Encision Inc. Announces Fiscal 2026 Third Quarter Results

Rhea-AI Summary

Encision (OTC PINK: ECIA) reported fiscal Q3 2026 results with net sales of $1.413M and a net loss of $314k. Gross profit margin fell to 38.4% after a large inventory reserve. The company is executing a restructuring and expects reduced operating costs to be recognized in Q4.

Positive

• Operating expenses decreased by 11.9% quarter-over-quarter
• Restructuring underway to reduce operating costs, to be recognized in Q4

Negative

• Gross profit margin declined 7.2 percentage points to 38.4%
• Net loss increased to $314k, a 17.2% deterioration quarter-over-quarter
• Net sales declined 7.5% to $1.413M, pressured by surgical robots replacing procedures

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BOULDER, CO / ACCESS Newswire / February 4, 2026 / Encision Inc. (OTC PINK:ECIA), a medical device company owning patented Active Electrode Monitoring (AEM®) Technology that prevents dangerous radiant energy burns in minimally invasive surgery, today reported its financial results for its 2026 fiscal third quarter.

Encision's CEO Robert Fries commented, "The Company's revenue has continued to decline principally because of procedures that were performed by surgical robots that have replaced our surgical procedures. Looking forward, we expect that this revenue decrease will continue. Gross profit margin percent decreased significantly in the third quarter because of a large increase to the inventory reserve. We are currently performing a restructuring and have reduced operating expenses substantially. This decrease will be recognized in the fourth quarter."

Encision designs and markets a portfolio of high-performance surgical instrumentation that delivers advances in patient safety with AEM technology, surgical performance, and value to hospitals across a broad range of minimally invasive surgical procedures. Based in Boulder, Colorado, the company pioneered the development and deployment of Active Electrode Monitoring, AEM technology, to eliminate dangerous stray energy burns during minimally invasive procedures.

Encision Inc.
Condensed Statements of Operations
(unaudited)

		Quarters ended								Variance
(in $ thousands)		Dec. 31, 2025				Sep. 30, 2025				($)				(%)
Net sales			1,413				1,528				-115				-7.5	%
Cost of goods sold			870				831				39				4.7	%
Gross profit			543				697				-154				-22.1	%
Gross profit margin %			38.4	%			45.6	%			-7.2	%
Operating expenses			842				956				-114				-11.9	%
Operating income			(299	)			(259	)			(40	)			-15.4	%
Operating margin %			-21.2	%			-17.0	%			-4.2	%
Interest and other expense, net			(15	)			(9	)			-6
Net loss			(314	)			(268	)			(46	)			-17.2	%

CONTACT: Mala Ray, Encision Inc, 303-444-2600, mray@encision.com

SOURCE: Encision, Inc.

View the original press release on ACCESS Newswire

FAQ

Why did Encision (ECIA) report lower revenue in Q3 2026?

Encision reported lower revenue because surgical robots replaced procedures that used its products. According to the company, robotic procedures have reduced demand and the company expects this revenue decrease to continue into future periods.

What caused Encision's (ECIA) gross profit margin decline in Q3 2026?

The gross profit margin fell mainly due to a large increase in the inventory reserve taken in the quarter. According to the company, that reserve materially reduced gross profit margin to 38.4% for Q3 2026.

How did Encision (ECIA) change operating expenses in Q3 2026?

Encision reduced operating expenses by 11.9% quarter-over-quarter as part of cost cuts. According to the company, a restructuring is underway and further decreases will be recognized in Q4 2026.

What were Encision's (ECIA) key financial figures for fiscal Q3 2026?

Encision reported net sales of $1.413 million and a net loss of $314 thousand for Q3 2026. According to the company, gross profit was $543 thousand and gross margin was 38.4% in the quarter.

What near-term outlook did Encision (ECIA) provide with its Q3 2026 results?

Encision indicated continued revenue pressure from the shift to robotic procedures and said cost reductions from restructuring will appear in Q4. According to the company, it expects the revenue decline to persist while recognizing lower operating costs next quarter.