PCS Edventures! Announces Results for the First Quarter of Fiscal Year 2026

Rhea-AI Summary

PCS Edventures! (PCSV) reported its Q1 FY2026 results, showing mixed performance with revenue declining 23.3% to $2.42 million while maintaining improved gross margins of 63.4%. Net income before taxes decreased to $0.55 million from $1.12 million year-over-year, though cash position strengthened 11.5% to $3.59 million.

The company completed significant share repurchases, reducing shares outstanding by 3.1% through buying back 3.74 million shares. Despite challenges in federal funding for out-of-school programs, PCSV is adapting by aligning products with state-specific standards and developing a new indoor-outdoor modular drone for the CTE market. The company will hold its first annual shareholder meeting since 2016 on September 26, 2025.

Positive

• None.

Negative

• Revenue decreased 23.3% to $2.42 million year-over-year
• Net income before taxes declined to $0.55 million from $1.12 million year-over-year
• Uncertainty in federal funding for out-of-school-time programs affecting demand
• Potential risk of reduced or defunded 21st CCLC program in next year's budget

News Market Reaction

+8.16%

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+8.16% News Effect

On the day this news was published, PCSV gained 8.16%, reflecting a notable positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

MERIDIAN, Idaho, Aug. 14, 2025 (GLOBE NEWSWIRE) -- PCS Edventures!, Inc. (“PCSV”), a leading provider of TK-12 Science, Technology, Engineering and Mathematics (“STEM”) education programs, today announced results of operations for its first quarter of fiscal year 2026, which ended on June 30, 2025, and an update on its operations.

First Quarter 2026 Overview:

• Revenue decreased 23.3% to $2.42 million in the first quarter of fiscal year 2026 compared to the first quarter in the previous year.

• Gross margin increased 13 basis points to 63.4% in the first quarter of fiscal year 2026 compared to the first quarter in the previous year.

• Net income before income tax provision was $0.55 million in the first quarter versus $1.12 million in the previous year same quarter.

• Cash on hand increased 11.5% to $3.59 million versus the first quarter in the previous year.

• During the quarter, 100,000 shares were repurchased on the open market with the intent of being canceled.

• Subsequent to June 30, 2025, shares outstanding declined 3.1% as 3,736,170 shares were repurchased on the public market.
  

Operational Update

Federal funding of out-of-school-time programs remained uncertain during the quarter, negatively affecting demand in our market. Our focus on states with significant after-school and summer camp funding continued to show promise, and we will continue to prioritize states with substantial state-level out-of-school-time funds.

Historically, PCS did not align products for classroom use because each state maintains its own standards, while out-of-school-time programs have broader standards. With the changing funding landscape, we have begun aligning select products to the standards of several larger states and collecting evidence of student outcomes. This work could materially expand our addressable market, and we will continue to adjust to evolving funding environments and customer needs.

On July 1, 2025, the administration froze after-school and summer camp funding, including 21st Century Community Learning Centers (“CCLC”). Given the coinciding weakness in our stock price, we repurchased 3,736,170 shares at an average price of $0.0991. In total, we have repurchased 4,132,979 shares completing 41% of our buyback announced in April.

On July 18, 2025, the administration lifted the freeze allowing many out-of-school-time programs to continue for the coming year. Although next year’s budget could reduce or defund 21st CCLC, the bipartisan outcry during the freeze, and the recent Senate Appropriations Committee’s advancement of the fiscal year 2026 appropriations bill, suggests strong bi-partisan resistance to sustained funding cuts in education, and we do not view the elimination of the 21^st CCLC program as a likely outcome despite the administration vocalizing its desire to do so.

Development of our next-generation indoor–outdoor modular drone is nearly complete. We are finalizing curriculum and conducting significant testing before launch, with a pilot program scheduled in September. Responding to customer feedback, we believe this product can unlock meaningful demand in career and technical education (“CTE”), a market largely untouched by the recent federal funding debate.

The Company may face further turbulence; however, we are positioned to weather near-term volatility and strengthen our competitive position. We look forward to sharing additional updates and invite shareholders to our annual meeting on September 26, our first since 2016.
For more information about PCS Edventures!, Inc., visit our website.

Company financial information and reports can be found at https://www.sec.gov

About PCS Edventures!, Inc.

PCS Edventures!, Inc. (“OTCPK: PCSV”) is a Meridian, Idaho company that designs and delivers technology-rich products and services for the TK-12 market that develop 21st-century skills. PCS programs emphasize experiential learning in Science, Technology, Engineering, and Math (“STEM”). https://edventures.com/.

Forward-Looking Statements.

This Press Release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are not a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. Forward-looking statements are based on information available at the time the statements are made and involve known and unknown risks, uncertainties and other factors that may cause our results, levels of activity, performance or achievements to be materially different from the information expressed or implied by the forward-looking statements in this Press Release. This Press Release should be considered in light of the disclosures contained in the filings of PCS and its “forward-looking statements” in such filings that are contained in the United States Securities and Exchange Commission (the “SEC”) Edgar Archives at https://www.sec.gov.

Contact.

Investor Contact: Michael Bledsoe 1.800.429.3110, mikeb@edventures.com
Investor Relations Web Site: https://investors.edventures.com/

FAQ

What were PCSV's Q1 2026 financial results?

PCSV reported revenue of $2.42 million (down 23.3% YoY), gross margin of 63.4%, and net income before taxes of $0.55 million (down from $1.12 million YoY). Cash position improved to $3.59 million, up 11.5% YoY.

How many shares did PCSV repurchase in Q1 2026?

PCSV repurchased 100,000 shares during Q1, and subsequently bought back an additional 3,736,170 shares after June 30, 2025, completing 41% of their announced buyback program.

What is PCSV's strategy to address federal funding uncertainty?

PCSV is aligning products with state-specific standards, focusing on states with substantial state-level out-of-school-time funds, and developing new products for the Career and Technical Education (CTE) market.

When is PCSV's next annual shareholder meeting?

PCSV will hold its annual shareholder meeting on September 26, 2025, which will be the company's first annual meeting since 2016.

What new product is PCSV developing?

PCSV is finalizing development of a next-generation indoor-outdoor modular drone with accompanying curriculum, scheduled for pilot program launch in September 2025.