and timing of resources partners devote to its products, and partners may breach or terminate agreements or fail to commercialize successfully.
• Limited profitability history — Reported annual net income has been only $4,835 (2024), $3,457 (2025) and $3,175 (2026) after net losses of $5.1M and $5.2M in 2022 and 2023, and the company lists its ability to become profitable as a risk.
• Negative operating cash flow — Operating cash flow was negative $3.9M in fiscal 2026 and negative $88,000 in fiscal 2025, with cash and equivalents of $5.3M at 2026-06-30 against $11.5M of total liabilities.
• Regulatory and international exposure — The company cites risks including FDA and other regulatory submissions and decisions, European Medical Device Regulation transition and compliance, foreign operations, foreign currency fluctuations, and global economic conditions or changes to trade policies.

Outlook

The excerpts do not include management revenue or earnings guidance. Management states it will continue focusing on increasing revenues and progress toward profitability, investing in HOCl research and development, and seeking new regulatory clearances to expand markets. The Aug 19, 2026 8-K disclosed shareholder vote results, and the Apr 30 and Apr 9, 2026 8-Ks disclosed entry into material agreements, but the excerpts provided do not describe their terms.