Executive Summary

Q1 FY2025 revenue was $5.3M, down 20.8% year over year; gross margin improved sequentially to 26.1% (from 22.5% in Q4 FY2024), with EPS at $0.00 and an operating loss of ($0.1M). Cash was $5.2M as of September 30, 2024 .
Management highlighted an improving industry backdrop post-Hollywood strikes, a projector/server technology upgrade cycle, and early progress on high-end solutions (immersive audio, laser projection) as demand drivers .
Strategic initiatives continued: LEA amplifier distribution (high-margin products; TAM ~$32–$63M annually) and eCaddy (digitized venue cupholders for recurring revenue) with positive feedback from MLB and theater circuits; Europe expansion in discussion .
No numeric guidance was provided; tone was constructive with expectations for favorable YoY comparisons in fiscal Q2 and budget allocations accelerating in 2H FY2025. The newly appointed President/COO aims to present an operating plan in mid-February to accelerate revenue growth and margins .

What Went Well and What Went Wrong

What Went Well

Sequential margin improvement: gross margin rose to 26.1% from 22.5% in Q4 FY2024, supported by fulfillment of high-end solution orders (immersive audio, laser projection, proprietary products) .
Industry recovery and upgrade cycle: management sees thousands of projector/server replacements (priced $30K–$130K per unit) as a multi-year growth catalyst; theaters are investing in premium experiences .
Strategic product positioning: LEA smart power amplifiers (extended warranty, high margins) and eCaddy (venue fan engagement services) are designed to drive higher-margin and recurring revenue streams; early positive customer/league feedback and discussions in Europe .

What Went Wrong

Year-over-year revenue decline (-20.8%) and transition to operating loss vs. prior-year profit; net income slipped to ($0.0M) from $0.4M .
eSports timing pushed out: delays at partner SNDBX required MIT to pivot toward direct sales to large circuits; industry interest remains, but commercialization depends on execution of league launches .
Limited near-term visibility: no quantitative guidance; management noted the industry has not fully regained post-COVID momentum, with budget allocations expected to pick up more meaningfully in 2H FY2025 .

Financial Results

Quarterly Trend (oldest → newest)

Metric	Q3 2024	Q4 2024	Q1 2025
Revenue ($USD Millions)	$3.9	$6.3	$5.3
Gross Profit ($USD Millions)	$0.7	$1.4	$1.4
Gross Margin (%)	17.4%	22.5%	26.1%
Operating Income (Loss) ($USD Millions)	($0.6)	($0.5)	($0.1)
Operating Margin (%)	-16.7%	-7.3%	-1.3%
Net Income (Loss) ($USD Millions)	($0.6)	($0.4)	($0.0)
Diluted EPS ($USD)	($0.06)	($0.04)	$0.00

Year-over-Year (Q1 FY2025 vs. Q1 FY2024)

Metric	Q1 2024	Q1 2025	YoY Change
Revenue ($USD Millions)	$6.6	$5.3	-20.8%
Gross Profit ($USD Millions)	$1.8	$1.4	-24.6%
Gross Margin (%)	27.4%	26.1%	-130 bps
Operating Income (Loss) ($USD Millions)	$0.4	($0.1)	NM
Net Income (Loss) ($USD Millions)	$0.4	($0.0)	NM
Diluted EPS ($USD)	$0.04	$0.00	NM

Balance Sheet Snapshots

Metric ($USD Thousands)	Jun 30, 2024	Sep 30, 2024
Cash and Equivalents	$5,278	$5,246
Accounts Receivable, net	$1,048	$1,027
Inventories, net	$3,117	$2,616
Total Current Assets	$9,913	$9,201
Accounts Payable	$2,261	$1,832
Customer Deposits	$1,651	$1,309
Total Current Liabilities	$4,813	$4,110
Stockholders’ Equity	$5,710	$5,690

Note: Company reports results as a single business; no segment breakdown disclosed .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	Q2 FY2025	Not provided	Expect favorable YoY comparisons due to prior-year strike impacts; Q2 seasonally slower	Maintained qualitative
Revenue Allocation Timing	FY2025 2H	Not provided	Customers expected to allocate more refreshed budgets in 2H FY2025 (1H calendar 2025)	Qualitative upward timing
Margins/OpEx/EPS	FY2025	Not provided	No numeric ranges; management targeting margin expansion via operating leverage and initiatives	Maintained qualitative
Operating Plan	Q2 FY2025 call	N/A	President/COO to deliver plan to accelerate revenue growth, margin improvement, cash flow generation	New process milestone

No quantitative guidance ranges were issued in Q1 FY2025 materials .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q-2 and Q-1)	Current Period (Q1 FY2025)	Trend
Industry recovery post strikes	Q4 FY2024: industry regained footing; premiumization; blockbuster resurgence	Box office momentum improving; major chains reporting gains	Improving
Technology upgrade cycle (projectors/servers)	Emphasized; 10,000+ projectors over 4 years; $30K–$130K per projector	Thousands due for replacement; viewed as multi-year growth driver	Building
LEA smart power amplifiers	Testing with top circuits; global distribution rights; TAM $32–$63M/yr	High-margin, extended warranty; scoping into new builds/refurbs; Europe discussions	Scaling tests
eSports in cinemas (SNDBX)	SNDBX league play targeted early 2025; pivot to direct sales to large circuits	SNDBX delayed; MIT pursuing direct sales; customer interest intact	Delayed but active
eCaddy (stadium/arena)	Prototypes/design; field tests targeted; multi-billion market potential	“Innovative opportunity” with recurring revenue; MLB and sports execs feedback positive	Early development
Europe expansion	LEA as wedge; 12–18 months horizon discussed	Early discussions with potential customers for LEA	Early-stage
Cost actions/operating leverage	$600K annualized cuts; breakeven revenue threshold ~ $21M (depending on gross margin)	COO focus on increasing gross margin and leveraging operating structure	Operating discipline

Management Commentary

“The combined impact of a robust summer box office and a critical technology upgrade cycle has provided theaters with the confidence to start releasing budgets to invest in premium technologies.” — Phil Rafnson, CEO .
“Over the next month, I plan to thoroughly review our business and operations to develop a business plan designed to accelerate revenue growth, increase gross margin and… generate cash flow and profits… My goal is to share this plan with you on our second quarter earnings call in mid-February.” — Francois Godfrey, President/COO .
“A key catalyst here is the technology upgrade cycle with thousands of projector and server combinations expected to reach the end of their life cycle… replacing older systems with new laser technology with prices ranging from $30,000 to $130,000.” — Jose Delgado, EVP .
“LEA Professional… grants us global distribution rights… high margins… extended warranty twice the industry standard… TAM approximately $32 million to $63 million annually.” — Jose Delgado .
“eCaddy… a new model designed specifically for stadiums and arenas… upgrades the fan experience through services such as advertising or promotions, creating new revenue streams.” — Jose Delgado .

Q&A Highlights

The company-provided materials include prepared remarks and press releases; a detailed Q&A transcript was not attached as part of the Q1 FY2025 exhibits reviewed. Management’s remarks centered on industry recovery, upgrade cycle, LEA adoption, eSports pivot, and eCaddy development timelines .
Clarifications on timing: fiscal Q2 seasonality acknowledged; budget allocations expected to increase in 2H FY2025; COO to present operational plan in mid-February .

Estimates Context

We attempted to retrieve Wall Street consensus revenue and EPS for Q1 FY2025 and the prior two quarters via S&P Global but could not access data due to SPGI request limits; therefore, beat/miss vs. estimates cannot be determined at this time. Values were unavailable from S&P Global due to access constraints.*
Given limited microcap coverage, any changes to estimates will likely hinge on improved industry content cadence, LEA product adoption, and progress on eSports/eCaddy commercialization .

Key Takeaways for Investors

Sequential margin improvement and a constructive industry backdrop suggest the core cinema business is stabilizing; the technology refresh cycle is a tangible multi-year driver .
No quantitative guidance was issued, but management expects favorable YoY comps in fiscal Q2 and stronger budget allocations in 2H FY2025; monitor February call for COO plan .
LEA amplifier distribution (high-margin, extended warranty, sizable replacement TAM) is a near-term product catalyst; watch for test completions and larger circuit procurement cycles .
eSports remains strategic but timing-sensitive; MIT’s pivot to direct sales reduces dependence on SNDBX execution risk; commercialization progress is a key swing factor .
eCaddy offers high-margin recurring revenue potential in venues; prototype and pilot conversion are critical milestones and potential stock catalysts on contract announcements .
Balance sheet shows stable cash and reduced inventories/customer deposits quarter over quarter, reflecting operational adjustments; operating leverage focus should aid margin expansion as revenues scale .
Trading lens: near-term narrative hinges on industry content cadence and evidence of upgrade-cycle order flow; medium-term thesis depends on mix shift to higher-margin products and recurring revenue initiatives, with Europe expansion as optionality .

Footnote: *S&P Global consensus was attempted but unavailable due to request limits; beat/miss analysis vs. Wall Street estimates cannot be provided at this time.

MOVING iMAGE TECHNOLOGIES INC. (MITQ)·Q1 2025 Earnings Summary