Hydromer, Inc., a medical device coating technology company, reported preliminary unaudited financial results for the first quarter of 2025 showing a 9% revenue decline compared to the same period in 2024. The company reported quarterly revenue of $1.0 million, down from $1.1 million in Q1 2024. Net income for the quarter was $112,000, representing a 64% decrease from the same period in 2024. CEO Michael Torti attributed the financial performance to legacy customer attrition and typical onboarding delays in the medical coatings sector.
Despite these financial challenges, Torti emphasized the company's continued strategic investments in product development and commercial infrastructure. The leadership remains committed to enhancing their product pipeline and expanding into higher-value markets. As an ISO 9001:2015 global surface modification and coating solutions provider, Hydromer serves customers across the United States, Europe, and Asia-Pacific. The company maintains FDA, GMP, ISO 13485, and ISO 9001 compliance, and has developed numerous proprietary coating formulations over its four-decade history.
The company has also been focusing on improving financial record-keeping since the appointment of new management. After careful consideration, Hydromer has decided to postpone a comprehensive U.S. GAAP audit, citing current cash resource priorities. This decision comes as the company balances financial constraints with ongoing operational needs. Hydromer continues to prioritize operational efficiency, customer partnerships, and next-generation technology development as part of its long-term growth strategy.
The financial results highlight the challenges facing specialized medical technology companies in maintaining revenue streams during customer transitions. The medical coatings sector often experiences extended onboarding periods for new clients, which can create temporary revenue gaps. Hydromer's experience reflects broader industry patterns where established companies must navigate customer turnover while investing in future growth. The company's compliance with multiple regulatory standards, including FDA and ISO certifications, positions it to compete in regulated medical markets despite current financial pressures.
Investors and industry observers will be monitoring how Hydromer manages the balance between immediate financial performance and long-term strategic investments. The postponement of the comprehensive GAAP audit suggests the company is prioritizing cash preservation for core operations. As medical device manufacturers increasingly seek specialized coating solutions for improved product performance and safety, companies like Hydromer face both challenges and opportunities in serving this evolving market. The company's four-decade history of developing proprietary formulations provides a foundation for recovery and growth despite current headwinds.
