-- Operating Expenses Decline 4% Year-to-Date 
 
   -- Balance Sheet Strengthens and Working Capital Improves by 14.7% 

IRVINE, Calif., Jan. 14, 2026 (GLOBE NEWSWIRE) -- Biomerica, Inc. (Nasdaq: BMRA), (the "Company") a global provider of advanced medical diagnostic and therapeutic products today reported financial results for the second quarter of fiscal 2026 ended November 30, 2025.

Key Highlights:

 
  1.  Biomerica Expands Commercialization of inFoods$(R)$ 
       IBS Through Collaboration with Henry Schein 
 
      During the second quarter, Biomerica entered into 
       a marketing services agreement with Henry Schein to 
       support the commercialization of the Company's inFoods(R) 
       IBS test in the United States. In addition, inFoods(R) 
       IBS was featured in a Henry Schein publication highlighting 
       a precision-based approach to the management of Irritable 
       Bowel Syndrome. Together, these initiatives expand 
       awareness of inFoods(R) IBS among healthcare providers 
       and support broader adoption of the test in clinical 
       practice. 
 
  2.  Biomerica Launches AI-Backed inFoods(R) IBS Trigger 
       Food Navigator to Support Personalized IBS Therapy 
       and Improve Patient Outcomes 
 
      The launch of its inFoods(R) IBS Trigger Food Navigator, 
       a comprehensive AI-backed digital companion tool designed 
       to improve patient dietary compliance and treatment 
       success for individuals with Irritable Bowel Syndrome 
       (IBS). The inFoods(R) IBS test identifies, on average, 
       two to four specific foods that trigger a patient's 
       IBS symptoms, leading to a simple, highly targeted 
       and actionable dietary plan. The new AI-backed Trigger 
       Food Navigator builds on this approach by making it 
       even easier for patients to follow their personalized 
       dietary plan through smart meal suggestions, ingredient 
       substitutions, and simplified meal planning tools. 
 
Subsequent to Quarter End 
 
  3.  CMS Establishes National Medicare Payment Rate for 
       inFoods(R) IBS Test 
 
      Subsequent to the quarter-ended November 30, 2025, 
       the Centers for Medicare & Medicaid Services $(CMS)$ 
       established a national Medicare payment rate of $300 
       for Biomerica's inFoods(R) IBS test, effective January 
       1, 2026. This milestone provides reimbursement clarity 
       and represents an important step toward expanding 
       patient access to the inFoods(R) IBS product through 
       the Medicare system. 
 
  4.  Egyptian Drug Authority Authorizes Biomerica's Complete 
       Screening Test Portfolio 
 
      Subsequent to quarter end, the Egyptian Drug Authority 
       authorized Biomerica's complete screening test portfolio. 
       This regulatory approval expands access to the Company's 
       rapid diagnostic solutions in Egypt and supports continued 
       international expansion of Biomerica's diagnostic 
       products. 
 
 

Management Commentary

Zack Irani, CEO said, "We are executing a deliberate strategic pivot from legacy, lower-margin products to higher-value, higher-margin diagnostic-guided therapy products. The current revenue softness reflects this transition, not fundamental business deterioration. With our fixed cost structure largely in place, we believe incremental revenue from inFoods(R) IBS and new partnerships such as Henry Schein as well as hp+detect$(TM)$ opportunities should drive significant margin expansion. Additionally, our contract development and manufacturing organization $(CDMO)$ expansion leverages existing infrastructure to generate higher-margin revenue while diversifying our revenue base."

"While second quarter revenue reflected expected variability across our established product lines, Biomerica continued to strengthen its financial foundation through successful capital raising activities and disciplined cost management," said Gary Lu, CFO of Biomerica. "Earlier in the fiscal year, the Company also received approximately $1.10 million in Employee Retention Credit $(ERC)$ refunds, which, together with our financing initiatives, contributed to a $457,000 year-to-date improvement in working capital and an increase in our cash position to $2.5 million. As we advance key programs from development into commercialization, we are prudently reallocating resources, which resulted in a 27% reduction in research and development expenses, while continuing to invest in the commercial launch of high-value diagnostic programs, including inFoods(R) IBS and hp+detect(TM). We maintain access to additional capital through our existing shelf registration to support future growth initiatives."

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

Net sales for the second quarter of fiscal 2026 were $1.21 million, compared to $1.64 million in the prior year quarter. The decrease primarily reflects the absence of large initial distributor stocking orders in the Middle East and North Africa ("MENA") region recorded in the prior year period, as the Company's regional partner ramped up its initial market rollout. While Biomerica continues to generate recurring revenue from the region, the prior year quarter benefited from these upfront inventory purchases. The quarter also reflects normal timing variability in international shipments as well as lower contract manufacturing activity. These impacts were partially offset by continued growth in inFoods(R) IBS sales.

For the six months ended November 30, 2025, net sales were $2.59 million, compared to $3.44 million in the prior year period. Gross margin for the six-month period was 18%, compared to 21% in the prior year, reflecting lower overall sales volume as the Company transitions from legacy products to higher-margin diagnostic-guided therapy offerings. Management expects gross margins to expand as inFoods(R) IBS and hp+detect(TM) sales scale and added CDMO services.

Operating expenses for the second quarter of fiscal 2026 were $1.42 million, compared to $1.43 million in the same period last year. For the six months ended November 30, 2025, operating expenses decreased approximately 4% to $2.96 million, compared to $3.09 million in the prior year period. This performance reflects Biomerica's continued focus on cost discipline and operational efficiency, including targeted reductions across administrative, research, and manufacturing. Notably, when excluding professional service fees related to Employee Retention Tax Credit (ERTC) filings, which contributed to the Company's increase in cash, normalized operating expenses for the six-month period decreased by approximately 7% compared to the prior year. With the Company's fixed cost structure now largely optimized, management expects incremental revenue from new product launches and strategic partnerships to drive meaningful operating leverage and margin expansion.

Net loss for the second quarter of fiscal 2026 was $1.32 million, compared to $0.95 million in the prior year quarter, reflecting lower revenue and gross margin during the period. For the six months ended November 30, 2025, net loss improved to $1.31 million, compared to $2.27 million in the prior year period, primarily due to sustained expense discipline and the recognition of a non-recurring tax credit earlier in the fiscal year. Biomerica continues to prioritize operational efficiency and disciplined cost management while selectively investing in core diagnostic programs designed to drive long term value. The Company's strategic focus on transitioning its revenue mix toward higher-margin products, combined with its optimized cost structure, positions Biomerica to benefit from significant operating leverage as inFoods(R) IBS, hp+detect(TM), and CDMO services gain commercial traction.

 
Selected            Three 
Financial           Months    Three Months  Six Months  Six Months 
Results             Ended        Ended        Ended     Ended 
                   November   November 30,   November   November 30, 
                   30, 2025       2024       30, 2025   2024 
($ in millions, 
except 
percentages) 
Revenue            $1.21       $1.64         $2.59       $3.44 
Gross margin           4%         27%           18%         21% 
Operating 
 expenses          $1.42       $1.43         $2.96       $3.09 
Operating loss    ($1.37)     ($0.99)       ($2.48)     ($2.36) 
Net Loss          ($1.32)     ($0.95)       ($1.31)     ($2.27) 
 
 

About Biomerica $(BMRA)$

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 and inflammatory diseases where the Company has multiple diagnostic and therapeutic products in development.

About inFoods(R)

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