Paragon Technologies News Release

Rhea-AI Summary

Paragon Technologies (OTC Pink: PGNT) reported first quarter 2026 results, highlighting a significant shift in its cost structure. Operating income improved by approximately $1.7 million year-over-year, primarily from reduced operating expenses.

Management noted automation operations remain sluggish, with backlog around $3 million. Paragon is investing in marketing to expand its client base and exploring diversification to build a more resilient business. The company also uses non-GAAP pre-tax operating income, excluding investment gains and losses, alongside GAAP results.

AI-generated analysis. Not financial advice.

Positive

• Operating income improved by approximately $1.7 million year-over-year
• Operating expenses reduced, supporting a more disciplined cost structure
• Automation segment backlog currently approximates $3 million
• Management emphasizes alignment with stockholders and value creation focus

Negative

• Automation operations described as sluggish despite existing backlog
• Management states cost structure and margins are satisfactory but revenues are not
• Ongoing need for significant work to diversify operations and strengthen resilience

Company Announces Earnings Results

EASTON, PA / ACCESS Newswire / May 13, 2026 / Paragon Technologies, Inc. (OTC Pink:PGNT) ("Paragon" or the "Company"), a diversified holding company, reported its results for the first quarter ended March 31, 2026.

Paragon Technologies, Inc.'s Consolidated Statement of Operations for the three months ended March 31, 2026 and 2025 are summarized below. For further details on our results, shareholders should carefully review our quarterly report, which can be found at www.pgntgroup.com.

Analysis of Results and General Business Commentary:

"The first quarter results represent the first meaningful comparison between last year's excessive spending and a more rational operating framework at Paragon," noted Sham Gad, CEO of Paragon Technologies. "Operating income improved by approximately $1.7 million over the same period last year, driven primarily by a significant reduction in operating expenses. As a company with substantial alignment alongside our stockholders, this turnaround reflects the urgency and discipline with which we have worked to get Paragon back on track and eliminate unnecessary costs. While meaningful progress has been made, significant work remains ahead as we continue exploring opportunities to diversify operations and build a more resilient, value-creating organization."

"Our automation operations remain sluggish, with backlog currently approximating $3 million," continued Gad. We are making measured investments in marketing initiatives to broaden our client reach, particularly as artificial intelligence increasingly becomes the preferred method of search. Our cost structure and margins are where they should be; revenues are not. The Company's recently released letter to shareholders provides additional detail on all aspects of Paragon's operations, and we encourage stockholders to read it."

In 2018 newly issued accounting rules required that all companies record any unrealized losses or gains from equity investments in the income statement.

Paragon's investment gains or losses reflect realized gains or losses in the company's investment portfolio.

Paragon utilizes pre-tax operating income, a non-GAAP financial measure, in its analysis of financial results. Paragon Technologies defines pre-tax operating earnings outside of the investment gains/losses of the Company.

About Paragon Technologies

Paragon Technologies, Inc. is a holding company owning subsidiaries that engage in diverse business activities, including material handling, distribution, real estate and investments.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements within the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements concern the Company's operations, financial condition and performance and are based largely on the Company's beliefs and expectations. These statements involve known and unknown risks, uncertainties and other factors that may cause the Company's actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors and risks include, among others, those related to: general economic conditions, including those in the markets in which the Company operates; the Company's ability to expand its revenue streams; technological changes in the Company's industry; the continued acceptance of the Company's distribution channel by vendors and customers; decreased demand for the Company's products and services and the Company's ability to retain or replace its significant customers; factors affecting the capital markets and share prices generally; economic and political risks of selling products in foreign countries, including risks of non-compliance with U.S. and foreign laws and regulations; cybersecurity risks and risks of damage and interruptions of information technology systems; and the Company's ability to complete acquisitions, strategic investments, divestitures, mergers or other transactions on acceptable terms or at all. New risk factors emerge from time to time, and it is not possible for management to predict all such risk factors, nor can management assess the impact of all such factors on the Company's business 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. All statements in this press release other than statements that are purely historical are forward-looking statements. The Company does not intend and assumes no obligation, to update any forward-looking statements made in this press release. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this press release.

For further information, contact the company at ir@pgntgroup.com

SOURCE: Paragon Technologies, Inc.

View the original press release on ACCESS Newswire

FAQ

What did Paragon Technologies (PGNT) report for its Q1 2026 operating performance?

Paragon Technologies reported that Q1 2026 operating income improved by about $1.7 million year-over-year. According to Paragon, this change was mainly driven by a significant reduction in operating expenses as the company shifted from prior excessive spending to a more rational framework.

How are Paragon Technologies' automation operations and backlog performing in Q1 2026?

Paragon Technologies said its automation operations remain sluggish, with backlog approximating $3 million. According to Paragon, cost structure and margins are in line with expectations, but revenues are lagging, prompting measured marketing investments to broaden client reach as search behavior evolves with artificial intelligence.

What strategic focus did Paragon Technologies (PGNT) highlight with its Q1 2026 results?

Paragon Technologies emphasized cost discipline, shareholder alignment, and diversification as key themes. According to Paragon, the Q1 2026 turnaround in operating income reflects efforts to eliminate unnecessary costs while exploring opportunities to diversify operations and build a more resilient, value-creating organization for stockholders.

How does Paragon Technologies use non-GAAP pre-tax operating income in its Q1 2026 analysis?

Paragon Technologies uses pre-tax operating income as a non-GAAP measure in evaluating results. According to Paragon, this metric excludes investment gains and losses, complementing GAAP income, especially since 2018 rules require unrealized equity investment gains or losses to be recorded in the income statement.

Where can investors find detailed Q1 2026 financial statements for Paragon Technologies (PGNT)?

Investors can review detailed Q1 2026 financial statements in Paragon Technologies’ quarterly report on its website. According to Paragon, the consolidated statement of operations for the three months ended March 31, 2026 and 2025 is available at www.pgntgroup.com for shareholder review.