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LT

Lifeloc Technologies, Inc (LCTC)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 revenue was $2.219M, down 7% year over year, with gross margin holding at 41.7%; diluted EPS was $(0.14) as R&D spend remained elevated for SpinDx development .
  • Sequentially, revenue declined from Q1’s $2.277M and EPS loss widened from $(0.11) to $(0.14), while gross margin improved from 39.9% to 41.7% on pricing actions that offset inflation/tariffs .
  • Management began beta testing of the SpinDx oral fluid THC test and reiterated commercial launch timing in early 2026; the company also migrated to the OTCID market tier effective July 1, 2025, targeting improved liquidity .
  • Wall Street consensus estimates for revenue and EPS were unavailable via S&P Global; no beat/miss assessment can be made. Values retrieved from S&P Global.*
  • Potential stock reaction catalysts: progress toward SpinDx beta/commercialization and OTCID listing, balanced against cash burn and the note that additional financing may be required to complete development .

What Went Well and What Went Wrong

What Went Well

  • Gross margin resilience: Q2 2025 total gross margin was 41.7% vs. 41.6% last year; H1 2025 gross margin 40.8% vs. 40.3% in H1 2024, with price increases largely offsetting inflation and tariff costs .
  • Product innovation and certification: L‑series LX9/LT7 features (smartphone pairing, wider temperature ranges, local language customization) and certifications (AS 3547:2019) continue to support market penetration; FC‑series remains popular across law enforcement and international customers .
  • Strategic progress: “SpinDx prototypes are starting to travel to trade shows for key customer demonstrations… We have identified rapid drug testing as our biggest growth opportunity” — Dr. Wayne Willkomm, President & CEO .

What Went Wrong

  • Top-line pressure: Q2 2025 revenue fell 7% YoY to $2.219M, reflecting softness vs. Q2 2024 .
  • Losses widened: Net loss increased to $(394)K and diluted EPS to $(0.14), from $(298)K and $(0.12) in Q2 2024; sequentially EPS worsened from $(0.11) in Q1 2025 .
  • Elevated R&D and financing needs: Q2 R&D was $623K; management noted the pace of SpinDx development “may require additional financing to complete” .

Financial Results

MetricQ2 2024Q1 2025Q2 2025
Revenue ($USD)$2,387,330 $2,277,034 $2,219,376
Gross Profit ($USD)$993,596 $908,566 $924,599
Gross Margin (%)41.6% 39.9% 41.7%
Operating Income (Loss) ($USD)$62,472 $(280,548) $(378,265)
Net Income (Loss) ($USD)$55,145 $(292,686) $(393,639)
Diluted EPS ($USD)$0.02 $(0.11) $(0.14)

Segment breakdown:

Revenue Components ($USD)Q2 2024Q1 2025Q2 2025
Product Sales$2,370,433 $2,263,047 $2,191,260
Royalties$8,824 $5,671 $19,800
Rental Income$8,073 $8,316 $8,316
Total Revenue$2,387,330 $2,277,034 $2,219,376

KPIs and Operating Profile:

KPI ($USD)Q2 2024Q1 2025Q2 2025
R&D Expense$662,276 $469,680 $623,262
Sales & Marketing$365,374 $334,556 $339,528
General & Administrative$363,008 $384,878 $340,074
Cash and Equivalents$504,642 $1,522,457 $995,750
Accounts Receivable (net)$831,501 $761,697 $765,730
Inventories (net)$2,962,071 $2,941,549 $2,988,752

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
SpinDx commercial launch timingEarly 2026Early 2026 projected Early 2026 projected Maintained
SpinDx beta testing statusQ2 2025Beta testing to start in Q2 2025 Beta testing commenced (agreement in place; logistics finalizing) Progressed
Margin outlookFY 2025Expect price increases to improve margins Price increases largely offset inflation/tariffs in H1 2025 Validated/maintained
Market listingJuly 1, 2025Application for OTCID completed Approved; trading commenced on OTCID Achieved

No quantitative revenue/EPS guidance was provided in Q2 2025 materials .

Earnings Call Themes & Trends

TopicPrevious Mentions (Q2 2024 & Q1 2025)Current Period (Q2 2025)Trend
SpinDx drug testing platformPlan to start beta testing later in 2024; target commercial launch in 2025; unique THC impairment detection; significant R&D investment Beta testing beginning for delta‑9‑THC oral fluid; commercial launch projected early 2026; prototypes shown at trade shows; potential additional financing required Execution progressing; timeline refined to early 2026; funding needs flagged
Product innovation (L‑series/FC‑series)LX9 smartphone pairing shipments; certifications; FC‑series popularity; Easycal supports share gains L‑series features and certifications continue; expectation L‑series incremental to FC‑series; Easycal enhances brand/protection Continuity; expanding penetration
Pricing, inflation, tariffs2024 margins pressured by inflation H1 2025 margins aided by price increases largely offsetting inflation/tariffs Margin stabilization with pricing actions
FinancingLine of credit and equity raise to support SpinDx (Q3 2024) ; debenture $750K (FY 2024) + $75K in Q1 2025 Current pace may require additional financing to complete development Ongoing capital needs
Market listing/liquidityApplication for OTCID submitted Approved and trading on OTCID commenced July 1, 2025 Liquidity pathway improved

Note: No Q2 2025 earnings call transcript was available; themes reflect press releases and filings .

Management Commentary

  • “SpinDx prototypes are starting to travel to trade shows for key customer demonstrations. We are pleased to build customer engagement as the product gets closer to launch. We have identified rapid drug testing as our biggest growth opportunity, and we believe that SpinDx will play an important role in addressing this unmet market need.” — Dr. Wayne Willkomm, President & CEO .
  • “Rapid drug testing is our biggest growth opportunity… We have chosen to prioritize long term value creation over short term profitability to fund this opportunity. We anticipate continued high research and development expenses in this final push toward commercialization…” — Dr. Wayne Willkomm .
  • On margin drivers: H1 2025 gross margin improved vs. H1 2024, with price increases largely offsetting inflation/tariff costs .
  • On market access: Lifeloc approved for OTCID, replacing OTC Pink Current Market, which may allow a more liquid marketplace .

Q&A Highlights

  • No Q2 2025 earnings call transcript was found; therefore, no Q&A themes are available for this quarter [ListDocuments: earnings-call-transcript=0].

Estimates Context

  • S&P Global consensus estimates for LCTC were unavailable for Q2 2025 (no EPS or revenue consensus, no estimate counts). Values retrieved from S&P Global.*
  • Without published consensus, beat/miss analysis versus Street is not possible for revenue or EPS this quarter. Actuals: Revenue $2.219M; Diluted EPS $(0.14) .

Key Takeaways for Investors

  • Margin stabilization is a positive: gross margin held at 41.7% in Q2, aided by pricing, despite revenue pressure and inflation/tariffs .
  • SpinDx execution is advancing: beta testing initiated and commercial launch remains targeted for early 2026; continued R&D investment is expected .
  • Funding watch: management signaled additional financing may be required to complete SpinDx; monitor cash ($996K at Q2) and debt balances (term loan and subordinated debentures) .
  • Product portfolio is durable: L‑series features/certifications and FC‑series popularity support market presence; Easycal builds brand lock-in .
  • Market/liquidity backdrop improved with OTCID listing, potentially enhancing shareholder liquidity and visibility .
  • Near-term trading lens: progress updates on beta testing, any financing actions, and margin trajectory are likely to drive stock moves given absence of Street estimates .
  • Medium-term thesis: if SpinDx commercialization proceeds on time and funding is secured, Lifeloc could access a larger, faster-growing drug testing market; execution and capital discipline remain critical .

Footnote: *Values retrieved from S&P Global.