The stock trades near the $19.00 take-private offer price, so the weak earnings are unlikely to move the stock materially. The key catalyst is the May 28 shareholder vote on the merger. Monitor for any stockholder litigation or competing bids that could disrupt the deal. If the merger fails, the stock would re-rate sharply lower given deteriorating fundamentals.
Price Chart
Executive Summary
FONAR reported a weak fiscal Q3 2026 with revenue declining 3% YoY to $26.5M, operating income down 33% to $2.4M, and diluted EPS falling 35% to $0.24. Operating cash flow for the nine-month period dropped 51% to $3.4M. The company is in the process of a take-private merger at $19.00/share, with a shareholder vote scheduled for May 28, 2026, which caps the stock near the deal price and makes the weak operational results largely moot for trading purposes.
Key Financial Metrics
Key Facts
- Total Revenues-Net decreased 3% to $26.5M for Q3 FY2026 vs $27.2M a year ago
- Income from Operations decreased 33% to $2.4M for Q3 FY2026 vs $3.7M a year ago
- Net Income decreased 25% to $2.3M for Q3 FY2026 vs $3.1M a year ago
- Diluted EPS decreased 35% to $0.24 for Q3 FY2026 vs $0.37 a year ago
- Nine-month operating cash flow decreased 51% to $3.4M vs $7.0M a year ago
- SG&A increased 5% to $8.4M for Q3 FY2026 vs $8.0M a year ago
- Record quarterly scan volume of 55,660, up 1.8% YoY
- Shareholder vote on take-private merger at $19.00/share scheduled for May 28, 2026
- Share repurchase program remains suspended due to pending merger
Financial Impact
Revenue decline of $0.7M (-3%), operating income decline of $1.2M (-33%), EPS decline of $0.13 (-35%) vs prior year quarter
Risk Factors
- Take-private merger fails to close, exposing stock to weak operational performance
- Continued revenue and earnings decline without deal floor
- Operating cash flow deterioration limits internal investment capacity
- SG&A growth outpacing revenue growth compressing margins further
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001731122-26-000710 |
| Document: fonar_8-k.htm | 0001731122-26-000710 |
| Document: 0001731122-26-000710-index-headers.html | 0001731122-26-000710 |
| Document: 0001731122-26-000710-index.html | 0001731122-26-000710 |
| Document: 0001731122-26-000710.txt | 0001731122-26-000710 |
| 8-K Data (Synthetic) | 0001731122-26-000710 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Jun 15, 2026 19w ago | 15-12G | — | awaiting T+5 | — | — |
Jun 3, 2026 20w ago | 8-K | $19.09 | awaiting T+5 | — | — |
May 21, 2026 22w ago | DEFA14A | $18.90 $19.11 | ▲ +1.14% | ▼ −0.52% | — |
May 21, 2026 22w ago | 8-K | $18.90 $19.11 | ▲ +1.14% | ▼ −0.52% | — |
May 12, 2026 23w ago | DEFA14A | $18.86 $18.86 | · 0.00% | ▼ −1.16% | — |
May 12, 2026 23w ago | 8-K | $18.86 $18.86 | · 0.00% | ▼ −1.16% | — |
US Market Status
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