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Pharma-Bio Serv, Inc. (PBSV)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 delivered modest revenue growth and a swing to profit: Revenue was $2.42M and net income was $0.10M, versus $2.38M and a net loss of $0.21M in Q2 2024 . EPS was $0.004, versus -$0.009 in Q2 2024 .
  • Results missed Wall Street consensus: Revenue of $2.42M vs $3.00M estimate and EPS of $0.004 vs $0.03 estimate; both represent significant misses. Values retrieved from S&P Global.
  • Profitability improved year over year as the company concentrated on higher-margin projects; management emphasized focus on “high margin yielding projects,” positioning the business for future growth .
  • No formal quantitative guidance was provided for Q2 2025; the most recent corporate action remains the previously announced special dividend of $0.075 per share (approved January 29, 2025, payable on or about March 20, 2025) .

What Went Well and What Went Wrong

What Went Well

  • YoY improvement in profitability: Q2 2025 revenue increased to approximately $2.4M and net income was approximately $0.1M, an improvement from Q2 2024’s net loss .
  • Strategic focus: “This second quarter demonstrate[s] our efforts to concentrate on high margin yielding projects,” which management believes positions the company for growth .
  • Momentum across markets continued from Q1: Projects underway in Europe, Asia, and Latin America highlight continued expansion efforts .

What Went Wrong

  • Consensus miss: Revenue ($2.42M) vs $3.00M and EPS ($0.004) vs $0.03 for Q2 2025, indicating a material shortfall vs expectations. Values retrieved from S&P Global.
  • EBITDA remained negative: Q2 2025 EBITDA was -$79,456* despite net income profitability, reflecting ongoing pressure at the operating level. Values retrieved from S&P Global.
  • Limited visibility: No quantitative guidance ranges were disclosed in the Q2 press release, which may reduce near-term estimate confidence .

Financial Results

MetricQ2 2024Q1 2025Q2 2025
Revenue ($USD)$2,377,617 $2,471,333 $2,417,044
Net Income ($USD)-$213,817*$8,536 $95,353
Diluted EPS ($USD)-$0.009312*$0.000371 $0.004
EBITDA ($USD)-$307,867*-$82,752*-$79,456*
Net Income Margin (%)-8.99%*0.35%*3.95%*
EBITDA Margin (%)-12.95%*-3.35%*-3.29%*
  • Values retrieved from S&P Global.

Consensus vs Actual (Q2 2025):

MetricConsensusActual
Revenue ($USD)$3,000,000$2,417,044
EPS ($USD)$0.030$0.004
EBITDA ($USD)N/A-$79,456

Values retrieved from S&P Global.

Segment breakdown: Not disclosed in the company’s press releases/8-K materials for Q2 2025 .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueFY/Q2 2025None disclosedNone disclosedMaintained (no guidance)
MarginsFY/Q2 2025None disclosedNone disclosedMaintained (no guidance)
OpExFY/Q2 2025None disclosedNone disclosedMaintained (no guidance)
Tax RateFY/Q2 2025None disclosedNone disclosedMaintained (no guidance)
Dividend per share (Special)Mar 20, 2025 (payable)None$0.075Announced (Jan 29, 2025)

Earnings Call Themes & Trends

TopicPrevious Mentions (Q-2: Q4 2024)Previous Mentions (Q-1: Q1 2025)Current Period (Q2 2025)Trend
Project mix / high-margin focusFocus on higher-value services amid industry investment slowdown Emphasis on client needs and unmatched solutions with global projects underway Concentrating on “high margin yielding projects” to position for growth Improving profitability focus
Geographic expansionBusiness development and prospective markets; tech adoption to strengthen connections Projects underway in Europe, Asia, Latin America Continued global service footprint (PR, US, Europe, LatAm) Expansion sustained
Market conditions2024 challenging industry backdrop; redirected resources to BD and tech Early signs of net revenue growth across markets Modest YoY growth with profit; still below consensus Recovery, but below Street
Technology adoption / BDAdoption of advanced technologies to strengthen client connections Driving growth by anticipating client needs Positioning for future growth via high-margin projects Ongoing investment narrative

Management Commentary

  • “The results of this second quarter demonstrate our efforts to concentrate on high margin yielding projects. We believe these efforts position us well for future growth.” — Mr. Sanchez, CEO .
  • “With projects underway in Europe, Asia, and Latin America, we are poised for continued expansion as we drive growth by anticipating client needs and delivering unmatched solutions.” — Mr. Sanchez, CEO (Q1 2025) .
  • “We concentrated our efforts on higher-value services and redirected resources toward business development, including the adoption of advanced technologies… As we move forward, we believe these measures position us well for potential growth in 2025.” — Mr. Sanchez, CEO (FY 2024 release) .
  • Special dividend: “The Company's Board of Directors approved a Special Dividend of $0.075 per share payable on or about March 20, 2025.” — Mr. Sanchez, CEO .

Q&A Highlights

Not applicable — an earnings call transcript for Q2 2025 was not available in the document catalog.

Estimates Context

  • Q2 2025 missed consensus: Revenue $2.42M vs $3.00M; EPS $0.004 vs $0.03; EBITDA consensus not available while actual EBITDA was -$79,456. Values retrieved from S&P Global.
  • Given the miss, near-term Street estimates may need to recalibrate to the company’s current revenue run-rate and margin profile, especially if high-margin mix improvement takes time to fully translate into positive EBITDA and higher EPS. Values retrieved from S&P Global and company releases .

Key Takeaways for Investors

  • Sequentially stable revenue with YoY improvement and a swing to positive net income, but results were below consensus — an important near-term sentiment driver for the stock. Values retrieved from S&P Global and company releases .
  • Management’s high-margin project focus is a constructive strategic narrative; watch for evidence that mix shift can turn EBITDA positive and sustain EPS growth .
  • Lack of quantitative guidance reduces visibility; investors should monitor upcoming filings/updates for pipeline conversion and margin disclosure .
  • The previously announced $0.075 special dividend underscores balance sheet resilience and shareholder return orientation .
  • Global project activity (Europe, Asia, LatAm) suggests demand pockets; however, conversion into higher revenue vs Street expectations remains the key hurdle .
  • Estimate revisions likely trend downward post-miss; positioning into catalysts should consider timing of business development wins and margin traction. Values retrieved from S&P Global.
  • Near-term trading implication: absent fresh guidance, stock may trade on delivery against the high-margin narrative and any subsequent contract announcements; medium-term thesis hinges on converting BD efforts into sustained, profitable growth .