Executive Summary

Q1 FY2026 revenue was $7.90M and EPS was $(0.12), missing Wall Street consensus as ~$5.5M of completed orders were not shipped before quarter-end due to third-party component delays and customer logistics; management emphasized these are timing issues, not lost business .
Versus prior year: revenue down 18% (from $9.68M) and EPS below “<$0.01” last year; versus prior quarter: revenue down from $15.0M and EPS down from $0.25, reflecting record Q4 seasonality plus delivery slippage .
Cash flow from operations rose to $4.07M and quarter-end cash increased to $9.17M, bolstering liquidity; backlog rose to $21.1M at April 30 from $16.2M at January 31, supporting near-term visibility .
Management guided to a meaningful revenue increase in Q2, a return to profitability, and positive adjusted EBITDA, positioning Q2 as the key near-term catalyst if delayed orders are delivered and margin absorption normalizes .

What Went Well and What Went Wrong

What Went Well

Backlog and pipeline strengthened: Marine Technology Products backlog reached $21.1M at April 30, up from $16.2M at January 31; management also announced a >$4.0M GunLink source controller order on the Q1 results day .
Liquidity improved: Q1 operating cash flow was $4.07M and cash ended at $9.17M, indicating improved working capital management and collections .
Strategic positioning and aftermarket: Aftermarket activity represented ~71% of Q1 revenue, with Huntsville expansion nearing completion to enhance repair/manufacturing capacity; “timing issues, not lost business” were emphasized by the CEO .

What Went Wrong

Revenue and EPS missed consensus: Actual revenue of $7.90M vs ~$10.10M consensus and EPS of $(0.12) vs $0.08 consensus; EBITDA was negative vs a positive consensus, driven by shipment delays and lower absorption .
Margin pressure from lower volume: Gross profit margin was 42% in Q1, down due to lower revenue and cost absorption; non-recurring G&A costs (~$250K) further weighed on profitability .
Backlog variability and macro uncertainty: Management flagged uneven order flow and slower customer decision-making amid broader uncertainty (tariffs/trade), though direct tariff impacts are limited given operations in Singapore/Malaysia .

Financial Results

Metric	Q1 2025	Q4 2025	Q1 2026
Revenue ($USD Thousands)	9,678	15,044	7,902
Gross Profit ($USD Thousands)	4,218	6,550	3,331
Gross Profit Margin %	43.6% (calculated from reported amounts)	43.5% (calculated from reported amounts)	42.0%
Operating Income ($USD Thousands)	730	2,782	(658)
Net Income ($USD Thousands)	954	2,031	(970)
EPS – Basic & Diluted ($USD)	— (less than $0.01)	0.25	(0.12)
EBITDA ($USD Thousands)	1,466	2,922	(451)
Adjusted EBITDA ($USD Thousands)	1,514	3,017	(179)
Cash from Operations ($USD Thousands)	(4,753)	2,058	4,068

Segment breakdown and KPIs:

KPI	Q3 2025	Q4 2025	Q1 2026
Backlog – Marine Technology Products ($USD Millions)	26.2 (as of Oct 31, 2024)	16.2 (as of Jan 31, 2025)	21.1 (as of Apr 30, 2025)
Cash and Cash Equivalents ($USD Thousands)	3,505 (Oct 31)	5,336 (Jan 31)	9,172 (Apr 30)
Aftermarket Revenue Mix (%)	n/a	n/a	~71%

Note: MIND reports a single primary product category “Sales of marine technology products” and does not present multi-segment revenue splits in Q1 FY2026 materials .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	Q2 FY2026	None	“Meaningful increase” expected; delivery of ~$5.5M delayed Q1 orders in Q2	Initiated qualitative outlook
Adjusted EBITDA	Q2 FY2026	None	Positive adjusted EBITDA expected	Initiated
Profitability	Q2 FY2026	None	Return to profitability expected	Initiated
G&A	FY2026	None	Q1 included ~$250K non-recurring (UK restructuring, tax analysis); expect normal seasonality otherwise	Clarified one-offs
Huntsville facility repairs	FY2026 onward	None	Ramp post-expansion; “several million dollars a year” potential over time	New initiative

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3 & Q4 FY2025)	Current Period (Q1 FY2026)	Trend
Delivery timing/operational cadence	Q3: Strong sequential growth; balanced backlog/new orders . Q4: Subsequent firm orders booked post-1/31; acknowledged quarterly fluctuations .	~$5.5M orders completed but delayed shipment; expect Q2 delivery; timing issues, not lost business .	Variability persists; mitigation improving; Q2 rebound expected .
Aftermarket mix	Not highlighted in Q3/Q4 releases.	Aftermarket ~71% of Q1 revenue due to system sales deferral; expanding repair capacity (Huntsville) .	Structural uplift in aftermarket; expected to contribute meaningfully as Huntsville ramps .
Backlog/pipeline	Q3: Backlog $26.2M; pipeline >2x backlog . Q4: Backlog $16.2M; ~$15.9M firm orders booked after 1/31 .	Backlog $21.1M; new >$4.0M order; new prospects emerged recently .	Generally supportive; order flow uneven, but visibility improving .
Strategic alternatives/scale	Q4: Evaluating acquisitions, combinations, or sale; retained Lucid Capital Markets .	Continued focus on adding scale, expanding offerings; capital structure clean post preferred conversion .	Ongoing evaluation; capital flexibility improved .
Tariffs/macro	Not explicit in Q3/Q4 releases.	Limited direct tariff impact given Singapore/Malaysia manufacturing; macro uncertainty slows decisions .	Monitoring; low direct exposure .
R&D/next-gen streamer	Q4: R&D ongoing; profitability focus .	R&D $380K focused on next-gen streamer; enhancements to address additional markets .	Product evolution; potential new market entry later in year .

Management Commentary

“The decline was greater than initially anticipated after several customers were unable to take delivery of approximately $5.5 million of orders prior to quarter end… these are timing issues, not lost business. We expect to deliver these orders in the second quarter.”
“Despite these delays, cash flow from operations again grew during the quarter to about $4.1 million… We remain bullish on the balance of this fiscal year and expect a much improved second quarter.”
“As a reminder, our products are deployed in a very harsh environment… We are in the final stages of an expansion of our facility in Huntsville, Texas… We anticipate this becoming a meaningful part of our revenue stream.”
“We expect a meaningful increase in revenue in the current quarter. This will enable us to achieve positive adjusted EBITDA and return to profitability in the second quarter.”
Prior quarter strategic framing: “We believe MIND needs additional scale… including acquiring assets or businesses, combining with other organizations, or even an outright sale of the Company. To assist us… we have retained Lucid Capital Markets LLC.”

Q&A Highlights

Shipment delays: One large system plus several orders partially delivered; full delivery expected in Q2; backlog accounting intact; cash cycle collection may vary .
Tax assets: Management cited roughly $80M U.S. NOL carryforward; exploring ways to utilize (shift income to U.S., partnerships), mindful of ownership change rules .
New opportunities: Interest in offshore survey, rare earths; master supply agreements facilitate faster ordering; next-gen streamer is an enhancement targeting additional markets .
Huntsville expansion economics: ~$500K invested; expectation of “several million dollars a year” in repair revenue, U.S.-based income helps utilize NOLs .
Collaboration and orders: >$4.0M GunLink order (Sanco); collaboration with GWL on Floatseis autonomous marine acquisition system to jointly refine and produce .

Estimates Context

Metric	Consensus*	Actual
Revenue ($USD)	$10.10M*	$7.90M
EPS ($USD)	$0.08*	$(0.12)
EBITDA ($USD)	$1.17M*	$(0.45)M

Values retrieved from S&P Global.
Q2 FY2026 consensus* before results: Revenue ~$12.08M*, EPS ~$0.19*, EBITDA ~$2.27M*; company subsequently reported revenue $13.56M, EPS $0.24, EBITDA $2.88M (beat) .
Values retrieved from S&P Global.

Key Takeaways for Investors

Q1 FY2026 miss was driven by shipment timing, not demand; delivery of ~$5.5M deferred orders is the principal near-term catalyst for Q2 revenue/EPS normalization .
Margin recovery should follow volume normalization; management expects a return to profitability and positive adjusted EBITDA in Q2, underscoring operational leverage .
Liquidity improved meaningfully (CFO +$4.07M; cash $9.17M), enabling continued R&D and aftermarket investments; Huntsville ramp can smooth revenue and add U.S.-sourced income .
Backlog/pipeline remain supportive (21.1M at 4/30; >$4.0M GunLink order), though order flow is uneven—monitor bookings cadence and backlog restoration commentary .
Strategic optionality (M&A/combination/sale) remains on the table; improved capital structure post-preferred conversion enhances flexibility—follow updates from Lucid process .
Estimate revisions: Q1 miss likely drove downward adjustments; Q2 beat (reported later) suggests upward revisions to FY26 trajectory; trading setups hinge on delivery execution and backlog rebuild .
Limited direct tariff sensitivity given SEA footprint; macro decision delays remain a watch item, but management cites resilient demand across GunLink, BuoyLink, and C-Link product lines .

MIND TECHNOLOGY, INC (MIND)·Q1 2026 Earnings Summary