Question · Q4 2025
Sergey Glyamenkov asked about the factors contributing to the better-than-expected gross margin in Q4, the expected revenue trajectory for the next four quarters, future capital expenditure plans, and whether the Employee Retention Tax Credit was a one-time benefit.
Answer
CFO Jeff DiGiovanni explained that Q4 gross margin volatility was due to product mix and transitions, particularly governmental programs, and benefited from resolving approximately $2 million in F-16 margin issues from Q3. He reiterated the full-year gross margin target of mid-40s%. He stated that the company does not provide specific forward-looking guidance for the next four quarters, focusing instead on the long-term $250 million revenue growth target. DiGiovanni confirmed that the Exton facility expansion is complete, and no major shifts in capital expenditures are expected in 2026. He also clarified that the Employee Retention Tax Credit was a one-time benefit received during the period and will not recur.
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