Autoscope Technologies Corporation Announces Financial Results
Rhea-AI Summary
Autoscope Technologies (OTCQX:AATC) reported results for the quarter and year ended December 31, 2025. 2025 revenue was $9.0 million, down 34% year-over-year; royalties were $8.9 million, down 33%. Net income was $1.4 million for 2025. Total cash and investments fell to $2.7 million following a $5.8 million special dividend. The company recorded a $561,000 non-cash reclassification related to closed foreign subsidiaries and noted continued transition to the Autoscope OptiVu platform.
Positive
- Net cash provided by operating activities of $4.64 million
- Reported $1.4 million net income for 2025 despite revenue decline
- Operating expenses controlled at $6.4 million for 2025
Negative
- Royalties declined 33% to $8.9 million in 2025
- Total revenue fell 34% to $9.0 million in 2025
- Total cash and investments declined to $2.7 million after a $5.8 million special dividend
- One-time non-cash loss reclassification of $561,000 from accumulated other comprehensive loss
MINNEAPOLIS, March 12, 2026 (GLOBE NEWSWIRE) -- Autoscope Technologies Corporation (“AATC” or the “Company”) (OTCQX: AATC) today announced results for the quarter and year ended December 31, 2025.
Fourth Quarter 2025 Financial Summary
- Royalties decreased 32 percent to
$2.1 million in the fourth quarter of 2025, compared to$3.0 million in the same period in the prior year, due to a drawdown of high inventory levels at our channel partners and as our customers transition to our new Autoscope OptiVu platform. - Operating expenses in the fourth quarter of 2025 decreased 10 percent to
$1.5 million compared to$1.7 million in the same period in the prior year period. - The Company recorded net income of
$471,000 in the fourth quarter of 2025, compared to$761,000 in the same prior year period.
2025 Full Year Financial Summary
- Royalties decreased 33 percent to
$8.9 million , compared to$13.2 million in the prior year, due to a drawdown of high inventory levels at our channel partners and as our customers transition to our new Autoscope OptiVu platform. - Operating expenses decreased 6 percent to
$6.4 million compared to$6.8 million in the prior year. - The Company reclassified
$561,000 from Accumulated Other Comprehensive Income/Loss to Loss on Closure of Foreign Subsidiaries. This amount is non-cash and represents accumulated foreign currency adjustments related to closed foreign subsidiaries. - The Company recorded net income of
$1.4 million for 2025 compared to$4.5 million in the prior year. The one-time non-cash foreign currency adjustment mentioned above, along with the decline in revenue, accounted for the decline in net income. Excluding the one-time adjustment, net income was$2.0 million . - Total cash and cash equivalents, coupled with available investments in debt and equity securities, decreased to
$2.7 million from$7.4 million at the end of the prior year. The decline is mainly attributable to a special dividend of$5.8 million paid in February 2025.
Fourth-Quarter Results
Revenue from operations for the Company, which includes the results of Image Sensing Systems, Inc., a wholly owned subsidiary of AATC (“ISNS”), was
Operating expenses were
The Company reported net income for the fourth quarter of 2025 of
Full Year Results
AATC’s revenue in 2025 was
Operating expenses decreased 6 percent to
In 2025, the Company initiated the closure of its subsidiaries in Canada and Spain. The cumulative translation loss of
The Company’s net income was
The cash balance decreased to
On a non-GAAP basis, excluding the amortization of intangible assets and depreciation for the applicable periods, operating income for the fourth quarter of 2025 was
“Our 2025 results reflect the continued transition from Autoscope Vision to our new OptiVu platform, along with the impact of distributor inventory normalization,” said Andy Markese, CEO of Autoscope Technologies and President and CEO of Image Sensing Systems. “As customer qualification efforts convert to procurement and channel inventory levels rebalance, we expect royalty performance to stabilize. We remain focused on disciplined expense management, advancing our AI-driven product portfolio, and positioning the Company for improved operating leverage as we return to normalized operating cadence,” concluded Mr. Markese.
About Autoscope Technologies Corporation
Autoscope Technologies Corporation is a global company dedicated to helping improve safety and efficiency for cities and highways by developing and delivering above-ground detection technology, applications and solutions. We give Intelligent Transportation Systems (ITS) professionals more precise and accurate information – including real-time reaction capabilities and in-depth analytics – to make more confident and proactive decisions. We are headquartered in Minneapolis, Minnesota. Visit us on the web at www.autoscope.com.
Forward-Looking Statements
Certain statements and information included in this press release constitute “forward-looking statements.” Forward-looking statements represent our expectations or beliefs concerning future events and can be identified by the use of forward-looking words such as “believes,” “may,” “will,” “should,” “intends,” “plans,” “estimates,” “expects,” “anticipates” or other comparable terminology. Forward-looking statements are subject to risks and uncertainties that may cause our actual results to differ materially from the results discussed in the forward-looking statements. These risks and uncertainties include, but are not limited to, the factors listed below. New risks and uncertainties that may materially affect our operating results may emerge from time to time. It is not possible to predict all of these risks and uncertainties, nor can we assess the effect that each such risk or uncertainty, or a combination of them, may have on our business.
Those risks and uncertainties may include, but are not limited to: our ability to declare, fund and pay dividends in the future and to comply with applicable notice and processing requirements for corporate actions under the OTCQX Rules for U.S. Companies, including Rule 10b-17 under the Securities Exchange Act of 1934, as amended, and Financial Industry Regulatory Authority Rule 6490, as well as the discretion of our board to modify, suspend or cancel any dividend program; our historical dependence on a single product for most of our revenue; competition; potential changes in government spending on transportation technology; acceptance of our product offerings and designs; budget constraints by governmental entities that purchase our products, including constraints caused by declining tax revenue; the continuing ability of Econolite Control Products, Inc. to sell our products and pay royalties owed to us; the mix of and margins on the products we sell; our dependence on third parties for manufacturing and marketing our products; our dependence on single-source suppliers to meet manufacturing needs; our failure to secure adequate protection for our intellectual property rights; our inability to develop new applications and product enhancements; the potential disruptive effect on the markets we serve of new and emerging technologies and applications, including vehicle-to-vehicle communications and autonomous vehicles; unanticipated delays, costs and expenses inherent in the development and marketing of new products; our inability to respond to low-cost local competitors; our inability to properly manage any growth in revenue and/or production requirements; the influence over our voting stock by affiliates; our inability to hire and retain key scientific and technical personnel; the effects of legal matters in which we may become involved; our inability to achieve and maintain effective internal controls; our inability to successfully integrate any acquisitions; tariffs and other trade barriers; our operating costs tend to be fixed, while our revenue tends to be seasonal, thereby resulting in operating results that fluctuate from quarter to quarter; any significant variations between actual amounts and the amounts estimated for those matters identified as our critical accounting estimates and other significant accounting estimates made in the preparation of our financial statements; political and economic instability, including geopolitical conflicts, regional hostilities, wars, and other international disruptions; our inability to comply with international regulatory restrictions over hazardous substances and electronic waste; the impact of international supply chain disruptions and delays; the impact of changes in U.S. federal and state income tax regulations; the impact of inflation and our ability to pass on rising prices to its customers; and conditions beyond our control such as war, terrorist attacks, health epidemics (including the COVID-19 pandemic caused by the coronavirus) and economic recession.
You should carefully consider the above trends, risks and uncertainties before making any investment decision with respect to our securities. If any of them continues or occurs, our business, financial condition or operating results could be materially and adversely affected, the trading prices of our securities could decline, and you could lose part or all of your investment. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by this cautionary statement. We further caution you not to unduly rely on any forward-looking statements because they reflect our views only as of the date the statements were made. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.
| Autoscope Technologies Corporation Condensed Consolidated Statements of Operations (in thousands, except per share information) (unaudited) | |||||||||||||||
| Three-Month Period Ended December 31, | Twelve-Month Period Ended December 31, | ||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Revenue | |||||||||||||||
| Royalties | $ | 2,087 | $ | 3,048 | $ | 8,885 | $ | 13,200 | |||||||
| Product sales | 16 | 292 | 129 | 429 | |||||||||||
| 2,103 | 3,340 | 9,014 | 13,629 | ||||||||||||
| Cost of revenue | 43 | 175 | 184 | 639 | |||||||||||
| Gross profit | 2,060 | 3,165 | 8,830 | 12,990 | |||||||||||
| 98 | % | 95 | % | 98 | % | 95 | % | ||||||||
| Operating expenses: | |||||||||||||||
| Selling, general and administrative | 837 | 1,010 | 3,766 | 4,414 | |||||||||||
| Research and development | 660 | 662 | 2,667 | 2,425 | |||||||||||
| 1,497 | 1,672 | 6,433 | 6,839 | ||||||||||||
| Income from operations | 563 | 1,493 | 2,397 | 6,151 | |||||||||||
| Loss on closure of foreign subsidiaries | — | — | -561 | — | |||||||||||
| Other income | 12 | 14 | 24 | 43 | |||||||||||
| Investment income | 22 | 51 | 72 | 140 | |||||||||||
| Interest expense, net | (15 | ) | (16 | ) | (61 | ) | (65 | ) | |||||||
| Income before income taxes | 582 | 1,542 | 1,871 | 6,269 | |||||||||||
| Income tax expense | 111 | 781 | 478 | 1,768 | |||||||||||
| Net income | $ | 471 | $ | 761 | $ | 1,393 | $ | 4,501 | |||||||
| Net income per share, basic and diluted | $ | 0.09 | $ | 0.14 | $ | 0.25 | $ | 0.82 | |||||||
| Weighted shares - basic | 5,492 | 5,467 | 5,484 | 5,456 | |||||||||||
| Weighted shares - diluted | 5,495 | 5,478 | 5,492 | 5,463 | |||||||||||
| Autoscope Technologies Corporation Condensed Consolidated Balance Sheets (in thousands) (unaudited) | |||||
| December 31, 2025 | December 31, 2024 | ||||
| Assets | |||||
| Current assets | |||||
| Cash and cash equivalents | $ | 735 | $ | 4,355 | |
| Receivables, net | 2,685 | 4,064 | |||
| Inventories | 2,117 | 2,717 | |||
| Investment in debt and equity securities | 1,932 | 3,091 | |||
| Prepaid expenses and other current assets | 357 | 393 | |||
| 7,826 | 14,620 | ||||
| Property and equipment, net | 1,954 | 2,060 | |||
| Intangible assets, net | 742 | 575 | |||
| Deferred taxes | 1,502 | 1,908 | |||
| Operating lease asset, net | 29 | 10 | |||
| $ | 12,053 | $ | 19,173 | ||
| Liabilities and Shareholders’ Equity | |||||
| Current liabilities | |||||
| Accounts payable | $ | 44 | $ | 27 | |
| Current maturities on long-term debt | 1,493 | 63 | |||
| Warranty and other current liabilities | 246 | 457 | |||
| 1,783 | 547 | ||||
| Non-current liabilities | |||||
| Operating lease obligation | 20 | — | |||
| Long-term debt, net of current liabilities | — | 1,493 | |||
| Shareholders’ equity | 10,250 | 17,133 | |||
| $ | 12,053 | $ | 19,173 | ||
| Autoscope Technologies Corporation. Condensed Consolidated Statements of Cash Flows (in thousands) (unaudited) | |||||
| Years ended December 31, | |||||
| 2025 | 2024 | ||||
| Operating activities | |||||
| Net income | $ | 1,393 | $ | 4,501 | |
| Adjustments to reconcile net income to net cash provided by operating activities | |||||
| Depreciation and amortization | 285 | 543 | |||
| Stock-based compensation | 209 | 214 | |||
| Loss on disposal of assets | — | 1 | |||
| Loss on closure of foreign entities | 561 | — | |||
| Investment amortization | (36) | 51 | |||
| Unrealized gain on equity investments | (2) | (2) | |||
| Amortization of debt issuance costs | 3 | 3 | |||
| Deferred income tax expense | 406 | 1,542 | |||
| Changes in operating assets and liabilities | 1,821 | (1,698) | |||
| Net cash provided by operating activities | 4,640 | 5,155 | |||
| Investing activities | . | ||||
| Purchases of property and equipment | (75) | (211) | |||
| Capitalized software development costs | (272) | — | |||
| Sale of securities | 4,324 | 10,453 | |||
| Purchase of securities | (3,127) | (7,294) | |||
| Net cash provided by investing activities | 850 | 2,948 | |||
| Financing activities | |||||
| Dividends paid | (9,048) | (10,154) | |||
| Principal payments on long-term debt | (66) | (63) | |||
| Net cash used by financing activities | (9,114) | (10,217) | |||
| Effect of exchange rate changes on cash | 4 | (37) | |||
| Decrease in cash and cash equivalents | (3,620) | (2,151) | |||
| Cash and cash equivalents at beginning of period | 4,355 | 6,506 | |||
| Cash and cash equivalents at end of period | $ | 735 | $ | 4,355 | |
| Supplemental Disclosure of Cash Flows | |||||
| Cash paid during the year for: | |||||
| Interest expense | $ | 61 | $ | 65 | |
| Income taxes | $ | 64 | $ | 285 | |
| Non-Cash Transactions: | |||||
| Right of use assets for operating lease obligations | $ | 27 | $ | — |
Autoscope Technologies Corporation
Non-GAAP Income from Continuing Operations
(in thousands)
(unaudited)
We define non-GAAP income from operations as income from operations before amortization of intangible assets, depreciation, and restructuring charges for the applicable periods. Management believes non-GAAP income from operations is a useful indicator of our financial performance and our ability to generate cash flows from operations. Our definition of non-GAAP income from operations may not be comparable to similarly titled definitions used by other companies. The table below reconciles non-GAAP income from operations, which is a non-GAAP financial measure, to comparable GAAP financial measures:
| Three-Month Period Ended December 31, | Twelve-Month Period Ended December 31, | ||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||
| Income from operations | $ | 563 | $ | 1,493 | $ | 2,397 | $ | 6,151 | |||
| Adjustments to reconcile to non-GAAP income | |||||||||||
| Amortization of intangible assets | 24 | 27 | 105 | 420 | |||||||
| Depreciation | 45 | 39 | 180 | 123 | |||||||
| Non-GAAP income from operations | $ | 632 | $ | 1,559 | $ | 2,682 | $ | 6,694 | |||
Note – Our calculation of non-GAAP income from operations is considered a non-GAAP financial measure and is not in accordance with, or preferable to, “as reported”, or GAAP financial data. However, we are providing this information, as we believe it facilitates analysis of the Company’s financial performance by investors and financial analysts.
| Contact: | Andrew Markese, CEO of AATC and President and CEO of ISNS |
| 612-438-2363 |
FAQ
Why did Autoscope (AATC) royalties fall 33% in 2025?
How did the $5.8M special dividend affect Autoscope's (AATC) cash position in 2025?
What was Autoscope's (AATC) net income and EPS for full-year 2025?
Did Autoscope (AATC) record any one-time charges in 2025 that affected earnings?
What operational trends did Autoscope (AATC) highlight for 2026 outlook?
