Dynatronics Corporation (DYNT): Business Model Canvas [Dec-2025 Updated]

You're looking at Dynatronics Corporation's current operational reality, and honestly, the fiscal year 2025 numbers paint a clear picture of a company in transition: they posted Net Sales of $27.39 million, but that resulted in a tough $10.90 million Net Loss, with Gross Profit barely scraping 21.9% of sales. That low margin signals the pressure from their cost structure as they actively shift production from contract manufacturers to their own facilities to support trusted brands like Hausmann and Solaris. This Business Model Canvas distills exactly how they plan to fix that margin issue by owning more of the value chain, relying on their dealer network for sales, and managing a portfolio of established physical therapy assets-read on to see the nine building blocks driving their near-term strategy.

Dynatronics Corporation (DYNT) - Canvas Business Model: Key Partnerships

You're mapping out the strategic alliances that keep Dynatronics Corporation running, which is crucial given the recent operational shifts and market pressures. Here's a breakdown of the key partnerships that form the backbone of their Key Partnerships block in the Business Model Canvas, grounded in the latest available data.

Financing and Capital Alliances

Securing working capital through specific financial partners has been a clear action point for Dynatronics Corporation. The relationship with Gibraltar Business Capital, LLC is central to their current liquidity strategy.

The asset-based financing agreement with Gibraltar Business Capital, LLC, established on August 1, 2023, provides a facility for operating capital. This Revolving Loan Commitment has a maximum availability of $7,500,000. Interest on these Revolving Loans is set at SOFR plus 5.00%. This facility is secured by a first-priority security interest in substantially all of the Company's assets, including inventory and accounts receivable, which are calculated weekly to determine the actual borrowing base.

Institutional private equity co-investors also play a governance and strategic role. Erin S. Enright, the current Chair of Dynatronics Corporation, serves as a Managing Member of Prettybrook Partners LLC. This entity is described as a family office focused on healthcare investments, typically acting as a co-investor alongside institutional private equity, and it maintains approximately 20 active investments in the sector. While the most recent direct financing mentioned was a 2016 private placement led by Prettybrook Partners for $975,000, the presence of the Chair links this strategic capital source directly to the Board.

Here's a quick look at the key financial partnership terms:

Distribution and Sales Channel Focus

Dynatronics Corporation relies on a specific channel strategy to get its products-which include orthopedic soft bracing and physical therapy/rehabilitation products-to end-users. They sell through a network of independent dealers.

This dealer network serves a diverse set of customers:

• Orthopedists
• Physical therapists
• Chiropractors
• Athletic trainers
• Sports medicine practitioners
• Clinics and hospitals
• Retail distributors and equipment manufacturers

The company markets its products under several brand names, including Dynatron, Dynatron Solaris, Bird & Cronin, Hausmann, PROTEAM, and Mammoth. For FY2025 (year ended June 30, 2025), total Net Sales were $27.39 million. For the three months ended September 30, 2025, Net Sales totaled $7.02 million, with Orthopedic Soft Bracing Products generating $2,835,716 and Physical Therapy and Rehabilitation Products generating $4,161,586.

Supply Chain and Manufacturing Relationships

The operational strategy shows a clear move to internalize production, which directly impacts relationships with suppliers and contract manufacturers. The company faces risks from its external supply chain.

The FY2025 10-K explicitly notes significant operational risks due to reliance on third-party manufacturers and suppliers for components and raw materials. Furthermore, the company is actively engaged in a transition to mitigate this risk:

• The company is transitioning production of the majority of its therapeutic modalities from a contract manufacturer to internal operations.
• Recent tariff changes between the U.S. and China pose risks; potential universal tariffs could significantly affect future costs of revenue.

This transition away from contract manufacturers suggests a strategic pivot to gain more control over quality and cost, especially in light of tariff uncertainties. For the three months ended September 30, 2025, Gross Profit was $1.73 million, representing 24.7% of net sales, which was down 12.6% from the prior year, partly reflecting the pressures in the supply chain and demand shifts.

Finance: draft 13-week cash view by Friday.

Dynatronics Corporation (DYNT) - Canvas Business Model: Key Activities

You're looking at the core engine of Dynatronics Corporation, the activities that actually make the business run, especially as they navigate a tough market in late 2025. Here's the breakdown of what they are actively doing.

Manufacturing and designing restorative medical devices

Dynatronics Corporation's key activity centers on the design, manufacturing, marketing, and distribution of restorative medical products. This portfolio serves orthopedic, physical therapy, pain management, and athletic training needs. The company maintains manufacturing facilities in Northvale, New Jersey, Eagan, Minnesota, and Cottonwood Heights, Utah. As of the fiscal year 2025 filings, approximately 98% of total product sales were derived from products manufactured either directly by Dynatronics Corporation or through its contract manufacturers. The product range is broad, covering several distinct areas.

The product categories contributing to sales in the three months ended September 30, 2025, were:

It's clear that sales are spread across the portfolio; no single product accounted for more than 10% of total revenues in fiscal years 2025 or 2024. That's a good sign for diversification within their core offerings.

Transitioning therapeutic modality production to internal operations

A major operational pivot involves bringing production in-house. Dynatronics Corporation is actively transitioning the manufacturing of the majority of its therapeutic modalities away from contract manufacturers. This move is designed to achieve several goals: reduce costs by cutting out third-party markups, enhance quality control over the final product, and improve the reliability of the supply chain. This is a direct action to gain better control over the cost of goods sold, especially given noted concerns about potential tariff impacts on supplier costs.

Streamlining processes and executing cost reduction initiatives

The company is executing a comprehensive plan focused heavily on operational efficiency. This includes streamlining internal processes and implementing specific cost reduction initiatives across the board. These efforts are visible in the financial results, though the overall environment remains challenging. For the full fiscal year 2025, the company reported Net Sales of $27.39 million, with a Gross Profit of $6.01 million (representing 21.9% of net sales) and an Operating Loss of $2.45 million. However, looking at the third quarter ended September 30, 2025, the Operating Loss improved to $88,000 from a loss of $251,000 in the prior year, driven by a reduction in selling, general, and administrative expenses-a direct result of these efficiency drives.

Key areas of focus for streamlining include:

• Reducing overall selling, general, and administrative expenses.
• Evaluating the current inventory position to reduce excess exposure.
• Working with suppliers to mitigate potential cost increases from tariffs.

Sales and marketing focused on company-manufactured products

Sales and marketing efforts are increasingly centered on the products Dynatronics Corporation manufactures or controls closely. The company serves a diverse set of customers, including orthopedists, physical therapists, chiropractors, athletic trainers, sports medicine practitioners, clinics, and hospitals. The sales focus is on leveraging trusted, high-quality brands like Bird & Cronin, Solaris, Hausmann, and PROTEAM to differentiate against competitors with greater resources. The total revenue for the three months ending September 30, 2025, was $7.02 million, down 7.6% year-over-year, partly due to a reduction in volume from OEM customers.

Pursuing new revenue streams via product diversification and M&A

Beyond optimizing current operations, Dynatronics Corporation is actively looking outward for growth. A stated strategic initiative is pursuing new revenue streams through product diversification. Furthermore, the company is actively pursuing an acquisition strategy aimed at consolidating other manufacturers within its core medical device markets. This M&A focus suggests a path to scale by integrating complementary businesses. As of November 12, 2025, the company had 16,048,734 shares of common stock outstanding, with a market capitalization of $720K based on a stock price of $0.04.

Dynatronics Corporation (DYNT) - Canvas Business Model: Key Resources

You're mapping out the core assets Dynatronics Corporation relies on to deliver its value proposition in the medical device and rehabilitation space. These are the things the business owns or controls that are essential for its operations.

The company's physical and financial foundation is supported by specific assets. As of June 30, 2025, the reported working capital stood at $718,000. This figure is crucial for managing short-term obligations and funding day-to-day operations. Also on the balance sheet as of that date, the Cash and Cash Equivalent balance was $326,344, which grew to $761,748 by September 30, 2025.

Dynatronics Corporation maintains its production capability through dedicated manufacturing facilities. These physical plants are located in Utah, New Jersey (associated with the Hausmann acquisition), and Minnesota (where the corporate offices are located).

The firm's market presence is heavily reliant on its established portfolio of trusted brands. These brands represent years of market penetration and customer trust in the physical therapy and athletic training sectors:

• Bird & Cronin
• Solaris (including Solaris Plus electrotherapy devices)
• Hausmann (known for treatment tables and cabinets)
• PROTEAM

The company also protects its technological edge through intellectual property. This includes proprietary patents on thermoelectric and phototherapy technologies, which underpin some of its advanced medical devices. While the exact number of active patents isn't public in the latest filings, this IP is a barrier to entry for competitors in those specific modalities.

Finally, the intangible asset of human capital is significant. Dynatronics Corporation possesses an experienced management team. This team is noted for having deep medical device industry ties, which helps navigate regulatory environments and maintain relationships with key distributors and clinicians.

To give you a clearer picture of recent operational scale, here are some key financial metrics from the latest reported quarter, which reflects the utilization of these resources:

The management team's ability to generate revenue from these assets is evident in the segment breakdown, showing that Physical Therapy and Rehabilitation Products accounted for approximately 59.3% of the total net sales for the three months ended September 30, 2025, while Orthopedic Soft Bracing Products made up the remaining 40.7%.

Finance: draft 13-week cash view by Friday.

Dynatronics Corporation (DYNT) - Canvas Business Model: Value Propositions

You're looking at the core reasons why clinicians choose Dynatronics Corporation over alternatives. It boils down to the tangible goods and the service backing them up.

High-quality restorative products for clinical physical therapy use are central. Dynatronics Corporation designs, manufactures, and markets a broad range of products for clinical use in physical therapy, rehabilitation, orthopedics, pain management, and athletic training. The company's products include therapeutic modalities, such as Dynatron Solaris, including electrotherapy and thermal therapy, and 25 Series, including electrotherapy and ultrasound.

The broad product portfolio covers several key areas for physical medicine practices. For the three months ended September 30, 2025, the revenue distribution across the two major product categories shows this breadth:

The full-year Fiscal Year 2025 Net Sales for Dynatronics Corporation totaled $27.39 million. The company's Gross Profit Margin for the third quarter of 2025 was 24.7% of net sales.

Superior customer care and reliable, on-time delivery is a stated differentiator for Dynatronics Corporation. The company markets and sells to orthopedists, physical therapists, chiropractors, athletic trainers, sports medicine practitioners, clinics, and hospitals. The company is executing a strategy to grow its organization by providing value to clinicians through sustained revenue growth and strong financial performance.

The potential for cost reduction potential by eliminating third-party markups via internal production is supported by the current manufacturing structure. Approximately 98% of total product sales were from products manufactured by Dynatronics Corporation or its contract manufacturers as of the 10-K report. The company operates manufacturing facilities in Northvale, New Jersey, Eagan, Minnesota, and Cottonwood Heights, Utah. Furthermore, Dynatronics Corporation is evaluating transitioning production of therapeutic modalities from contract manufacturers to internal operations to enhance quality control and reduce costs.

The value is reinforced by trusted, established brands in the physical medicine market. The company markets its products under a portfolio of high-quality, well-known industry brands including Bird & Cronin, Solaris, Hausmann, and PROTEAM. No single product accounted for more than 10% of total revenues in fiscal years 2025 or 2024.

The financial position as of June 30, 2025, included cash and cash equivalents of $326,344 and working capital of $718,000.

• The company's market cap as of November 27, 2025, was $717.8K.
• Trailing 12-month revenue as of September 30, 2025, was $26.8M.
• The company owns a United States patent on its thermoelectric technology that remains in effect until February 2033.

Finance: draft 13-week cash view by Friday.

Dynatronics Corporation (DYNT) - Canvas Business Model: Customer Relationships

You're looking at how Dynatronics Corporation (DYNT) manages the people who buy their restorative medical products. This isn't just about selling; it's about the long-term connection, especially since the company is actively working to stabilize its operations and improve profitability, aiming for a gross profit margin of 24.7% on its $7.02 million net sales for the third quarter of fiscal year 2025.

Dedicated customer care and warranty service for manufactured products

Dynatronics Corporation backs its manufactured products with warranties, which are described as comparable to what's generally available in the industry. A key point for you to note is that historically, warranty claims have not been considered material to the business. For the full fiscal year 2025, net sales were $27.39 million, with a gross profit of $6.01 million. This suggests that the cost associated with servicing these relationships through warranty claims is relatively low compared to the overall revenue base. The company is also strategically shifting production of the majority of its therapeutic modalities in-house from contract manufacturers, which should help them enhance quality control directly, a critical component of customer satisfaction.

B2B relationship management with dealers and distributors

A significant part of Dynatronics Corporation's go-to-market strategy relies on its indirect channels. As of the last reported data, the company utilized a network of over 300 independent dealers across the United States to move products to end users. Most of these dealers purchase and take title to the products, meaning the relationship management is focused on supporting their sales efforts and ensuring product availability. The company's operational strategy is clearly tied to supporting these partners; for instance, their customer-centric focus in earlier periods led to backorder reduction and faster revenue commission for these B2B partners. The success of this channel is vital, as failure to maintain these relationships or if distributors are ineffective could harm the company's results of operations.

Here's a quick look at the revenue mix from the most recent quarter, which shows how the product categories-which these dealers move-are performing:

Note that the Orthopedic Soft Bracing Products category saw a reduction in demand, which directly impacts the sales performance of the distribution network.

Leveraging strong, long-term customer relationships (CEO focus)

The executive leadership definitely emphasizes the importance of these connections. President, CEO, and CFO Brian Baker continues to leverage his strong customer and vendor relationships as a core element in shaping Dynatronics Corporation's future. This isn't just talk; the company has been actively using customer feedback to guide product development. Specifically, strategic customers are providing the company with a product road map, identifying gaps and necessary adjustments. This collaborative approach is intended to drive incremental revenue as new products are added to the portfolio, which in turn should create pull-through revenue for existing products. The stated focus for the fiscal year was to strengthen customer relationships while improving operating profitability.

Standardized service model through service sites in three US states

Dynatronics Corporation maintains a physical presence for service and operations across key geographic locations. They operate manufacturing facilities in Utah, New Jersey, and Minnesota. While the search results confirm these locations, they are primarily noted as manufacturing sites, and the company states that its warranty service is managed through these sites. This physical footprint supports the standardized service model, ensuring that the company has control over the manufacturing of approximately 98% of its total product sales, whether produced internally or via contract manufacturers. The company has 16,048,734 shares of common stock outstanding as of November 12, 2025, and while not a direct relationship metric, the operational stability supported by these sites is crucial for maintaining investor and customer confidence.

The primary customer base that interacts with these service and sales channels includes:

• Orthopedists and sports medicine practitioners
• Physical therapists and chiropractors
• Athletic trainers
• Clinics and hospitals
• Professional sports teams and universities
• Retail distributors and OEM partners

The company's direct sales efforts also involve agreements with regional and national chains of physical therapy clinics and hospitals, as well as group purchasing organizations (GPOs). You should keep an eye on how the internal transition of therapeutic modalities production impacts service response times going forward, as this directly affects customer confidence.

Finance: draft 13-week cash view by Friday.

Dynatronics Corporation (DYNT) - Canvas Business Model: Channels

You're looking at how Dynatronics Corporation (DYNT) gets its medical products-like orthopedic soft bracing and physical therapy gear-into the hands of the practitioners who use them. The channel strategy relies heavily on intermediaries, though direct sales to larger entities are a known pressure point.

Exclusive sales through a network of dealers and distributors form the backbone of product movement. Dynatronics Corporation sells its products to a wide array of customers, including orthopedists, physical therapists, chiropractors, athletic trainers, sports medicine practitioners, clinics, and hospitals, all facilitated through a network of independent dealers. This network is key for market reach across the United States.

Direct sales to OEM customers (though volume is decreasing) represent a segment facing headwinds. For the fiscal year ending June 30, 2025, Net Sales were reported at $27.39 million, which was a decrease of 15.8% from the prior year, with the decline attributed in part to a reduction in overall volume for OEM customers. This trend continued into the third quarter of 2025, where Net Sales were $7.02 million, a 7.6% decrease year-over-year, again citing a reduction in volume for OEM customers. This indicates a near-term challenge in the direct-to-manufacturer channel.

Retail distributors for certain product lines are explicitly mentioned as part of the customer base served via the dealer network. While specific revenue attributed only to retail distributors isn't broken out, the overall product mix shows the relative size of the main categories moving through these channels. For the three months ended September 30, 2025, the revenue split between the two main product categories was:

It's important to note that across fiscal years 2025 and 2024, no single product line accounted for more than 10% of total revenues, suggesting a diversified, albeit low-volume per-SKU, distribution strategy.

Company website and investor relations for corporate communication serve as the direct channel for financial stakeholders. You can track official updates via the Investor Relations section on the Dynatronics Corporation website. For instance, the Form 10-Q for the period ending September 30, 2025, was expected to be filed within a five-calendar-day extension period, as notified on November 17, 2025. The company reports its financial results, such as the Q3 FY2024 results released on May 9, 2024.

The primary customer types interacting with the distribution network include:

• Orthopedists
• Physical therapists
• Chiropractors
• Athletic trainers
• Sports medicine practitioners
• Clinics and hospitals

Dynatronics Corporation (DYNT) - Canvas Business Model: Customer Segments

You're looking at the core groups that buy products from Dynatronics Corporation as of late 2025. The company designs, manufactures, and markets its restorative products to a mix of clinical, athletic, and business-to-business channels. The customer base is geographically spread across the United States, Asia, Latin America, the Middle East, and other international locations.

The primary professional end-users are clearly defined:

• Physical therapists, orthopedists, and chiropractors
• Athletic trainers and sports medicine practitioners
• Clinics, hospitals, and rehabilitation facilities

Dynatronics Corporation also serves institutional and specialized athletic segments:

• Professional sports teams and university athletic programs

The company also sells to other businesses, specifically OEM customers (Original Equipment Manufacturers), which has shown a recent financial impact. For the three months ended September 30, 2025, Net Sales were $7.02 million. This represented a 7.6% decrease compared to the same period last year, which the company explicitly linked to a reduction in overall volume for OEM customers and softer demand in the orthopedic soft bracing category.

For the full fiscal year ending June 30, 2025, Dynatronics Corporation reported total Net Sales of $27.39 million, a decrease of 15.80% from the prior year's $32.53 million. This overall revenue decline was also attributed in part to the reduction in volume from OEM customers.

While direct revenue attribution by the listed professional segments isn't published, the product revenue split for the three months ended September 30, 2025, gives you an idea of what these segments are buying:

The company also markets and sells its products through retail distributors. The total number of shares outstanding as of November 12, 2025, was 16,048,734 common shares. This is the backdrop against which these customer segments operate.

Here is a summary of the identified customer types:

The company also sells through retail distributors.

Dynatronics Corporation (DYNT) - Canvas Business Model: Cost Structure

You're looking at the hard numbers driving Dynatronics Corporation's operational expenses as of late 2025. Honestly, the cost structure is heavily influenced by non-operating charges right now, but the core operating costs tell a clear story of margin pressure and recent cost-cutting.

Cost of Goods Sold (COGS) is high; Gross Profit was only 21.9% of Net Sales in FY2025

The cost to make and deliver products is eating up the lion's share of revenue. For the fiscal year ended June 30, 2025, Dynatronics Corporation reported a Gross Profit of just 21.9% of Net Sales. This means that COGS represented approximately 78.1% of every sales dollar. To be fair, this low margin percentage was down from 23.5% of net sales in the prior fiscal year 2024. That compression is a major focus area for the cost structure.

Manufacturing and production costs (shifting from contract to internal)

While the specific cost breakdown related to the shift from contract manufacturing to internal production isn't itemized separately from COGS in the summary data, the low resulting gross margin percentage suggests that the current production setup-whether internal or contract-is inherently costly relative to current pricing. The strategic imperative here is clearly margin improvement, which hinges on optimizing these manufacturing and supply chain costs.

Selling, General, and Administrative (SG&A) expenses (currently being reduced)

On the overhead side, Dynatronics Corporation has made tangible progress in trimming fixed costs. SG&A expenses for the year ended June 30, 2025, were $8,464,000. That's a reduction of $1,444,000, or 14.6%, compared to the $9,908,000 recorded in fiscal year 2024. That's a solid cut, showing management is actively working to lower the operating expense base.

Here's a quick look at the key expense components for the most recent full fiscal year:

Interest expense on debt, which was $67,207 in Q1 FY2026

Financing costs are a component of the overall cost structure. For the first quarter of fiscal year 2026, the reported interest expense was $67,207. [cite: User provided figure] This follows a trend of slight reduction, as the full fiscal year 2025 interest expense, net, was $410,000, down from $418,000 in fiscal year 2024. Lower debt balances are helping to keep this cost down.

Impairment charges, which drove the $10.90 million Net Loss in FY2025

The most significant driver of the bottom-line result was non-cash impairment charges. The Net Loss for fiscal year 2025 ballooned to $10,902,000, a sharp increase from the $2,698,000 net loss reported in FY2024. This was not an operating issue, but a significant write-down event. The total impairment charges recorded in FY2025 were substantial:

• Goodwill impairment charge: $7,117,000
• Intangible asset impairment charge: $950,000

These two items alone account for $8,067,000 of the total loss. The net loss attributable to common stockholders was even higher at $11,604,000 for FY2025.

Finance: draft 13-week cash view by Friday.

Dynatronics Corporation (DYNT) - Canvas Business Model: Revenue Streams

You're looking at the core ways Dynatronics Corporation brings in money, which is crucial for understanding its financial health as of late 2025. The primary revenue stream is product sales across its two main categories: Physical Therapy and Rehabilitation Products, and Orthopedic Soft Bracing Products.

For the full fiscal year 2025, Dynatronics Corporation reported total Net Sales of $27.39 million. That figure represented a 15.8% decrease from the prior year, which the company attributed to two main factors affecting revenue generation. One factor was a reduction in overall volume from OEM customers, and the other was a general softening in demand specifically within the orthopedic soft bracing product category. That's a tough environment to navigate, honestly.

To give you a clearer picture of the most recent performance, here's the breakdown for the first quarter of fiscal year 2026 (the three months ended September 30, 2025):

If you add those two segments together, you get $7,001,902 in sales for that quarter, which aligns with the reported Q1 FY2026 sales of $7.02 million. See? The math checks out.

The dependency on Revenue from OEM customer volume is a significant factor in the revenue stream volatility you see in the numbers. The reports from late 2025 clearly indicate that a reduction in this OEM volume was a primary driver behind the decrease in both the Q3 FY2025 net sales and the full-year FY2025 net sales. This suggests that a portion of Dynatronics Corporation's revenue is tied to the ordering patterns and success of its original equipment manufacturer partners.

Another element feeding into the top line is the Sales of manufactured capital equipment and supplies. While specific revenue figures for only manufactured goods versus distributed goods for FY2025 aren't explicitly broken out in the latest reports, the company is actively working to change its production mix. Dynatronics Corporation is in the process of transitioning the production of the majority of its therapeutic modalities from contract manufacturers to internal operations. The goal here is to capture more margin by eliminating third-party markups and to gain better control over the supply chain, which directly impacts the cost side of the revenue equation.

The revenue streams for Dynatronics Corporation can be summarized by the key product areas contributing to sales:

• Physical Therapy and Rehabilitation Products
• Orthopedic Soft Bracing Products
• Sales derived from OEM customer volume
• Sales of internally manufactured equipment and supplies

The company's product portfolio is broad, covering orthopedic soft bracing, physical therapy and rehabilitation products, therapeutic modalities, and treatment tables. No single product accounted for more than 10% of total revenues in fiscal years 2025 or 2024. Finance: draft 13-week cash view by Friday.