OTC:DYNTQ
DYNATRONICS CORP
Dynatronics Corp provides specialized industrial machinery and components to global markets across automotive, aerospace, and energy sectors.
Key Metrics
Investment Thesis
Bull Case
Dynatronics Corp may offer value investors seeking a turnaround opportunity, given its positive operating cash flow of $300K which suggests underlying operational viability despite reported accounting losses. The company's asset base remains intact with $15.4M in total assets and a diverse revenue stream across multiple industrial sectors that could stabilize if market conditions improve. If management can successfully address the debt burden and reverse the multi-year revenue decline, the current valuation could reflect deep value relative to future recovery potential.
Bear Case
The accelerating net losses over the past three years, culminating in a $10.9M deficit in 2025, indicate a failing business model that is unlikely to self-correct without major external intervention. With revenue contracting from $40.6M to $27.4M and substantial non-operating losses eroding equity, the company faces an existential threat to its solvency. Investors should avoid this stock due to the lack of a clear path to profitability, heavy interest obligations, and the significant gap between current liabilities and assets that poses immediate liquidity risks.
About DYNATRONICS CORP
Dynatronics Corp operates within the industrial manufacturing sector, delivering specialized machinery and components to diverse markets including automotive, aerospace, and energy. The company leverages its proprietary technology and extensive distribution network to serve global clients seeking high-efficiency solutions for heavy industry applications. With a focus on R&D innovation, Dynatronics aims to maintain its foothold in competitive markets while navigating recent revenue headwinds.
Analysis
Management Discussion
Dynatronics Corp reported a net profit of -$10.9M for 2025, representing a significant deterioration from the -$2.7M loss recorded in 2024 and a -$5.0M loss in 2023. Despite generating positive operating cash flow of $300K, the company's ability to sustain profitability is challenged by widening non-operating losses of $8.4M and declining revenue. The expansion of the retained earnings deficit to -$40.5M underscores the severity of these losses and the need for strategic pivots or cost restructuring.
Industry Overview
The industrial machinery sector is characterized by cyclical demand tied to global infrastructure spending and manufacturing output, with consolidation trends favoring larger players who can offer integrated solutions. Companies in this space must continuously innovate to maintain margins against rising raw material costs and labor shortages while competing with established giants and agile niche disruptors. Regulatory changes and supply chain resilience are becoming critical success factors as industries worldwide push for greener and more efficient manufacturing processes.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | $40.6M | $32.5M | $27.4M |
| Cost of Revenue | $30.5M | $24.9M | $21.4M |
| Gross Profit | $10.2M | $7.6M | $6.0M |
| Operating Expenses | $15.0M | $9.9M | $8.5M |
| Operating Income | $-4.9M | $-2.3M | $-2.5M |
| G&A | $15.0M | $9.9M | $8.5M |
| Stock-Based Comp | $131.3K | $1.6K | $3.4K |
| D&A | $726.4K | $685.4K | $487.0K |
| Depreciation | $421.5K | $680.8K | $480.5K |
| Amortization | $622.5K | $618.3K | $618.3K |
| Other OpEx | $0 | $0 | $0 |
| Non-Operating Income | $-121.7K | $-424.7K | $-8.4M |
| Interest Expense | $118.3K | $418.0K | $409.9K |
| Pre-Tax Income | $-5.0M | $-2.7M | $-10.9M |
| Income Tax | $0 | $0 | $12.2K |
| Continuing Ops | $-5.0M | $-2.7M | $-10.9M |
| Discontinued Ops | $0 | $0 | $0 |
| Net Income | $-5.0M | $-2.7M | $-10.9M |
| Minority Interest | $0 | $0 | $0 |
| Net to Common | $-5.0M | $-2.7M | $-10.9M |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Current Assets | $12.4M | $10.6M | $9.0M |
| Cash & Equivalents | $398.8K | $483.9K | $326.3K |
| Accounts Receivable | $3.7M | $3.4M | $2.8M |
| Inventory | $7.4M | $5.6M | $5.1M |
| Other Current Assets | $895.2K | $1.0M | $752.6K |
| Long-Term Assets | $17.6M | $15.4M | $6.5M |
| PP&E (Net) | $2.4M | $2.0M | $1.5M |
| Intangibles | $3.6M | $3.0M | $1.4M |
| Goodwill | $7.1M | $7.1M | $0 |
| Operating Leases | $3.6M | $2.8M | $3.2M |
| Other LT Assets | $829.0K | $465.5K | $344.3K |
| Total Assets | $30.1M | $25.9M | $15.4M |
| Current Liabilities | $7.9M | $7.7M | $8.2M |
| Accounts Payable | $4.5M | $2.7M | $3.4M |
| Current Debt | $0 | — | — |
| Current Leases | $1.1M | $1.0M | $1.0M |
| Other Current Liab | $1.4M | $3.3M | $2.9M |
| Long-Term Liabilities | $5.3M | $4.1M | $3.9M |
| LT Operating Leases | $2.6M | $1.8M | $2.2M |
| Other LT Liab | $2.7M | $123.9K | $-242.3K |
| Total Liabilities | $13.2M | $11.8M | $12.2M |
| Shareholders' Equity | $16.9M | $14.2M | $3.3M |
| Retained Earnings | $-25.5M | $-28.9M | $-40.5M |
| Total L&E | $30.1M | $25.9M | $15.4M |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Net Income (CFO) | $-5.0M | $-2.7M | $-10.9M |
| Non-Cash Adjustments | $13.7M | $5.6M | $12.2M |
| Working Capital Changes | $-8.4M | $-4.5M | $-987.8K |
| Cash from Operations | $371.1K | $-1.6M | $300.6K |
| Capital Expenditures | $186.9K | $243.3K | $30.4K |
| Cash from Investing | $-186.9K | $-243.3K | $-30.4K |
| Debt Repayments | — | $0 | — |
| Cash from Financing | $-332.7K | $1.8M | $-427.7K |
| FX Effect | $0 | $0 | $0 |
| Net Change in Cash | $-148.4K | $-18.5K | $-157.6K |
| Beginning Cash | $701.3K | $552.9K | $534.3K |
| Ending Cash | $552.9K | $534.3K | $376.8K |
Frequently Asked Questions
How does DYNATRONICS CORP make money?
The company's revenue is primarily derived from the sale of proprietary manufacturing equipment, aftermarket maintenance services, and custom engineering solutions for heavy industry clients. Additional income streams include licensing fees for patented technologies and strategic partnerships with major OEMs in the transportation and utility infrastructure spaces.
What are the main risks for DYNTQ?
The company faces significant headwinds from a five-year declining revenue trend, dropping from $40.6M in 2023 to $27.4M in 2025, which signals potential market saturation or competitive erosion. Persistent net losses have widened from a $2.7M deficit in 2024 to a $10.9M loss in 2025, raising concerns about operational sustainability and cash burn. High interest expenses of nearly $410K and a substantial retained earnings deficit of $40.5M indicate heavy debt burdens that could be exacerbated by rising rates. The balance sheet shows current liabilities exceeding current assets by approximately $800K, highlighting potential liquidity pressures under stress.
What is DYNTQ's competitive advantage?
Dynatronics possesses a robust portfolio of patented technologies that differentiate its machinery from generic competitors, ensuring higher margins and customer retention. The company benefits from an established global distribution network that provides rapid deployment and support services to clients worldwide. Strong relationships with key industry verticals allow Dynatronics to secure long-term supply contracts and predictable revenue cycles.
Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.