The sharp deterioration in profitability and cash flow raises concerns about the company's standalone value ahead of the May 28 going-private vote. Monitor the merger vote outcome closely — if the deal fails, the stock could reprice lower given the weak operating trends.
Price Chart
Executive Summary
FONAR reported fiscal Q3 2026 results with revenue down 3% YoY to $26.5M, net income down 25% to $2.3M, and diluted EPS down 35% to $0.24. The filing also updates on the proposed management-led going-private transaction, with a stockholder vote scheduled for May 28, 2026.
Key Financial Metrics
Key Facts
- Q3 FY2026 revenue decreased 3% YoY to $26.5M from $27.2M
- Net income decreased 25% to $2.3M from $3.1M
- Diluted EPS decreased 35% to $0.24 from $0.37
- Income from operations decreased 33% to $2.4M from $3.7M
- Nine-month operating cash flow fell to $3.4M from $7.0M
- Special meeting of stockholders scheduled for May 28, 2026 to vote on going-private merger
- Share repurchase program remains suspended due to pending transaction
Financial Impact
Revenue decline of $0.7M (3%), net income decline of $0.8M (25%), EPS decline of $0.13 (35%) in the quarter
Risk Factors
- Going-private transaction may not receive stockholder approval
- Continued revenue and earnings decline could pressure valuation
- Operating cash flow halved, limiting financial flexibility
- Suspension of buyback removes a support mechanism for the stock
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| DEFA14A Filing (Primary) | 0001731122-26-000711 |
| Document: fonar_defa14a.htm | 0001731122-26-000711 |
| Document: 0001731122-26-000711-index-headers.html | 0001731122-26-000711 |
| Document: 0001731122-26-000711-index.html | 0001731122-26-000711 |
| Document: 0001731122-26-000711.txt | 0001731122-26-000711 |
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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