Dynatronics Corporation (DYNT): BCG Matrix [Dec-2025 Updated]

You're looking at Dynatronics Corporation's portfolio right now, and honestly, the picture is tough given the $10.90 million net loss in fiscal year 2025 and the substantial doubt about its ability to continue as a going concern. As a seasoned analyst, I can tell you this BCG Matrix analysis reveals a business heavily weighted toward Dogs and Question Marks, with legacy products barely clinging to Cash Cow status due to thin 21.9% gross margins on $27.39 million in sales. We need to see where the new advanced compression therapy systems fit against the declining orthopedic bracing and OEM segments to map out the next move. It's a tough spot, but the data shows the path forward.

Background of Dynatronics Corporation (DYNT)

You're looking at Dynatronics Corporation (DYNT), a medical device company that designs, manufactures, and markets restorative products across several key healthcare areas. Honestly, the firm's focus is on physical therapy, rehabilitation, orthopedics, pain management, and athletic training. They serve a professional base including orthopedists, physical therapists, chiropractors, and athletic trainers, using trusted brands like Bird & Cronin, Solaris, Hausmann, and PROTEAM.

The company operates in a single segment, focusing on developing and distributing these medical products. Their revenue streams are primarily split between two major product categories: Physical Therapy and Rehabilitation Products, and Orthopedic Soft Bracing Products. It's important to note that for the full fiscal year ended June 30, 2025, no single product accounted for more than 10% of total revenues.

Financially, the picture for Dynatronics Corporation as of late 2025 shows significant headwinds. For the full fiscal year 2025, net sales came in at $27.39 million, which was a drop of 15.8% compared to the year prior. This decline was mainly attributed to lower volume from OEM customers and a general softening in demand for their orthopedic soft bracing product category.

The profitability metrics reflect this pressure. The gross profit for fiscal 2025 was $6.01 million, representing a gross margin of just 21.9% of net sales, down 21.3% from the previous year. Consequently, the operating loss widened to $2.45 million for the full year, and the net loss attributable to common stockholders was a substantial $11.60 million, or $1.43 per share. This ongoing struggle with recurring losses and negative cash flows has led management to report substantial doubt about the company's ability to continue as a going concern.

Looking at the most recent quarterly data, for the first quarter ended September 30, 2025, sales were $7.02 million, a 7.6% decrease year-over-year. On a positive note, the net loss attributable to common stockholders improved to $385,000 (or $0.03 per share), helped by cost-cutting measures, including a $412,000 reduction in selling, general, and administrative expenses (SG&A). The company is actively pursuing strategic shifts, such as bringing the production of most therapeutic modalities in-house to reduce costs and improve supply chain reliability, though this is a response to current operational challenges.

As of mid-November 2025, the stock was trading around $0.04 to $0.0580 per share, giving Dynatronics Corporation a market capitalization of roughly $720K. The company is definitely facing a tough environment.

Dynatronics Corporation (DYNT) - BCG Matrix: Stars

You're looking at the Stars quadrant, which is typically reserved for the portfolio's shining successes-products with high market share in rapidly expanding markets. Honestly, for Dynatronics Corporation as of fiscal year 2025, this quadrant is empty.

Dynatronics Corporation currently has no true Stars; the entire portfolio is under financial strain. The financial reality for the fiscal year ended June 30, 2025, shows a company grappling with contraction, not star-level dominance. Net sales for fiscal year 2025 were $27,393,000, a significant drop of 15.8% from the $32,534,000 recorded in fiscal year 2024. This revenue decline is the antithesis of what a Star business unit experiences.

The core therapeutic modalities operate in a market growing at a 6.3% CAGR, but the company's overall revenue is declining. This juxtaposition suggests that even if the market is healthy, Dynatronics Corporation is losing ground within it. A true Star requires market leadership, but the data suggests a struggle for overall market presence.

A true Star would require a dominant market share (above 15-20%) and high growth, which Dynatronics Corporation lacks. To illustrate the financial pressure that prevents any unit from achieving Star status, look at these key figures from the fiscal year 2025 filing:

The net loss attributable to common stockholders ballooned to $11,604,000 in fiscal year 2025, up from $3,429,000 the prior year. Furthermore, the company's liquidity position tightened, with cash and cash equivalents falling to $326,344 as of June 30, 2025, and the current ratio dropping to 1.1 to 1. This financial strain necessitates investment everywhere, leaving no surplus cash to pour into a Star product for aggressive growth.

The company's product mix further argues against a Star classification. For both fiscal years 2025 and 2024, no single product accounted for more than 10% of total revenues. Stars are typically defined by a dominant, market-leading product or brand. Instead, the business relies on a broad portfolio where the largest revenue drivers for the three months ended September 30, 2025, were:

• Physical Therapy and Rehabilitation Products: $4,161,586
• Orthopedic Soft Bracing Products: $2,835,716

The company's most promising, high-growth potential products are better categorized as Question Marks right now. The very nature of a Star-a high-growth, high-share leader-is absent when the overall revenue trend is negative, down 15.8% year-over-year for the full fiscal year 2025.

Dynatronics Corporation (DYNT) - BCG Matrix: Cash Cows

You're looking at the core, mature revenue drivers for Dynatronics Corporation, the products that theoretically should be printing money for the business. In the classic BCG sense, these are your high market share, low growth units. However, the reality for Dynatronics in fiscal year 2025 is that this category, while stable, is not a net cash generator for the entire enterprise; the company reported a $10.90 million net loss for FY 2025. That loss, specifically $10,902,000, shows that the cash generated by these stable assets is being consumed elsewhere, likely by Question Marks or administrative overhead.

The most stable, albeit low-growth, revenue base comes from established therapeutic modalities, such as electrotherapy and ultrasound, alongside the company's treatment tables. These are the legacy products that have achieved market penetration over time. To be fair, these are the units that provide the foundational top-line figure that the company relies on, even if the margins are thin right now. The company's operational strategy is even shifting to bring production of these modalities in-house to try and improve the cost structure, which is a classic 'milk the cow' move to boost cash flow efficiency.

These legacy products contribute the bulk of the $27.39 million in FY 2025 net sales, which was $27,393,000 according to the 10-K filing. Still, the gross margin on these sales is low, coming in at 21.9% of net sales for the full year, down from 23.5% in the prior year. Here's the quick math: that means the gross profit for FY 2025 was approximately $6.01 million (or $6,011,000). This low margin is a key risk; if competitive advantage erodes, the cash flow benefit disappears fast. What this estimate hides is the specific margin breakdown between the modalities and the tables, which we don't have segmented.

The brand names associated with this stable base are mature, trusted assets that should require minimal growth investment, which is why they fit the Cash Cow profile. They are the established names in the physical therapy and rehabilitation space.

• Brand names like Hausmann are mature, trusted assets.
• Brand names like Bird & Cronin are mature, trusted assets.
• These assets require minimal growth investment for maintenance.
• They serve core customers: orthopedists and physical therapists.

For the quarter ending September 30, 2025, the Physical Therapy and Rehabilitation Products category generated $4,161,586 in revenue, while the Orthopedic Soft Bracing Products category generated $2,835,716. While the bracing segment saw noted demand reduction, the therapy/rehab products likely represent the most stable component of the legacy base. The company is actively trying to improve efficiency by transitioning production of the majority of its therapeutic modalities to internal operations, aiming to reduce costs by eliminating third-party markups. Finance: draft 13-week cash view by Friday.

Dynatronics Corporation (DYNT) - BCG Matrix: Dogs

You're looking at the units within Dynatronics Corporation (DYNT) that are stuck in the low-growth, low-market-share quadrant-the Dogs. These are the products or segments that tie up capital without generating meaningful returns, and honestly, they drag down the overall performance metrics.

The orthopedic soft bracing product line is a textbook example here. The general reduction in demand for this category, coupled with the poor performance of products sold to OEM customers, drove the significant top-line contraction for the full fiscal year ending June 30, 2025. This is the core issue you need to see clearly.

Here's a look at the financial reality for the fiscal year ended June 30, 2025, which confirms the capital consumption and lack of return:

The 15.8% revenue decline in FY 2025, falling to $27,393,000, was directly linked to lower OEM volume and that softer orthopedic soft bracing demand you mentioned. When volume drops that much, fixed costs don't disappear, which crushes profitability. The gross profit itself shrank by 21.3% to $6,011,000, showing that the revenue drop outpaced the cost of goods sold reduction, leading to a lower gross margin of 21.9%.

The overall business model status is confirmed as a Dog by the persistent negative cash generation. For the full fiscal year 2025, Cash Flows from Operating Activities registered a use of cash of approximately $(10,901,609), directly reflecting the recurring operating losses. While the latest quarterly report (Q1 FY2026, ending September 30, 2025) showed a narrower net loss of $201,857 on sales of $7.02 million, this improvement was driven by cost actions, not growth, and the company still reported substantial doubt about its ability to continue as a going concern.

These units fit the Dog profile because:

• Orthopedic soft bracing demand saw a general reduction.
• OEM customer volume reduction was a major driver of the 15.8% FY 2025 revenue decline.
• The full year FY 2025 resulted in an operating loss of $2,450,000.
• FY 2025 Cash Flows from Operating Activities were a use of cash of approximately $10.9 million.
• The company recorded a $7,117,000 goodwill impairment charge in FY 2025.

Expensive turn-around plans are typically avoided here; divestiture is often the cleaner path for these low-share, low-growth assets.

Dynatronics Corporation (DYNT) - BCG Matrix: Question Marks

You're looking at the products that are burning cash today but hold the promise of tomorrow's market leadership. For Dynatronics Corporation, these Question Marks reside in new or rapidly evolving segments where the company has yet to establish a dominant position. These units require significant capital infusion to capture market share before they risk sliding into the Dog quadrant.

The advanced compression therapy systems launched in 2025 fit squarely into this category. They are new offerings targeting the physiotherapy market, which itself is experiencing robust expansion. The overall global rehabilitation equipment market size is estimated at $18.32 billion in 2025, with projections to reach $23.7 billion by 2033, indicating a high-growth environment for these new products to enter. Still, these new ventures are currently consuming resources without delivering substantial profit.

The financial reality for Dynatronics Corporation reflects this cash consumption. The full fiscal year ending June 30, 2025, resulted in a substantial net loss of $10.90 million. This loss is the primary drain that Question Marks contribute to, as they operate with low market penetration, demanding heavy marketing and development spend to gain traction. To counter this, new revenue streams through product diversification are being actively pursued to address this $10.90 million net loss figure. The latest quarterly data for the period ended September 30, 2025, shows a net loss attributable to common stockholders of $385,000 on net sales of $7.02 million.

A critical strategic initiative is underway to improve internal profitability, which directly impacts the viability of these Question Marks. Dynatronics Corporation is pursuing a strategic initiative to transition therapeutic modalities production in-house. The goal is clear: to improve the gross margin from the reported fiscal year 2025 level of 21.9%. For context, the gross margin in the most recent quarter (ended September 30, 2025) was slightly better at 24.7% on $1.73 million in gross profit, but the overall annual figure of 21.9% from FY2025 is the baseline for the in-sourcing improvement target.

The operational metrics highlight the investment required for these growth areas:

• FY 2025 Net Sales were $27.39 million.
• FY 2025 Gross Profit was $6.01 million.
• FY 2025 SG&A expenses totaled $8.464 million.
• The company had $761,748 in cash and cash equivalents as of September 30, 2025.
• Federal Net Operating Loss Carryforwards stood at $24.7 million as of June 30, 2025.

The core challenge for these products is converting high market growth potential into high market share quickly. The company must decide where to allocate capital for heavy investment to turn these into Stars, or when to divest them if the growth trajectory stalls. The current financial strain, evidenced by the $10.90 million net loss in FY2025 and the notice of default received on the Loan and Security Agreement, makes this decision-making process acutely time-sensitive.

Here is a comparison of the key financial performance indicators surrounding the Question Mark segment's environment:

The strategy hinges on successfully executing the in-house production to boost the gross margin from the 21.9% level, which should provide the necessary cash flow to fund the aggressive market share acquisition required by these Question Mark products. If onboarding takes too long, churn risk rises defintely.