Scientific Industries Q2 Results: Revenue up 36% YoY, loss narrows
Scientific Industries reported Q2 FY26 revenues of $1.47 million, up 36% YoY, driven by volume growth and new DOTS platform products. Gross margins expanded to 42.3% from 34.8%, while operating expenses fell 13.7%. The net loss narrowed to $1.23 million from $1.52 million in the prior year. Cash and investments stood at $4.55 million.
*this image is generated using AI for illustrative purposes only.
Scientific Industries, Inc. (OTCQB: SCND) reported a significant improvement in its top-line performance for the second quarter of fiscal year 2026, with net revenues rising 36.0% year-over-year to $1,470,400. This growth was driven by higher sales volumes across both its bioprocessing systems and benchtop laboratory equipment segments.
Despite the revenue surge, the company continued to operate at a loss, reporting a net loss of $1,233,800 (or $(0.10) per share) for the three months ended June 30, 2026. This compares to a net loss of $1,523,700 (or $(0.13) per share) in the corresponding period of the prior year. The narrowing of the loss was supported by disciplined cost management, as operating expenses fell 13.7% to $1,895,500.
Financial Performance
The company’s financial results for the three and six months ended June 30, 2026, reflect a combination of organic growth and structural cost reductions. Gross margins expanded significantly, indicating improved pricing power or product mix efficiency.
| Metric: | Q2 FY26 | Q2 FY25 | Change | H1 FY26 | H1 FY25 | Change |
|---|---|---|---|---|---|---|
| Net Revenues: | $1,470,400 | $1,081,000 | +36.0% | $2,697,500 | $2,023,300 | +33.3% |
| Gross Profit: | $622,700 | $376,700 | — | $1,092,600 | $721,000 | — |
| Gross Margin: | 42.3% | 34.8% | +750 bps | 40.5% | 35.6% | +490 bps |
| Operating Expenses: | $1,895,500 | $2,196,200 | -13.7% | $4,033,200 | $4,631,200 | -12.9% |
| Net Loss: | $1,233,800 | $1,523,700 | -19.0% | $2,823,100 | $3,302,200 | -14.5% |
Note: Prior-year figures have been recast to reflect discontinued operations related to the sale of the Genie Division in August 2025.
What the Numbers Show
A key divergence in the data is the expansion of gross margins alongside rising revenues. Gross margin improved to 42.3% from 34.8% in the prior-year quarter, an increase of 750 basis points. This expansion was primarily attributed to higher gross margins in Bioprocessing Systems Operations, driven by sales of new DOTS platform products. Simultaneously, operating expenses contracted by 13.7%, demonstrating that the company is achieving scale without proportional increases in overhead. However, despite these operational improvements, the company remains unprofitable, with operating expenses still exceeding gross profits by approximately $1.27 million for the quarter.
Balance Sheet and Liquidity
As of June 30, 2026, Scientific Industries held cash, cash equivalents, and investments totaling $4,548,500. Working capital stood at $6,524,800, providing a buffer against near-term obligations. The prior-year comparison for net loss is impacted by the recasting of financials; the previous year included income of $273,100 from discontinued operations (net of tax), whereas no such amounts were recorded in the current-year periods.
Product and Business Updates
The company highlighted several strategic developments in its product pipeline:
- VIVID ONE: The second-generation model is scheduled to begin shipping in September 2026.
- VIVID WORKSTATION: AI model development is underway for a planned launch in the first quarter of fiscal 2027.
- DOTS Platform: Customer trials for the new pH sensor have been completed, with learnings being incorporated into further development. An AI tool to enhance customer experience with the DOTS platform is also under development.
- Subscription Plans: The successful launch of expanded VIVID subscription plans is providing a recurring revenue stream.
Helena Santos, Chief Executive Officer, noted that the revamped subscription plans are offering customers flexible support options while contributing to recurring revenue. John Moore, Chairman, emphasized the potential of the DOTS sensing platform to deliver continuous data, addressing the industry reliance on manual, offline sampling in bioprocessing.
How will the upcoming launch of the VIVID ONE and AI-enabled VIVID WORKSTATION impact Scientific Industries' gross margins and recurring revenue streams in fiscal 2027?
Given the $1.27 million gap between gross profits and operating expenses, what specific cost-reduction or revenue-acceleration milestones are required for the company to achieve profitability in the near term?
To what extent will the completed customer trials for the DOTS platform pH sensor influence adoption rates and competitive positioning in the bioprocessing systems market?
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