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Electro-Sensors, Inc. Announces First Quarter 2026 Financial Results

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Electro-Sensors (NASDAQ: ELSE) reported first quarter 2026 results for the period ended March 31, 2026.

Net sales reached a record $2.579 million, up 15.2% year over year, with gross margin of 51.3% (up from 48.4%). The company reported an operating loss of $218,000 and a net loss of $116,000, or $(0.03) per diluted share. Cash and investments totaled approximately $10.8 million, and total assets were $16.1 million, with stockholders’ equity of $14.9 million.

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Positive

  • Record Q1 2026 net sales of $2.579 million, up 15.2% year over year
  • Gross margin improved to 51.3%, a 290 bps increase from 48.4%
  • Cash and investments of approximately $10.8 million at March 31, 2026
  • Total assets increased to $16.1 million from $15.7 million at year-end 2025
  • Stockholders’ equity rose to $14.9 million from $14.8 million at December 31, 2025

Negative

  • Operating loss widened to $218,000 from $169,000 in Q1 2025
  • Operating margin declined to (8.3)% from (7.6)% year over year
  • Net loss increased to $116,000 versus $64,000 in the prior-year quarter
  • Diluted loss per share increased to $(0.03) from $(0.02)
  • Operating expenses rose to $1.54 million from $1.25 million year over year
  • Accounts payable and accrued expenses increased to $1.161 million from $885,000 at year-end 2025

News Market Reaction – ELSE

-0.13%
-0.13% Session close to close

In the May 15 session, ELSE declined 0.13%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement reports record Q1 2026 revenue of $2,579,000 and a solid 51.3% gross margin, set a...
Analysis

This announcement reports record Q1 2026 revenue of $2,579,000 and a solid 51.3% gross margin, set against an operating loss of $218,000 and net loss of $116,000. Cash and investments of $10.812M and total assets of $16.059M underscore a strong balance sheet. In the context of prior earnings showing steady revenue growth but fluctuating profitability, investors may focus on operating expense trends, margin sustainability, and subsequent filings to gauge future earnings power.

Key Figures

Q1 2026 net sales: $2,579,000 Revenue growth: 15.2% Gross margin: 51.3% +5 more
8 metrics
Q1 2026 net sales $2,579,000 Three months ended March 31, 2026
Revenue growth 15.2% Net sales growth vs Q1 2025
Gross margin 51.3% Q1 2026 gross margin
Operating loss $(218,000) Q1 2026 operating loss
Net loss $(116,000) Q1 2026 net loss
Loss per share $(0.03) Q1 2026 diluted loss per share
Cash & investments $10,812,000 Cash and investments at March 31, 2026
Total assets $16,059,000 Total assets at March 31, 2026

Previous Earnings Reports

5 past events · Latest: Mar 30 (Positive)
Same Type Pattern 5 events
Date Event Sentiment 24h Move Catalyst
Mar 30 Year-end earnings Positive +1.8% Record 2025 revenue and higher gross margin despite lower net income.
Nov 13 Quarterly earnings Positive -4.0% Record Q3 2025 revenue and margin expansion with solid profitability.
Aug 12 Quarterly earnings Positive +1.2% Q2 2025 revenue and margin growth with swing to positive EPS.
May 12 Quarterly earnings Negative +18.3% Q1 2025 revenue dip and larger loss versus prior-year profit.
Mar 19 Year-end earnings Positive +2.0% Record 2024 revenue with higher international sales and solid margin.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Earnings releases have often highlighted record revenue and margin expansion, but price reactions have been mixed, with both alignments and sharp divergences relative to fundamentally positive updates.

Recent Company History

Over the past several earnings cycles, Electro-Sensors has repeatedly reported record or growing revenues and improving gross margins, as seen in the 2024 and 2025 year-end results and multiple quarterly updates. However, bottom-line performance has fluctuated between modest profits and small losses as operating expenses rose. Price reactions ranged from a strong 18.33% gain after Q1 2025 results to a −4.05% move following Q3 2025. Today’s Q1 2026 report continues the theme of revenue growth and solid margins amid variable profitability.

Key Terms

form 10-q, basis points
2 terms
form 10-q regulatory
"analysis of results for the period ended March 31, 2026 is available in the Company's Form 10-Q"
A Form 10-Q is a detailed report that publicly traded companies are required to file with regulators three times a year, providing an update on their financial health and business activities. It is important for investors because it offers timely insights into a company's performance, helping them make informed decisions about buying or selling stocks. Think of it as a regular check-up report that shows how well a company is doing.
basis points financial
"Gross Margin ... 48.4 % | 290 Bps"
Basis points are a way to measure small changes in interest rates or percentages, where one basis point equals 0.01%. For example, if a loan's interest rate increases by 50 basis points, it's gone up by 0.50%. They help people understand tiny differences in rates that can add up over time, making financial comparisons clearer.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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MINNETONKA, Minn., May 14, 2026 /PRNewswire/ -- Electro-Sensors, Inc. (NASDAQ: ELSE), a leading global provider of machine monitoring sensors and hazard monitoring systems, today announced financial results for the first quarter ended March 31, 2026.

  • Record first quarter revenue of $2,579,000
  • Gross Margin of 51.3%
  • Cash and investments of approximately $10.8 million

Unaudited; in thousands, except per share data



Q1 FY26


Q1 FY25


Change

Net Sales


$

2,579


$

2,239


15.2

%

Gross Margin



51.3

%


48.4

%

290

Bps

Operating Loss


$

(218)


$

(169)


(29.0)

%

Operating Margin



(8.3)

%


(7.6)

%

(70)

bps

Loss Before Income Tax Benefit


$

(147)


$

(81)


(81.5)

%

Loss Per Share (diluted)


$

(0.03)


$

(0.02)


(50.0)

%

"We are pleased to report first quarter revenue of $2,579,000, up 15.2% from the prior-year period," said David L. Klenk, Electro-Sensors' president.  "The increase was driven primarily driven by higher sales of wired products and an increase in international sales for agricultural applications.

A full analysis of results for the period ended March 31, 2026 is available in the Company's Form 10-Q, which is available on the Company's website at www.electro-sensors.com or through the Securities and Exchange Commission's Edgar database at www.sec.gov.

Electro-Sensors, Inc.
Consolidated Statements of Income
For the Quarter Ended March 31, 2026 and 2025 (unaudited)
(in thousands except share and per share amounts)


Three Months Ended March 31




2026


2025


Net sales

$

2,579


$

2,239


Cost of goods sold


1,257



1,155


Gross profit


1,322



1,084









Operating expenses


1,540



1,253









Operating loss


(218)



(169)









Non-operating income


71



88









Loss before income taxes


(147)



(81)









Benefit from income taxes


(31)



(17)









Net loss

$

(116)


$

(64)









Loss per share – diluted

$

(0.03)


$

(0.02)


Average shares outstanding - diluted


3,511,867



3,449,021


Electro-Sensors, Inc.
Consolidated Balance Sheets
March 31, 2026 and December 31, 2025
(in thousands)



March 31


December 31



2026


2025


Assets

(unaudited)











Current Assets







Cash and investments

$

10,812


$

10,601


Trade receivables, net


1,393



1,404


Inventories, net


2,080



2,028


Other current assets


387



320


Total current assets


14,672



14,353









Deferred income tax asset, long-term


495



464


Property and equipment, net


892



885


Total assets

$

16,059


$

15,702























Liabilities and Stockholders' Equity














Current Liabilities







Accounts payable and accrued expenses

$

1,161


$

885


Total current liabilities


1,161



885









Stockholders' equity







Common stock


353



348


Additional paid-in capital


2,726



2,534


Retained earnings


11,819



11,935


Total stockholders' equity


14,898



14,817









Total liabilities and stockholders' equity

$

16,059


$

15,702


About Electro-Sensors

Electro-Sensors, Inc. is an industry leading designer and manufacturer of rugged and reliable machine monitoring sensors and wireless/wired hazard monitoring systems applied across multiple industries and applications. These products improve processes by protecting people, safeguarding systems, reducing downtime, and preventing waste. Electro-Sensors is proud to be an ISO9001:2015 quality certified company and is committed to providing excellent customer service and technical support. Founded in 1968 and located in Minnetonka, Minnesota, Electro-Sensors provides its loyal customers with reliable products that improve safety and help plants operate with greater efficiency, productivity and control.

Cautionary Statement Regarding Forward Looking Statements

This press release may include statements about possible or anticipated future financial performance, business activities, plans, or opportunities.  These forward-looking statements may include the words "will," "should," "believes," "expects," "anticipates," "intends" or similar expressions.  For these forward-looking statements, the Company claims the protection of the safe harbor for forward−looking statements contained in federal securities laws.  Forward-looking statements reflect the company's current views with respect to future events and financial performance and include any statement that does not directly relate to a current or historical fact.  These forward-looking statements are subject to a number of factors, risks and uncertainties, including those disclosed in our periodic filings with the SEC that could cause actual performance, activities, plans, or opportunities after the date the statements are made to differ significantly from those indicated in the forward-looking statements.

For more information please visit our website at: www.electro-sensors.com. Also look us up on:
LinkedIn: linkedin.com/company/electro-sensors-inc-
X: x.com/ESIsensors
Facebook: facebook.com/ElectroSensors

Cision View original content:https://www.prnewswire.com/news-releases/electro-sensors-inc-announces-first-quarter-2026-financial-results-302772843.html

SOURCE Electro-Sensors, Inc.

FAQ

How did Electro-Sensors (NASDAQ: ELSE) perform in Q1 2026?

Electro-Sensors reported higher revenue but a larger loss in Q1 2026. According to Electro-Sensors, net sales were $2.579 million with a net loss of $116,000, compared with $2.239 million in sales and a $64,000 net loss in Q1 2025.

What were Electro-Sensors' Q1 2026 revenue and gross margin (ELSE)?

Electro-Sensors generated record Q1 2026 revenue of $2.579 million with a 51.3% gross margin. According to Electro-Sensors, this compares with $2.239 million in net sales and a 48.4% gross margin in the first quarter of 2025.

Did Electro-Sensors report a profit or loss in Q1 2026 (ELSE earnings)?

Electro-Sensors reported a net loss for Q1 2026. According to Electro-Sensors, the company recorded a net loss of $116,000, or $(0.03) per diluted share, versus a net loss of $64,000, or $(0.02) per diluted share, a year earlier.

What was Electro-Sensors' cash and investment balance at March 31, 2026?

Electro-Sensors ended Q1 2026 with strong liquidity. According to Electro-Sensors, cash and investments totaled approximately $10.812 million at March 31, 2026, compared with $10.601 million at December 31, 2025, supporting ongoing operations and potential growth initiatives.

How did Electro-Sensors' operating results change in Q1 2026 versus Q1 2025?

Electro-Sensors saw revenue growth but higher operating loss year over year. According to Electro-Sensors, operating loss increased to $218,000 from $169,000 as operating expenses rose to $1.54 million from $1.253 million despite higher gross profit.

What were key balance sheet figures for Electro-Sensors at Q1 2026 end?

Electro-Sensors reported a solid equity base at quarter-end. According to Electro-Sensors, total assets were $16.059 million and stockholders’ equity was $14.898 million as of March 31, 2026, with total current liabilities of $1.161 million.