Biomerica Reports Third Quarter Fiscal 2026 Financial Results

IRVINE, Calif., April 13, 2026 (GLOBE NEWSWIRE) -- Biomerica, Inc. (NASDAQ:BMRA), ("Biomerica" or the "Company") a global provider of advanced medical diagnostic and therapeutic products today reported financial results for the third quarter of fiscal 2026 ended February 28, 2026.

Key Highlights:

1. inFoods^® IBS Real-World Data: Nearly 60% of Irritable Bowel Syndrome ("IBS") Patients Achieved Clinically Meaningful Pain Reduction and 68% Achieved Bloating Reduction with inFoods^® IBS

During the third quarter, Biomerica reported real-world data showing:

• • 59.4% of patients achieved ≥30% reduction in abdominal pain
  • 68.1% achieved ≥30% reduction in bloating — using the FDA-recognized responder endpoint consistent with Biomerica's peer-reviewed randomized controlled trial

These real-world findings build on a peer-reviewed, randomized controlled clinical trial published in Gastroenterology, conducted across five major academic centers including Mayo Clinic, Cleveland Clinic, and the University of Michigan, and Houston Methodist Hospital. That pivotal study demonstrated significantly greater abdominal pain relief in the treatment arm versus the sham diet arm (59.6% vs. 42.1%, p = 0.02).

2. CMS Establishes National Medicare Payment Rate for inFoods^® IBS Test

The Centers for Medicare & Medicaid Services (CMS) established a national Medicare payment rate of $300 for inFoods^® IBS, effective January 1, 2026. This milestone provides reimbursement clarity and represents an important step toward expanding patient access to inFoods^® IBS through the Medicare system. Biomerica and its lab partner are working with the appropriate Medicare Administrative Contractor to attain Medicare coverage for inFoods^® IBS.

3. European Revenue Up 45% in the Quarter; hp+detect™ Receives UK Regulatory Registration

Revenue from European customers grew 45% year-over-year in the third quarter, increasing from $198,000 to $287,000. Biomerica believes this growth reflects building commercial momentum on the continent.

Subsequent to quarter end, Biomerica further strengthened its European position on two fronts:

• • UK MHRA Registration: hp+detect™ received registration from the UK Medicines and Healthcare products Regulatory Agency, providing the regulatory foundation for commercial sales in the United Kingdom.
    
    
  • First Commercial European Lab Order: Biomerica received its first commercial order for hp+detect™ from one of the largest clinical laboratory chains operating across Europe. This strategic account's scale and geographic reach positions it as a reference account and potential gateway to broader European Union laboratory channel adoption, with recurring orders expected as hp+detect™ is integrated into routine testing workflows.
    
    

H. pylori affects an estimated 45% of the population across Europe's five largest countries. The World Health Organization designates H. pylori as a Class 1 carcinogen and lists it among the 16 antibiotic-resistant bacteria posing the greatest threat to human health globally.

4. R&D Expenses Reduced 24% Year-to-Date — Reflecting Transition from Development to Commercialization

Research and development ("R&D") expenses decreased 24% year-to-date, from $771,000 to $583,000, as both the hp+detect™ development project and the inFoods^® IBS clinical program have completed development phases. This reflects disciplined capital allocation as Biomerica directs resources toward commercial execution rather than further development spend.

5. Over-the-Counter Product Line Delivers 16% Revenue Growth

Over-the-counter revenue grew 16% year-over-year in the third quarter reflecting consumer demand growth and continued diversification of Biomerica's revenue mix.

Management Commentary

Zack Irani, CEO said, " This quarter reflects the cost of doing something harder than maintaining the status quo. We are restructuring Biomerica around higher-margin, diagnostically-driven products and a growing Contract Development and Manufacturing Organization ("CDMO") services business — and near-term revenue reflects that transition. The underlying indicators are encouraging: post-quarter CDMO customer demand has improved and inFoods^® IBS and hp+detect™ represent genuine commercial catalysts. The fixed cost base is established. We expect margin expansion to follow as these initiatives contribute revenue."

Third Quarter and Year-to-Date Fiscal 2026 Financial Results

Net Sales

Net sales for the third quarter of fiscal 2026 were approximately $987,000, compared to $1.12 million in the prior year quarter. The decrease primarily reflects lower contract manufacturing revenue following the completion of prior customer projects, as well as normal variability in the timing of project-based activity. These impacts were partially offset by growth in inFoods^® IBS sales and a 16% increase in over-the-counter product lines.

For the nine months ended February 28, 2026, net sales were $3.58 million, compared to $4.56 million in the prior year period. The decrease primarily reflects lower contract manufacturing revenue following the completion of a prior R&D project, as well as the absence of large initial distributor stocking orders in the Middle East and North Africa ("MENA") region recorded in the prior year. These impacts were partially offset by continued growth in inFoods^® IBS sales.

Gross Margin

For the nine months ended February 28, 2026, gross margin was approximately 13%, compared to 15% in the prior year period. The decrease primarily reflects changes in product mix and lower overall sales volume during the current period. Management expects gross margins to improve over time as inFoods^® IBS and hp+detect™ sales continue to scale, along with the development of additional Contract Development and Manufacturing Organization ("CDMO") revenue opportunities.

Operating Expenses

Operating expenses for the third quarter of fiscal 2026 were $1.25 million, compared to $1.23 million in the same period last year. For the nine months ended February 28, 2026, operating expenses decreased approximately 2% to $4.22 million, compared to $4.32 million in the prior year period, reflecting Biomerica's continued focus on cost discipline. Excluding certain professional service expenses related to ERTC filings, operating expenses decreased by approximately 5%.

Net Loss

Net loss for the third quarter of fiscal 2026 was $1.31 million, compared to $1.16 million in the prior year quarter. For the nine months ended February 28, 2026, net loss improved to $2.63 million, compared to $3.43 million in the prior year period, primarily due to sustained expense discipline and the recognition of a tax credit earlier in the fiscal year.

Net loss per share for the nine months ended February 28, 2026, improved 37% to $(0.92), compared to $(1.47) in the prior year period, reflecting the Company's progress in cost management and operating efficiency as it transitions toward a higher-margin revenue mix.

Selected Financial Results	Three Months Ended				Three Months Ended				Nine Months Ended				Nine Months Ended
	February 28, 2026				February 28, 2025				February 28, 2026				February 28, 2025
($ in millions, except percentages)
Revenue	$0.99				$1.12				$3.58				$4.56
Gross margin		-4%				2%				12%				16%
Operating expenses	$1.25				$1.23				$4.22				$4.32
Operating loss	($1.30		)		($1.21		)		($3.79		)		($3.57		)
Net Loss	($1.31		)		($1.16		)		($2.63		)		($3.43		)

About Biomerica (NASDAQ: BMRA)

Biomerica, Inc. (www.biomerica.com) is a global biomedical technology company that develops, patents, manufactures and markets advanced diagnostic and therapeutic products used at the point-of-care (in home and in physicians' offices) and in hospital/clinical laboratories for detection and/or treatment of medical conditions and diseases. The Company's products are designed to enhance the health and well-being of people, while reducing total healthcare costs. Biomerica primarily focuses on gastrointestinal ("GI") and inflammatory diseases where the Company has multiple diagnostic and therapeutic products in development.

About inFoods^® IBS

inFoods^® IBS is a diagnostic-guided therapy that uses a blood test that identifies patient-specific food triggers responsible for symptoms such as abdominal pain, bloating, diarrhea, and constipation. Using a simple finger-stick blood sample, the test enables physicians to recommend targeted dietary changes tailored to the patient's immune response—offering a non-pharmaceutical, precision-based approach to symptom relief.

A multicenter, double-blinded clinical study utilizing inFoods® IBS was published in the June 2025 issue of Gastroenterology, the top peer-reviewed GI journal. As the study demonstrated statistically significant outcomes:

• 59.6% of patients in the treatment group (who eliminated identified trigger foods) achieved the FDA's endpoint for abdominal pain reduction, compared to 42.1% in the control group.
• Among IBS-C patients, 67.1% of patients in the treatment group vs. 35.8% in the control group.
• Among IBS-M patients, 66% of patients in the treatment group vs. 29.5% in the control group.
  
  

These results highlight inFoods^® IBS as a potentially effective targeted therapy specifically in IBS-M patients, a subgroup historically underserved by existing treatments. The study was conducted at leading U.S. institutions including Cleveland Clinic, Mayo Clinic, and University of Michigan.

For more information about inFoods^® IBS, visit www.inFoodsibs.com.

The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements. Certain information included in this press release contains statements that are forward-looking, such as statements relating to the Company's current and future cash position, balance sheet, cost savings, sales, revenues, overhead, expenses, cost of goods, operations, and earnings; the Company's need for raising additional capital; the Company's expected sales growth for the Company's inFoods^® IBS product, hp+detect™ product, CDMO offerings and other existing products; and diversification of the Company's revenue streams. Such forward-looking information is based upon the current beliefs and expectations of management and involves important risks and uncertainties that could significantly affect anticipated results. Such important risks and uncertainties, include, among others: earnings and other financial results; results of studies testing the efficacy of the Company's inFoods tests and other products; regulatory approvals necessary prior to commercialization of the Company's products; availability of the Company's test kits and other products; capacity, shipping logistics, resource and other constraints on our suppliers; dependence on our third party manufacturers; dependence on international shipping carriers; governmental import/export regulations; demand for our various tests and other products; competition from other similar products and from competitors that have significantly more financial and other resources available to them; governmental virus control regulations that make it difficult or impossible for the company to maintain current operations; regulatory compliance and oversite, and the Company's ability to obtain patent protection on any aspects of its diagnostic or therapeutic technologies; fluctuations in the Company's operating results due to its business model and expansion plans; downturns in international and or national economies' the Company's ability to raise additional capital; the competitive environment in which the Company will be competing; and the Company's dependence on strategic relationships. Additional factors that could cause actual results to differ from those expressed in the forward-looking statements are discussed in the "Risk Factors" section of the Company's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other reports filed with the U.S. Securities and Exchange Commission (the "SEC"), and available on the SEC's website (www.sec.gov). In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. Accordingly, such results may differ materially from those expressed in any forward-looking statements made by or on behalf of Biomerica.

The Company is under no obligation to update any forward-looking statements after the date of this release.

Source: Biomerica, Inc.

Corporate Contact:

Zack Irani
949-645-2111
[email protected]