Hurco Companies (HURC) Q1 2025 earnings summary

Executive summary

• Sales and service fees rose 3% year-over-year to $46.4 million, driven by growth in the Americas (+9%) and Asia Pacific (+18%), partially offset by a 5% decline in Europe and a 1% unfavorable currency impact.

• Orders fell 20% year-over-year to $40.1 million, with significant declines in the Americas (down 30%) and Europe (down 18%), but a slight increase in Asia Pacific (up 3%).

• Net loss widened to $4.32 million ($0.67 per diluted share), including a $2.39 million non-cash tax valuation allowance, compared to a $1.6 million loss ($0.25 per share) in the prior year.

• Gross profit margin declined to 18% from 22% year-over-year, reflecting lower sales of higher-margin products and negative fixed cost allocation.

• Operating loss increased to $2.1 million from $1.8 million year-over-year.

Financial highlights

• Revenue: $46.4 million, up 3% year-over-year.

• Net loss: $4.32 million, compared to $1.6 million loss in the prior year.

• EPS: $(0.67) basic and diluted, versus $(0.25) prior year.

• Gross profit: $8.3 million (18% of sales), down from $9.7 million (22% of sales) year-over-year.

• Cash and cash equivalents: $41.8 million at quarter end, up from $33.3 million at prior year end.

Outlook and guidance

• Management expects continued market volatility and is focused on financial flexibility, operational optimization, and reinvestment in core business and R&D.

• Regular quarterly cash dividend remains suspended to prioritize financial flexibility.