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Electro-Sensors, Inc. Announces Second Quarter 2025 Financial Results

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Electro-Sensors (NASDAQ: ELSE), a machine monitoring sensors provider, reported Q2 2025 financial results with revenue of $2.4 million, up 8.3% year-over-year. The company achieved a gross margin of 51.2%, improving 400 basis points from 47.2% in Q2 2024.

Key financial metrics include an operating loss reduction to just $(2,000) from $(107,000) in the prior year, and earnings per share of $0.02 compared to breakeven. The company maintains a strong balance sheet with cash and investments of $10.2 million. For the first half of 2025, net sales increased 4.0% to $4.64 million, though the company recorded a small net loss of $(5,000).

Electro-Sensors (NASDAQ: ELSE), fornitore di sensori per il monitoraggio delle macchine, ha comunicato i risultati finanziari del secondo trimestre 2025 con ricavi di 2,4 milioni di dollari, in crescita dell'8,3% su base annua. L'azienda ha ottenuto un margine lordo del 51,2%, migliorando di 400 punti base rispetto al 47,2% del Q2 2024.

I principali indicatori mostrano una riduzione della perdita operativa a soli $(2.000) dai $(107.000) dell'anno precedente e un utile per azione di $0,02 rispetto al pareggio. La società mantiene una solida posizione finanziaria con cassa e investimenti per 10,2 milioni di dollari. Nei primi sei mesi del 2025 le vendite nette sono salite del 4,0% a 4,64 milioni di dollari, pur registrando una lieve perdita netta di $(5.000).

Electro-Sensors (NASDAQ: ELSE), proveedor de sensores para la monitorización de maquinaria, presentó sus resultados del segundo trimestre de 2025 con ingresos de 2,4 millones de dólares, un aumento del 8,3% interanual. La compañía alcanzó un margen bruto del 51,2%, mejorando 400 puntos básicos respecto al 47,2% del Q2 2024.

Entre las métricas clave destaca la reducción de la pérdida operativa hasta apenas $(2.000) desde $(107.000) del año anterior, y un beneficio por acción de $0,02 frente al punto de equilibrio. La empresa mantiene un balance sólido con 10,2 millones de dólares en efectivo e inversiones. En la primera mitad de 2025, las ventas netas aumentaron un 4,0% hasta 4,64 millones de dólares, aunque la compañía registró una pequeña pérdida neta de $(5.000).

Electro-Sensors (NASDAQ: ELSE)는 기계 모니터링용 센서 공급업체로, 2025년 2분기 실적을 발표했습니다. 매출 240만 달러로 전년 동기 대비 8.3% 증가했습니다. 회사는 매출총이익률 51.2%를 기록해 2024년 2분기의 47.2%에서 400 베이시스 포인트 개선되었습니다.

주요 지표로는 영업손실이 전년도의 $(107,000)에서 $(2,000)으로 크게 축소되었고, 주당순이익은 $0.02로 흑자 전환했습니다. 회사는 현금 및 투자금 10.2백만 달러($10.2 million)으로 재무구조가 탄탄합니다. 2025년 상반기 순매출은 4.0% 증가해 $4.64 million을 기록했지만, 소폭의 순손실 $(5,000)을 냈습니다.

Electro-Sensors (NASDAQ: ELSE), fournisseur de capteurs pour la surveillance des machines, a publié ses résultats du deuxième trimestre 2025 avec un chiffre d'affaires de 2,4 millions de dollars, en hausse de 8,3% sur un an. La société a atteint une marge brute de 51,2%, en amélioration de 400 points de base par rapport à 47,2% au T2 2024.

Les indicateurs clés montrent une réduction de la perte d'exploitation à seulement $(2 000) contre $(107 000) l'année précédente, et un bénéfice par action de $0,02 alors qu'elle était auparavant en équilibre. La société conserve une situation financière solide avec 10,2 millions de dollars en liquidités et investissements. Sur les six premiers mois de 2025, les ventes nettes ont augmenté de 4,0% à 4,64 millions de dollars, bien que la société ait enregistré une légère perte nette de $(5 000).

Electro-Sensors (NASDAQ: ELSE), ein Anbieter von Maschinenüberwachungssensoren, meldete die Finanzergebnisse für Q2 2025 mit Umsatz von 2,4 Millionen US-Dollar, ein Plus von 8,3% gegenüber dem Vorjahr. Die Bruttomarge lag bei 51,2%, eine Verbesserung um 400 Basispunkte gegenüber 47,2% im Q2 2024.

Wesentliche Kennzahlen: Der Betriebsverlust schrumpfte auf nur $(2.000) nach $(107.000) im Vorjahr, und das Ergebnis je Aktie betrug $0,02 gegenüber Break-even zuvor. Das Unternehmen verfügt über eine solide Bilanz mit Barmitteln und Investitionen in Höhe von $10,2 Millionen. Im ersten Halbjahr 2025 stiegen die Nettoumsätze um 4,0% auf $4,64 Millionen, wobei ein geringer Nettoverlust von $(5.000) verzeichnet wurde.

Positive
  • Revenue growth of 8.3% year-over-year to $2.4 million in Q2 2025
  • Gross margin improved significantly to 51.2%, up 400 basis points
  • Operating loss reduced by 98.1% to just $(2,000)
  • Strong cash position with $10.2 million in cash and investments
Negative
  • Operating loss of $(2,000) despite revenue growth
  • Net loss of $(5,000) for the first six months of 2025
  • Non-operating income declined to $170,000 from $225,000 in H1 2024

Insights

Electro-Sensors shows improving operational metrics with 8.3% revenue growth and significant margin expansion, moving toward profitability.

Electro-Sensors delivered a solid quarter with $2.4 million in revenue, representing 8.3% year-over-year growth. The most impressive aspect was the 400 basis point improvement in gross margin to 51.2%, demonstrating effective pricing strategy implementation to counter rising material costs.

The company has nearly eliminated its operating loss, improving from $(107,000) to just $(2,000) - a 98.1% reduction. This dramatic improvement in operating performance, coupled with non-operating income, allowed ELSE to swing to profitability with $59,000 in net income ($0.02 EPS) compared to a $4,000 loss in Q2 2024.

The balance sheet remains exceptionally strong with $10.2 million in cash and investments - representing approximately $2.96 per share in cash (based on ~3.45M shares). This substantial cash position provides both stability and strategic flexibility for potential growth initiatives.

While the six-month results show a slight net loss of $5,000, the quarterly trend suggests operational improvements are gaining momentum. The company maintained tight inventory control while increasing revenues, and accounts receivable decreased slightly despite the revenue growth, indicating healthy collection practices.

The 4.0% six-month revenue growth is slower than the quarterly 8.3%, suggesting accelerating momentum in Q2. If ELSE can maintain its improved gross margins and continue revenue growth, the company appears positioned for sustainable profitability in coming quarters.

MINNETONKA, Minn., Aug. 12, 2025 /PRNewswire/ -- Electro-Sensors, Inc. (NASDAQ: ELSE), a leading global provider of machine monitoring sensors and hazard monitoring systems, today announced financial results for the second quarter ended June 30, 2025.

  • Quarterly revenue of $2,400,000, up 8.3% from the prior-year period
  • Gross margin of 51.2%
  • Cash and investments of approximately $10.2 million

Selected Financial Information (unaudited, in thousands, except per share data)


Q2 2025

Q2 2024

Change

Net Sales


$

2,400


$

2,217


8.3

%

Gross Margin



51.2

%


47.2

%

400

bps

Operating Loss


$

(2)


$

(107)


98.1

%

Operating Income Margin



(0.1)

%


(4.8)

%

470

bps

Income Before Income Taxes


$

80


$

2


3900.0

%

Earnings Per Share (diluted)


$

0.02


$

0.00


100.0

%

Net sales in the second quarter increased 8.3% to $2,400,000 from $2,217,000 in the prior-year quarter.  For the first six months of 2025, net sales increased 4.0% to $4,639,000 from $4,461,000 in the comparable prior-year period.  Furthermore, gross margin for the 2025 second quarter was 51.2%, up from 47.2% in the corresponding quarter in 2024, primarily due to an increase in average selling price for specific items to partially offset increased material costs.

"We are pleased to report second quarter revenue of $2,400,000, up 8.3% from the prior-year period," said David L. Klenk, Electro-Sensors' president.  "Additionally, we are encouraged that gross margin was up four percentage points over the same quarter in 2024 as we continued to refine our pricing strategy."

A full analysis of results for the period ended June 30, 2025 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.

Statements of Income

For the Three and Six Months Ended June 30, 2025 and 2024 (unaudited)

(in thousands except share and per share amounts)

 


Three Months Ended June 30,


2025


2024


Sales

$

2,400


$

2,217


Cost of goods sold


1,172



1,170


Gross profit


1,228



1,047









Operating expenses


1,230



1,154









Operating loss


(2)



(107)









Non-operating income, net


82



109









Income before income taxes


80



2









Provision for income taxes


21



6









Net income (loss)

$

59


$

(4)









Earnings (loss) per share – diluted

$

0.02


$

0.00


Average shares outstanding - diluted


3,550,957



3,428,021


 


Six Months Ended June 30,


2025


2024


Sales

$

4,639


$

4,461


Cost of goods sold


2,327



2,334


Gross profit


2,312



2,127









Operating expenses


2,483



2,334









Operating loss


(171)



(207)









Non-operating income, net


170



225









Income (loss) before income taxes


(1)



18









Provision for income taxes


4



11









Net income (loss)

$

(5)


$

7









Earnings per share – diluted

$

0.00


$

0.00


Average shares outstanding - diluted


3,449,021



3,428,021


 

Electro-Sensors, Inc.

Balance Sheets

June 30, 2025 and December 31, 2024

(in thousands)

 


June 30,


December 31,



2025


2024


Assets

(unaudited)











Current Assets







Cash and investments

$

10,238


$

10,004


Trade receivables, net


1,282



1,309


Inventories


2,010



1,964


Other current assets


252



197


Total current assets


13,782



13,474









Deferred income tax asset, long-term


501



501


Property and equipment, net


877



910


Total assets

$

15,160


$

14,885









Liabilities and Stockholders' Equity














Current Liabilities







Accounts payable and accrued expenses

$

769


$

552


Total current liabilities


769



552
















Stockholders' equity







Common stock


344



344


Additional paid-in capital


2,423



2,360


Retained earnings


11,624



11,629


Total stockholders' equity


14,391



14,333









Total liabilities and stockholders' equity

$

15,160


$

14,885


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

 

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SOURCE Electro-Sensors, Inc.

FAQ

What was Electro-Sensors (ELSE) revenue in Q2 2025?

Electro-Sensors reported Q2 2025 revenue of $2.4 million, representing an 8.3% increase from $2.217 million in Q2 2024.

How much cash does Electro-Sensors (ELSE) have on its balance sheet?

As of June 30, 2025, Electro-Sensors had $10.238 million in cash and investments on its balance sheet.

What was ELSE's gross margin in Q2 2025?

Electro-Sensors achieved a gross margin of 51.2% in Q2 2025, up 400 basis points from 47.2% in Q2 2024, due to increased average selling prices.

How did Electro-Sensors perform in the first half of 2025?

In H1 2025, Electro-Sensors recorded net sales of $4.639 million, up 4.0% year-over-year, but posted a small net loss of $(5,000) compared to a $7,000 profit in H1 2024.

What was Electro-Sensors earnings per share in Q2 2025?

Electro-Sensors reported diluted earnings per share of $0.02 in Q2 2025, compared to $0.00 in Q2 2024.
Electro Sensors

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