FONAR Corporation reported second‑quarter fiscal 2026 results for the period ending December 31, 2025, showing total net revenue of $25.5 million, a 2% year‑over‑year increase from $25.0 million in the same quarter a year earlier. Net income rose to $2.5 million, up 15% from $2.2 million, and earnings per share reached $0.31, a 7% increase from $0.29. The modest revenue growth was largely driven by the company’s Health Management Company of America (HMCA) subsidiary, which continued to expand its MRI scanner portfolio and scan volume, while the manufacturing segment remained unprofitable, limiting overall margin improvement.
On February 13, 2026, FONAR announced that it had signed a definitive merger agreement for its previously announced take‑private offer. The agreement increases the per‑share cash consideration to $19.00, up from the July 2025 offer of $17.25. The $19.00 price represents a significant premium over the company’s recent trading levels and the initial offer, underscoring management’s belief that private ownership will better unlock value for shareholders.
The company’s cash balance stood at $53.0 million as of December 31, 2025, providing a strong liquidity cushion to support the transaction and ongoing operations. HMCA’s scan volume for the quarter was 54,846, a 0.5% decline from the prior quarter but a 3.3% increase year‑over‑year, marking the third‑highest quarterly volume in the subsidiary’s history. The manufacturing segment, however, continued to post losses, highlighting a persistent headwind for the company’s overall profitability.
"Our diagnostic imaging management subsidiary, Health Management Company of America (HMCA), the Company's primary source of revenue and profit, continues to grow. Scan volume in the second quarter of Fiscal 2026 was 54,846, 0.5% lower than that of the previous quarter (55,106), and 3.3% higher than that of the corresponding quarter of Fiscal 2025 and the third highest quarterly scan volume in HMCA history," said a company representative.
The combination of a modest earnings beat, a substantial premium in the take‑private offer, and continued growth in HMCA’s scan volume signals a positive outlook for the company’s core business while highlighting the ongoing challenge of an unprofitable manufacturing segment. The announcement is expected to influence investor sentiment and may prompt a reassessment of the company’s valuation and strategic direction, as the take‑private transaction would remove FONAR from public markets and potentially allow for greater operational flexibility.
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