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ASTROTECH Corp (ASTC)·Q1 2026 Earnings Summary

Executive Summary

  • Q1 FY2026 revenue was $0.297M, up 35% sequentially vs Q4 FY2025 on higher grant revenue and consumables; gross margin expanded sharply YoY to 63% on mix shift to grant revenue and consumables .
  • Net loss widened modestly to $(3.465)M (EPS $(2.07)) from $(3.278)M (EPS $(2.01)) a year ago, driven by lower other income and slightly higher SG&A; cash and short-term investments totaled $13.9M at quarter end, with working capital of ~$16.3M .
  • Operationally, TRACER 1000 deployments reached ~34 locations across 16 countries; management highlighted growing pipeline across Americas/Europe/Asia, EN-SCAN traction, and ongoing TSA processes (air cargo Stage II; checkpoint DT&E) .
  • No earnings call transcript or formal guidance was provided; S&P Global consensus for Q1 FY2026 EPS and revenue was unavailable, so estimate comparisons are not applicable (Values retrieved from S&P Global)*.

What Went Well and What Went Wrong

  • What Went Well

    • Gross margin expanded to 63% from 26% YoY on higher-margin grant revenue/consumables mix: “Gross margin increased by 37%... primarily due to shift in revenue mix toward higher margin grant revenue and consumables” .
    • International and end-market traction: “We have... opportunities across the Americas, Europe and Asia... EN-SCAN environmental testing solutions are generating strong traction” .
    • CEO on product-market fit and pipeline: “We believe that our solutions provide more precise results... creating reliable, field-ready solutions... sales team is working a growing number of opportunities” .

  • What Went Wrong

    • Continued operating losses despite revenue growth: Loss from operations $(3.536)M vs $(3.628)M YoY; net loss $(3.465)M vs $(3.278)M YoY as other income declined to $0.071M from $0.350M .
    • Cash burn persisted: Operating cash outflow was $(3.936)M; cash decreased $0.454M QoQ despite $3.518M proceeds from investments .
    • Leadership transition in finance: Appointment of an Interim CFO in late October could signal near-term transition/integration needs for finance operations .

Financial Results

  • P&L snapshot (oldest → newest)
MetricQ1 FY2025Q3 FY2025Q1 FY2026
Revenue ($M)$0.034 $0.534 $0.297
Gross Profit ($M)$0.009 $0.237 $0.188
Gross Margin (%)26% 44% (calc. from $0.237/$0.534) 63%
Operating Expenses ($M)$3.637 $4.104 $3.724
Loss from Operations ($M)$(3.628) $(3.867) $(3.536)
Other Inc/(Exp), net ($M)$0.350 $0.234 $0.071
Net Loss ($M)$(3.278) $(3.633) $(3.465)
Diluted EPS ($)$(2.01) $(2.18) $(2.07)

  • Sequential revenue vs prior quarter (Q4 FY2025): +35% to $0.297M on higher grant revenue and consumables .

  • Revenue mix/geography (Q1 FY2026)

BreakdownAmount ($M)
United States$0.256
Foreign$0.041
Training$0.020
Grant$0.234
Service$0.030
Warranty$0.013
  • Balance sheet/LIQ
    • Cash and cash equivalents $2.646M; short-term investments $11.290M; total liquid funds $13.936M; total assets $23.240M; total equity $19.087M .
    • Working capital ~$16.3M; operating cash flow $(3.936)M; investing cash flow +$3.518M .

Guidance Changes

No formal quantitative guidance was issued for revenue, margins, opex, OI&E, tax rate, or segments in Q1 FY2026 materials -.

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueFY2026 / Near-termN/ANo guidance providedN/A
Gross MarginFY2026 / Near-termN/ANo guidance providedN/A
Operating ExpensesFY2026 / Near-termN/ANo guidance providedN/A
Tax RateFY2026N/A~0% expected for FY2026Maintained low

Earnings Call Themes & Trends

No Q1 FY2026 earnings call transcript found. Themes below reflect press releases and MD&A.

TopicPrevious Mentions (Q-2: Q3 FY2025; Q-1: Q4 FY2025)Current Period (Q1 FY2026)Trend
TSA Qualification/CheckpointQ3: DHS R&D award; first TSA-approved sale for TRACER 1000 ETD; cargo Stage II underway TSA air cargo Stage II field trials; checkpoint DT&E process ongoing Continuing execution toward U.S. qualification
Product traction (EN-SCAN)FY2025: EN-SCAN subsidiary formed; portfolio defined -“EN-SCAN environmental testing solutions are generating strong traction” Building pipeline/traction
Global deploymentsQ3: Serving airports in 15 countries ~34 locations in 16 countries as of 9/30/25 Gradual expansion
Revenue mix (grants/consumables)Q3: Mix included TRACER shipments, grant, recurring consumables/services QoQ revenue growth on grant + consumables Mix supporting margin
Financing/LeadershipFY2025: cash/investments $18.2M at 6/30/25 -Interim CFO appointed Oct 31, 2025 Finance leadership transition

Management Commentary

  • Strategic positioning: “We believe that our solutions provide more precise results, extensive reference libraries, rapid cycle time and simplified operating procedures – creating reliable, field-ready solutions with minimal training or maintenance required” — Thomas B. Pickens III, CEO .
  • Pipeline and markets: “Our sales team is working a growing number of opportunities… across the Americas, Europe and Asia… EN-SCAN environmental testing solutions are generating strong traction” — CEO .
  • Business overview and TSA process: “TRACER 1000… ECAC certified and TSA approved for air cargo Stage II… started the process to pass TSA checkpoint testing (DT&E then certification)” — MD&A .
  • Prior tone on product lines: “We now have launched four product lines… created great momentum in FY2025 and into FY2026 and are very excited about our future” — CEO (Q3 FY2025 PR) -.

Q&A Highlights

No Q1 FY2026 earnings call transcript was available; therefore, no Q&A themes or clarifications to report [Search: none found].

Estimates Context

  • S&P Global consensus for Q1 FY2026 EPS and revenue was unavailable; the database returned no estimates (and only reflected actual reported revenue). Comparisons to Street estimates are not applicable (Values retrieved from S&P Global).* [GetEstimates Q1 2026 result]

Key Takeaways for Investors

  • Mix-driven margin expansion: Gross margin of 63% reflects higher-margin grant and consumables revenue; if sustained as TSA grants and consumables scale, losses could narrow even at modest revenue levels .
  • Sequential revenue momentum: QoQ +35% driven by grants and consumables shows early monetization while large device orders remain lumpy; investors should watch cadence of grants and repeat consumables .
  • Regulatory milestones as catalysts: Progress through TSA air cargo Stage II and checkpoint DT&E are key near-term catalysts to unlock U.S. demand; any qualification adds credibility for broader adoption .
  • Geographic footprint and pipeline: ~34 TRACER 1000 deployments across 16 countries and cited pipeline across three regions suggest expanding reference base to support sales scaling in FY2026 .
  • Cash runway vs burn: $13.9M liquid assets and ~$16.3M working capital provide cushion, but operating cash burn of ~$3.9M in the quarter underscores the need for scaling revenue/gross profit to self-fund growth .
  • Organizational readiness: Interim CFO appointment indicates continued maturation of finance processes; stability and operating leverage execution will be focal points for institutions .
  • Estimate setup: With no active consensus, revisions risk is limited near-term, but formal guidance or TSA milestones could reset expectations and drive volatility (Values retrieved from S&P Global).*

Additional Detail and Cross-References

  • Revenue details and financial statements: Q1 FY2026 10-Q and 8-K press release (including exhibits) .
  • Revenue mix and geography: Q1 FY2026 10-Q segment information .
  • TSA status, deployments, and product updates: 10-Q MD&A and press releases - .
  • Prior quarters for trend: Q3 FY2025 PR (revenue $0.534M; EPS $(2.18)) ; FY2025 results 8-K for year context -; Q2 FY2025 PR (program activity; Q2 revenue commentary) -.

Footnote: *S&P Global (Capital IQ) estimates data.