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MOVING iMAGE TECHNOLOGIES INC. (MITQ)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 2025 revenue was $3.57M, down 8.2% year over year, while gross margin expanded sharply to 29.8% from 17.4%; operating loss narrowed to $0.27M and net loss improved to $0.24M ($0.02 per share) .
  • Management guided Q4 2025 revenue to approximately $5.2M and expects “solid progress” in sequential and year-over-year net loss reduction as several larger FY25 projects slip into FY26 .
  • Mix shift to higher-margin projects and Caddy product sales drove improved profitability and preserved cash ($5.37M) with no long-term debt; working capital exceeds $4.4M .
  • Pipeline/catalysts include a $9M projector technology refresh contract over three years, the Cannon Beach seven-screen complex, and a Caddy sale for an NFL installation that supports stadium/arena momentum .

What Went Well and What Went Wrong

What Went Well

  • Gross margin expanded to 29.8% (vs 17.4% YoY) as the company focused on higher-margin projects and benefitted from Caddy product sales, materially improving operating loss and net loss .
  • Operating expenses were effectively flat YoY ($1.333M vs $1.325M) reflecting cost discipline, supporting the margin-led improvement in operating income .
  • Pipeline wins and strategic positioning: “We have built a base of $8M to $9M in largely recurring annual revenue…,” with new relationships from CinemaCon and wins such as the $9M projector refresh (3-year) and the Cannon Beach seven-screen project .

What Went Wrong

  • Revenue declined 8.2% YoY to $3.57M due to customer delays in project commencement; several FY25 projects pushed to FY26, prompting a lower near-term revenue outlook .
  • Bad debt and rent increases partially offset savings, constraining further OpEx progress despite overall cost discipline .
  • Continued customer hesitancy and decision-making delays (macro and policy-related) pressured near-term revenue conversion despite a healthy pipeline .

Financial Results

Quarterly Trend (Fiscal 2025)

MetricQ1 2025Q2 2025Q3 2025
Revenue ($USD Millions)$5.252 $3.441 $3.571
Gross Profit ($USD Millions)$1.372 $0.936 $1.063
Gross Margin %26.1% 27.2% 29.8%
Total Operating Expenses ($USD Millions)$1.440 $1.497 $1.333
Operating Income (Loss) ($USD Millions)($0.068) ($0.561) ($0.270)
Net Income (Loss) ($USD Millions)($0.025) ($0.527) ($0.240)
Diluted EPS ($USD)$0.00 ($0.05) ($0.02)
Cash And Equivalents ($USD Millions)$5.246 $5.316 $5.369

Year-over-Year (Q3 2025 vs Q3 2024)

MetricQ3 2024Q3 2025
Revenue ($USD Millions)$3.890 $3.571
Gross Profit ($USD Millions)$0.676 $1.063
Gross Margin %17.4% 29.8%
Operating Loss ($USD Millions)($0.649) ($0.270)
Net Loss ($USD Millions)($0.601) ($0.240)
Diluted EPS ($USD)($0.06) ($0.02)

Actuals vs Consensus (Q3 2025)

MetricActualConsensusBeat/Miss
Revenue ($USD Millions)$3.571 N/A*N/A*
EPS ($USD)($0.02) N/A*N/A*

Values retrieved from S&P Global.*

KPIs and Balance-Sheet Items (FY25 Q1 → Q3)

MetricQ1 2025Q2 2025Q3 2025
Accounts Receivable ($USD Millions)$1.027 $0.749 $0.940
Inventories ($USD Millions)$2.616 $2.121 $3.065
Customer Deposits ($USD Millions)$1.309 $1.057 $1.534
Working Capital ($USD Millions)——>$4.4
Long-Term Debt— — —

Note: Segment breakdown not disclosed; business mix commentary provided in press release and call .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Revenue ($USD Millions)Q4 2025None disclosed~$5.2 Lowered near term (projects slipped to FY26)
Net LossQ4 2025None disclosed“Expect solid progress” in reduction sequential and YoY Improved trajectory

Management also emphasized project delays into FY26 and preserved cash with no long-term debt, implying continued focus on margin mix and cost discipline .

Earnings Call Themes & Trends

TopicPrevious Mentions (Q1 & Q2)Current Period (Q3)Trend
Laser projector/tech refresh cycleQ1: “Thousands of projectors and servers due for replacement” and LEA amplifier TAM sizing ; Q2: “Early stages” with momentum slowly building Emphasis on higher-margin projects; announced $9M projector refresh over three years Strengthening execution/pipeline
Box office/macroQ1: Resurgence post strikes; strong summer box office ; Q2: Holiday box office +40% YoY; improving environment Analysts project CY2025 domestic box office +9% to ~$9.7B Improving backdrop
Customer decision delaysQ2: Cautious spending; delays in refresh timelines Delays pushed larger FY25 projects into FY26, trimming near-term revenue Persistent near-term headwind
Stadiums/arenas (Caddy/eCaddy)Q2: eCaddy refinement; partner search; stadiums addressed NFL installation Caddy sale included in Q4 outlook; stadium/arena segment “remains robust” Early traction
LEA Professional amplifiersQ1: Global rights; replacement market opportunity Not highlighted in Q3 remarksOngoing pilots/testing
CineQC (IoT/SaaS)Q2: Progress slower than expected; stack upgrades under review Not highlighted in Q3 remarksDelayed
Regulatory/policy—Customers evaluating impact of changing government policies Emerging consideration

Management Commentary

  • CEO: “We remain confident in the substantial longer term business potential of the cinema technology refresh cycle involving the replacement of thousands of legacy cinema projectors and sound systems…” .
  • COO: “We have built a base of $8M to $9M in largely recurring annual revenue, a solid pipeline of contracted projects and a significant number of opportunities in development…” .
  • COO: “A perfect example was the decision to select Moving iMage to design and implement a state-of-the-art, seven-screen theater complex at Cannon Beach in Arizona… installation work to commence early in fiscal 2026” .
  • CFO: “We currently anticipate revenue of approximately $5.2M in Q4 2025… and expect solid progress in the reduction of our net loss on a sequential and on a year-over-year basis” .

Q&A Highlights

  • The Q3 call concluded without analyst Q&A; no follow-up clarifications beyond prepared guidance and commentary .

Estimates Context

  • S&P Global consensus coverage for MITQ appears limited; no consensus EPS or revenue estimates were available for Q3 2025 to assess beat/miss. Values retrieved from S&P Global.*
  • Near-term estimate revisions, if initiated, would likely reflect lower Q4 revenue timing ($~5.2M guide) due to project delays, offset by improved margin mix and cost discipline .

Key Takeaways for Investors

  • Margin-led improvement amid revenue softness: gross margin 29.8% vs 17.4% YoY, driving substantially lower operating and net losses despite an 8.2% YoY revenue decline .
  • Near-term timing headwinds: several larger FY25 projects pushed to FY26; Q4 revenue guided to ~$5.2M with expected sequential and YoY net loss improvement .
  • Cash preservation and liquidity: $5.37M cash, no long-term debt; working capital >$4.4M supports operational runway through FY26+ .
  • Pipeline catalysts: $9M projector refresh (multi-year), Cannon Beach seven-screen install (FY26 start), and NFL stadium Caddy sale underpin future revenue conversion .
  • Focused execution: cost discipline keeps OpEx flat YoY ($1.333M vs $1.325M); management prioritizes higher-margin projects and recurring revenue base ($8–$9M) .
  • Monitoring points: Q4 execution vs ~$5.2M guide, stadium/arena traction, LEA/CineQC progress, and conversion of delayed cinema projects into FY26 .
  • With no consensus estimates available, stock moves may hinge on margin trajectory, visibility into FY26 pipeline, and any incremental announcements from cinema refresh contracts or stadium/arena wins .