Psychemedics Corp (NASDAQ: PMDI) is a drug and alcohol testing company that analyzes hair samples to detect substance use. Revenue comes from per-test fees charged to employers and organizations that use hair analysis for pre-employment screening, random testing, and related programs. The company holds twelve U.S. patents covering its hair analysis methods, including proprietary techniques for digesting hair and releasing trapped drug compounds without destroying them. Its standard test uses a 3.9-centimeter head hair sample to measure drug use over approximately three months, a detection window it positions as superior to urinalysis. Total revenue was $19.7 million in FY2024, down 11% from $22.1 million in FY2023, with domestic revenue of $18.6 million and international revenue of $1.0 million. The company posted a net loss of 9.4% of revenue in FY2024. CEO Brian Hullinger leads the company alongside Chief Revenue Officer Shannon Shoemaker as of March 24, 2025.

Revenue model

Transactional, per-test fees for hair-based drug and alcohol testing services. Prices are generally set slightly above urinalysis testing alternatives. No subscription or recurring-contract revenue model is described in the filing.

Products and services

Hair drug testing using patented digestion and immunoassay methods, covering a roughly three-month detection window. Hair alcohol testing measuring ethyl glucuronide (EtG) as a direct alcohol biomarker, launched in 2013. The company holds twelve U.S. patents, including patents on hair sample digestion, integrity testing, and solid-phase extraction methods.

Customers and end markets

Employers conducting pre-employment and random drug screening. The filing notes FY2024 domestic revenue declined due to higher employee retention among existing clients and reduced new hiring from economic uncertainty. International revenue grew 22% in FY2024, attributed to new market entry through sales partnerships.

Value-chain role

Freestanding testing laboratory. The company collects hair samples and performs analysis centrally, rather than enabling point-of-care or in-office testing by customers.

Geographic exposure

United States is the primary market, representing $18.6 million or approximately 95% of FY2024 total revenue. International revenue was $1.0 million, or approximately 5% of FY2024 total revenue, up from $0.9 million in FY2023.

Source: SEC 10-K, filed 2025-03-24

Industry: Services-Medical Laboratories Peers: Biodesix Inc Bimergen Energy Corp Cryo-Cell International Inc CVS Health Corp Stella Diagnostics, Inc. Novo Integrated Sciences, Inc. WeCapital Holdings, Inc. Precipio Inc Vivos Therapeutics Inc