MIND CTI Reports First Quarter 2026 Results
Rhea-AI Summary
MIND CTI (Nasdaq: MNDO) reported Q1 2026 revenue of $5.1 million, up from $5.0 million. Operating income rose to $0.9 million (18% margin) from $0.4 million (7%), and net income increased to $0.9 million, or $0.04 per share. Cash was $13.8 million.
Revenue mix: Europe 63%, Americas 32%, rest 5%. By product: billing 44%, enterprise messaging 34%, UC analytics 22%. Maintenance and services formed 93% of revenue. A major customer plans non-renewal effective March 2027, expected to reduce future revenue and income.
AI-generated analysis. Not financial advice.
Positive
- Q1 2026 revenue increased to $5.1 million from $5.0 million
- Operating income more than doubled to $0.9 million, 18% margin
- Net income rose to $0.9 million, EPS $0.04 vs. $0.02
- Cash position of $13.8 million as of March 31, 2026
- Maintenance and services contributed 93% of total revenues
- 278,000 shares repurchased for approximately $331,000 under buyback
Negative
- Operating cash flow declined to $0.6 million from $0.7 million
- Management cites challenging market with ongoing price pressures
- Major customer will not renew contract effective March 2027
- Customer non-renewal expected to negatively impact revenues and income
Key Figures
Market Reality Check
Peers on Argus
MNDO was down 1.98% with peers like SAGT, MTC, and NTCL also in the momentum scanner, each moving down between about -5% and -12%, pointing to broader software/tech pressure rather than a company-specific move.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Mar 10 | Q4/FY 2025 earnings | Negative | -3.2% | Full-year 2025 revenues and income declined versus 2024, dividend replaced with buybacks. |
| Nov 12 | Q3 2025 earnings | Neutral | +6.8% | Steady profitability and cash, detailed revenue mix, and approval of a $2.4M buyback. |
| Aug 11 | Q2 2025 earnings | Negative | -3.0% | Revenue and margins weakened year-over-year despite prior acquisition and dividend payout. |
| May 06 | Q1 2025 earnings | Negative | -3.3% | Meaningful declines in revenue and net income with warnings on 2025 impact. |
| Mar 04 | Q4/FY 2024 earnings | Negative | -2.2% | Slight revenue and net income declines amid industry pressure, with high reliance on maintenance. |
Recent earnings releases often saw modest negative price reactions, even when profitability remained positive, with one notable positive reaction when buybacks were announced.
Over the last five earnings-related releases since March 2024, MIND CTI has reported largely stable but slightly declining revenues, while maintaining profitability and strong cash levels. Several updates highlighted headwinds such as industry consolidation, pricing pressure, and weaker customer care and billing performance, alongside shareholder returns via dividends and later a $2.4M repurchase program. Today’s Q1 2026 update continues the theme of resilient margins and cash generation while again flagging structural challenges, including a major customer non-renewal expected in March 2027.
Historical Comparison
Across the last five earnings-related releases, MNDO’s average next-day move was -0.98%, indicating that earnings updates have typically prompted only modest share price adjustments.
Earnings updates show a shift from dividend payouts toward a $2.4M repurchase plan, with revenues slightly down over 2024–2025 but profitability and cash remaining positive despite market and customer challenges.
Market Pulse Summary
This announcement shows Q1 2026 revenue of $5.1M with sharply improved operating and net income versus a year ago, alongside a cash position of $13.8M and ongoing activity under a $2.4M repurchase plan. At the same time, management highlights sustained pricing pressure and the non-renewal of a major customer contract effective March 2027. Investors may monitor revenue mix, recurring maintenance at 93% of sales, and future earnings releases given past modest average moves of -0.98%.
Key Terms
form 6-k regulatory
AI-generated analysis. Not financial advice.
YOQNEAM, Israel, May 11, 2026 (GLOBE NEWSWIRE) -- MIND C.T.I. LTD. – (NasdaqGM: MNDO), a leading provider of convergent end-to-end prepaid/postpaid billing and customer care product based solutions for service providers, unified communications (UC) analytics for enterprises as well as enterprise messaging solutions, today announced results for its first quarter ended March 31, 2026.
The following will summarize our major achievements in the first quarter of 2026, as well as our business. The financial results can be found in the Company News section of our website at http://www.mindcti.com/company/news/ and in our Form 6-K.
Financial Highlights
- Revenues were
$5.1 million , compared with$5.0 million in the first quarter of 2025. - Operating income was
$0.9 million , or18% of total revenues, compared with$0.4 million , or7% of total revenues in the first quarter of 2025. - Net income was
$0.9 million , or$0.04 per share, compared with$0.5 million , or$0.02 per share in the first quarter of 2025. - Cash flow from operating activities was
$0.6 million , compared with$0.7 million in the first quarter of 2025. - Cash position was
$13.8 million as of March 31, 2026
Ariel Glassner, MIND CTI’s Chief Executive Officer, commented: “In the first quarter of 2026, our revenues remained at a similar level compared to the first quarter of last year. The higher net income is attributed to an allowance to credit loss that was recorded in the first quarter of 2025. The market environment remains challenging, with increased ongoing price pressures. One of our major customers notified us regarding non-renewal effective March 2027, which is expected to negatively impact our revenues and income. At the same time, we continue to evaluate new opportunities and enhance our offering, including cloud, 5G, and AI capabilities, while maintaining a strong engineering foundation to support our customers.”
Revenue Distribution
Revenues in Europe represented
Revenues from our customer care and billing software were
Revenues from maintenance and additional services were
Buyback Update
As previously announced, MIND’s Board of Directors authorized a new share repurchase plan on November 12, 2025, allowing the Company to repurchase ordinary shares in the open market for up to
Under the repurchase program, share purchases may be made from time to time, depending on market conditions, share price, trading volume, and other factors. The repurchase program may be suspended from time to time or discontinued.
AGM and Board of Directors Update
The company held its Annual General Meeting of Shareholders on May 6, 2026.
The following proposed resolutions were approved:
- to re-appoint Fahn Kanne & Co. Grant Thornton Israel as the Company’s independent auditor until the close of the following Annual General Meeting and to authorize the Board of Directors of the Company to determine its remuneration or to delegate the Audit Committee thereof to do so;
- to re-elect Mr. Itay Barzilay as a Class II director of the Company until the close of 2029 Annual General Meeting of Shareholders of the Company; and
- to elect Mr. Asher Mechlovich as a Class II director of the Company until the close of 2029 Annual General Meeting of Shareholders of the Company.
About MIND
MIND CTI Ltd. is a leading provider of convergent end-to-end billing and customer care product-based solutions for service providers, unified communications analytics for enterprises as well as enterprise messaging solutions. MIND provides a complete range of billing applications for any business model (license, SaaS, managed service or complete outsourced billing service) for Wireless, Wireline, Cable, IP Services and Quad-play carriers. A global company, with over thirty years of experience in providing solutions to carriers and enterprises, MIND operates from offices in Israel, Romania, Germany and the United States.
Cautionary Statement for Purposes of the "Safe Harbor" Provisions of the Private Securities Litigation Reform Act of 1995: All statements other than historical facts included in the foregoing press release regarding the Company's business strategy are "forward-looking statements," expectations of the results of the Company’s business optimization initiative, integration of the company’s acquisitions and its projected outlook and results of operations. These statements are based on management's beliefs and assumptions and on information currently available to management. Forward-looking statements are not guarantees of future performance, and actual results may materially differ. The forward-looking statements involve risks, uncertainties, and assumptions, including, but not limited to, economic conditions in our key markets, as well as the risks discussed in the Company's annual report and other filings with the United States Securities Exchange Commission. The Company does not undertake to update any forward-looking information.
For more information please contact:
Janice Kaye
MIND C.T.I. Ltd.
Tel: +972-4-993-6666
investor@mindcti.com
