Evertz Technologies Reports First Quarter Results for The Quarter Ended July 31, 2025
Rhea-AI Summary
Evertz Technologies (TSX: ET) reported strong Q1 2026 financial results with revenue reaching $112.1 million, up from $111.6 million year-over-year. The company demonstrated robust performance in the US/Canada region with a 7% revenue increase to $79.5 million. Notable highlights include software and services revenue of $51.6 million (46% of total revenue), improved gross margin of 61.4% (up from 59.4%), and net earnings of $11.9 million (22% increase).
The company maintains a strong financial position with $124.3 million in cash and working capital of $202.6 million. Purchase order backlog exceeded $252 million at August 2025 end. The Board declared a quarterly dividend of $0.20 per share, payable on September 25, 2025.
Positive
- Net earnings increased 22% to $11.9 million
- Gross margin improved to 61.4% from 59.4% year-over-year
- Strong US/Canada revenue growth of 7% to $79.5 million
- Software and services revenue represents significant 46% of total revenue
- Substantial purchase order backlog exceeding $252 million
- Cash position strengthened to $124.3 million from $111.6 million
Negative
- International revenue declined to $32.7 million from $37.7 million
- Working capital decreased to $202.6 million from $206.9 million
- Selling and administrative expenses increased to $18.6 million from $17.6 million
News Market Reaction 1 Alert
On the day this news was published, EVTZF declined NaN%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Attention Business/Financial Editors:
Burlington, Ontario--(Newsfile Corp. - September 10, 2025) - Evertz Technologies Limited (TSX: ET), the leader in Software Defined Video Network ("SDVN") technology, today reported its results for the first quarter ended July 31, 2025.
First Quarter 2026 Highlights
- Revenue of
$112.1 million , an increase from$111.6 million in the prior year. - Revenue to the US and Canada was
$79.5 million an increase of$5.5 million or7% from prior year. - Software and services revenue of
$51.6 million , representing46% of total revenue in the quarter. - Gross Margin of
61.4% , compared to59.4% in the prior year quarter. - Earnings from operations of
$15.0 million an increase of$2.4 million or19% from prior year. - Net earnings of
$11.9 million an increase of$2.2 million or22% from prior year. - Fully diluted earnings per share of
$0.15 for the quarter.
Selected Financial Information
Consolidated Statement of Earnings Data
(in thousands of dollars, except earnings per share and share data)
| Q1'26 | Q1'25 | ||||||||||
| Revenue | $ | 112,145 | $ | 111,643 | |||||||
| Gross margin | 68,842 | 66,262 | |||||||||
| Earnings from operations | 14,984 | 12,609 | |||||||||
| Net earnings | 11,894 | 9,711 | |||||||||
| Fully-diluted earnings per share | $ | 0.15 | $ | 0.13 | |||||||
| Fully-diluted shares | 77,549,350 | 77,278,156 |
Selected Financial Information
Consolidated Balance Sheet Data
(in thousands of dollars)
| Q1 ' 26 | YE' 25 | |||||||||
| Cash and Cash Equivalents | $ | 124,309 | $ | 111,665 | ||||||
| Working capital | 202,607 | 206,900 | ||||||||
| Total assets | 488,318 | 469,485 | ||||||||
| Shareholders' equity | 262,067 | 268,123 |
Revenue
For the quarter ended July 31, 2025, revenues were
Gross Margin
For the quarter ended July 31, 2025, gross margin was
Earnings
For the quarter ended July 31, 2025, net earnings were
For the quarter ended July 31, 2025, earnings per share on a fully-diluted basis were
Operating Expenses
For the quarter ended July 31, 2025, selling and administrative expenses were
For the quarter ended July 31, 2025, gross research and development expenses were
Liquidity and Capital Resources
The Company's working capital as at July 31, 2025 was
Cash was
Cash generated from operations was
For the quarter, the Company used
For the quarter ended July 31, 2025, the Company used cash in financing activities of
Shipments and Backlog
At the end of August 2025, purchase order backlog was in excess of
Dividend Declared
Evertz Board of Directors declared a regular quarterly dividend on September 10, 2025 of
The dividend is payable to shareholders of record on September 18, 2025 and will be paid on or about September 25, 2025.
Selected Consolidated Financial Information
(in thousands of dollars, except earnings per share and percentages)
| Three months ended July 31, 2025 | Three months ended July 31, 2024 | |||||||||
| Revenue | $ | 112,145 | $ | 111,643 | ||||||
| Cost of goods sold | 43,303 | 45,381 | ||||||||
| Gross margin | 68,842 | 66,262 | ||||||||
| Expenses | ||||||||||
| Selling and administrative | 18,624 | 17,604 | ||||||||
| General | 1,267 | 1,281 | ||||||||
| Research and development | 36,983 | 37,374 | ||||||||
| Investment tax credits | (3,348) | (3,760) | ||||||||
| Share based compensation | 1,068 | 1,175 | ||||||||
| Foreign exchange gain | (736) | (21) | ||||||||
| 53,858 | 53,653 | |||||||||
| Earnings before undernoted | 14,984 | 12,609 | ||||||||
| Finance income | 775 | 705 | ||||||||
| Finance costs | (238) | (309) | ||||||||
| Other income and expenses | 500 | 210 | ||||||||
| Earnings before income taxes | 16,021 | 13,215 | ||||||||
| Provision for (recovery of) income taxes | ||||||||||
| Current | 3,965 | 5,563 | ||||||||
| Deferred | 162 | (2,059) | ||||||||
| 4,127 | 3,504 | |||||||||
| Net earnings for the period | $ | 11,894 | $ | 9,711 | ||||||
| Net earnings attributable to non-controlling interest | $ | 52 | $ | 42 | ||||||
| Net earnings attributable to shareholders | 11,842 | 9,669 | ||||||||
| Net earnings for the period | $ | 11,894 | $ | 9,711 | ||||||
| Earnings per share | ||||||||||
| Basic | $ | 0.16 | $ | 0.13 | ||||||
| Diluted | $ | 0.15 | $ | 0.13 | ||||||
| Consolidated Balance Sheet Data | ||||||||
| As At July 31, 2025 | As At April 30, 2025 | |||||||
| Cash and cash equivalents | $ | 124,309 | $ | 111,665 | ||||
| Inventory | $ | 182,494 | $ | 181,011 | ||||
| Working capital | $ | 202,607 | $ | 206,900 | ||||
| Total assets | $ | 488,318 | $ | 469,485 | ||||
| Shareholders' equity | $ | 262,067 | $ | 268,123 | ||||
| Number of common shares outstanding: | ||||||||
| Basic | 75,432,600 | 75,750,235 | ||||||
| Fully-diluted | 77,549,350 | 80,627,710 | ||||||
| Weighted average number of shares outstanding: | ||||||||
| Basic | 75,538,154 | 76,010,401 | ||||||
| Fully-diluted | 76,570,863 | 76,975,472 | ||||||
Forward-Looking Statements
The report contains forward-looking statements reflecting Evertz's objectives, estimates and expectations. Such forward-looking statements use words such as "may", "will", "expect", "believe", "anticipate", "plan", "intend", "project", "continue" and other similar terminology of a forward-looking nature or negatives of those terms.
Although management of the Company believes that the expectations reflected in such forward-looking statements are reasonable, all forward-looking statements address matters that involve known and unknown risks, uncertainties and other factors. Accordingly, there are or will be a number of significant factors which could cause the Company's actual results, performance or achievements, or industry results to be materially different from any future results performance or achievements expressed or implied by such forward-looking statements.
Conference Call
The Company will hold a conference call with financial analysts to discuss the results on September 10, 2025 at 5:00 p.m. (EDT). Media and other interested parties are invited to join the conference call in listen-only mode. The conference call may be accessed by dialing 289-514-5100 or toll-free (North America) 1-800-717-1738.
For those unable to listen to the live call, a rebroadcast will also be available until October 10, 2025. The rebroadcast can be accessed at 289-819-1325 or toll-free 1-888-660-6264. The pass code for the rebroadcast is 75854.
About Evertz
Evertz Technologies Limited (TSX: ET) designs, manufactures and markets video and audio infrastructure solutions for the television, telecommunications and new-media industries. The Company's solutions are purchased by content creators, broadcasters, specialty channels and television service providers to support their increasingly complex multi-channel digital, and high and ultra-high definition television ("HDTV" and "UHD") and next generation high bandwidth low latency IP network environments and by telecommunications and new-media companies. The Company's products allow its customers to generate additional revenue while reducing costs through efficient signal routing, distribution, monitoring and management of content as well as the automation and orchestration of more streamlined and agile workflow processes on premise and in the "Cloud."
For further information, please contact:
Doug Moore, CPA, CA
Chief Financial Officer
(905) 335-3700
ir@evertz.com
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/265903
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