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PS

Pharma-Bio Serv, Inc. (PBSV)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 2025 revenue was $1.96M and diluted EPS was -$0.01; both significantly missed Wall Street consensus ($3.00M revenue, $0.03 EPS; one estimate each). Bold miss reflects lower project volume across Puerto Rico, U.S., and Europe versus expectations . EPS estimate $0.03*; revenue estimate $3.00M*; EPS -$0.009 . Values retrieved from S&P Global.
  • Gross margin improved 290 bps YoY to 29.3% despite lower revenues, driven by margin improvements in Puerto Rico and U.S. and a high-margin European project .
  • Management emphasized cost structure streamlining, focus on core segments, and imminent commencement of several significant projects, positioning for improved execution near term .
  • No formal guidance provided; liquidity remains strong with ~$11.5M working capital, supported by marketable securities and cash balances . Potential near-term catalysts include project starts and European margin mix .

What Went Well and What Went Wrong

What Went Well

  • Gross margin expanded YoY: 29.3% in Q3 2025 vs 26.3% in Q3 2024, reflecting improved margins in Puerto Rico/U.S. and one high-margin European project .
  • SG&A declined ~$0.13M YoY ($0.89M vs $1.02M) on planned savings, demonstrating operating discipline .
  • CEO highlighted operational momentum and imminent project starts: “decisive steps to streamline our cost structure... preparing for the immediate commencement of several significant projects” .

What Went Wrong

  • Top line contracted across regions QoQ and YoY: Puerto Rico ($1.20M vs $1.45M YoY), U.S. ($0.64M vs $0.74M YoY), Europe ($0.10M vs $0.22M YoY) .
  • EPS and revenue missed consensus materially (EPS -$0.01 vs $0.03*, revenue $1.96M vs $3.00M*), reflecting softer project volume and mix; one estimate each amplifies variance risk . Values retrieved from S&P Global.
  • Customer concentration rose: four customers accounted for 43.4% of Q3 revenues and 47.1% of receivables; four affiliated groups represented 48.1% of Q3 revenues and 55.3% of receivables—raising execution/collection risk amid project shifts .

Financial Results

Headline Results vs Prior Year and Estimates (Q3 2025 vs Q3 2024)

MetricQ3 2024Q3 2025 ActualQ3 2025 Consensus
Revenue ($USD)$2,418,163 $1,963,083 $3,000,000*
Diluted EPS ($USD)-$0.014 -$0.009 $0.03*
Gross Margin (%)26.3% 29.3% NA
SG&A ($USD)$1,017,166 $888,139 NA
Loss from Operations (EBIT) ($USD)-$381,782 -$313,877 NA

Values retrieved from S&P Global.

Bold implications: Both revenue and EPS posted significant misses vs consensus (one estimate), despite margin expansion—suggesting volume gaps outweighed efficiency gains .

Sequential Trend (Q1 → Q3 FY25)

MetricQ1 2025Q2 2025Q3 2025
Revenue ($USD)$2,471,333 $2,417,044 $1,963,083
Diluted EPS ($USD)$0.000371 $0.004 -$0.009
Gross Margin (%)31.08% 33.87% 29.3%

Segment/Region Revenue Mix (Q3)

RegionQ3 2024 ($)Q3 2024 (%)Q3 2025 ($)Q3 2025 (%)
Puerto Rico$1,454K 60.1% $1,204K 61.3%
United States$737K 30.5% $643K 32.8%
Europe$224K 9.3% $99K 5.0%
Other$3K 0.1% $17K 0.9%
Total$2,418K 100.0% $1,963K 100.0%

Additional KPIs

MetricQ3 2024Q3 2025
Cost of Services ($USD)$1,782,779 $1,388,821
Gross Profit ($USD)$635,384 $574,262
SG&A as % of Revenue42.1% 45.2%
Other Income ($USD)$91,592 $104,848
Net Income (Loss) ($USD)-$309,194 -$204,250
Net Margin (%)-12.8% -10.4%

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueFY25/Q4None provided None provided Maintained: No formal guidance
EPSFY25/Q4None provided None provided Maintained: No formal guidance
MarginsFY25/Q4None provided None provided Maintained: No formal guidance
DividendFY25$0.075 declared Jan 28, 2025 Paid Mar 20, 2025 ($1.72M) Implemented

Note: Company did not issue quantitative revenue/EPS/margin guidance in Q3 filings or press release .

Earnings Call Themes & Trends

No Q3 2025 earnings call transcript was available in the document set or search; analysis relies on press releases and 10-Q MD&A .

TopicPrevious Mentions (Q1 2025)Previous Mentions (Q2 2025)Current Period (Q3 2025)Trend
Margin focus“Experiencing net revenue growth” with global projects; poised for expansion “Concentrate on high margin yielding projects” Margin expansion YoY; highlight improved PR/U.S. margins and high-margin Europe project Improving margins, mix supportive
Cost structureNot highlighted Operational focus implicit in margin comment “Decisive steps to streamline cost structure…exit less profitable areas” Active restructuring to drive efficiency
Project pipelineProjects underway in Europe, Asia, Latin America Positioning for future growth “Immediate commencement of several significant projects” Near-term project starts as catalyst
Regional mixGlobal projects —PR/U.S. down YoY; Europe down in Q3 but strong YTD with high-margin project Mix shifting; Europe margin-rich but quarterly volatility
Regulatory/tax——PR tax grant extension requested; assumptions used in provision Tax environment manageable; awaiting PRIDCO
Customer concentration——Top customers/groups >40–50% of revenues/AR Heightened concentration risk

Management Commentary

  • CEO strategic message: “Streamline our cost structure, prioritize core business segments, and exit less profitable areas…positioned to capitalize on new opportunities…preparing for the immediate commencement of several significant projects” .
  • MD&A emphasis: Margin percentage improved due to better PR/U.S. pricing/mix and a high-margin European project; SG&A down on planned savings .
  • Liquidity/tactical flexibility: ~$11.5M working capital; ongoing buyback capacity (1.46M shares still authorized) .

Q&A Highlights

  • No Q3 2025 earnings call/Q&A transcript available; no additional guidance clarifications found in filings or press materials .

Estimates Context

  • Q3 2025 result vs consensus: Revenue $1.963M vs $3.000M*; EPS -$0.009 vs $0.03*. Both are significant misses; estimates counted: 1 for EPS, 1 for revenue*.
  • Implications: With one covering estimate each, models likely need to adjust downward for near-term volume assumptions while preserving improved margin trajectory given PR/U.S. efficiencies and European mix . Values retrieved from S&P Global.
MetricQ3 2025 ActualQ3 2025 ConsensusSurprise
Revenue ($USD)$1,963,083 $3,000,000*-$1,036,917 (Miss)
Diluted EPS ($USD)-$0.009 $0.03*-$0.039 (Miss)
# of Estimates (Rev)1*1*—
# of Estimates (EPS)1*1*—

Values retrieved from S&P Global.

Key Takeaways for Investors

  • Bold double miss vs consensus (one estimate each) driven by weaker project volume; watch for timing of “immediate commencement” projects to bridge revenue gaps . Values retrieved from S&P Global.
  • Margin quality improving: YoY gross margin +290 bps amid lower revenue; PR/U.S. efficiencies and European high-margin engagements support medium-term profitability .
  • Liquidity strong ($11.5M working capital) with marketable securities; supports execution through project timing volatility and enables continued buybacks .
  • Regional mix volatility: Europe is margin-accretive YTD but quarterly revenue uneven; PR/U.S. declines in Q3 highlight dependence on project starts and customer timelines .
  • Customer concentration elevated (top customers/groups >40–50%); execution risks amplified by project scheduling and collections; monitor accounts receivable concentration .
  • Tax/regulatory backdrop stable; PR tax grant extension pending, financials assume similar terms—no material near-term impact expected .
  • Near-term trading setup: Potential relief if project starts materialize and margins hold; medium-term thesis hinges on sustained high-margin mix in Europe and improved utilization across PR/U.S. .