FONAR Corporation (FONR): Marketing Mix Analysis [Dec-2025 Updated]

You're looking to cut through the noise and see exactly how the inventor of MR scanning is positioning itself in late 2025, and honestly, the strategy is a classic two-part play: selling specialized, high-tech equipment alongside a steady, managed service business. As we look at the Fiscal 2025 numbers, we see Total Revenues nudging up just 1% to $104.4 million, driven by that service arm, even as Selling, General, and Administrative expenses climbed 11% to $29.7 million. So, while the core product-the UPRIGHT® Multi-Position™ MRI-remains a unique differentiator, the real story is how the 44 HMCA-managed scanners are translating that tech into revenue, even with Diluted EPS dipping 20% to $1.23 for the year. Let's break down the Product, Place, Promotion, and Price to see where the real value-and the near-term risk-is hiding in this setup.

FONAR Corporation (FONR) - Marketing Mix: Product

You're looking at the core offerings of FONAR Corporation, which centers on proprietary MRI technology and the services that support it. The product element here isn't just the machine; it's the unique capability that machine provides, plus the infrastructure that delivers the scans.

The flagship offering remains the UPRIGHT® Multi-Position™ MRI. This system is unique because it's the only whole-body scanner allowing imaging while the patient is in weight-bearing positions-sitting, standing, or bending for flexion and extension-as well as lying down. Honestly, this positional capability is the key differentiator, letting doctors see pathology when the body is loaded, unlike conventional recumbent-only scanners. The magnetic field strength for this system is specified at 0.6 Tesla, which FONAR Corporation supports with a unique magnet configuration that permits the use of both solenoid and planar RF receiver coils.

Beyond the UPRIGHT® MRI, the product portfolio includes systems designed for broader market applications and access. You have the FONAR 360®, which engineers designed as a full-size room with a standard eight-foot ceiling and a 14-foot width, giving 360-degree access around the patient. Then there's the OPEN SKY™ MRI system, which leverages that same open design, often featuring decorative landscape murals to enhance the patient experience.

The service side of the product offering is handled by Health Management Company of America (HMCA). As of September 30, 2025, HMCA manages 44 MRI scanners across New York and Florida. To give you a sense of scale, scan volume at these HMCA-managed sites hit a record of 216,317 scans in Fiscal 2025. This service component is FONAR Corporation's primary source of income and growth.

Here's a look at how the revenue streams tied to the product side-equipment sales, system upgrades, and service/repair fees-performed for the most recent full fiscal year and the latest reported quarter.

The focus on innovation continues, as works-in-progress include CSF Videographics, which is directed toward cerebral hydraulics research. It's clear the company is still investing in developing new applications for its core technology.

For the quarter ending September 30, 2025, the revenue from the FONAR segment-which bundles Product Sales, Upgrades, and Service and Repair Fees-was $2.5 million. That's a 14% jump compared to the $2.2 million recorded in the same quarter of the prior year. Still, you should note that the costs associated with servicing those systems are also material.

• UPRIGHT® Multi-Position™ MRI magnetic field strength: 0.6 Tesla.
• FONAR 360® room dimensions: 8-foot ceiling height, 14-foot width.
• HMCA-managed MRI scanners as of September 30, 2025: 44 units.
• Record annual scan volume at HMCA sites (FY2025): 216,317 scans.
• FY2025 revenue from Product Sales/Upgrades/Service: $9.0 million.

If you look at the Q3 FY2025 data for service costs specifically, costs related to service and repair fees were $3,211 thousand, up from $2,533 thousand in Q3 FY2024. That's a concrete number showing the cost side of maintaining the installed base.

FONAR Corporation (FONR) - Marketing Mix: Place

You're looking at how FONAR Corporation (FONR) gets its services and products to the market, which is heavily weighted toward its service arm. The distribution strategy is clearly bifurcated between the high-volume diagnostic imaging management and the lower-volume direct equipment sales.

Primary distribution is through its wholly-owned subsidiary, HMCA. FONAR Corporation's main income stream flows from its wholly-owned diagnostic imaging management subsidiary, Health Management Company of America (HMCA). This segment is the core engine of the business, focusing on making specialized MRI services available to referred patients.

Operates a network of 44 managed MRI scanners across New York and Florida. As of the close of Fiscal 2025, HMCA managed a total of 44 MRI scanners. This network is strategically positioned to maximize service delivery within its focused markets. The HMCA segment generated revenues of $95.4 million for the fiscal year ended June 30, 2025.

The geographic breakdown of this network as of June 30, 2025, shows a clear concentration:

Geographic focus is highly concentrated in two key US states for operational efficiency. The entire operational footprint for the service segment is contained within New York and Florida. This concentration allows FONAR Corporation to manage logistics, service, and regulatory compliance efficiently across a defined, albeit limited, geographic area.

Added two new HMCA-managed scanners in Fiscal 2025, expanding the service footprint. The service footprint expanded during Fiscal 2025 with the addition of two new HMCA-managed MRI scanners. These additions were high-field magnets installed to complement existing Stand-Up® MRI systems. The specific locations for these additions were:

• A scanner added in Melville, NY.
• A scanner added in Naples, FL.

The company also noted plans for an additional HMCA-managed center in Nassau County, NY, expected to be operational in the fourth quarter of Fiscal 2025.

Equipment sales are direct to medical practices and related/non-related parties. The other side of the distribution coin involves the FONAR segment, which handles direct sales and service. Revenues from Product Sales, Upgrades, and Service and Repair Fees for both related and non-related medical parties totaled $9.0 million for the fiscal year ended June 30, 2025. This is an increase from $8.3 million in the prior fiscal year. However, looking closer at the product sales component specifically, that figure decreased by 23.6% to $563,000 in Fiscal 2025, suggesting the growth in this segment is more reliant on service and upgrades than new scanner placements.

The distribution for equipment is direct; there are no indications of a broad third-party dealer network for scanner sales.

FONAR Corporation (FONR) - Marketing Mix: Promotion

The promotion strategy for FONAR Corporation (FONR) centers on communicating the distinct technological advantage of its imaging systems to referring physicians and the broader medical community. This is a highly specialized B2B/B2C communication effort where the product differentiator is the primary focus.

Core message emphasizes the unique, patented Multi-Position™ imaging capability. This feature is promoted as the only way to scan patients in the positions where they experience symptoms, such as sitting or standing, which can reveal pathology missed by conventional lie-down-only MRIs. The ability to scan in weight-bearing positions is highlighted, noting that this can create up to 11 times more pressure on the discs compared to laying down, based on studies like those by A. L. Nachemson, 1976. The technology also allows for Correlated Slice Profile (CSP) Imaging, displaying side-by-side views of the spine in four positions: Upright®-neutral, Upright®-flexion, Upright®-extension, and traditional recumbent.

Public relations and investor relations are key communication channels, including press releases. FONAR Corporation (FONR) regularly issues press releases to communicate financial performance and corporate events. For instance, the financial results for Fiscal 2025 were announced throughout the year, with the full fiscal year results released on September 12, 2025. The first quarter of Fiscal 2026 results were released on November 10, 2025. Investor Relations contact information is provided on the company website, including an email address: investor @ fonar. com.

Branding leverages the historical claim: The Inventor of MR Scanning™. This long-standing claim is used consistently across official communications, such as press releases, to establish historical authority and pioneering status in the magnetic resonance imaging field.

Utilizes its website and a museum at headquarters to promote its innovation timeline and history. The company directs interested parties to its website, www.fonar.com, for detailed information. The promotion of the company's history and innovation timeline is supported by a museum located at the headquarters in Melville, NY.

The financial impact of these promotional and general business activities is reflected in the Selling, General, and Administrative (SG&A) expenses. The increase in SG&A for Fiscal 2025 was substantial, driven in part by a significant increase in reserves for credit losses for a single payer, American Transit Insurance Company, amounting to \$2,300,000.

The year-over-year change in SG&A expenses for the full fiscal years is detailed below:

The prompt specified an 11% increase, and the reported figure is \$29.7 million for Fiscal 2025, up from \$26.9 million in Fiscal 2024.

Other related financial metrics from the Fiscal 2025 full-year report include:

• Revenues increased by 1.4% in Fiscal 2025.
• Total Costs and Expenses increased by 7% to \$92.8 million for the fiscal year ended June 30, 2025.
• Income from Operations decreased 29.7% to \$11.6 million for fiscal 2025.
• Diluted Net Income per Common Share Available to Common Shareholders decreased 20% to \$1.23 for fiscal 2025.
• HMCA managed 44 MRI scanners as of June 30, 2025.

The company also reports on stock repurchase activity, noting that as of September 30, 2025, the company had purchased over 283,770 shares at a cost of \$6.1 million under a plan adopted on September 13, 2022, for up to \$9 million.

FONAR Corporation (FONR) - Marketing Mix: Price

FONAR Corporation (FONR) operates with a dual revenue model that directly impacts its pricing strategy across two distinct segments.

The first revenue stream is dominated by patient fees generated through its wholly-owned diagnostic imaging management subsidiary, Health Management Company of America (HMCA). The second stream comes from equipment sales, upgrades, service, and repair fees under the FONAR segment.

Total Revenues - Net for the fiscal year ended June 30, 2025, reached $104.4 million, marking a 1% increase compared to the prior fiscal year's $102.9 million.

Pricing for the proprietary UPRIGHT® MRI equipment reflects its technological innovation, as it is the only MRI scanner capable of imaging patients in multiple positions, including sitting and standing, under the weight of the body, which is critical for accurate diagnosis of spine and joint issues. This unique capability supports a premium pricing structure for the equipment itself.

The revenue derived from patient fees is not the gross amount billed, but rather the net figure after accounting for deductions. Specifically, patient fee revenue is reported Net of Contractual Allowances and Discounts. Furthermore, the pricing realization is subject to external risk exposure, evidenced by the requirement for an additional reserve of $2.3 million in Fiscal 2025 due to insurance carrier risk exposure.

For the equipment sales component of the FONAR segment:

• Product sales alone decreased by 23.6% to $563,000 in Fiscal 2025.
• Service and repair fees contribute to the overall segment revenue of $9.0 million.

The perceived value of FONAR Corporation (FONR) stock, as an indicator of market valuation relative to its assets, was reflected in a preliminary, non-binding acquisition proposal received in July 2025. This proposal anticipated an acquisition price per share to be 'at a premium of no less than 10% to the average closing market price of FONAR's common stock for the 90 trading days immediately preceding July 1, 2025.'

The bottom-line financial result tied to these pricing and revenue activities for the full fiscal year 2025 was a Diluted Earnings Per Share (EPS) of $1.23, representing a 20% decline from the $1.53 reported in Fiscal 2024.