Evertz Technologies Reports Quarterly Revenue of $132.7 Million in the Second Quarter Ended October 31, 2025
Rhea-AI Summary
Evertz Technologies (OTC:EVTZF) reported Q2 revenue of $132.7M for the quarter ended October 31, 2025, up 6.0% year‑over‑year. International revenue rose 12.5% to $34.2M. Earnings from operations were $25.0M, a 17.0% increase from the prior quarter, and net earnings were $18.6M (+16.9% vs prior quarter). Fully diluted EPS was $0.24. Cash and cash equivalents were $96.7M at Oct 31, 2025, down from $111.7M at Apr 30, 2025. The board declared a regular quarterly dividend of $0.205 per share and a special dividend of $1.00 per share, both payable Dec 24, 2025 to holders of record Dec 18, 2025.
Purchase order backlog exceeded $240M and November shipments were $46M.
Positive
- International revenue +12.5% to $34.2M
- Earnings from operations $25.0M (+17.0%)
- Net earnings $18.6M (+16.9%)
- Special dividend $1.00 per share declared
Negative
- Cash and cash equivalents declined from $111.7M to $96.7M
- Financing cash outflow included $15.4M in dividends paid
News Market Reaction
On the day this news was published, EVTZF gained 9.96%, reflecting a notable positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
While EVTZF gained 6.64%, key peers like UBLXF and VTKLY were down 0.5% and 3.58% respectively, with others flat. The move appeared stock-specific rather than sector-driven.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Sep 10 | Quarterly earnings | Positive | +0.0% | Q1 2026 revenue and margin expansion with higher net earnings. |
| Sep 02 | Earnings announcement | Neutral | +0.8% | Scheduling of Q1 2026 results release and analyst call details. |
| Jun 25 | Annual results | Positive | +0.9% | Fiscal 2025 revenue above $500M and higher recurring software revenue. |
| Jun 18 | Results scheduling | Neutral | +0.3% | Announcement of fiscal 2025 year-end results date and conference call. |
Earnings and results-related news have historically been followed by modestly positive or flat price reactions, suggesting generally constructive but measured market responses.
This announcement continues a string of positive financial updates. In June 2025, Evertz reported fiscal 2025 revenue of $501.6 million and Q4 revenue of $127.8 million, with a quarterly dividend of $0.20. On September 10, 2025, Q1 2026 results showed revenue of $112.1 million, higher margins, and net earnings of $11.9 million. Today’s Q2 2026 report with revenue of $132.7 million, higher net earnings, and increased regular plus special dividends fits this pattern of solid execution and shareholder returns.
Market Pulse Summary
The stock moved +10.0% in the session following this news. A strong positive reaction aligns with the company’s pattern of constructive responses to solid financial updates. Q2 2026 revenue of $132.7M and net earnings of $18.6M, along with a higher regular dividend and a $1.00 special dividend, provided clear fundamental support. Historically, earnings moves averaged about 0.45%, so a larger gain could reflect enthusiasm that may later normalize if growth or margins soften in subsequent quarters.
Key Terms
software defined video network technical
forward-looking statements regulatory
hdtv technical
uhd technical
AI-generated analysis. Not financial advice.
Attention Business/Financial Editors:
Burlington, Ontario--(Newsfile Corp. - December 10, 2025) - Evertz Technologies Limited (TSX: ET), the leader in Software Defined Video Network ("SDVN") technology, today reported its results for the second quarter ended October 31, 2025.
Second Quarter 2026 Highlights
- Quarterly revenue of
$132.7 million , an increase of$7.5 million or6.0% from the prior year quarter - International quarterly revenue of
$34.2 million up$3.8 million or12.5% from the prior year quarter - Earnings from operations of
$25.0 million for the quarter, an increase of17.0% from the prior quarter - Net earnings of
$18.6 million for the quarter, an increase of16.9% from the prior quarter - Fully diluted earnings per share of
$0.24 for the quarter - Regular quarterly dividend increased to
$0.20 5 per share - Special dividend declared of
$1.00 per share.
Selected Financial Information
Consolidated Statement of Earnings Data
(in thousands of dollars, except earnings per share and share data)
| Q2 ' 26 | Q2 ' 25 | ||||||
| Revenue | $ | 132,735 | $ | 125,259 | |||
| Gross margin | 77,829 | 74,260 | |||||
| Earnings from operations | 25,036 | 21,391 | |||||
| Net earnings | 18,620 | 15,937 | |||||
| Fully-diluted earnings per share | $ | 0.24 | $ | 0.21 | |||
| Fully-diluted shares | 77,523,650 | 77,077,835 |
Selected Financial Information
Consolidated Balance Sheet Data
(in thousands of dollars)
| Q2 ' 26 | YE ' 25 | ||||||
| Cash and cash equivalents | $ | 96,695 | $ | 111,665 | |||
| Working capital | 205,673 | 206,900 | |||||
| Total assets | 466,690 | 469,485 | |||||
| Shareholders' equity | 267,996 | 268,123 |
Revenue
For the quarter ended October 31, 2025, revenues were
Gross Margin
Gross margin for the second quarter ended October 31, 2025 was
Earnings
For the quarter ended October 31, 2025, net earnings were
For the quarter ended October 31, 2025, earnings per share on a fully-diluted basis were
Operating Expenses
For the quarter ended October 31, 2025, selling and administrative expenses were
For the quarter ended October 31, 2025, gross research and development expenses were
Liquidity and Capital Resources
The Company's working capital as at October 31, 2025 was
Cash and cash equivalent was
Cash used from operations was
For the quarter, the Company used
For the quarter ended, the Company used cash in financing activities of
Shipments and Backlog
At the end of November 2025, purchase order backlog was in excess of
Dividend Declared
Evertz Board of Directors declared a regular quarterly dividend on December 10, 2025 of
The dividend is payable to shareholders of record on December 18, 2025 and will be paid on or about December 24, 2025.
Special Dividend
Evertz Board of Directors declared a special dividend on December 10, 2025 of
The Special dividend reflects both the strong long-term operational performance of the Company and its solid balance sheet, thereby enabling a distribution of cash over and above what is considered necessary to meeting known commitments and maintain adequate reserves.
Selected Consolidated Financial Information
(in thousands of dollars, except earnings per share and percentages)
| Three month period ended | Six month period ended | |||||||||||||||
| October 31, | October 31, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Revenue | $ | 132,735 | $ | 125,259 | $ | 244,880 | $ | 236,902 | ||||||||
| Cost of goods sold | 54,906 | 50,999 | 98,209 | 96,380 | ||||||||||||
| Gross margin | 77,829 | 74,260 | 146,671 | 140,522 | ||||||||||||
| Expenses | ||||||||||||||||
| Selling and administrative | 19,102 | 18,372 | 37,726 | 35,976 | ||||||||||||
| General | 1,268 | 1,302 | 2,535 | 2,583 | ||||||||||||
| Research and development | 36,635 | 36,279 | 73,618 | 73,653 | ||||||||||||
| Investment tax credits | (4,350 | ) | (3,590 | ) | (7,697 | ) | (7,350 | ) | ||||||||
| Share based Compensation | 914 | 1,267 | 1,982 | 2,442 | ||||||||||||
| Foreign exchange gain | (776 | ) | (761 | ) | (1,512 | ) | (782 | ) | ||||||||
| 52,793 | 52,869 | 106,652 | 106,522 | |||||||||||||
| Earnings before undernoted | 25,036 | 21,391 | 40,019 | 34,000 | ||||||||||||
| Finance income | 642 | 837 | 1,417 | 1,542 | ||||||||||||
| Finance costs | (620 | ) | (374 | ) | (858 | ) | (683 | ) | ||||||||
| Other income | 188 | 101 | 688 | 311 | ||||||||||||
| Earnings before income taxes | 25,246 | 21,955 | 41,266 | 35,170 | ||||||||||||
| Provision for (recovery of) income taxes | ||||||||||||||||
| Current | 4,956 | 5,313 | 8,921 | 10,876 | ||||||||||||
| Deferred | 1,670 | 705 | 1,832 | (1,354 | ) | |||||||||||
| 6,626 | 6,018 | 10,753 | 9,522 | |||||||||||||
| Net earnings for the period | $ | 18,620 | $ | 15,937 | $ | 30,513 | $ | 25,648 | ||||||||
| Net earnings attributable to non-controlling interest | 93 | 133 | 145 | 175 | ||||||||||||
| Net earnings attributable to shareholders | 18,527 | 15,804 | 30,368 | 25,473 | ||||||||||||
| Net earnings for the period | $ | 18,620 | $ | 15,937 | $ | 30,513 | $ | 25,648 | ||||||||
| Earnings per share | ||||||||||||||||
| Basic | $ | 0.25 | $ | 0.21 | $ | 0.40 | $ | 0.33 | ||||||||
| Diluted | $ | 0.24 | $ | 0.21 | $ | 0.40 | $ | 0.33 | ||||||||
| Consolidated Balance Sheet Data | As at | As at | ||||||
| October 31, 2025 | April 30, 2025 | |||||||
| Cash and cash equivalents | $ | 96,695 | $ | 111,665 | ||||
| Inventory | $ | 182,696 | $ | 181,011 | ||||
| Working capital | $ | 205,673 | $ | 205,900 | ||||
| Total assets | $ | 466,690 | $ | 469,485 | ||||
| Shareholders' equity | $ | 267,996 | $ | 268,123 | ||||
| Number of common shares outstanding: | ||||||||
| Basic | 75,484,550 | 75,750,235 | ||||||
| Fully-diluted | 77,523,650 | 80,627,710 | ||||||
| Weighted average number of shares outstanding: | ||||||||
| Basic | 75,495,006 | 76,010,401 | ||||||
| Fully-diluted | 76,589,935 | 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 December 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 1-289-514-5100 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 January 6, 2025. The rebroadcast can be accessed at 1-289-819-1325 or Toll Free 1-800-660-6264, passcode 56182.
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/277599
FAQ
What were Evertz (EVTZF) Q2 2026 revenues and year-over-year change?
How much is the special dividend declared by Evertz (EVTZF) on Dec 10, 2025?
What was Evertz's (EVTZF) net earnings and EPS for the quarter ended Oct 31, 2025?
Did Evertz (EVTZF) report growth in international sales in Q2 2026?
How did Evertz's (EVTZF) cash position change at Oct 31, 2025?
What backlog and shipment figures did Evertz (EVTZF) report for November 2025?
