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PURE BIOSCIENCE, INC. (PURE)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 FY2025 revenue was $0.491M, up 11.1% year over year and 25.6% quarter over quarter; net loss narrowed to $0.58M from $0.80M in Q2, reflecting lower operating expenses .
  • Gross margin was 57.6%* and net income margin improved to -118.1%*, supported by SG&A declines year over year (Q3: $0.776M vs $0.998M) .
  • Management highlighted successful full-scale commercial dairy plant demonstrations for the SDC-based membrane solution and ongoing expense discipline; no formal guidance was provided .
  • Wall Street consensus (S&P Global) for EPS and revenue was unavailable for Q3 FY2025; no earnings call transcript was found for Q3 FY2025, limiting Q&A insights (values retrieved from S&P Global).
  • Potential stock catalyst: commercial roll-out and distributor expansion of the new membrane treatment solution in dairy/beverage plants, given demonstrated efficacy and cost-savings narrative .

What Went Well and What Went Wrong

What Went Well

  • Revenue growth and loss reduction: Net product sales rose to $489k (+$49k YoY), and net loss narrowed to $580k from $857k YoY; Q3 gross profit increased to $283k versus $258k YoY .
  • Operating expense discipline: SG&A fell sharply YoY (Q3: $776k vs $998k), consistent with management’s focus on reducing expenses .
  • Membrane solution milestones: “We were able to demonstrate that our dairy membrane solution using our SDC technology is effective in full-scale commercial dairy plants,” supporting commercialization momentum .

What Went Wrong

  • Continued net losses and negative margins: Q3 net loss of $580k and negative net income margin (-118.1%*) underscore scale and profitability challenges .
  • Reliance on related-party financing: Convertible notes payable to related parties increased to $4.899M at April 30, 2025 (from $3.975M at January 31, 2025), reflecting ongoing funding needs .
  • Limited external validation and visibility: No formal guidance and unavailable consensus coverage reduce investor visibility; no earnings call transcript restricts Q&A clarity (values retrieved from S&P Global).

Financial Results

Summary Financials vs Prior Year and Prior Quarter

MetricQ3 2024Q2 2025Q3 2025
Revenue ($USD)$441,000 $391,000 $491,000
Basic & Diluted EPS ($)($0.01) ($0.01) ($0.01)
Gross Margin (%)58.50%*58.06%*57.64%*
Net Income Margin (%)-194.33%*-204.09%*-118.13%*

*Values retrieved from S&P Global.

Segment/Revenue Composition

MetricQ3 2024Q2 2025Q3 2025
Net Product Sales ($USD)$440,000 $391,000 $489,000
Royalty Revenue ($USD)$1,000 $0 $2,000
Total Revenue ($USD)$441,000 $391,000 $491,000

Operating KPIs

MetricQ3 2024Q2 2025Q3 2025
Cost of Goods Sold ($USD)$183,000 $164,000 $208,000
Gross Profit ($USD)$258,000 $227,000 $283,000
SG&A ($USD)$998,000 $871,000 $776,000
R&D ($USD)$77,000 $81,000 $91,000
Loss from Operations ($USD)($817,000) ($725,000) ($584,000)
Other Income (Expense), net ($USD)$1,000 ($3,000) $82,000
Interest Expense, net ($USD)($41,000) ($70,000) ($78,000)
Net Loss ($USD)($857,000) ($798,000) ($580,000)

Balance Sheet Highlights

MetricQ1 2025 (Oct 31, 2024)Q2 2025 (Jan 31, 2025)Q3 2025 (Apr 30, 2025)
Cash & Cash Equivalents ($USD)$346,000 $202,000 $540,000
Accounts Receivable ($USD)$371,000 $180,000 $287,000
Inventories, net ($USD)$72,000 $75,000 $131,000
Accounts Payable ($USD)$718,000 $700,000 $799,000
Convertible Notes to Related Parties ($USD)$3,509,000 $3,975,000 $4,899,000
Stockholders’ Deficiency ($USD)($3,496,000) ($4,267,000) ($4,814,000)

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueFY2025N/AN/ANot provided in Q3 FY2025
MarginsFY2025N/AN/ANot provided in Q3 FY2025
OpExFY2025N/AN/ANot provided; management continues to reduce operating expenses
Other (OI&E, tax rate, dividends)FY2025N/AN/ANot provided

Earnings Call Themes & Trends

Note: No Q3 FY2025 earnings call transcript found; themes below reflect press releases/8-Ks.

TopicPrevious Mentions (Q1 FY2025)Previous Mentions (Q2 FY2025)Current Period (Q3 FY2025)Trend
Dairy/Bev membrane solutionFocus on distributor onboarding and marketing, anticipated lower revenue due to a major customer interruption Advanced from lab to pilot and into full-scale in-plant pilots at a leading California State University; working with a large distribution partner Demonstrated efficacy in full-scale commercial dairy plants; product positioned for membrane treatment with cost-savings narrative Progressing from pilot to demonstrated commercial efficacy
Expense disciplineEarly focus on SG&A reductions (YoY down) SG&A down by $386k in first six months YoY; reductions in personnel, professional fees, SBC SG&A down YoY in Q3; management reiterates cost controls Continued reductions
Distribution network/customer tractionOnboarding new distributors; training and marketing Progress with direct customers and distribution network Continued progress across distribution network; expanding membrane solution with partners Building traction
Regulatory/legal———Not discussed in reviewed materials
Macro/tariffs/supply chain———Not discussed in reviewed materials
R&D execution—Lab-to-pilot scale-up and data collection Validated SDC membrane application; NSF-listed attributes highlighted Focused application development

Management Commentary

  • “Our fiscal third quarter year-over-year sales growth continues to progress with our direct customers and distribution network, while we continue to reduce operating expenses. This quarter, we were able to demonstrate that our dairy membrane solution using our SDC technology is effective in full-scale commercial dairy plants.” — Robert Bartlett, CEO .
  • PURE Hard Surface is now available for membrane treatment, aiming for measurable cost savings and maintaining quality standards without traditional chemistry trade-offs .
  • Q2 context: “Advancing our dairy membrane solutions from the microbiological laboratory bench work to the Dairy Pilot Processing Center… and into full-scale commercial in-plant pilots.” — Robert Bartlett .

Q&A Highlights

  • No Q3 FY2025 earnings call transcript was found; consequently, no Q&A disclosures were available in our document set for this quarter (company materials reviewed: press releases and 8-K filings) .

Estimates Context

  • S&P Global Wall Street consensus for EPS and revenue for PURE in Q3 FY2025 was unavailable; no estimate counts were returned (values retrieved from S&P Global).
  • Without consensus estimates, we benchmark results versus prior quarter and prior year; investors should monitor initiation of coverage or distributor-driven updates that could influence future estimates .

Key Takeaways for Investors

  • Revenue inflected positively: Q3 revenue of $0.491M grew 11% YoY and 26% QoQ; royalty revenue also increased, supporting gross profit expansion .
  • Expense control is working: SG&A fell to $0.776M (from $0.998M YoY), helping narrow net loss to $0.58M; operating loss improved to $0.584M .
  • Commercial validation: Full-scale dairy plant demonstrations and positioning PURE Hard Surface for membrane treatment enhance near-term commercialization potential with an efficiency/cost-savings value prop .
  • Financing reliance persists: Convertible notes to related parties rose to $4.899M, and stockholders’ deficiency deepened; watch funding runway and dilution risk .
  • Margin trajectory: Gross margin of 57.6%* remains robust for a micro-cap with limited scale, while net margin improvement (-118.1%*) reflects better expense discipline (values retrieved from S&P Global).
  • Lack of guidance/coverage: No formal guidance and unavailable consensus estimates reduce visibility; execution with distributors and customer adoption are key to re-rating .
  • Trading implications: If follow-on announcements convert pilots/demonstrations into orders, micro-cap liquidity could magnify stock reaction; absent that, continued reliance on financing may pressure shares .