Evertz Technologies (ET) Q1 2026 earnings summary

Executive summary

• Q1 fiscal 2026 sales reached $112.1 million, with software and services contributing $51.6 million, or 46% of total revenue.

• Net earnings rose 22% year-over-year to $11.9 million, with diluted EPS at $0.15, up from $0.13.

• Gross margin improved to 61.4% from 59.4% year-over-year.

• Strong financial performance attributed to demand for IP, IT, and cloud-based video solutions and a diversified customer base.

• Purchase order backlog exceeded $252 million at August end, with August shipments of $41 million.

Financial highlights

• US and Canada revenue grew to $79.5 million, while international revenue declined to $32.7 million.

• Gross margin dollars rose to $68.8 million from $66.2 million year-over-year.

• Operating earnings increased to $15.0 million, up $2.4 million from the prior year.

• Working capital stood at $202.6 million, with cash of $124.3 million as of July 31, 2025.

• Cash from operations was $33.5 million, with $20.2 million used in financing activities, mainly for dividends and share repurchases.

Outlook and guidance

• Continued focus on IP-based, cloud, and software-defined solutions, with strong momentum from large-scale deployments.

• Expectation of cash balance decrease in Q2 due to working capital swings and planned building acquisition.

• Ongoing commitment to R&D and innovation, with new product launches at industry events.

• Purchase order backlog exceeded $252 million at the end of August 2025.

• Shipments in August 2025 totaled $41 million.