Frequency Electronics, Inc. Announces Second Quarter and Fiscal Year 2026 Financial Results

Rhea-AI Summary

Frequency Electronics (NASDAQ:FEIM) reported Q2 fiscal 2026 revenue of $17.1M and six-month revenue of $30.9M. Operating income was $1.7M for the quarter and $2.1M for six months. Net income was $1.8M or $0.18 per diluted share for the quarter and $2.4M or $0.25 per diluted share for six months. Net cash provided by operating activities was $0.6M in the six months versus $2.4M a year earlier. Funded backlog increased to approximately $82M from $70M at April 30, 2025. Management cited program delays from a government shutdown and expects awards and stronger execution in Q3–Q4. The company rescheduled its Quantum Sensing Summit for January 14–15, 2026.

Positive

• Quarterly revenue of $17.1M
• Funded backlog up ~17% to $82M from $70M
• Company expects multiple near-term awards, some sizable

Negative

• Quarter operating income down to $1.7M from $2.6M year-ago quarter
• Six-month net cash from operations fell to $0.6M from $2.4M

Key Figures

Q2 FY2026 revenue $17.1 million Three months ended October 31, 2025 vs $15.8M in 2024

Six-month revenue FY2026 $30.9 million Six months ended October 31, 2025 vs $30.9M in 2024

Q2 operating income $1.7 million Three months ended October 31, 2025 vs $2.6M prior year

Q2 diluted EPS $0.18 per share Net income from operations vs $0.28 per share in 2024

Six-month diluted EPS $0.25 per share Six months FY2026 vs $0.53 per share in FY2025 period

Backlog $82 million At October 31, 2025 vs $70M at April 30, 2025; CEO cites $81.7M funded backlog

Net cash from operations $0.6 million Six months FY2026 vs $2.4M in same FY2025 period

Cash and equivalents $2.992 million Balance sheet at October 31, 2025 vs $4.720M at April 30, 2025

Market Reality Check

$46.45 Last Close

Volume Volume 281,572 is 1.35x the 20-day average of 208,092, indicating elevated trading interest before the release. normal

Technical Price $34.85 is trading above the 200-day MA of $24.79, reflecting a pre-news uptrend despite a -2.46% daily move.

Peers on Argus

FEIM was down 2.46% while key peers like AVNW, CLFD, GILT, TSAT, and ADTN showed gains between 0.8% and 3.41%, pointing to stock-specific pressure rather than a sector-wide move.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Nov 24	Contract increase	Positive	-1.0%	FEI-Zyfer won ~$4.75M in follow-on airborne timing system orders.
Sep 11	Q1 FY26 earnings	Negative	-21.0%	Revenue and operating income declined year-over-year despite strong backlog.
Sep 09	Earnings call notice	Neutral	+0.3%	Announcement of timing and access details for Q1 FY26 call.
Aug 25	Defense contract win	Positive	+6.2%	FEI-Zyfer secured $3.14M Patriot Missile program contract plus options.
Aug 01	Summit announcement	Positive	-0.6%	Announcement of 2025 Quantum Sensing Summit in New York City.

Pattern Detected

News-linked moves show a mix of alignment and divergence: contract wins and strong earnings have sometimes been sold off, while negative earnings have often seen declines that aligned with the tone.

Recent Company History

Over the past six months, FEIM reported several sizable defense and airborne contracts and multiple strong earnings prints with high growth and profitability. Q4 FY2025 and Q3 FY2025 results highlighted double-digit revenue gains and elevated net income, alongside backlogs of $70M–$73M. Q1 FY2026 then showed weaker revenue and income, plus a $20M buyback authorization and continued quantum sensing investment. Subsequent awards of $3.14M and about $4.75M reinforced defense demand, framing today’s FY2026 Q2 results within a backdrop of robust but volatile performance.

Market Pulse Summary

This announcement reports Q2 FY2026 revenue of $17.1 million, up from $15.8 million, alongside an improved backlog of about $82 million, but with lower operating income, EPS, and operating cash flow versus the prior year period. Historically, FEIM’s earnings releases have produced sizeable moves, both positive and negative. Investors may focus on how management balances near-term profitability with continued investment in quantum sensing, ALT-PNT solutions, and proliferated satellite applications.

Key Terms

C4ISR technical

"systems including C4ISR and electronic warfare, missiles, UAVs, aircraft, GPS"

C4ISR stands for Command, Control, Communications, Computers, Intelligence, Surveillance and Reconnaissance and describes the networked systems that collect information, make sense of it, and let decision-makers direct forces or assets. Think of it as a military or security organization’s nervous system and traffic-control center rolled into one. Investors care because companies that build or supply C4ISR gear and software often win long-term government contracts, drive recurring revenue, and signal exposure to defense spending and technology cycles.

RF technical

"high precision timing, frequency generation and RF control products for space"

rf (commonly written r_f) denotes the risk-free rate — the theoretical return on an investment with no chance of loss, often used as a baseline for valuing other assets. Investors use it like a yardstick: returns above this number compensate for extra risk, so it helps price stocks, bonds and option valuations and guides decisions about whether higher-return opportunities justify their added risk. Think of it as the safe deposit box interest rate against which riskier bets are measured.

quantum sensing technical

"additional growth opportunities in quantum sensing, including magnetometers"

Quantum sensing uses the unusual behavior of tiny particles to measure physical quantities—like magnetic fields, time, or motion—with far greater precision than conventional sensors. For investors, it matters because this leap in sensitivity can enable new products and markets (better medical imaging, navigation without GPS, or faster material testing), potentially creating high-growth opportunities for companies that commercialize reliable, scalable devices.

right-of-use assets – operating leases financial

"Right-of-use assets – operating leases | | 8,302 | | 8,659"

A right-of-use asset for an operating lease is the value a company records on its balance sheet to represent its contractual right to use rented property (like buildings, equipment or vehicles) for a set period, with a matching obligation to make lease payments. Investors care because it brings previously hidden rental commitments onto the books, changing reported assets, liabilities and key ratios such as leverage and return; think of it like recording the use of a long-term rented car as an owned asset alongside the promise to pay for it.

AI-generated analysis. Not financial advice.

MITCHEL FIELD, N.Y., Dec. 11, 2025 (GLOBE NEWSWIRE) -- Frequency Electronics, Inc. (“FEI” or the “Company”) (NASDAQ-FEIM) is pleased to announce its financial results for the second quarter and fiscal year 2026.

Revenue for the three and six months ended October 31, 2025, was approximately $17.1 million and $30.9 million, respectively, compared to $15.8 million and $30.9 million, respectively, reported for the same period of fiscal year 2025. Operating income for the three and six months ended October 31, 2025 was $1.7 million and $2.1 million, respectively, compared to $2.6 million and $5.0 million, respectively, reported for the same period of the previous fiscal year. Net Income from operations for the three and six months ended October 31, 2025, was $1.8 million or $0.18 per diluted share and $2.4 million or $0.25 per diluted share, respectively, compared to a net income from operations for the three and six months ended October 31, 2024 of $2.7 million or $0.28 per diluted share and $5.1 million or $0.53 per diluted share, respectively. Net cash provided by operating activities was approximately $0.6 million in the six months of fiscal year 2026, compared to net cash provided by operations of $2.4 million for the same period of fiscal year 2025. Backlog at October 31, 2025 was approximately $82 million compared to $70 million at April 30, 2025.

FEI President and CEO, Tom McClelland commented, “Our second quarter fiscal year 2026 performance was strong by a number of measures, with revenue of $17.1 million, and a record $81.7 million funded backlog. Revenue is up 24%, quarter over quarter, and represents the third highest quarterly revenue in the last decade. As we reported last quarter, Q1 results were impacted by customer induced delays on several programs. As anticipated, those delays are behind us, as evidenced by the Q2 financials. During Q2 we did experience delays in getting under contract on several programs due to the government shutdown; however, we expect any impact from this to be reversed in Q3 and Q4. All of which leads to optimism going forward.

“We anticipate multiple awards in the coming months, some of which are as large or larger than the largest contracts we have ever won. This near term growth is largely in FEI’s core technologies, for which we have deep experience, and thus confidence in our ability to execute with high margins. The evidence suggests that this core business will continue to grow for the foreseeable future, well beyond the next few quarters. On top of this, the Company is pursuing additional growth opportunities in quantum sensing, including magnetometers and other alternative position, navigation and timing (ALT-PNT) solutions, and proliferated satellite applications. These are expected to contribute significantly to expansion of FEI’s markets, and to growth in the 3 to 5 year time frame, and beyond. In other words, we expect continued strength in our core business to build a multi-year bridge to our next generation growth opportunities, and we believe those future growth opportunities will be additive to, not substitutive of, our strong core business.

“The second annual Quantum Sensing Summit, which was originally scheduled for the last week of October, was ultimately postponed due to constraints on government participation during the shutdown. However, it has been re-scheduled for January 14 – 15, 2026, at the same location in New York City. This scientific conference will convene leaders from government, academia, industry, and other laboratories to explore emerging technologies, discuss strategies for realizing their full potential, and reinforce our nation’s leadership in this critical field as well as FEI’s expanding strategic role in advancing this technology. We are excited about the enthusiasm which has developed around this event. Additional details related to this event are available on the Frequency Electronics website.”

Investor Conference Call
As previously announced, the Company will hold a conference call to discuss these results on Thursday, December 11, 2025, at 4:30 PM Eastern Time. Investors and analysts may access the call by dialing 1-888-506-0062. International callers may dial 1-973-528-0011. Callers should provide participant access code: 533796 or ask for the Frequency Electronics conference call.

The archived call may be accessed by calling 1-877-481-4010 (domestic), or 1-919-882-2331 (international), for one week following the call (replay passcode: 53356). Subsequent to that, the call can be accessed via a link available on the Company’s website through March 11, 2026.

About Frequency Electronics
Frequency Electronics, Inc. (FEI) is a world leader in the design, development and manufacture of high precision timing, frequency generation and RF control products for space and terrestrial applications. FEI’s products are used in satellite payloads and in other commercial, government and military systems including C4ISR and electronic warfare, missiles, UAVs, aircraft, GPS, secure communications, energy exploration and wireline and wireless networks. FEI-Zyfer provides GPS and secure timing capabilities for critical military and commercial applications; FEI-Elcom Tech provides Electronic Warfare (“EW”) sub-systems and state-of-the-art RF and microwave products. FEI has received over 100 awards of excellence for achievements in providing high performance electronic assemblies for over 150 space and DOD programs. The Company invests significant resources in research and development to expand its capabilities and markets.
www.frequencyelectronics.com

FEI’s Mission Statement: “Our mission is to transform discoveries and demonstrations made in research laboratories into practical, real-world products. We are proud of a legacy which has delivered precision time and frequency generation products, for space and other world-changing applications that are unavailable from any other source. We aim to continue that legacy while adapting our products and expertise to the needs of the future. With a relentless emphasis on excellence in everything we do, we aim, in these ways, to create value for our customers, employees, and stockholders.”

Forward-Looking Statements

The statements in this press release regarding future earnings and operations and other statements relating to the future constitute “forward-looking” statements pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, our inability to integrate operations and personnel, actions by significant customers or competitors, general domestic and international economic conditions, reliance on key customers, continued acceptance of the Company’s products in the marketplace, competitive factors, new products and technological changes, product prices and raw material costs, dependence upon third-party vendors, other supply chain related issues, increasing costs for materials, operating related expenses, competitive developments, changes in manufacturing and transportation costs, the availability of capital, the outcome of any litigation and arbitration proceedings, and failure to maintain an effective system of internal controls over financial reporting. The factors listed above are not exhaustive and should be read in conjunction with the other cautionary statements that are included in this release and in our filings with the Securities and Exchange Commission. The Company’s Annual Report on Form 10-K for the fiscal year ended April 30, 2025, filed on July 18, 2025 with the Securities and Exchange Commission includes additional factors that could materially and adversely impact the Company’s business, financial condition and results of operations, as such factors are updated from time to time in our periodic filings with the Securities and Exchange Commission, which are accessible on the Securities and Exchange Commission’s website at www.sec.gov. Moreover, the Company operates in a very competitive and rapidly changing environment. New factors emerge from time to time and it is not possible for management to predict the impact of all these factors on the Company’s business, financial condition or results of operations or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Given these risks and uncertainties, investors should not rely on forward-looking statements as a prediction of actual results. Any or all of the forward-looking statements contained in this press release and any other public statement made by the Company or its management may turn out to be incorrect. The Company expressly disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Contact information: Dr. Thomas McClelland, President and Chief Executive Officer;
                                 Steven Bernstein, Chief Financial Officer;
  
TELEPHONE: (516) 794-4500 ext.5000             WEBSITE: www.freqelec.com

Frequency Electronics, Inc. and Subsidiaries Condensed Consolidated Statements of Operations (in thousands except per share data)
	Three Months Ended								Six Months Ended
	October 31,								October 31,
	(unaudited)								(unaudited)
	2025					2024			2025					2024
Revenues	$	17,127				$	15,820		$	30,939				$	30,898
Cost of revenues		10,591					8,201			19,321					16,580
Gross margin		6,536					7,619			11,618					14,318
Selling and administrative		3,623					3,388			7,207					6,234
Research and development		1,199					1,613			2,332					3,101
Operating income		1,714					2,618			2,079					4,983
Interest and other, net		56					175			248					373
Income before Income Taxes		1,770					2,793			2,327					5,356
(Benefit) provision for Income Taxes		(31	)				139			(108	)				272
Net income	$	1,801				$	2,654		$	2,435				$	5,084
Net income per share:
Basic and diluted income per share	$	0.18				$	0.28		$	0.25				$	0.53
Weighted average shares outstanding
Basic and diluted		9,760					9,585			9,741					9,562

Frequency Electronics, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (in thousands)
		October 31, 2025			April 30, 2025
		(unaudited)
ASSETS
Cash and cash equivalents	$	2,992		$	4,720
Accounts receivable, net		6,069			5,914
Contract assets		15,501			17,914
Inventories, net		24,682			23,487
Other current assets		1,675			1,071
Property, plant & equipment, net		6,601			6,188
Other assets		12,896			12,374
Deferred taxes		12,153			12,045
Right-of-use assets – operating leases		8,302			8,659
Restricted cash		1,384			1,365
	$	92,255		$	93,737
LIABILITIES AND STOCKHOLDERS’ EQUITY
Lease liability - current	$	2,083		$	2,027
Contract liabilities		11,095			13,454
Other current liabilities		6,488			7,950
Other long-term obligations		7,819			7,957
Operating lease liability – non-current		6,315			6,729
Stockholders’ equity		58,455			55,620
	$	92,255		$	93,737

FAQ

What were Frequency Electronics (FEIM) Q2 fiscal 2026 revenues and net income?

Q2 revenue was $17.1M and net income was $1.8M or $0.18 per diluted share.

How large is FEIM's backlog as of October 31, 2025 and how did it change?

Funded backlog was approximately $82M, up from $70M on April 30, 2025.

Why did FEIM say Q1 results were impacted and when will that reverse?

Management cited customer-induced program delays and a government shutdown; they expect impacts to reverse in Q3 and Q4 2026.

What was FEIM's cash flow from operations for the six months ended October 31, 2025?

Net cash provided by operating activities was approximately $0.6M for the six months.

When is Frequency Electronics' rescheduled Quantum Sensing Summit?

The summit is rescheduled for January 14–15, 2026 in New York City.

How can investors access FEIM's earnings conference call on December 11, 2025?

Investors could dial 1-888-506-0062 (U.S.) or 1-973-528-0011 (international) and use access code 533796.