Executive Summary

Q4 2025 showed sequential improvement: revenue of $0.764M versus $0.491M in Q3 and $0.391M in Q2, with gross margin of 61.3% and net loss of $0.33M; EPS was -$0.00.* The company attributed growth to expanded distribution and initial commercialization of its dairy/beverage membrane treatment solution .
Full-year FY2025 net product sales rose 12.4% to $2.198M and net loss narrowed to ($2.4M) from ($3.4M) on operating cost cuts; net cash used in operations improved to ($2.0M) from ($2.5M) .
Strategic progress: expanded distribution (Hydrite; Bonsai) and piloted UF/RO membrane treatment in full-scale plants, laying groundwork for broader adoption in dairy/beverage end markets .
No formal quantitative guidance or earnings call transcript was available for Q4; near-term stock reaction catalysts center on conversion of pilots to commercial orders and distributor enablement in target sectors .

What Went Well and What Went Wrong

What Went Well

Commercial traction: “We expanded our core business by 14% and developed a new solution for treating membranes in the dairy and beverage industries” — CEO Robert Bartlett .
Product innovation validated: Q3 demonstrated full-scale commercial efficacy of the SDC-based membrane solution, supporting a next-gen approach to fouling removal and throughput restoration .
Operating discipline: FY2025 net loss improved to ($2.4M) from ($3.4M), with SG&A reductions; nine-month and quarterly periods show consistent YoY OpEx decreases .

What Went Wrong

Balance sheet strain: stockholders’ deficiency widened to $(5.116M); convertible notes payable to related parties rose to $5.236M, increasing interest burden .
Limited scale: quarterly revenue base remains sub-$1M, highlighting dependence on successful pilot-to-order conversion and distributor adoption to reach profitability .
Estimates/visibility: No Wall Street consensus estimates available via S&P Global for EPS or revenue in Q4, constraining beat/miss assessment.*

Financial Results

Quarterly Performance vs Prior Periods

Metric	Q2 2025	Q3 2025	Q4 2025
Revenue ($USD)	$0.391M	$0.491M	$0.764M*
Gross Profit ($USD)	$0.227M	$0.283M	$0.468M*
Gross Margin (%)	58.1% (calc. from )	57.6% (calc. from )	61.3%*
Total Operating Expenses ($USD)	$1.116M	$1.075M	$1.100M*
EBIT ($USD)	($0.725M)	($0.584M)	($0.336M)*
Net Income ($USD)	($0.798M)	($0.580M)	($0.332M)*
Diluted EPS ($USD)	($0.01)	($0.01)	($0.00)*
Cash from Operations ($USD)	($0.544M)*	($0.512M)*	($0.456M)*
Cash & Equivalents (period-end) ($USD)	$0.202M	$0.540M	$0.334M

Values marked with * retrieved from S&P Global.

Notes:

Sequential revenue growth Q2→Q3→Q4 supported by increased distribution and early membrane solution traction .
Q4 margin improvement reflects a richer mix and operating discipline; however, absolute OpEx and interest expense continue to weigh on profitability .

Segment Breakdown

Segment	Q2 2025	Q3 2025	Q4 2025
Reportable segments	Not disclosed (Company reports consolidated results only)

KPIs and Operating Metrics

KPI	Q2 2025	Q3 2025	Q4 2025
Net product sales ($USD)	$0.391M	$0.489M	$0.762M*
SG&A ($USD)	$0.871M	$0.776M	N/A (quarter not disclosed)
R&D ($USD)	$0.081M	$0.091M	N/A (quarter not disclosed)
Net cash used in operations (period) ($USD)	($1.047M) (six months)	($1.559M) (nine months)	($2.015M) (FY)

Values marked with * retrieved from S&P Global.

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY/Q4 2025	None provided	None provided	Maintained: no formal guidance
Margins	FY/Q4 2025	None provided	None provided	Maintained: no formal guidance
OpEx	FY/Q4 2025	None provided	Directional reduction emphasis (no numeric targets)	N/A
Other (OI&E, tax, dividends)	FY/Q4 2025	None provided	None provided	N/A

The company did not issue quantitative guidance ranges in Q4 materials; commentary emphasized market expansion and OpEx discipline without numeric targets .

Earnings Call Themes & Trends

No Q4 2025 earnings call transcript was found; prior quarters’ narratives and Q4 press release used to track themes.

Topic	Previous Mentions (Q2 2025)	Previous Mentions (Q3 2025)	Current Period (Q4 2025)	Trend
Dairy/beverage membrane solution	Advanced from lab to university pilot; UF/RO pilots initiated	Demonstrated efficacy in full-scale commercial plants; solution available for membrane treatment	Continued investment and commercialization focus; targeted marketing/trade shows in sector	Accelerating commercialization
Distribution expansion	Working with distribution partners; progress with direct customers	Ongoing work with beverage distributors; product availability	Hydrite agreement (Q2) and Bonsai partnership (Q4 PR notes availability via online channel)	Broader access channels
Operating expense discipline	SG&A reduced YoY; net loss improved	Further SG&A reductions YoY; net loss improved	FY net loss narrowed; cost reductions highlighted	Improving
Liquidity & financing	Convertible notes grew; cash decreased in 1H	Convertible notes increased; cash improved Q3	Notes payable rose to $5.236M; stockholders’ deficiency widened	Mixed; leverage rising
Regulatory/technology positioning	SDC platform efficacy vs traditional chemicals	Residual benefits and non-oxidizing approach highlighted	Emphasis on safety/efficacy and sustainability messaging	Stable messaging

Management Commentary

“Over the past fiscal year, we expanded our core business by 14% and developed a new solution for treating membranes in the dairy and beverage industries… Leveraging our SDC technology and expanding into these markets are key strategies for generating additional revenue” — Robert Bartlett, CEO .
“We were able to demonstrate that our dairy membrane solution using our SDC technology is effective in full-scale commercial dairy plants. We will continue to work closely with our distribution partners in the beverage industry to expand this new membrane treatment solution” .
Distribution access broadened via Hydrite (industry leader) and Bonsai (direct-to-customer online), expanding reach to small business and individual customers .

Q&A Highlights

No Q4 2025 earnings call transcript located; as a result, no Q&A highlights or guidance clarifications available for this period.

Estimates Context

Wall Street consensus estimates via S&P Global were unavailable for Q4 2025 EPS and revenue; GetEstimates returned no consensus data and only the actual revenue result for Q4.*
Given the absence of published consensus, we cannot formally classify Q4 as a beat or miss; sell-side models may need to reflect sequential revenue acceleration and improved margins, alongside financing/interest headwinds .

Values retrieved from S&P Global.

Key Takeaways for Investors

Sequential acceleration: Revenue improved from $0.391M (Q2) to $0.491M (Q3) to $0.764M (Q4) with margin expansion; watch for continued order conversion from membrane pilots to drive scale *.
Go-to-market leverage: Hydrite and Bonsai agreements expand reach across dairy/food processing and DTC channels; distributor training and targeted marketing are focus areas .
Operating discipline: FY net loss narrowed and OpEx reductions persisted; monitor sustainability of cost controls as commercialization ramps .
Balance sheet risk: Convertible notes to related parties rose to $5.236M and stockholders’ deficiency widened; interest expense is a continuing drag — financing roadmap remains critical .
No formal guidance or call: Limited visibility on near-term targets; trading setup hinges on evidence of pilot conversions, repeat orders, and distributor-driven adoption .
Narrative catalysts: Membrane solution’s non-oxidizing benefits (reduced fouling, restored throughput, extended membrane life) could reshape economics for target customers, supporting pricing power and mix .
Risk/reward: Execution in dairy/beverage, regulatory positioning, and access via partners are positives, but small revenue base and leverage necessitate proof of scale and improved cash generation .

Footnotes:

Values marked with * retrieved from S&P Global.

PURE BIOSCIENCE, INC. (PURE)·Q4 2025 Earnings Summary