Hurco Reports First Quarter Results for Fiscal Year 2026

Rhea-AI Summary

Hurco Companies (Nasdaq: HURC) reported a $3.468M net loss for Q1 FY2026, or $0.54 loss per diluted share, versus a $4.320M loss ($0.67) a year earlier. Sales were $42.868M, down 8%; orders rose 5% to $41.980M driven by an 18% increase in the Americas. Gross margin improved to 19% while SG&A rose to 26% of sales. Cash was $48.011M and working capital $169.506M as of January 31, 2026.

Positive

• Net loss narrowed from $4.32M to $3.47M year-over-year
• Orders increased 5% to $41.98M, Americas orders up 18%
• Gross margin improved to 19% of sales (vs. 18%)

Negative

• Sales declined 8% to $42.87M year-over-year
• SG&A rose to 26% of sales, a 4ppt increase
• Inventory and working capital pressures; working capital down to $169.51M

News Market Reaction – HURC

-6.55%

1 alert

-6.55% Session close to close

$102.08M Market Cap

0.2x Rel. Volume

In the Mar 6 session, HURC declined 6.55%, reflecting a notable negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

The stock moved -6.5% in the session following this news. A negative reaction despite signs of impro...

Analysis

The stock moved -6.5% in the session following this news. A negative reaction despite signs of improvement would fit the pattern of cautious responses to Hurco’s earnings, where the average move of about -1.79% has reflected persistent losses and demand uncertainty. The combination of an 8% sales decline, higher SG&A at 26% of sales and continued regional weakness could justify pressure, even as margins, cash and orders show incremental progress.

Key Figures

Net loss: $3,468,000 Loss per share: $0.54 Sales and service fees: $42,868,000 +5 more

8 metrics

Net loss $3,468,000 Q1 FY2026 net loss versus $4,320,000 in Q1 FY2025

Loss per share $0.54 Q1 FY2026 diluted loss per share versus $0.67 prior year

Sales and service fees $42,868,000 Q1 FY2026 sales, down 8% from $46,414,000 in Q1 FY2025

New orders $41,980,000 Q1 FY2026 orders, up 5% from $40,085,000 in Q1 FY2025

Gross margin 19% Q1 FY2026 gross profit as a percentage of sales, vs 18% prior year

SG&A as % of sales 26% Q1 FY2026 SG&A as percentage of sales, vs 22% in Q1 FY2025

Cash and cash equivalents $48,011,000 Balance at January 31, 2026 versus $48,713,000 at October 31, 2025

Working capital $169,506,000 Working capital at January 31, 2026 vs $173,055,000 at October 31, 2025

Previous Earnings Reports

5 past events · Latest: Sep 05 (Positive)

Same Type Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Sep 05	Q3 2025 earnings	Positive	+7.5%	Loss narrowed, sales up 7%, margins improved but orders fell sharply.
Jun 06	Q2 2025 earnings	Negative	-2.3%	Wider net loss and 10% sales decline across all regions with valuation allowance.
Mar 07	Q1 2025 earnings	Negative	-6.1%	Loss expanded despite modest sales growth and a 20% drop in orders.
Jan 10	FY 2024 results	Negative	-3.4%	Shift from prior-year profit to sizable annual loss on double-digit sales declines.
Sep 06	Q3 2024 earnings	Negative	-4.7%	Large loss driven by tax valuation allowance and 20% sales decline despite stronger orders.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Across recent earnings, HURC often moved in the same direction as the tone of the results: weaker quarters with larger losses and sales declines tended to see negative price reactions, while the one quarter with improving loss and higher sales saw a positive reaction.

Recent Company History

Recent earnings releases show Hurco managing through a cyclical downturn with persistent net losses and softer sales, particularly in 2024–2025. Events on Sep 5, 2025 and Mar 7, 2025 highlighted improving margins but weak orders, while earlier 2024 reports showed sharp sales declines and valuation allowances driving losses. Against that backdrop, this Q1 FY2026 report, with narrower loss, higher gross margin and better orders but lower sales, continues a gradual stabilization narrative rather than a clear turnaround.

Key Terms

computer numeric control, derivative assets, operating lease, deferred tax assets, +3 more

7 terms

computer numeric control technical

"three brands of computer numeric control (“CNC”) machine tools to the worldwide"

Computer numeric control is a system where a computer follows a precise set of coded instructions to operate machine tools—like mills, lathes or cutters—so parts are made automatically rather than by hand; think of it as a robotic recipe that produces identical servings every time. It matters to investors because CNC boosts production speed, consistency and efficiency, reduces waste and labor costs, and enables more complex products, all of which can improve margins and competitive position.

derivative assets financial

"Derivative assets | | 82 | | 263"

Derivative assets are financial contracts whose value is tied to the price or performance of another asset, like a stock, bond, commodity, interest rate, or index — think of them as a bet or an insurance policy on how that underlying item will move. They matter to investors because they let you hedge risk, gain exposure with less capital, or speculate on price swings, but they can also magnify losses and create liquidity or counterparty risk if the other party can’t meet obligations.

operating lease financial

"Operating lease – right of use assets, net | | 11,171 |"

An operating lease is a contract where a company rents an asset—like equipment, vehicles or office space—rather than buying it, similar to leasing a car for regular use without owning it. Investors care because lease payments affect a company’s cash flow and reported profits, and modern accounting usually shows long-term rental commitments as a right-of-use asset and matching liability, which changes how debt and asset levels are compared across firms.

deferred tax assets financial

"valuation allowance recorded during the first quarter of 2025 on our Italian deferred tax assets"

An item on a company’s balance sheet showing tax benefits it can use later to reduce future tax bills — think of it as an IOU from the tax system for past losses or timing differences. It matters to investors because it can boost future cash flow and apparent value if the company expects profits ahead, but those benefits vanish if the company cannot generate taxable income and the asset must be reduced.

valuation allowance financial

"A full valuation allowance has been recorded against our Italian, U.S., and Chinese deferred"

A valuation allowance is a reserve set aside to reduce the value of certain assets on a company's financial records when there is uncertainty about whether they will generate the expected benefits. It acts like a caution sign, indicating that some assets might not be fully recoverable or worth their recorded amount. This matters to investors because it provides a more realistic picture of a company's financial health and potential risks.

sofr rate financial

"changes in the SOFR rate; the impact of the COVID-19 pandemic and other public"

SOFR is the Secured Overnight Financing Rate, a daily benchmark that reflects the cost of very short‑term loans backed by U.S. government securities. Investors watch it because many dollar loans, floating‑rate bonds and derivatives use SOFR to set interest payments; when SOFR moves, borrowing costs, yields and valuations across a wide range of financial contracts change—like a background thermostat that influences many investments.

forward-looking statements regulatory

"Certain statements in this news release are forward-looking statements that involve known"

Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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INDIANAPOLIS, March 06, 2026 (GLOBE NEWSWIRE) -- Hurco Companies, Inc. (Nasdaq: HURC) today reported results for the first fiscal quarter ended January 31, 2026. Hurco recorded a net loss of $3,468,000, or $0.54 loss per diluted share, for the first quarter of fiscal year 2026, compared to a net loss of $4,320,000, or $0.67 loss per diluted share, for the corresponding period in fiscal year 2025.

Sales and service fees for the first quarter of fiscal year 2026 were $42,868,000, a decrease of $3,546,000, or 8%, compared to the corresponding prior year period, and included a favorable currency impact of $1,813,000, or 4%, when translating foreign sales to U.S. dollars for financial reporting purposes.

Greg Volovic, Chief Executive Officer, stated, “Our orders have picked up considerably in the U.S. despite the increase in tariffs, overall gross profit (as a percentage of sales) has improved reflecting cost reductions and containment, and continued working capital efficiency reflects our steadfast focus on a strong balance sheet. We have made meaningful progress to our financial position and remain committed to managing the business for the long-term sustainable future. Seeing improved order activity in the US affirms what we have been anticipating and hoping to see in the global market. We would like to see this trend continue on a broader scale, and we will remain focused on a potential recovery in 2026.”

The following table sets forth net sales and service fees by geographic region for the first fiscal quarter ended January 31, 2026, and 2025 (dollars in thousands):

		Three Months Ended
		January 31,
		2026			2025			$ Change			% Change
Americas		$16,656			$18,108			($1,452	)		(8	)%
Europe		20,547			21,614			(1,067	)		(5	)%
Asia Pacific		5,665			6,692			(1,027	)		(15	)%
Total		$42,868			$46,414			($3,546	)		(8	)%

Sales in the Americas for the first quarter of fiscal year 2026 decreased by 8%, compared to the corresponding period in fiscal year 2025, primarily due to a decreased volume of shipments of Milltronics vertical milling and toolroom machines.

European sales for the first quarter of fiscal year 2026 decreased by 5%, compared to the corresponding period in fiscal year 2025, and included a favorable currency impact of 8%, when translating foreign sales to U.S. dollars for financial reporting purposes. The decrease in European sales for the first quarter of fiscal year 2026 was primarily attributable to a decreased volume of shipments of Hurco VM machines and lathes in the UK and Germany. In addition to the decreased machine sales for the quarter, European sales also reflected a decline in shipments of accessories manufactured by our wholly owned Italian subsidiary, LCM Precision Technology S.r.l. (“LCM”).

Asian Pacific sales for the first quarter of fiscal year 2026 decreased by 15%, compared to the corresponding period in fiscal year 2025, and included a favorable currency impact of 2%, when translating foreign sales to U.S. dollars for financial reporting purposes. The decrease in Asian Pacific sales primarily resulted from a lower volume of shipments of Hurco machines in China and India.

Orders for the first quarter of fiscal year 2026 were $41,980,000, an increase of $1,895,000, or 5%, compared to the corresponding period in fiscal year 2025, and included a favorable currency impact of $1,506,000, or 4%, when translating foreign orders to U.S. dollars.

The following table sets forth new orders booked by geographic region for the first fiscal quarter ended January 31, 2026, and 2025 (dollars in thousands):

		Three Months Ended
		January 31,
		2026			2025			$ Change			% Change
Americas		$17,301			$14,643			$2,658			18	%
Europe		18,966			19,370			(404	)		(2	)%
Asia Pacific		5,713			6,072			(359	)		(6	)%
Total		$41,980			$40,085			$1,895			5	%

Orders in the Americas for the first quarter of fiscal year 2026 increased by 18%, compared to the corresponding period in fiscal year 2025, primarily due to increased customer demand for Hurco and Takumi machines.

European orders for the first quarter of fiscal year 2026 decreased by 2%, compared to the corresponding prior year period, and included a favorable currency impact of 8%, when translating foreign orders to U.S. dollars. The decrease in orders was driven primarily by decreased customer demand for Hurco and Takumi machines in Germany, France, Italy and the U.K., partially offset by increased customer demand for electro-mechanical components and accessories manufactured by LCM.

Asian Pacific orders for the first quarter of fiscal year 2026 decreased by 6%, compared to the corresponding prior year period, and included an unfavorable currency impact of less than 1%, when translating foreign orders to U.S. dollars. The decrease in Asian Pacific orders was driven primarily by a decrease in customer demand for Hurco machines in China, partially offset by increased customer demand for Hurco and Takumi machines in India.

Gross profit for the first quarter of fiscal year 2026 was $7,938,000, or 19% of sales, compared to $8,290,000, or 18% of sales, for the corresponding prior year period. The year-over-year increase in gross profit as a percentage of sales was primarily due to a greater sales mix of Hurco and Takumi higher-performance machines and improved leverage of fixed costs allocated to sales and production volumes.

Selling, general, and administrative expenses for the first quarter of fiscal year 2026 were $11,108,000, or 26% of sales, compared to $10,382,000, or 22% of sales, in the corresponding fiscal year 2025 period, and included an unfavorable currency impact of $402,000, when translating foreign expenses to U.S. dollars for financial reporting purposes. The year-over-year increase in selling, general and administrative expenses for the quarter reflected the unfavorable currency impact and increased employee benefits costs.

Income tax expense for the first quarter of fiscal year 2026 was $461,000, compared to $2,041,000 for the corresponding prior year period. The year-over-year change was primarily due to a $1,232,000 valuation allowance recorded during the first quarter of 2025 on our Italian deferred tax assets and changes in geographic mix of income and loss that includes jurisdictions with differing tax rates. A full valuation allowance has been recorded against our Italian, U.S., and Chinese deferred tax assets as of January 31, 2026 based on our conclusion that the deferred tax assets were not more likely than not to be recognized.

Cash and cash equivalents totaled $48,011,000 at January 31, 2026, compared to $48,713,000 at October 31, 2025. Working capital was $169,506,000 at January 31, 2026, compared to $173,055,000 at October 31, 2025. The decrease in working capital was primarily driven by an increase in accounts payable and a decrease in inventories.

Hurco Companies, Inc. is an international, industrial technology company that sells its three brands of computer numeric control (“CNC”) machine tools to the worldwide metal cutting and metal forming industry. Two of the Company’s brands of machine tools, Hurco and Milltronics, are equipped with interactive controls that include software that is proprietary to each respective brand. The Company designs these controls and develops the software. The third brand of CNC machine tools, Takumi, is equipped with industrial controls that are produced by third parties, which allows the customer to decide the type of control added to the Takumi CNC machine tool. The Company also produces high-value machine tool components and accessories and provides automation solutions that can be integrated with any machine tool. The end markets for the Company's products are independent job shops, short-run manufacturing operations within large corporations, and manufacturers with production-oriented operations. The Company’s customers manufacture precision parts, tools, dies, and/or molds for industries such as aerospace, defense, medical equipment, energy, transportation, and computer equipment. The Company is based in Indianapolis, Indiana, with manufacturing operations in Taiwan, Italy, and the U.S., and sells its products through direct and indirect sales forces throughout the Americas, Europe, and Asia. The Company has sales, application engineering support and service subsidiaries in China, the Czech Republic, England, France, Germany, India, Italy, the Netherlands, Poland, Singapore, the U.S., and Taiwan. Web Site: www.hurco.com.

Certain statements in this news release are forward-looking statements that involve known and unknown risks, uncertainties, and other factors that may cause our actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. These factors include, among others, the cyclical nature of the machine tool industry; uncertain economic conditions, which may adversely affect overall demand, in the Americas, Europe and Asia Pacific markets; the risks of our international operations; governmental actions, initiatives and regulations, including import and export restrictions, duties and tariffs and changes to tax laws; the effects of changes in currency exchange rates; competition with larger companies that have greater financial resources; our dependence on new product development; the need and/or ability to protect our intellectual property assets; the limited number of our manufacturing and supply chain sources; increases in the prices of raw materials, especially steel and iron products; the effect of the loss of members of senior management and key personnel; our ability to integrate acquisitions; acquisitions that could disrupt our operations and affect operating results; failure to comply with data privacy and security regulations; breaches of our network and system security measures; possible obsolescence of our technology and the need to make technological advances; impairment of our assets; negative or unforeseen tax consequences; uncertainty concerning our ability to use tax loss carryforwards; changes in the SOFR rate; the impact of the COVID-19 pandemic and other public health epidemics and pandemics on the global economy, our business and operations, our employees and the business, operations and economies of our customers and suppliers; and other risks and uncertainties discussed more fully under the caption “Risk Factors” in our filings with the Securities and Exchange Commission. We expressly disclaim any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Contact: Sonja K. McClelland
Executive Vice President, Treasurer, & Chief Financial Officer
317-293-5309

Hurco Companies, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
		Three Months Ended January 31,
		2026			2025
		(unaudited)
Sales and service fees		$42,868			$46,414
Cost of sales and service		34,930			38,124
Gross profit		7,938			8,290
Selling, general and administrative expenses		11,108			10,382
Operating (loss) income		(3,170	)		(2,092	)
Interest expense		6			58
Interest income		42			94
Investment income		105			161
Other income (expense), net		22			(384	)
(Loss) income before taxes		(3,007	)		(2,279	)
Provision (benefit) for income taxes		461			2,041
Net (loss) income		($3,468	)		($4,320	)
(Loss) income per common share
Basic		($0.54	)		($0.67	)
Diluted		($0.54	)		($0.67	)
Weighted average common shares outstanding
Basic		6,425			6,459
Diluted		6,425			6,459
OTHER CONSOLIDATED FINANCIAL DATA
		Three Months Ended January 31,
Operating Data:		2026			2025
		(unaudited)
Gross margin		19	%		18	%
SG&A expense as a percentage of sales		26	%		22	%
Operating (loss) income as a percentage of sales		(7	)%		(5	)%
Pre-tax (loss) income as a percentage of sales		(7	)%		(5	)%
Effective tax rate		(15	)%		(90	)%
Depreciation and amortization		$569			$710
Capital expenditures		$610			$556
Balance Sheet Data:		1/31/2026			10/31/2025
Working capital		$169,506			$173,055
Days sales outstanding		51			42
Inventory turns		1.0			1.0
Capitalization
Total debt		–			–
Shareholders' equity		195,031			198,787
Total		$195,031			$198,787

Hurco Companies, Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share data)
		January 31,			October 31,
		2026			2025
ASSETS		(unaudited)
Current assets:
Cash and cash equivalents		$48,011			$48,713
Accounts receivable, net		25,832			27,928
Inventories		141,735			142,931
Derivative assets		82			263
Prepaid and other assets		7,064			5,243
Total current assets		222,724			225,078
Property and equipment:
Land		1,046			1,046
Building		7,381			7,381
Machinery and equipment		25,967			26,061
Leasehold improvements		4,543			4,569
		38,937			39,057
Less accumulated depreciation and amortization		(31,294	)		(31,083	)
Total property and equipment, net		7,643			7,974
Non-current assets:
Software development costs, less accumulated amortization		8,438			8,090
Intangible assets, net		415			627
Operating lease – right of use assets, net		11,171			11,560
Deferred income taxes		792			794
Investments		9,111			9,005
Other assets		1,241			1,170
Total non-current assets		31,168			31,246
Total assets		$261,535			$264,298
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable		$27,577			$26,074
Customer deposits		5,430			4,788
Derivative liabilities		3,134			3,084
Operating lease liabilities		4,381			4,374
Accrued payroll and employee benefits		6,266			7,474
Accrued income taxes		1,682			1,472
Accrued expenses		3,786			3,790
Accrued warranty expenses		962			967
Total current liabilities		53,218			52,023
Non-current liabilities:
Deferred income taxes		32			38
Accrued tax liability		–			–
Operating lease liabilities		7,181			7,560
Deferred credits and other		6,073			5,890
Total non-current liabilities		13,286			13,488
Commitment and contingencies		–			–
Shareholders' equity:
Preferred stock: no par value per share, 1,000,000 shares authorized; no shares issued		–			–
Common stock: no par value, $.10 stated value per share, 12,500,000 shares authorized; 6,637,605 and 6,569,224 shares issued and 6,446,454 and 6,402,396 shares outstanding, as of January 31, 2026 and October 31, 2025, respectively		645			640
Additional paid-in capital		61,165			60,850
Retained earnings		142,837			146,305
Accumulated other comprehensive loss		(9,616	)		(9,008	)
Total shareholders' equity		195,031			198,787
Total liabilities and shareholders' equity		$261,535			$264,298

FAQ

What were Hurco's Q1 FY2026 earnings per share (EPS) and net loss (HURC)?

Hurco reported a $0.54 loss per diluted share and a $3.468M net loss. According to the company, this compares to a $0.67 loss per share and $4.320M net loss in Q1 FY2025.

How did Hurco's sales and orders perform in Q1 FY2026 (Nasdaq: HURC)?

Sales fell to $42.868M, an 8% decline, while orders rose to $41.98M, up 5%. According to the company, Americas orders led growth with an 18% increase.

What caused Hurco's gross margin and SG&A changes in Q1 FY2026 (HURC)?

Gross margin improved to 19% of sales driven by higher‑performance machine mix and cost leverage. According to the company, SG&A rose to 26% of sales due to currency impacts and higher employee benefits costs.

What is Hurco's cash, working capital, and balance-sheet position at January 31, 2026 (HURC)?

Hurco held $48.011M cash with $169.506M working capital as of January 31, 2026. According to the company, working capital declined modestly from October 31, 2025, driven by higher accounts payable and lower inventories.

Did Hurco report any regional trends in orders or sales for Q1 FY2026 (HURC)?

Yes. Americas orders rose 18% while Americas sales fell 8%; Europe and Asia Pacific sales and orders declined. According to the company, favorable currency translation partially offset some regional decreases.