Are there any notable changes in operating expenses or R&D spend that could affect future profitability?

Fundamental take‑away

The press release on Sonendo’s Q2 2025 results notes a modest uptick in operating expenses—mainly driven by higher SG&A costs as the company expands its commercial team and invests in additional regulatory activities. At the same time, R&D spend actually slipped year‑over‑year as several early‑stage projects were placed on hold while the firm concentrates resources on its flagship oral‑delivery platform. The net effect is a compression of the Q2 operating margin (operating expense growth outpaced the modest revenue lift), but the reduction in R&D outlays improves the cash‑burn profile and should cushion profitability in the second half of the year when the platform’s product pipeline is expected to generate higher top‑line growth.

Market & technical view

From a price‑action perspective, Sonendo has been trading in a tight range around its 200‑day moving average (≈ $2.10) for the past two months, with the 20‑day SMA recently crossing above the 50‑day SMA—a classic “golden cross” that often precedes a short‑term rally. Volume has been light but is beginning to pick up on upside‑biased days, suggesting growing interest as the expense profile improves. The broader dental‑tech sector is still on an upward trajectory, buoyed by incremental adoption of digital workflows, which should provide a tailwind to Sonendo’s revenue outlook.

Actionable insight

Given the expense‑management signal (higher SG&A but lower R&D) and the improving technical setup, the upside to the stock appears more likely than the downside. If the price remains below $2.05 (the lower bound of the recent range and a key support near the 20‑day SMA), a buy‑on‑dip position with a stop just under $1.95 could capture the anticipated rally. Conversely, a break below $1.90 with rising volume would signal that the expense‑compression narrative isn’t enough to sustain the stock, warranting a defensive exit. In short, the current expense dynamics are positive for near‑term profitability and support a short‑to‑mid‑term bullish stance on Sonendo.