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

Rhea-AI Summary

Frequency Electronics (NASDAQ:FEIM) reported Q3 FY2026 revenue of $16.9M and nine-month revenue of $47.8M, down from $18.9M and $49.8M a year earlier. Net income was $1.6M for the quarter and $4.0M for nine months. Backlog rose to $83M. Cash and cash equivalents declined to $86K, while the company reported being debt-free and disclosed two new contracts totaling approximately $45M.

Management highlighted a record funded backlog, recent large contract awards, ongoing investments in quantum sensing and proliferated satellite work, and expectation of improved cash collections and operating leverage.

Positive

• Funded backlog increased to $83M
• Announced two new contracts worth approximately $45M
• Company remains debt-free
• Net cash used in operating activities improved to $0.8M used (nine months)

Negative

• Quarterly revenue declined ~10.7% to $16.9M versus prior-year quarter
• Nine-month net income fell from $20.5M to $4.0M
• Cash and cash equivalents dropped from $4.72M to $86K
• Operating income decreased to $1.3M for the quarter

Key Figures

Q3 2026 revenue: $16.9M Nine-month 2026 revenue: $47.8M Q3 2026 operating income: $1.3M +5 more

8 metrics

Q3 2026 revenue $16.9M Three months ended January 31, 2026; vs $18.9M in Q3 FY2025

Nine-month 2026 revenue $47.8M Nine months ended January 31, 2026; vs $49.8M in FY2025 period

Q3 2026 operating income $1.3M Three months ended January 31, 2026; vs $3.5M a year earlier

Q3 2026 diluted EPS $0.16 From net income of $1.6M; vs $1.60 in Q3 FY2025

Nine-month 2026 diluted EPS $0.41 From net income of $4.0M; vs $2.14 in prior-year period

Net cash used in ops $0.8M Nine months FY2026; vs $1.3M net cash used in FY2025 period

Funded backlog $83M Backlog at January 31, 2026; vs $70M at April 30, 2025

New contract awards $45M Two recently received contracts, described as among largest ever won

Market Reality Check

Price: $54.15 Vol: Volume 213,591 is 1.42x t...

normal vol

$54.15 Last Close

Volume Volume 213,591 is 1.42x the 20-day average of 150,496, indicating elevated pre-news activity. normal

Technical Shares at $54.15 are trading above the 200-day MA of $35.48, reflecting a sustained longer-term uptrend.

Peers on Argus

While FEIM traded up 1.1% pre-release, peers were mixed: TSAT +8.68%, ADTN +4%, ...

1 Down

While FEIM traded up 1.1% pre-release, peers were mixed: TSAT +8.68%, ADTN +4%, AVNW +2.48%, CLFD +0.1%, GILT -2.96%. Scanner data flags only CLFD in momentum, moving down modestly, supporting a stock-specific setup for FEIM.

Previous Earnings Reports

5 past events · Latest: Dec 11 (Positive)

Same Type Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Dec 11	Q2 FY2026 earnings	Positive	+28.8%	Q2 FY2026 revenue growth, higher backlog to about $82M, solid profitability.
Sep 11	Q1 FY2026 earnings	Negative	-21.0%	Q1 FY2026 revenue and operating income decline versus prior year despite strong backlog.
Jul 11	Earnings call clarification	Positive	-13.4%	Clarification emphasizing larger long-term opportunity for TURbO atomic clock revenues.
Jul 10	FY2025 results	Positive	-13.4%	Record Q4 and FY2025 revenue and net income, strong satellite payload contribution.
Mar 13	Q3 FY2025 earnings	Positive	+13.8%	Q3 FY2025 revenue and operating income surge with robust margins and $73M backlog.

Pattern Detected

Earnings reports have produced mixed reactions: strong rallies on some positive results but notable selloffs even on favorable updates, indicating inconsistent alignment between fundamentals and short-term price moves.

Recent Company History

Across prior earnings-related events since March 2025, FEIM has reported solid revenue growth, expanding backlog (from $70M–$82M) and increasing focus on quantum sensing and advanced timing products. Market reactions have been volatile, with both sharp gains (e.g., +28.81% on Q2 FY2026) and sizeable declines on otherwise strong FY2025 results. Today’s Q3/FY2026 release, featuring lower year-over-year profitability but a record $83M backlog and new contract wins, follows this pattern of balancing near-term margin pressure against longer-term growth positioning.

Historical Comparison

-1.0% avg move · Over the past five earnings-related releases, FEIM’s average 24-hour move was -1.03%, with both shar...

earnings

-1.0%

Average Historical Move earnings

Over the past five earnings-related releases, FEIM’s average 24-hour move was -1.03%, with both sharp rallies and selloffs, underscoring volatile reactions to quarterly updates.

Earnings updates show revenue rising from Q3 FY2024 into record FY2025 levels, followed by FY2026 quarters marked by flat-to-lower revenue and compressed margins, but steadily growing backlog and investment in quantum sensing and advanced timing solutions.

Market Pulse Summary

This announcement outlines mixed fundamentals: Q3 FY2026 revenue of $16.9M and diluted EPS of $0.16 ...

Analysis

This announcement outlines mixed fundamentals: Q3 FY2026 revenue of $16.9M and diluted EPS of $0.16 declined year over year, but funded backlog reached a record $83M and two recent contracts total about $45M. Management emphasizes core space and defense business strength and emerging quantum sensing initiatives. Historical earnings releases show volatile price responses, so investors may watch backlog conversion, margin trends and contract execution as key indicators in upcoming quarters.

Key Terms

quantum sensing, c4isr, uavs

3 terms

quantum sensing technical

"the Company is pursuing 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.

c4isr technical

"used in satellite payloads and in other commercial, government and military systems including C4ISR and electronic warfare..."

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.

uavs technical

"military systems including C4ISR and electronic warfare, missiles, UAVs, aircraft, GPS, secure communications..."

Unmanned aerial vehicles (UAVs) are remote-controlled or autonomous flying machines—think of them as motorized, programmable model airplanes or helicopters that can carry cameras, sensors, cargo or other equipment without an onboard pilot. For investors, UAVs matter because they create new revenue streams and cost savings across industries like defense, delivery, agriculture, and inspection, while being sensitive to regulation, technology changes, and manufacturing supply chains.

AI-generated analysis. Not financial advice.

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

Revenue for the three and nine months ended January 31, 2026, was approximately $16.9 million and $47.8 million, respectively, compared to $18.9 million and $49.8 million, respectively, reported for the same period of fiscal year 2025. Operating income for the three and nine months ended January 31, 2026 was $1.3 million and $3.3 million, respectively, compared to $3.5 million and $8.5 million, respectively, reported for the same period of the previous fiscal year. Net Income from operations for the three and nine months ended January 31, 2026, was $1.6 million or $0.16 per diluted share and $4.0 million or $0.41 per diluted share, respectively, compared to a net income from operations for the three and nine months ended January 31, 2025 of $15.4 million or $1.60 per diluted share and $20.5 million or $2.14 per diluted share, respectively. Net cash used in operating activities was approximately $0.8 million in the nine months of fiscal year 2026, compared to net cash used in operations of $1.3 million for the same period of fiscal year 2025. Backlog at January 31, 2026 was approximately $83 million compared to $70 million at April 30, 2025.

FEI President and CEO, Tom McClelland commented, “Our third quarter fiscal year 2026 performance was strong by a number of measures, with revenue of $16.9 million, and a record $83 million funded backlog. Revenue quarter over quarter was basically flat, yet the quarterly revenue still represents the fourth highest quarterly revenue in the last decade. More importantly, though our business does not proceed in a perfectly linear fashion, we have established a new higher base in recent years, and we anticipate building upon that base now and in the years to come. As we look into the current fiscal fourth quarter and beyond, we have many reasons to be optimistic about our business going forward.

“As announced separately, we have very recently received two new contracts worth approximately $45M, as large as any contracts we have ever won. This near-term growth is largely based on FEI’s core technologies, for which we have deep experience, and thus confidence in our ability to execute this work with high margins. The evidence suggests that this core business will continue to grow for years to come. On top of this, as we have previously said, 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. We have already won business this fiscal year in quantum sensing, magnetometers and, now, with today’s separate award release, in proliferated satellites. These business lines are expected to contribute significantly to expansion of FEI’s markets, and to growth in the 3-to 5-year time frame, and beyond. This growth has already started with awards won this year, and we expect additional meaningful awards later in this calendar year. 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 these future growth opportunities will be additive to, not substitutive of, our strong core business in space and defense. All of this sets the stage for us to be a substantially larger company, as we are well on our way to meeting and surpassing $100 million of funded backlog.

“As for our balance sheet, it is important to recognize that the amount of cash reported as of the quarter ended January 31 should represent the low point going forward. Our use of cash this fiscal year was a combination of investments made by the company, purchases of stock, and the timing of some collections coming in early in this fiscal fourth quarter that were anticipated in the third quarter. Specifically, we have already collected over $11M in cash since February 1, 2026, and we expect that to continue building through the quarter. So we remain a debt-free company, with a healthy and growing cash position, and a long trajectory of business wins ahead of us. As we layer these wins onto our previously made investments, we should see meaningful operating leverage flow through the income statement in the coming years, setting the stage for substantial top-line growth, profitability and cash generation. We will share more color on our earnings call today, but in short: the future is very bright for FEI, and as we demonstrated with our wins announced today, the future is already here.”

Investor Conference Call
As previously announced, the Company will hold a conference call to discuss these results on Wednesday, March 11, 2026, 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: 118136 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: 53752). Subsequent to that, the call can be accessed via a link available on the Company’s website through June 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									Nine Months Ended
	January 31,									January 31,
	(unaudited)									(unaudited)
	2026					2025				2026					2025
Revenues	$	16,890				$	18,927			$	47,829				$	49,825
Cost of revenues		10,264					10,642				29,585					27,222
Gross margin		6,626					8,285				18,244					22,603
Selling and administrative		3,593					3,380				10,800					9,614
Research and development		1,763					1,436				4,095					4,536
Operating income		1,270					3,469				3,349					8,453
Interest and other, net		170					112				418					484
Income before income taxes		1,440					3,581				3,767					8,937
Benefit for income taxes		(127	)				(11,824	)			(235	)				(11,552	)
Net income	$	1,567				$	15,405			$	4,002				$	20,489
Net income per share:
Basic income per share	$	0.16				$	1.60			$	0.41				$	2.14
Diluted income per share	$	0.16				$	1.60			$	0.41				$	2.14
Weighted average shares outstanding
Basic		9,797					9,632				9,760					9,585
Diluted		9,797					9,632				9,760					9,589

Frequency Electronics, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (in thousands)
	January 31, 2026				April 30, 2025
		(unaudited)
ASSETS
Cash and cash equivalents	$	86			$	4,720
Accounts receivable, net		10,723				5,914
Contract assets		14,692				17,914
Inventories, net		25,834				23,487
Other current assets		1,219				1,071
Property, plant & equipment, net		6,955				6,188
Other assets		13,151				12,374
Deferred taxes		12,280				12,045
Right-of-use assets – operating leases		7,860				8,659
Restricted cash		1,392				1,365
	$	94,192			$	93,737
LIABILITIES AND STOCKHOLDERS’ EQUITY
Lease liability - current	$	2,145			$	2,027
Contract liabilities		9,889				13,454
Other current liabilities		8,148				7,950
Other long-term obligations		7,782				7,957
Operating lease liability – non-current		5,985				6,729
Stockholders’ equity		60,243				55,620
	$	94,192			$	93,737

FAQ

What were Frequency Electronics (FEIM) Q3 FY2026 revenue and net income?

Q3 FY2026 revenue was $16.9M and net income was $1.6M. According to the company, revenue and net income both declined year-over-year versus Q3 FY2025, reflecting lower gross margin and reduced operating income.

How large is FEIM's funded backlog as of January 31, 2026 and why does it matter?

Backlog stood at $83M on January 31, 2026, a record level for the company. According to the company, higher funded backlog signals near-term revenue visibility and supports multi-year growth expectations.

What are the details of the recent contract wins FEIM mentioned in March 2026?

FEIM reported two new contracts totaling approximately $45M, described as among the largest it has ever won. According to the company, these awards relate to core technologies and are expected to be executed with high margins.

Why did Frequency Electronics' cash balance decline to $86K at January 31, 2026?

Cash and cash equivalents declined to $86K at January 31, 2026 primarily due to investments, share repurchases, and timing of collections. According to the company, collections since February 1 have improved cash significantly.

Is FEIM profitable and how has profitability trended year-to-date FY2026?

FEIM reported positive net income of $4.0M for the nine months ended January 31, 2026, down from $20.5M a year earlier. According to the company, operating income and net income decreased materially year-over-year.

When and how can investors access Frequency Electronics' March 11, 2026 earnings call?

The company held its earnings call on March 11, 2026 at 4:30 PM ET with dial-in access and a replay. According to the company, the archived call is available via the company website and by phone for a limited period.