Sono-Tek Corporation (SOTK): History, Ownership, Mission, How It Works & Makes Money

As a seasoned investor, how do you value a company like Sono-Tek Corporation (SOTK), which quietly dominates a niche technology but posted a record $20.5 million in revenue for fiscal year 2025? This is not a high-volume, low-margin play; it's a specialized equipment manufacturer that generated approximately $1.3 million in net income while holding $11.9 million in cash with zero debt, a defintely strong balance sheet. We need to look past the small market cap and understand how their ultrasonic coating systems are driving a 64% sales increase in the Alternative/Clean Energy sector and a massive 150% surge in Medical market sales as of the first half of fiscal year 2026. Read on to see the history of this 1975-founded company, how its core technology works, and the precise business model that makes money in today's hyper-focused industrial markets.

Sono-Tek Corporation (SOTK) History

You're looking for the foundational story behind Sono-Tek Corporation, and honestly, it's a classic American innovation tale: an inventor sees a problem and engineers a better way. The direct takeaway is this: Sono-Tek began in 1975 by commercializing a single, revolutionary technology-the ultrasonic nozzle-and has since evolved into a global provider of complex, automated coating systems, with its fiscal year 2025 revenue hitting a record $20.5 million. That's a huge step up from selling just components.

Given Company's Founding Timeline

Year established

Sono-Tek Corporation was incorporated in New York on March 21, 1975.

Original location

The company was established and remains headquartered in Milton, New York, where its corporate offices and production facilities are co-located.

Founding team members

The company was founded by Dr. Harvey L. Berger, the inventor of the ultrasonic spray nozzle technology.

Initial capital/funding

The initial capital came from Dr. Berger's efforts to commercialize his invention, spurred by the U.S. energy crisis. Early developments included projects sponsored by the Environmental Protection Agency (EPA) for fuel-efficient nozzles and contracts with a major pharmaceutical company for blood collection tube coating systems.

Given Company's Evolution Milestones

Given Company's Transformative Moments

The company's trajectory was fundamentally reshaped by three key decisions that moved it from a component supplier to a systems integrator.

• Shift to Full Systems: The biggest change was the transition from primarily selling the ultrasonic nozzle to designing and manufacturing fully integrated, multi-axis coating systems. This allowed them to capture higher Average Selling Price (ASP) orders and provide a complete, high-value solution to manufacturers.
• Focus on High-Growth Niches: Management made a deliberate choice to focus on complex, high-precision applications, particularly in the Alternative/Clean Energy and Medical Device markets. This paid off handsomely in fiscal year 2025, where sales to the Alternative/Clean Energy sector alone soared by 64%, adding $3.84 million in revenue.
• Financial Discipline: Despite the growth, the company has maintained a remarkably clean balance sheet. As of the end of fiscal year 2025 (February 28, 2025), Sono-Tek held $11.9 million in cash, cash equivalents, and marketable securities with no outstanding debt. This financial health gives them flexibility to invest in R&D without external pressure.

The move to production-scale systems, especially in the solar and electrolysis markets, is defintely the current growth engine. For a deeper dive into how this financial health translates into investor value, you should read Breaking Down Sono-Tek Corporation (SOTK) Financial Health: Key Insights for Investors.

Sono-Tek Corporation (SOTK) Ownership Structure

Sono-Tek Corporation's ownership structure is a blend of institutional and individual investors, but with a significant portion of shares held by the public float, meaning retail investors and non-insider, non-institutional holders drive a lot of the day-to-day trading. This mix often points to a company where management and insiders still hold a meaningful stake, aligning their interests with the company's long-term performance.

Sono-Tek Corporation's Current Status

Sono-Tek Corporation is a publicly traded company, listed on the Nasdaq Capital Market (NasdaqCM) under the ticker symbol SOTK. It uplisted to Nasdaq in 2021 to increase shareholder liquidity and trading volume. The company's fiscal year runs from March 1st to February 28th. For fiscal year 2025, which ended February 28, 2025, the company reported record Net Sales of $20.5 million. That's a 4% increase from the prior fiscal year, driven heavily by the Alternative/Clean Energy market.

The company maintains a strong balance sheet, which is defintely a plus, holding $11.9 million in cash and no outstanding debt as of the end of fiscal year 2025. This financial health gives the leadership team flexibility in pursuing growth opportunities without immediate capital market pressure. You can see how the company's strategic focus ties into its operational goals in its Mission Statement, Vision, & Core Values of Sono-Tek Corporation (SOTK).

Sono-Tek Corporation's Ownership Breakdown

As of November 2025, the company has approximately 15.71 million shares outstanding. The ownership is fairly distributed, but institutional money holds the largest single block, which is typical for a Nasdaq-listed firm. What this estimate hides is the potential for large swings in the stock price when a major institutional investor decides to rebalance their portfolio.

Sono-Tek Corporation's Leadership

The company is steered by a management team that recently saw its executive agreements restructured on November 5, 2025. This move, which included an expanded definition of 'Resignation for Good Reason,' is a key detail for understanding leadership stability and governance. The core executive team, which has an average tenure of 1.9 years in their current roles, is composed of experienced industry veterans.

• R. Stephen Harshbarger: Chief Executive Officer (CEO) & President. He has over 30 years of experience in the ultrasonic coating equipment industry.
• Christopher L. Coccio: Executive Chairman. He transitioned to this role at the beginning of 2024, after serving as CEO for over two decades, and still assists the new CEO.
• Stephen J. Bagley, C.P.A.: Chief Financial Officer (CFO). He has been with the company as CFO since 2005.
• Christopher Cichetti: Chief Operating Officer (COO). He assumed this role in March 2025 and oversees key areas like Engineering, Sales, and Manufacturing.
• Maria Kuha: Vice President, Manufacturing Operations, Procurement & Logistics.
• Randy Copeman: Chief Technology Officer.
• Claudine Corda: Corporate Secretary.

The Board of Directors, however, is considered experienced, with an average tenure of 12.3 years. That long-term board oversight provides a counter-balance to the newer management team, which is an important governance factor for you to consider.

Sono-Tek Corporation (SOTK) Mission and Values

Sono-Tek Corporation's core mission goes beyond just selling equipment; it centers on delivering precision ultrasonic coating technology to enable technological breakthroughs for customers, all while promoting environmental sustainability. This focus on high-value, high-Average Selling Price (ASP) systems is clearly paying off, as seen in their Fiscal Year 2025 (FY2025) record revenue of $20.5 million.

Given Company's Core Purpose

You need to understand what drives a company before you invest, and for Sono-Tek, it's a dual focus on innovation and fiscal responsibility. They've been consistently profitable and debt-free, holding $11.9 million in cash as of the end of FY2025, which allows them to pursue long-term growth without being derailed by short-term market swings.

Their cultural DNA is built around developing and manufacturing ultrasonic coating systems that apply precise, thin film coatings, which are critical for high-growth sectors. This is a company that is defintely focused on the future, especially in clean energy.

Official mission statement

The company positions itself as a global leader in the design and manufacture of ultrasonic coating systems that are shaping industries and driving innovation worldwide.

• Design and manufacture ultrasonic coating systems to apply precise, thin film coatings.
• Provide environmentally friendly, highly reliable solutions that dramatically reduce overspray and raw material usage.
• Help the world's most promising companies achieve technological breakthroughs and bring them to market.

That last point is key: they're not just selling a machine, they're selling a solution that cuts waste and improves efficiency. For instance, their Alternative/Clean Energy sales soared 64% in FY2025, contributing an additional $3.84 million in revenue, proving their commitment to sustainable technology is a major growth driver.

Vision statement

Sono-Tek's vision is to become the standard coating method in their target markets by transitioning their product line from research and development (R&D) tools to high-volume production machines with significantly higher average selling prices (ASPs).

• Be the market leader in ultrasonic coating systems for microelectronics, alternative energy, and medical devices.
• Leverage innovative technologies and proprietary know-how to develop microscopic coating technologies that enable better outcomes for customers.
• Drive the adoption of advanced coating platforms by leading manufacturers globally.

This transition to high-ASP systems is a smart move; it locks in larger, more repeatable orders from production lines. You can see the impact of this strategy in their strong backlog, which stood at $8.67 million at the end of FY2025, setting up the first half of FY2026 for continued profitability. For a deeper dive into their balance sheet strength, you should read Breaking Down Sono-Tek Corporation (SOTK) Financial Health: Key Insights for Investors.

Given Company slogan/tagline

While the company doesn't use a short, formal tagline in its recent investor materials, their consistent message highlights their role in advanced manufacturing. The implied slogan focuses on the precision and impact of their core technology.

• Precision Thin Film Coatings. Global Innovation.
• Shaping Industries and Driving Innovation Worldwide.

Sono-Tek Corporation (SOTK) How It Works

Sono-Tek Corporation designs and manufactures precision ultrasonic spray coating systems, fundamentally helping high-tech industries apply thin, uniform films with minimal waste. They make money by selling these complex, high-value capital equipment systems and their core component-the ultrasonic nozzle-primarily to the booming Alternative/Clean Energy and Medical device sectors.

Sono-Tek Corporation's Product/Service Portfolio

You need to see where their $20.5 million in fiscal year 2025 revenue came from, and it's a clear story of moving up the value chain. Integrated systems are now the key driver, not just the component parts. Integrated Coating Systems sales, for instance, were up 28%, or $814,000, in FY 2025, showing customers are buying full production platforms, not just R&D tools.

Sono-Tek Corporation's Operational Framework

The company's operational value creation centers on its proprietary ultrasonic technology and a strategic shift toward full-scale, high-value systems. This transition is defintely a smart move, as it captures more of the customer's capital expenditure budget.

• Applications Engineering: The process starts with a customer's coating problem-say, applying a catalyst layer to a fuel cell membrane. Sono-Tek uses its deep application knowledge to develop a precise, custom solution, often in their lab, before a system sale.
• Manufacturing & Integration: They manufacture the core ultrasonic nozzles in-house, then integrate them with sophisticated motion control, fluid delivery, and software systems (like their Altair program) to build the final Integrated Coating Systems. This is where the higher revenue and margin potential lies.
• Global Distribution: They sell through a hybrid model: direct sales in key markets like the US and Canada (which saw 15% sales growth in FY 2025), plus a network of independent distributors and representatives for global reach, especially in Asia Pacific and EMEA.
• Service & Support: The installed base of complex systems creates a recurring revenue stream from spare parts, service, and application consulting, which helps stabilize earnings.

Sono-Tek Corporation's Strategic Advantages

In a capital equipment business, you need a moat, and Sono-Tek has built one on technology and financial discipline. Their competitive edge isn't just about the product; it's about the financial and application-level support they provide.

• Proprietary Ultrasonic Technology: Their patented nozzle technology is the core advantage, delivering superior coating uniformity and material utilization (often reducing waste by 80% or more) compared to traditional pressure spraying. This is a massive cost-saver for customers using expensive materials like platinum catalysts in fuel cells.
• Clean Balance Sheet: A strong financial position is a strategic advantage when navigating uncertain markets. As of fiscal year 2025, the company held $11.9 million in cash and had no outstanding debt, providing flexibility for R&D or strategic acquisitions.
• High-Growth Market Focus: The company is heavily focused on the Alternative/Clean Energy sector, which drove a 64% sales increase in FY 2025, totaling an additional $3.84 million in revenue. This aligns them with global, multi-decade megatrends like solar and green hydrogen.
• Transition to Production Systems: Moving from R&D tools to high-volume production platforms (like those sold to the solar market) significantly increases the Average Selling Price (ASP) and locks in customers for long-term production cycles. This is how they maximize returns on their intellectual property.

To understand the foundation of their market approach, you should review their Mission Statement, Vision, & Core Values of Sono-Tek Corporation (SOTK).

Sono-Tek Corporation (SOTK) How It Makes Money

Sono-Tek Corporation primarily makes money by designing, manufacturing, and selling high-precision ultrasonic coating systems. These systems, which use high-frequency sound waves to apply thin-film coatings, are sold as complete, high-value production machines or as smaller sub-systems and components to a diverse set of advanced manufacturing industries.

The business model has strategically shifted from selling lower-cost ultrasonic nozzles and components to focusing on complex, complete machine solutions with significantly higher Average Selling Prices (ASPs).

Sono-Tek Corporation's Revenue Breakdown

For the fiscal year 2025, which ended February 28, 2025, Sono-Tek Corporation reported a record total revenue of $20.5 million. The growth engine is clearly the Alternative/Clean Energy sector, while other segments provide a necessary base and recurring revenue. Here's a look at the two primary revenue streams based on market focus for FY 2025.

The Alternative/Clean Energy Market Systems revenue stream, driven by demand for solar and fuel cell applications, was the biggest growth story in FY 2025, soaring by 64% and contributing an additional $3.84 million in sales. This growth is a clear indicator of the company's successful pivot. To be fair, the Industrial market segment saw a significant decline of 47% (a loss of $1.68 million) in the same period, which is why the overall growth was only 4%.

Business Economics

Sono-Tek Corporation's economic fundamentals are built on a high-value, low-waste technology that allows them to command significant pricing power, particularly as customers move from R&D to full production. The core economic lever is the shift to high-ASP systems, which are complex, custom-engineered machines.

• Pricing Power: The company's strategic focus is on systems with significantly higher Average Selling Prices (ASPs). These large-scale production machines can sell for over $300,000, with some reaching $1 million or more, a substantial jump from smaller R&D tools.
• Recurring Revenue: The Service and Spares segment acts as a crucial recurring revenue stream, providing stability. For instance, in the third quarter of fiscal year 2025, service and spares revenue grew by 24%, a defintely positive tailwind.
• Cost Structure: The gross margin for FY 2025 was 47.5%, a decrease from 50.0% in FY 2024. This narrowing was primarily due to product mix and a reclassification of specific labor costs into the Cost of Goods Sold (COGS), a necessary accounting change following the completion of successful R&D projects.

The transition to selling complete, integrated coating systems is key; it expands the addressable market and justifies the high price tag by delivering a complete, proprietary solution. You can read more about the strategic direction in the Mission Statement, Vision, & Core Values of Sono-Tek Corporation (SOTK).

Sono-Tek Corporation's Financial Performance

The company maintains a strong balance sheet, which gives it the flexibility to navigate market volatility and invest in growth. Looking at the most recent data for the first half of fiscal year 2026 (ended August 31, 2025), the business shows solid operational health.

• Backlog: Total equipment and service-related backlog was strong at $11.21 million as of August 31, 2025, which is a 50% sequential increase from the prior quarter and provides clear revenue visibility for the near term.
• Profitability: Net income for the first half of fiscal year 2026 increased by 35% year-over-year to $909 thousand. This growth in profit outpaced the modest revenue increase, showing improved operating efficiency.
• Margin Improvement: Gross margin for the first half of fiscal year 2026 expanded to 51%, up from 49% in the prior year period, primarily due to a favorable product mix of high-ASP systems. That's a great sign of pricing power taking hold.
• Balance Sheet Strength: As of August 31, 2025, the company held $10.6 million in cash, cash equivalents, and marketable securities with no outstanding debt. This debt-free position is a significant financial strength.

Here's the quick math on the full fiscal year 2025: a net income of approximately $1.3 million on $20.5 million in revenue translates to a net margin of about 6.3%, which is respectable for a specialized equipment manufacturer.

Sono-Tek Corporation (SOTK) Market Position & Future Outlook

Sono-Tek Corporation is a technology leader in the niche, high-precision ultrasonic coating systems market, strategically positioned to capture growth from the clean energy and medical device sectors. The company's focus on high-volume production platforms, which carry significantly higher average selling prices (ASPs), is the key driver for its continued profitability and expansion.

Competitive Landscape

The ultrasonic coating systems market is moderately concentrated, with the top four manufacturers collectively holding over 65% of the global market share. Sono-Tek Corporation maintains its position as a dominant force by specializing in advanced, high-value applications, which differentiates it from competitors focusing on broader industrial systems.

Opportunities & Challenges

Your investment thesis should map the company's clear opportunities against the near-term risks, especially considering the limited visibility in certain policy-driven sectors. The transition from R&D tools to high-volume production machines is defintely a major tailwind.

Industry Position

Sono-Tek Corporation holds a strong industry position built on its patented ultrasonic technology and a debt-free balance sheet, which gives it flexibility. The company closed Fiscal Year 2025 with record revenue of $20.5 million.

• Technology Leader: The company is renowned for its advanced nozzle designs, enabling precision thin-film applications critical for microelectronics and medical devices.
• Financial Strength: As of February 28, 2025, the balance sheet was robust with $11.9 million in cash and no outstanding debt.
• Growth Momentum: Total backlog stood at a strong $11.21 million as of August 31, 2025, reflecting new order momentum, especially from the medical market.
• Strategic Focus: Vertical integration enhances efficiency and reduces costs, which helps to boost margins despite pricing pressures.

To understand the foundation of this market position, review the company's core principles: Mission Statement, Vision, & Core Values of Sono-Tek Corporation (SOTK).