Evertz Technologies (ET) Q3 2026 earnings summary

Executive summary

• Achieved record Q3 sales of CAD 139.3 million (USD 139.3 million), up 5% sequentially and 2% year-over-year.

• International revenue surged 15% year-over-year to CAD 43.7 million, offsetting a 3% decline in US/Canada revenue.

• Net earnings were CAD 18.7 million (USD 18.7 million), with diluted EPS of CAD 0.24, down from CAD 0.27 in the prior year.

• Software and services revenue rose 12.3% year-over-year to CAD 62.5 million, now 45% of total revenue.

• Gross margin reached 58.3%, up from 57.8% in the prior year.

Financial highlights

• Q3 hardware revenue was CAD 76.8 million, down from CAD 81.2 million last year.

• Year-to-date sales were CAD 384.2 million, up 3% from the prior nine-month period.

• Working capital stood at CAD 133.2 million, with cash of CAD 24.8 million as of January 31, 2026, both down from prior year-end.

• Purchase order backlog exceeded CAD 246 million, with February shipments at CAD 32 million.

• S&A expenses declined 3% year-over-year to CAD 18.6 million, 13.3% of revenue.

Outlook and guidance

• Entering Q4 with strong momentum, driven by a robust backlog and continued adoption of IP/cloud solutions.

• Expect Q4 OpEx to rise by CAD 1.5–2 million due to NAB trade show and increased R&D materials.

• No significant changes anticipated beyond Q4, aside from inflationary pressures.