Breaking Down Astrotech Corporation (ASTC) Financial Health: Key Insights for Investors

If you are looking at Astrotech Corporation (ASTC), you are defintely sizing up a classic high-potential, high-burn technology story, which means the financial health is a delicate balancing act between runway and revenue conversion. The full fiscal year 2025 results set a clear challenge: the company posted a net loss of $13.85 million against a modest revenue of just $1.0 million, showing the sheer cost of funding their mass spectrometry research and development (R&D). But here's the nuance: the balance sheet remains the primary shock absorber, holding $18.2 million in cash and equivalents as of June 30, 2025, which is a significant asset for a micro-cap company. However, that cash is draining quickly; the most recent quarter (Q1 FY2026) saw consolidated cash drop to $13.9 million by September 30, 2025, fueled by a negative operating cash flow of $3.936 million. We need to see if the recent revenue surge to $297,000 in that quarter, coupled with a remarkable 63.3% gross margin, marks the start of a sustainable commercial breakthrough for their TRACER 1000 product line, or just a temporary spike from grants and consumables.

Revenue Analysis

You're looking at Astrotech Corporation (ASTC) and the first thing to understand is that their revenue profile is in a critical transition phase. The headline for the fiscal year ended June 30, 2025, is a significant contraction, but it masks a crucial shift in their product mix and future opportunities. To be fair, smaller, R&D-heavy companies often see lumpy revenue.

For the full fiscal year 2025, Astrotech Corporation reported annual revenue of approximately $1.0 million. This represents a substantial year-over-year decline of about 39.9% from the prior fiscal year's revenue of $1.664 million. This drop was primarily driven by a decrease in the sale of devices from their subsidiary, 1st Detect, compared to the previous year.

Here's the quick math on the near-term risk: a reliance on large, infrequent device sales makes the top-line volatile. Still, a deeper look at the revenue streams shows where the future growth is being built.

The company's revenue is not just a single product line; it's a mix of product sales, service, and government funding, primarily centered around its core mass spectrometry (MS) technology. The primary revenue sources in FY 2025 were:

• TRACER 1000™ Shipments: Sales of their flagship mass spectrometry units, mainly for explosive trace detection (ETD) in markets like airport security.
• Government Grant Revenue: Funding from research and development contracts, including a notable award from the Department of Homeland Security (DHS) for next-generation explosives trace detection.
• Recurring Sales: Income from consumable sales and maintenance services, which are the more predictable, higher-margin revenue streams.

What this annual estimate hides is the quarterly momentum. The third quarter of fiscal year 2025 actually saw a huge revenue surge to $534,000, up from just $50,000 in the same quarter of the prior year, indicating strong market acceptance for their products when they ship.

The most significant change in the revenue architecture is the strategic expansion into new markets via new subsidiaries and products. This is where the long-term opportunity lies:

• EN-SCAN, Inc.: A new wholly owned subsidiary formed in FY 2025 to target the environmental testing market with instruments for on-site, real-time air, water, and soil analysis.
• TRACER 1000 NTD: The launch of the Narcotics Trace Detector, expanding the 1st Detect subsidiary's market reach beyond explosives to include narcotics detection for border security and law enforcement.

This shift from almost entirely device sales to a multi-pronged approach-including government R&D and new environmental and narcotics segments-is defintely a move to stabilize their top line and increase the percentage of recurring revenue over time. You can read more about their strategic direction on their Mission Statement, Vision, & Core Values of Astrotech Corporation (ASTC).

The table below summarizes the key financial data points for the fiscal year 2025, showing the gross margin improved even as revenue fell, suggesting higher-value device sales or better cost management in that period.

Profitability Metrics

You're looking for a clear picture of Astrotech Corporation's (ASTC) financial health, and the profitability numbers for fiscal year 2025 tell a story of strong product margins battling massive operational costs. The direct takeaway is this: Astrotech has a healthy gross margin, suggesting its core products are priced well, but its operating and net margins are deeply negative due to high spending on research and development (R&D) and selling efforts.

For the fiscal year ended June 30, 2025, Astrotech reported total revenue of just over $1.0 million. Here's the quick math on the key profitability ratios, which reveal the company's current financial structure:

• Gross Profit Margin: The margin was a solid 45.3%. This means for every dollar of product sold, 45.3 cents remain after paying for the direct costs of goods sold.
• Operating Profit Margin: This is where the challenge lies. The operating margin (or EBIT margin) was a staggering -1320.1%. This translates to an operating loss of approximately $13.2 million on $1.0 million in revenue, driven by selling, general, and administrative expenses, plus R&D.
• Net Profit Margin: The net profit margin was also deeply negative at roughly -1385%, corresponding to a full-year net loss of $13.85 million. That's a lot of red ink.

The company is defintely still in a heavy investment phase, which is why the gross margin looks good but the bottom line is so far in the red. This is a common profile for a technology company focused on commercializing new products like the TRACER 1000 mass spectrometry units.

Operational Efficiency and Profitability Trends

When you look at the trends, you see a positive sign in operational efficiency at the product level. Astrotech's gross margin has actually been on an upward trend over the last five fiscal years, peaking at 45.3% in 2025. This increase suggests better cost management in manufacturing or a favorable shift toward higher-margin product sales, such as its TRACER 1000™ shipments and recurring consumable sales.

However, this gross profit improvement is completely overshadowed by the rise in operating expenses. In the third quarter of fiscal 2025 alone, operating expenses totaled $4.1 million, leading to a loss from operations of $3.9 million for that quarter. This high burn rate is necessary to fund the development and market expansion of new subsidiaries like EN-SCAN, Inc., but it also means the net loss for FY2025 of $13.85 million was higher than the $11.67 million loss reported in the prior year.

Here is a snapshot of the key full-year fiscal 2025 metrics:

Benchmarking Against the Industry

To be fair, Astrotech Corporation's gross margin of 45.3% holds up well when you compare it to the broader Information Technology sector average, which sits around 42.5%. This is a critical point: the company's core technology and product pricing are competitive on a per-unit basis, which is a good foundation.

What this estimate hides, though, is the massive gap in scale. The negative operating and net margins are a function of being a micro-cap company with high fixed costs-you need to sell a lot more of those high-margin products to cover a $13.2 million operating expense base. The focus for investors should be on the sales trajectory of the new product lines, like the TRACER NTD and Pro-Control, to see if revenue growth can finally catch up to the expense structure. For a deeper look at who is betting on this turnaround, you should read Exploring Astrotech Corporation (ASTC) Investor Profile: Who's Buying and Why?

The clear action for you, as an investor, is to monitor the quarterly revenue figures for FY2026. The gross margin is a green light, but the operating loss is a massive headwind. You need to see revenue jump from $1.0 million to a level that meaningfully closes that $13.2 million operating loss gap.

Debt vs. Equity Structure

If you're looking at Astrotech Corporation (ASTC)'s balance sheet, the first thing that jumps out is how they fund their operations: they defintely don't rely on debt. The company's financing structure is remarkably conservative, prioritizing equity and cash over borrowed money to fuel their growth and innovation in the aerospace and security technology sectors.

Their Debt-to-Equity (D/E) ratio, a key measure of financial leverage (how much debt a company uses to finance its assets), sits at an ultralow 0.13 for the last twelve months of the 2025 fiscal year. To put that in perspective, many comparable technology firms operate with D/E ratios well over 1.0, meaning they use more debt than equity. Astrotech Corporation's ratio is essentially a non-factor, with some financial reports even rounding it down to 0%, reflecting a total debt of approximately $0.0 million.

Here's the quick math: with total shareholder equity at approximately $19.1 million as of the end of the 2025 fiscal year, the company has a massive financial cushion. This minimal debt profile means interest payments are negligible, which is a huge plus for a company still navigating profitability challenges, even with a strong gross margin of 45.3% for FY 2025.

The company's strategy is clear: fund innovation with cash, not credit. This is how they balance their capital structure, avoiding the fixed financial obligations of debt. This approach is evident in their cash position, which stood at $18.2 million in cash, cash equivalents, and liquid investments as of June 30, 2025. That cash is earmarked to support their organic growth and significant research and development (R&D) projects, like the enhanced TRACER 1000 Narcotics Trace Detector.

Astrotech Corporation has had no significant recent debt issuances or refinancing activity because they haven't needed it. They are essentially self-funding their strategic pivots, such as forming the new EN-SCAN subsidiary for environmental testing. This equity-heavy financing model gives them flexibility but also means they rely heavily on existing cash and, potentially, future equity raises to maintain their Mission Statement, Vision, & Core Values of Astrotech Corporation (ASTC).

The low debt is a huge strength, but it also highlights a reliance on existing capital. Here are the key takeaways for your investment decision:

• Low Risk: Virtually no debt means almost zero bankruptcy risk.
• High Liquidity: The current ratio of 9.79 signals exceptional short-term solvency.
• Focus on Equity: Growth is funded by cash and past equity, not leverage.

What this estimate hides is that while debt is low, the company still faces negative returns on equity, which was -54.89% in the last twelve months, meaning the equity capital isn't yet generating positive returns. Still, their minimal debt gives them a long runway to fix the profitability issues without the pressure of looming debt payments.

Your next step should be to look closely at their cash burn rate-how fast they are spending that $18.2 million-to gauge their actual operating runway, since they aren't using debt to bridge funding gaps.

Liquidity and Solvency

You're looking at Astrotech Corporation (ASTC) and wondering if they have the cash to fund their growth, which is the right question for a company in the commercialization phase. The short answer is that Astrotech Corporation's balance sheet shows exceptional liquidity, but their cash burn from operations is a real and persistent headwind you must factor into your investment thesis.

As of the most recent quarter (MRQ) ended September 30, 2025, the liquidity ratios are remarkably strong. The company's Current Ratio is a high 9.79, and its Quick Ratio (acid-test ratio) is 7.69. A Current Ratio near 2.0 is usually considered healthy, so a value this high indicates Astrotech Corporation has a massive cushion of current assets relative to its current liabilities. They can definitely meet their near-term obligations.

Here's the quick math on their immediate position:

• Current Ratio of 9.79 means for every dollar of current liabilities, Astrotech Corporation has $9.79 in current assets to cover it.
• The Quick Ratio of 7.69 is nearly as strong, telling you most of those current assets are highly liquid, like cash and short-term investments, not slow-moving inventory.

This translates directly to a robust working capital (current assets minus current liabilities) of approximately $16.3 million as of September 30, 2025. That's a significant war chest, largely composed of $13.9 million in cash and liquid investments. What this estimate hides, however, is the rate at which they are spending that capital to drive their mass spectrometry product lines, like the TRACER 1000.

To understand the true risk, you need to look at the cash flow statement, which maps the company's cash movements over time. The trends here are critical, as they show the company is funding its operations by drawing down its balance sheet cash, not by generating profit.

The Trailing Twelve Months (TTM) cash flow data ending around September 30, 2025, reveals a clear pattern:

The -$13.20 million in negative cash flow from operating activities (CFO) is the core liquidity concern. This figure shows the cost of running the business-research and development (R&D), sales, general, and administrative (SG&A)-is substantially higher than the revenue generated. The positive $9.51 million from investing activities is largely a function of selling off short-term investments, which is how they are currently financing the negative operating cash flow. They are converting their liquid assets into operating expenses. The financing cash flow for fiscal year 2025 was a minor outflow of -$185 thousand, meaning they aren't relying on new debt or equity to plug the gap, which is a good thing for avoiding dilution, but it puts all the pressure on that cash balance.

So, Astrotech Corporation's strength is its current cash position, which gives them a long runway-but that runway is shrinking by over $13 million per year. The clear action is to monitor the CFO trend: it needs to move toward zero, or even positive, as product sales (like the TRACER 1000) ramp up. For a deeper dive into who is buying the stock and why, you should read Exploring Astrotech Corporation (ASTC) Investor Profile: Who's Buying and Why?

Valuation Analysis

Is Astrotech Corporation (ASTC) overvalued or undervalued? Based on a core metric like the Price-to-Book (P/B) ratio, the stock appears significantly undervalued right now. The market is pricing the company well below its net asset value, which is common for companies in the commercialization phase that are still generating losses but hold substantial cash.

As of November 2025, the stock trades at a P/B ratio of just 0.30. Here's the quick math: with a recent stock price of around $3.28 per share and a Book Value per Share (BVPS) of roughly $10.85 (based on the $19.087 million in stockholders' equity as of September 30, 2025, and 1.76 million shares outstanding), the market is valuing the company at only 30 cents for every dollar of its book value.

Key Valuation Multiples (FY 2025 Data)

When we look at traditional valuation multiples, the picture gets muddy, which is typical for a growth-focused, pre-profit technology company. Because Astrotech Corporation (ASTC) reported a net loss of -$13.85 million for the fiscal year ended June 30, 2025, the Price-to-Earnings (P/E) ratio is not applicable (n/a). Similarly, the Enterprise Value-to-EBITDA (EV/EBITDA) is also n/a.

However, the company's Enterprise Value (EV) is notably negative, at -$5.90 million. This means the cash and liquid investments on the balance sheet (which stood at $18.2 million as of June 30, 2025) are greater than the company's market capitalization plus its debt. A negative EV is a strong signal of a defintely cheap stock from an asset perspective, but it also reflects the market's skepticism about the company's ability to turn its assets into future profits.

Stock Price and Dividend History

The stock has been under significant pressure over the past year. The share price declined by 50.99% from $6.57 on November 8, 2024, to $3.22 as of November 7, 2025. The 52-week trading range highlights this volatility, spanning from a low of $3.0510 to a high of $8.1500. This downward trend maps directly to the continued losses and decreased revenue, which fell to $1.0 million in FY2025 from $1.66 million in FY2024.

Regarding shareholder returns, Astrotech Corporation (ASTC) is not a dividend stock. The company does not appear to pay any dividends; consequently, the dividend yield and payout ratios are both n/a. This is expected for a company that is actively investing its capital in research and development (R&D) to commercialize its mass spectrometry technology, like the TRACER 1000.

Analyst Consensus and Actionable Insight

The analyst community is split, which is a key risk factor you need to weigh. One perspective, based on a limited set of analysts from August 2025, shows a strong Buy % Consensus of 83%. This bullish view likely stems from the potential of their intellectual property and contracts, such as the work with the U.S. Department of Homeland Security (DHS) to mature the TRACER 1000.

But, technical indicators tell a different story, with a 'Strong Sell' signal based on a majority of bearish technical analysis indicators as of November 2025. This technical caution reflects the recent price decline and the negative momentum.

• A P/B of 0.30 suggests a deep value play based on assets.
• The 50.99% stock price drop over the last year shows the market is punishing the lack of profitability.
• The core opportunity is in the mass spectrometry technology, detailed further in the Mission Statement, Vision, & Core Values of Astrotech Corporation (ASTC).

The takeaway is this: you are buying a significant discount to book value, but you are betting entirely on the management team's ability to convert their $18.2 million cash hoard and their technology patents into meaningful, sustained revenue from products like the TRACER 1000.

Risk Factors

You're looking at Astrotech Corporation (ASTC), a company with great technology but a financial profile that demands a realist's eye. The direct takeaway is this: while their balance sheet shows strong liquidity, their core risk is a classic development-stage problem-they are burning cash faster than they are generating revenue from commercialized products. This is the central tension for any investor.

For the fiscal year ended June 30, 2025, Astrotech Corporation reported a net loss of $13.8 million and a loss from operations of $(14.7) million. This is the headline financial risk. The company has an accumulated deficit of approximately $251 million, which means they anticipate continued losses as they fund product commercialization. Here's the quick math: with cash and liquid investments of $18.2 million as of June 30, 2025, they need to hit a major revenue inflection point soon to avoid significant dilution or more aggressive financing.

Operational and Market Hurdles

The company's business units, like 1st Detect and AgLAB, are still in the development stage, which means revenue is limited and highly concentrated. In fact, total revenue for FY 2025 was only $1.0 million. Reliance on a limited number of customers for a substantial portion of sales is a constant threat; losing one major contract could be devastating. Plus, in the high-tech instrument space, there's always the risk of a competitor launching a superior product, making your technology obsolete (technological obsolescence).

• Sustained losses require new funding.
• Limited customer base creates revenue volatility.
• Competition can render technology obsolete.

To be fair, they are trying to combat this by expanding their footprint. They launched a new subsidiary, EN-SCAN, Inc., for environmental testing and enhanced the TRACER 1000 Narcotics Trace Detector (NTD). They also won a research and development contract with the Department of Homeland Security (DHS) in January 2025, which validates the TRACER 1000's potential.

External and Regulatory Pressures

External risks are also putting pressure on the business. Like most companies, Astrotech Corporation is exposed to global economic conditions, including inflationary pressures and the impact of geopolitical events, such as the ongoing wars in Ukraine and the Middle East. These factors can drive up fuel and supply chain costs, which directly impacts their manufacturing operations, especially since they rely on single-source suppliers for some components.

The regulatory environment is another major concern. The AgLAB business, which uses the proprietary mass spectrometry technology for agricultural analysis, is highly dependent on the U.S. hemp and cannabis market. Because federal and state regulations in this area are constantly evolving, a change in enforcement could defintely hurt the business, even though Astrotech Corporation doesn't directly deal with the plant itself. Furthermore, getting the necessary FDA and other regulatory approvals for new products, like the BreathTest-1000, is a major gate to commercial success.

The company's strategy to mitigate these risks centers on accelerating commercialization and diversification, as detailed in their Mission Statement, Vision, & Core Values of Astrotech Corporation (ASTC). They are focused on enhancing product development, like the TRACER 1000, and ensuring compliance, but the clock is ticking on their cash runway. You need to monitor their quarterly burn rate against their sales growth. That's the key metric.

Growth Opportunities

You're looking at Astrotech Corporation (ASTC) and seeing a company in transition-one with small, volatile revenue but a core of truly innovative technology. The direct takeaway is this: Astrotech's future growth hinges entirely on converting its niche mass spectrometry (MS) product innovations into meaningful commercial sales, especially in the security and environmental sectors, a high-risk, high-reward play.

The company's strategy is clearly focused on diversifying its proprietary mass spectrometry (MS) and gas chromatography (GC) technology into new, large markets. This is a smart move, but it has not yet translated into consistent, high-volume revenue. For the fiscal year ended June 30, 2025, total revenue actually decreased to $1.0 million as device sales were lower than the prior year. Still, the gross margin improved to 45.3%, which tells me they are managing the cost of goods sold well on the units they do move. That's a good sign for future profitability.

• Product Innovations: The launch of four product lines in fiscal year 2025 is the main growth engine. The key is the enhanced TRACER 1000 Narcotics Trace Detector (NTD), configured to screen for synthetic opiates and novel psychoactive substances. Also, the Pro-Control product line aims for in-situ process control (real-time monitoring) in chemical manufacturing.
• Market Expansions: Astrotech formed a new subsidiary, EN-SCAN, Inc., specifically for environmental testing applications, including on-site, real-time air, water, and soil analysis. This opens up a massive new market for their ruggedized technology. The existing TRACER 1000 is already deployed in approximately 34 locations in 16 countries, showing a solid international footprint.
• Strategic Partnerships: A significant validation came on January 14, 2025, when the 1st Detect subsidiary was awarded a research and development contract with the Department of Homeland Security (DHS) to mature the TRACER 1000 for next-generation explosives trace detection. Government contracts like this provide non-dilutive funding and a crucial stamp of approval.

Here's the quick math on recent momentum: Q3 fiscal year 2025 revenue was $534,000, a significant jump from $50,000 in the same quarter last year. And in the most recent quarter (Q1 FY 2026, ending September 30, 2025), revenue was $297 thousand, a 35% increase over the preceding quarter. This suggests the sales and marketing focus is starting to defintely gain traction, even if the net loss for Q1 FY 2026 was still high at $3.465 million.

The company's main competitive advantage is its core technology-a customizable, portable, and field-updatable mass spectrometry platform. This allows them to quickly pivot their instruments to target high-value, unmet needs like fentanyl detection or real-time environmental monitoring. Crucially, their balance sheet remains strong with $18.2 million in cash and liquid investments as of June 30, 2025, providing a runway to fund this R&D and market transition.

What this estimate hides is the lack of explicit, publicly available analyst consensus for full-year 2026 revenue, which is common for smaller, high-growth-potential companies like this. We have to rely on the strong quarter-over-quarter revenue growth as the primary indicator of future sales potential.

For a deeper dive into the balance sheet risks, you should check out the full post on Breaking Down Astrotech Corporation (ASTC) Financial Health: Key Insights for Investors. Your next step should be to monitor the Q2 FY 2026 earnings report for further evidence of sustained commercial adoption of the new TRACER NTD and EN-SCAN products.