Richardson Electronics Reports Third Quarter Results; Declares Quarterly Cash Dividend
Rhea-AI Summary
Richardson Electronics (NASDAQ: RELL) reported Q3 FY26 net sales of $55.5M (up 3.1% YoY) and net income of $0.9M or $0.07 diluted EPS. Backlog rose 11.4% to $151.2M. Gross margin improved to 31.9% and EBITDA was $2.2M. Cash was $29.5M with no outstanding revolver debt. The board declared a $0.06 quarterly cash dividend payable May 27, 2026 (record date May 8, 2026).
PMT drove growth (excluding Healthcare, PMT sales +14.5% YoY) while Canvys and GES experienced lower sales due to project timing.
Positive
- Net sales +3.1% YoY to $55.5M
- Backlog +11.4% to $151.2M
- Net income of $0.9M (Q3 FY26)
- EBITDA of $2.2M
- Declared dividend $0.06 per share payable May 27, 2026
- No outstanding revolver debt at quarter end
Negative
- Operating expenses increased to $16.2M from $14.5M (Q3)
- Canvys sales -13.5% YoY due to project timing
- GES sales -5.4% YoY due to project timing
- Cash decreased to $29.5M from $33.1M
Market Reaction – RELL
Following this news, RELL has gained 9.60%, reflecting a notable positive market reaction. Argus tracked a peak move of +12.7% during the session. Our momentum scanner has triggered 9 alerts so far, indicating moderate trading interest and price volatility. The stock is currently trading at $12.89. This price movement has added approximately $15M to the company's valuation.
Data tracked by StockTitan Argus (15 min delayed). Upgrade to Silver for real-time data.
Key Figures
Market Reality Check
Peers on Argus
RELL was down 0.88% pre-news while peers were mixed: MPTI up 1.02%, KULR, LPTH, GAUZ and LINK down between 1.83% and 8.01%. Moves appear stock-specific rather than a broad sector rotation.
Previous Dividends,earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Jan 07 | Q2 FY26 results | Positive | -11.7% | Reported Q2 FY26 growth, margin improvement, backlog and maintained $0.06 dividend. |
| Oct 08 | Q1 FY26 results | Positive | +11.8% | Q1 FY26 sales, income and EPS growth with strong wafer fab demand and dividend. |
| Jul 23 | Q4 FY25 results | Positive | +11.0% | Q4 FY25 and full-year growth, solid margins, cash and recurring $0.06 dividend. |
| Apr 09 | Q3 FY25 results | Positive | -17.1% | Q3 FY25 growth and higher margin, offset by one-time Healthcare asset sale loss. |
| Jan 07 | Q2 FY25 results | Positive | -12.8% | Q2 FY25 double‑digit sales growth, backlog increase and $0.06 dividend despite loss. |
Earnings/dividend releases often show mixed trading, with several past positive updates followed by negative one-day reactions.
Over the past year, Richardson Electronics has consistently paired quarterly results with a recurring $0.06 dividend, reporting steady sales growth and generally improving margins. Prior dividends/earnings releases on Jan 7, 2025, Apr 9, 2025, Jul 23, 2025, Oct 8, 2025, and Jan 7, 2026 highlighted rising backlog, solid cash, and progress in PMT, GES, and Canvys. However, share-price reactions have been uneven, with several sharp declines despite constructive fundamentals, underscoring a history of volatile responses to this news type.
Historical Comparison
In the last five dividends/earnings releases, RELL moved an average of -3.74% on day one. Today’s modest -0.88% move sits well inside that historical range.
Same‑tag history shows a steady cadence of quarterly results with recurring $0.06 dividends, rising sales and backlog across PMT, GES, and Canvys, and ongoing focus on margin improvement.
Market Pulse Summary
The stock is up +9.6% following this news. A strong positive reaction aligns with a pattern of constructive fundamentals in RELL’s quarterly reports: rising net sales, improving gross margin, and a stable $0.06 dividend. Historically, dividends/earnings headlines have produced volatile one-day moves averaging -3.74%, with several past instances of sharp reversals. Investors would have weighed backlog growth to $151.2M, cash of $29.5M, and prior mixed reactions when assessing the durability of any outsized upside move.
Key Terms
non-gaap financial
ebitda financial
AI-generated analysis. Not financial advice.
Third-Quarter Net Income of
Q3 FY26 net sales increase led by a
Total backlog at February 28, 2026, was up
LAFOX, Ill., April 08, 2026 (GLOBE NEWSWIRE) -- Richardson Electronics, Ltd. (NASDAQ: RELL) today reported financial results for its third quarter ended February 28, 2026. The Company also announced that its Board of Directors declared a
“I am pleased to report that Richardson Electronics has now delivered seven consecutive quarters of year-over-year sales growth, reflecting continued progress in executing our multi-year strategy. Our performance this quarter was led by strong momentum in PMT, particularly in EDG and the semifab equipment market. Third quarter sales growth was supported by continued discipline around gross margin and operating expenses. Our performance reflects the strength of our team, as we continue to invest across the organization to build depth, technical expertise, and operating performance,” said Edward J. Richardson, Chairman, CEO, and President.
“As we look ahead, our backlog now stands at its highest level in nearly three years, providing us with confidence in our future growth outlook. We are seeing sustained demand across key end markets, particularly in power management, energy transition, and semiconductor applications, and we believe our focused investments in engineering, product development, and customer engagement are positioning us to capitalize on these opportunities. With a strengthened pipeline, strong balance sheet, and improving order trends, we remain confident in our ability to drive continued growth and deliver long-term value for our shareholders,” Mr. Richardson concluded.
Third Quarter Results
Net sales for the third quarter of fiscal 2026 were
Year-over-year net sales growth was due to higher sales in PMT. PMT sales increased due to strong growth in semi-conductor wafer fab and RF and Microwave products. Since the January 2025 Healthcare asset sale, the Healthcare segment was consolidated into the PMT segment. When excluding Healthcare net sales, PMT net sales increased by
Backlog grew
Gross margin for the third quarter was
Operating expenses were
Operating income was
Income tax provision was
Net income was
EBITDA* was
The Company maintained its solid financial position with cash and cash equivalents of
As of the end of the third quarter of fiscal 2026, the Company had no outstanding debt on its revolving line of credit with PNC Bank.
Financial Summary for the Nine Months Ended February 28, 2026
- Net sales for the first nine months of fiscal 2026 were
$162.4 million , an increase of3.4% , compared to net sales of$157.0 million during the first nine months of fiscal 2025. When excluding Healthcare, net sales increased7.2% year-over-year. Sales increased by$3.0 million or2.8% for PMT,$1.0 million or4.3% for GES and$1.3 million or5.6% for Canvys. When excluding Healthcare net sales, PMT net sales increased8.2% . - Gross profit increased to
$50.7 million during the first nine months of fiscal 2026, compared to$48.4 million during the first nine months of fiscal 2025. As a percentage of net sales, gross margin improved to31.2% of net sales during the first nine months of fiscal 2026, compared to30.8% during the first nine months of fiscal 2025. - Operating expenses increased to
$48.1 million for the first nine months of fiscal 2026, compared to$46.6 million for the first nine months of fiscal 2025. As a percentage of net sales, operating expenses were29.6% in the first nine months of fiscal 2026 versus29.7% in the prior year’s first nine months. The increase in operating expenses resulted primarily from higher salaries, incentive and legal expenses. - Operating income during the first nine months of fiscal 2026 was
$2.6 million , compared to an operating loss of$3.1 million and non-GAAP operating income* of$1.8 million during the first nine months of fiscal 2025. - Other income, for the first nine months of fiscal 2026, including interest income, foreign exchange, and other, was
$0.7 million , as compared to other expense of$0.4 million in the first nine months of fiscal 2025. The increase from the prior year’s first nine months was mainly due to a non-recurring gain of$0.9 million . - The income tax provision was
$0.6 million for the first nine months of fiscal 2026 compared to an income tax benefit of$1.3 million and non-GAAP income tax provision* of$1,000 during the first nine months of fiscal 2025. - Net income for the first nine months of fiscal 2026 was
$2.7 million , versus a net loss of$2.2 million and non-GAAP net income* of$1.4 million during the first nine months of fiscal 2025. Earnings per common share (diluted) were$0.19 for the first nine months of fiscal 2026 compared to$0.16 net loss per common share (diluted) and non-GAAP earnings per common share* of$0.10 for the first nine months of fiscal 2025. - EBITDA* for the first nine months of fiscal 2026 was
$6.2 million versus negative$0.5 million in the prior year’s first nine months. EBITDA* after adjusting to exclude the loss on the sale of Healthcare assets (Adjusted EBITDA*) was$4.5 million in the first nine months of fiscal 2025.
* Please refer to Unaudited Reconciliation between GAAP and non-GAAP Financial Measures below for a reconciliation of non-GAAP items to the comparable GAAP measures.
CASH DIVIDEND DECLARED
The Board of Directors of Richardson Electronics declared a
NON-GAAP FINANCIAL MEASURES
In addition to financial measures (“GAAP financial measures”) prepared in accordance with generally accepted accounting principles in the United States (“GAAP”), we have included financial measures in this press release that are not defined by or calculated in accordance with GAAP (collectively, “non-GAAP financial measures”). For each of the non-GAAP financial measures referenced in this release, we are providing below a reconciliation of differences between the non-GAAP financial measure and the most directly comparable GAAP financial measure. We also provide an explanation of why the Company believes these non-GAAP financial measures provide useful information to investors, and any additional material purposes for which our management or Board of Directors use these non-GAAP financial measures.
Non-GAAP Operating Income: Non-GAAP operating income is GAAP operating income (loss), adjusted to exclude a one-time loss on the sale of assets of the Company’s Healthcare business recorded in fiscal 2025. The following table represents the Company’s calculation of non-GAAP operating income for the periods presented and a reconciliation to the most directly comparable GAAP financial measure:
| Unaudited | |||||||||||||||
| ($ in thousands) | |||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||
| February 28, 2026 | March 1, 2025 | February 28, 2026 | March 1, 2025 | ||||||||||||
| Operating income (loss) reconciliation | |||||||||||||||
| Income (loss) from operations | $ | 1,497 | $ | (2,743 | ) | $ | 2,597 | $ | (3,094 | ) | |||||
| Loss on disposal of healthcare assets and other charges | — | 4,916 | — | 4,916 | |||||||||||
| Non-GAAP operating income | $ | 1,497 | $ | 2,173 | $ | 2,597 | $ | 1,822 | |||||||
Non-GAAP Income Before Taxes: Non-GAAP Income Before Taxes is income (loss) before taxes, adjusted to exclude a one-time loss on the sale of assets of the Company’s Healthcare business recorded in fiscal 2025.The following table represents the Company’s calculation of non-GAAP Income Before Taxes for the periods presented and a reconciliation to the most directly comparable GAAP financial measure:
| Unaudited | |||||||||||||||
| ($ in thousands) | |||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||
| February 28, 2026 | March 1, 2025 | February 28, 2026 | March 1, 2025 | ||||||||||||
| Income (loss) before income taxes reconciliation | |||||||||||||||
| Income (loss) before income taxes | $ | 1,195 | $ | (3,088 | ) | $ | 3,329 | $ | (3,495 | ) | |||||
| Loss on disposal of healthcare assets and other charges | — | 4,916 | — | 4,916 | |||||||||||
| Non-GAAP income before taxes | $ | 1,195 | $ | 1,828 | $ | 3,329 | $ | 1,421 | |||||||
NON-GAAP FINANCIAL MEASURES
(continued)
Non-GAAP Income Tax Expense or Benefit: Non-GAAP Income Tax Expense or Benefit is income tax provision (benefit), adjusted to exclude a one-time loss on the sale of assets of the Company’s Healthcare business recorded in fiscal 2025. The following table represents the Company’s calculation of non-GAAP Income Tax Expense (Benefit) for the periods presented and a reconciliation to the most directly comparable GAAP financial measure:
| Unaudited | |||||||||||||||
| ($ in thousands) | |||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||
| February 28, 2026 | March 1, 2025 | February 28, 2026 | March 1, 2025 | ||||||||||||
| Income tax provision (benefit) reconciliation | |||||||||||||||
| Income tax provision (benefit) | $ | 302 | $ | (1,031 | ) | $ | 648 | $ | (1,277 | ) | |||||
| Loss on disposal of healthcare assets and other charges | — | 1,278 | — | 1,278 | |||||||||||
| Non-GAAP income tax provision | $ | 302 | $ | 247 | $ | 648 | $ | 1 | |||||||
Non-GAAP Net Income: Non-GAAP Net Income is net income (loss), adjusted to exclude a one-time loss on the sale of assets of the Company’s Healthcare business recorded in fiscal 2025. The following table represents the Company’s calculation of non-GAAP Net Income for the periods presented and a reconciliation to the most directly comparable GAAP financial measure:
| Unaudited | |||||||||||||||
| ($ in thousands) | |||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||
| February 28, 2026 | March 1, 2025 | February 28, 2026 | March 1, 2025 | ||||||||||||
| Net income (loss) reconciliation | |||||||||||||||
| Net income (loss) | $ | 893 | $ | (2,057 | ) | $ | 2,681 | $ | (2,218 | ) | |||||
| Loss on disposal of healthcare assets and other charges | — | 3,638 | — | 3,638 | |||||||||||
| Non-GAAP net income | $ | 893 | $ | 1,581 | $ | 2,681 | $ | 1,420 | |||||||
Non-GAAP Earnings Per Common Share (Diluted): Non-GAAP Earnings Per Common Share (Diluted) is net income (loss) per share (diluted), adjusted to exclude a one-time loss on the sale of assets of the Company’s Healthcare business recorded in fiscal 2025. The following table represents the Company’s calculation of non-GAAP Earnings Per Common Share (diluted) for the periods presented and a reconciliation to the most directly comparable GAAP financial measure:
| Unaudited | |||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||
| February 28, 2026 | March 1, 2025 | February 28, 2026 | March 1, 2025 | ||||||||||||
| Net income (loss) per share (diluted) reconciliation | |||||||||||||||
| Net income (loss) per share (diluted) | $ | 0.07 | $ | (0.15 | ) | $ | 0.19 | $ | (0.16 | ) | |||||
| Loss on disposal of healthcare assets and other charges | — | 0.26 | — | 0.26 | |||||||||||
| Non-GAAP net income per share (diluted) | $ | 0.07 | $ | 0.11 | $ | 0.19 | $ | 0.10 | |||||||
NON-GAAP FINANCIAL MEASURES
(continued)
EBITDA: EBITDA is net income (loss), plus income tax expense (benefit) and depreciation and amortization expense. The following table represents the Company’s calculation of EBITDA for the periods presented and a reconciliation to the most directly comparable GAAP financial measure:
| Unaudited | |||||||||||||||
| ($ in thousands) | |||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||
| February 28, 2026 | March 1, 2025 | February 28, 2026 | March 1, 2025 | ||||||||||||
| Net income (loss) | $ | 893 | $ | (2,057 | ) | $ | 2,681 | $ | (2,218 | ) | |||||
| Income tax provision (benefit) | 302 | (1,031 | ) | 648 | (1,277 | ) | |||||||||
| Depreciation & amortization | 989 | 978 | 2,897 | 3,037 | |||||||||||
| EBITDA | $ | 2,184 | $ | (2,110 | ) | $ | 6,226 | $ | (458 | ) | |||||
Adjusted EBITDA: Adjusted EBITDA is EBITDA (a non-GAAP financial measure defined and calculated in accordance with the above), adjusted to exclude a one-time loss on the sale of assets of the Company’s Healthcare business recorded in fiscal 2025. The following table represents the Company’s calculation of Adjusted EBITDA for the periods presented and a reconciliation to the most directly comparable GAAP financial measure:
| Unaudited | |||||||||||||||
| ($ in thousands) | |||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||
| February 28, 2026 | March 1, 2025 | February 28, 2026 | March 1, 2025 | ||||||||||||
| Net income (loss) | $ | 893 | $ | (2,057 | ) | $ | 2,681 | $ | (2,218 | ) | |||||
| Income tax provision (benefit) | 302 | (1,031 | ) | 648 | (1,277 | ) | |||||||||
| Depreciation & amortization | 989 | 978 | 2,897 | 3,037 | |||||||||||
| EBITDA | 2,184 | (2,110 | ) | 6,226 | (458 | ) | |||||||||
| Loss on disposal of healthcare assets and other charges | - | 4,916 | - | 4,916 | |||||||||||
| Adjusted EBITDA | $ | 2,184 | $ | 2,806 | $ | 6,226 | $ | 4,458 | |||||||
Management believes the non-GAAP financial measures referenced herein provide useful information to investors in assessing the Company’s financial performance because items that are not considered by the Company to be indicative of the Company’s ongoing results, such as the one-time loss on the sale of assets of the Company’s Healthcare business, are excluded.
Our management uses these non-GAAP financial measures along with the most directly comparable GAAP financial measures in evaluating our financial performance and when planning, forecasting and analyzing future periods.
The non-GAAP financial measures presented herein, as determined and presented by the Company, may not be comparable to related or similarly titled measures reported by other companies. These non-GAAP financial measures are not intended to be used as a substitute for the related GAAP financial measures. The non-GAAP financial measures should be viewed in addition to, and not as an alternative for, our reported results prepared in accordance with GAAP.
CONFERENCE CALL INFORMATION
The Company will host a conference call and question-and-answer session on Thursday, April 9, 2026, at 9:00 a.m. Central Time, to discuss its third quarter fiscal 2026 results.
Participants may register for the call here. While not required, it is recommended you join 10 minutes prior to the event start. A replay of the call will be available beginning at 1:00 p.m. Central Time on April 9, 2026, for seven days. Registration instructions are also on our website at www.rell.com.
In addition, the webcast link is available here.
FORWARD-LOOKING STATEMENTS
This release includes certain “forward-looking” statements as defined by the Securities and Exchange Commission. Statements in this press release regarding the Company’s business that are not historical facts represent “forward-looking” statements that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see Item 1A, “Risk Factors” in the Company’s Annual Report on Form 10-K filed on August 4, 2025, and other reports we file with the Securities and Exchange Commission. The Company assumes no responsibility to update the “forward-looking” statements in this release as a result of new information, future events or otherwise.
ABOUT RICHARDSON ELECTRONICS, LTD.
Richardson Electronics, Ltd. is a leading global manufacturer of engineered solutions, green energy products, power grid and microwave tubes, and related consumables; power conversion and RF and microwave components including green energy solutions; tubes for diagnostic imaging equipment; and customized display solutions.
More than
Richardson Electronics’ common stock trades on the NASDAQ Global Select Market under the ticker symbol RELL.
| Richardson Electronics, Ltd. Consolidated Balance Sheets (in thousands, except per share amounts) | |||||||
| Unaudited | Audited | ||||||
| February 28, 2026 | May 31, 2025 | ||||||
| Assets | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 29,494 | $ | 35,901 | |||
| Accounts receivable, less allowance for credit losses of | 27,041 | 24,117 | |||||
| Inventories, net | 107,619 | 102,799 | |||||
| Prepaid expenses and other assets | 5,827 | 3,070 | |||||
| Total current assets | 169,981 | 165,887 | |||||
| Non-current assets: | |||||||
| Property, plant and equipment, net | 18,894 | 18,355 | |||||
| Intangible assets, net | 300 | 345 | |||||
| Right of use lease assets, net | 1,573 | 2,276 | |||||
| Deferred income tax assets | 8,709 | 8,744 | |||||
| Other non-current assets | 342 | 228 | |||||
| Total non-current assets | 29,818 | 29,948 | |||||
| Total assets | $ | 199,799 | $ | 195,835 | |||
| Liabilities and Stockholders' Equity | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 23,010 | $ | 21,339 | |||
| Accrued liabilities | 13,872 | 14,276 | |||||
| Lease liabilities current | 938 | 1,171 | |||||
| Total current liabilities | 37,820 | 36,786 | |||||
| Non-current liabilities: | |||||||
| Deferred income tax liabilities | 84 | 81 | |||||
| Lease liabilities non-current | 635 | 1,105 | |||||
| Other non-current liabilities | 1,110 | 1,204 | |||||
| Total non-current liabilities | 1,829 | 2,390 | |||||
| Total liabilities | 39,649 | 39,176 | |||||
| Commitments and contingencies | |||||||
| Stockholders’ Equity | |||||||
| Common stock, and outstanding on February 28, 2026 and May 31, 2025, respectively | 625 | 618 | |||||
| Class B common stock, convertible, issued and outstanding on February 28, 2026 and May 31, 2025, respectively | 102 | 102 | |||||
| Additional paid-in-capital | 76,088 | 74,445 | |||||
| Retained earnings | 79,446 | 79,340 | |||||
| Accumulated other comprehensive income | 3,889 | 2,154 | |||||
| Total stockholders' equity | 160,150 | 156,659 | |||||
| Total liabilities and stockholders’ equity | $ | 199,799 | $ | 195,835 | |||
| Richardson Electronics, Ltd. Unaudited Consolidated Statements of Comprehensive Income (Loss) (in thousands, except per share amounts) | |||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||
| February 28, 2026 | March 1, 2025 | February 28, 2026 | March 1, 2025 | ||||||||||||
| Net sales | $ | 55,472 | $ | 53,804 | $ | 162,367 | $ | 157,020 | |||||||
| Cost of sales | 37,792 | 37,131 | 111,681 | 108,595 | |||||||||||
| Gross profit | 17,680 | 16,673 | 50,686 | 48,425 | |||||||||||
| Selling, general and administrative expenses | 16,176 | 14,500 | 48,079 | 46,607 | |||||||||||
| Loss (gain) on disposal of property, plant and equipment | 7 | — | 10 | (4 | ) | ||||||||||
| Loss on disposal of healthcare assets and related charges | — | 4,916 | — | 4,916 | |||||||||||
| Operating income (loss) | 1,497 | (2,743 | ) | 2,597 | (3,094 | ) | |||||||||
| Other (expense) income: | |||||||||||||||
| Interest income | 122 | 84 | 436 | 187 | |||||||||||
| Foreign exchange loss | (437 | ) | (456 | ) | (627 | ) | (616 | ) | |||||||
| Other, net | 13 | 27 | 923 | 28 | |||||||||||
| Total other (expense) income | (302 | ) | (345 | ) | 732 | (401 | ) | ||||||||
| Income (loss) before income taxes | 1,195 | (3,088 | ) | 3,329 | (3,495 | ) | |||||||||
| Income tax provision (benefit) | 302 | (1,031 | ) | 648 | (1,277 | ) | |||||||||
| Net income (loss) | 893 | (2,057 | ) | 2,681 | (2,218 | ) | |||||||||
| Foreign currency translation gain (loss), net of tax | 1,072 | (702 | ) | 1,735 | (1,814 | ) | |||||||||
| Comprehensive income (loss) | $ | 1,965 | $ | (2,759 | ) | $ | 4,416 | $ | (4,032 | ) | |||||
| Net income (loss) per share: | |||||||||||||||
| Common stock - Basic | $ | 0.07 | $ | (0.15 | ) | $ | 0.19 | $ | (0.16 | ) | |||||
| Class B common stock - Basic | 0.06 | (0.13 | ) | 0.17 | (0.14 | ) | |||||||||
| Common stock - Diluted | 0.07 | (0.15 | ) | 0.19 | (0.16 | ) | |||||||||
| Class B common stock - Diluted | 0.06 | (0.13 | ) | 0.17 | (0.14 | ) | |||||||||
| Weighted average number of shares: | |||||||||||||||
| Common stock – Basic | 12,493 | 12,333 | 12,455 | 12,283 | |||||||||||
| Class B common stock – Basic | 2,037 | 2,049 | 2,044 | 2,049 | |||||||||||
| Common stock – Diluted | 12,696 | 12,333 | 12,628 | 12,283 | |||||||||||
| Class B common stock – Diluted | 2,037 | 2,049 | 2,044 | 2,049 | |||||||||||
| Richardson Electronics, Ltd. Unaudited Consolidated Statements of Cash Flows (in thousands) | |||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||
| February 28, 2026 | March 1, 2025 | February 28, 2026 | March 1, 2025 | ||||||||||||
| Operating activities: | |||||||||||||||
| Net income (loss) | $ | 893 | $ | (2,057 | ) | $ | 2,681 | $ | (2,218 | ) | |||||
| Adjustments to reconcile net income to cash (used in) provided by operating activities: | |||||||||||||||
| Unrealized foreign currency loss (gain) | (257 | ) | 456 | (421 | ) | 429 | |||||||||
| Depreciation and amortization | 989 | 978 | 2,897 | 3,037 | |||||||||||
| Inventory provisions | 135 | 123 | 314 | 346 | |||||||||||
| Share-based compensation expense | 330 | 320 | 1,296 | 1,226 | |||||||||||
| Loss (gain) on disposal of property, plant and equipment | 7 | — | 10 | (4 | ) | ||||||||||
| Deferred income taxes | — | (3 | ) | 36 | (82 | ) | |||||||||
| Loss on disposal of healthcare assets and related charges | — | 4,916 | — | 4,916 | |||||||||||
| Change in assets and liabilities: | |||||||||||||||
| Accounts receivable | 642 | (333 | ) | (2,532 | ) | (1,470 | ) | ||||||||
| Inventories | (1,506 | ) | 2,873 | (2,999 | ) | 1,132 | |||||||||
| Prepaid expenses and other assets | 46 | (382 | ) | (2,875 | ) | (344 | ) | ||||||||
| Accounts payable | (682 | ) | 2,585 | 1,406 | 7,249 | ||||||||||
| Accrued liabilities | (2,924 | ) | (4,661 | ) | (563 | ) | (4,115 | ) | |||||||
| Other | (323 | ) | (214 | ) | (632 | ) | 376 | ||||||||
| Net cash (used in) provided by operating activities | (2,650 | ) | 4,601 | (1,382 | ) | 10,478 | |||||||||
| Investing activities: | |||||||||||||||
| Capital expenditures | (759 | ) | (549 | ) | (3,390 | ) | (1,992 | ) | |||||||
| Proceeds from sale of property, plant and equipment | — | — | — | 7 | |||||||||||
| Proceeds from disposal of Healthcare assets | — | 6,985 | — | 6,985 | |||||||||||
| Net cash (used in) provided by investing activities | (759 | ) | 6,436 | (3,390 | ) | 5,000 | |||||||||
| Financing activities: | |||||||||||||||
| Proceeds from issuance of common stock | 239 | — | 453 | 307 | |||||||||||
| Cash dividends paid on common and Class B common stock | (859 | ) | (852 | ) | (2,575 | ) | (2,555 | ) | |||||||
| Proceeds from revolving credit facility | — | — | — | 1,000 | |||||||||||
| Repayment of revolving credit facility | — | — | — | (1,000 | ) | ||||||||||
| Other | — | — | (99 | ) | (159 | ) | |||||||||
| Net cash used in by financing activities | (620 | ) | (852 | ) | (2,221 | ) | (2,407 | ) | |||||||
| Effect of exchange rate changes on cash and cash equivalents | 385 | (145 | ) | 586 | (659 | ) | |||||||||
| (Decrease) increase in cash and cash equivalents | (3,644 | ) | 10,040 | (6,407 | ) | 12,412 | |||||||||
| Cash and cash equivalents at beginning of period | 33,138 | 26,635 | 35,901 | 24,263 | |||||||||||
| Cash and cash equivalents at end of period | $ | 29,494 | $ | 36,675 | $ | 29,494 | $ | 36,675 | |||||||
Richardson Electronics, Ltd.
Unaudited Net Sales and Gross Profit
For the Third Quarter and First Nine Months of Fiscal 2026 and 2025
($ in thousands)
By Strategic Business Unit
Net Sales
| Three Months Ended | FY26 vs. FY25 | |||||||||
| February 28, 2026 | March 1, 2025 | % Change | ||||||||
| PMT | $ | 38,726 | $ | 35,310 | 9.7 | % | ||||
| GES | 8,795 | 9,299 | -5.4 | % | ||||||
| Canvys | 7,951 | 9,195 | -13.5 | % | ||||||
| Total | $ | 55,472 | $ | 53,804 | 3.1 | % | ||||
| Nine Months Ended | FY26 vs. FY25 | |||||||||
| February 28, 2026 | March 1, 2025 | % Change | ||||||||
| PMT | $ | 113,003 | $ | 109,977 | 2.8 | % | ||||
| GES | 24,359 | 23,359 | 4.3 | % | ||||||
| Canvys | 25,005 | 23,684 | 5.6 | % | ||||||
| Total | $ | 162,367 | $ | 157,020 | 3.4 | % | ||||
Gross Profit
| Three Months Ended | |||||||||||||
| February 28, 2026 | % of Net Sales | March 1, 2025 | % of Net Sales | ||||||||||
| PMT | $ | 12,412 | 32.1 | % | $ | 10,568 | 29.9 | % | |||||
| GES | 2,711 | 30.8 | % | 3,049 | 32.8 | % | |||||||
| Canvys | 2,557 | 32.2 | % | 3,056 | 33.2 | % | |||||||
| Total | $ | 17,680 | 31.9 | % | $ | 16,673 | 31.0 | % | |||||
| Nine Months Ended | |||||||||||||
| February 28, 2026 | % of Net Sales | March 1, 2025 | % of Net Sales | ||||||||||
| PMT | $ | 35,336 | 31.3 | % | $ | 33,240 | 30.2 | % | |||||
| GES | 7,375 | 30.3 | % | 7,337 | 31.4 | % | |||||||
| Canvys | 7,975 | 31.9 | % | 7,848 | 33.1 | % | |||||||
| Total | $ | 50,686 | 31.2 | % | $ | 48,425 | 30.8 | % | |||||
| Richardson Electronics, Ltd. Unaudited Reconciliation Between GAAP and Non-GAAP Financial Measures For the Third Quarter and First Nine Months of Fiscal 2026 and 2025 ($ in thousands) | |||||||||||||||
| NON-GAAP INCOME (LOSS) | |||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||
| February 28, 2026 | March 1, 2025 | February 28, 2026 | March 1, 2025 | ||||||||||||
| Operating income (loss) reconciliation | |||||||||||||||
| Income (loss) from operations | $ | 1,497 | $ | (2,743 | ) | $ | 2,597 | $ | (3,094 | ) | |||||
| Loss on disposal of healthcare assets and other charges | — | 4,916 | — | 4,916 | |||||||||||
| Non-GAAP operating income | $ | 1,497 | $ | 2,173 | $ | 2,597 | $ | 1,822 | |||||||
| Income (loss) before income taxes reconciliation | |||||||||||||||
| Income (loss) before income taxes | $ | 1,195 | $ | (3,088 | ) | $ | 3,329 | $ | (3,495 | ) | |||||
| Loss on disposal of healthcare assets and other charges | — | 4,916 | — | 4,916 | |||||||||||
| Non-GAAP income before taxes | $ | 1,195 | $ | 1,828 | $ | 3,329 | $ | 1,421 | |||||||
| Income tax provision (benefit) reconciliation | |||||||||||||||
| Income tax provision (benefit) | $ | 302 | $ | (1,031 | ) | $ | 648 | $ | (1,277 | ) | |||||
| Loss on disposal of healthcare assets and other charges | — | 1,278 | — | 1,278 | |||||||||||
| Non-GAAP income tax provision | $ | 302 | $ | 247 | $ | 648 | $ | 1 | |||||||
| Net income (loss) reconciliation | |||||||||||||||
| Net income (loss) | $ | 893 | $ | (2,057 | ) | $ | 2,681 | $ | (2,218 | ) | |||||
| Loss on disposal of healthcare assets and other charges | — | 3,638 | — | 3,638 | |||||||||||
| Non-GAAP net income | $ | 893 | $ | 1,581 | $ | 2,681 | $ | 1,420 | |||||||
| Net income (loss) per share (diluted) reconciliation | |||||||||||||||
| Net income (loss) per share (diluted) | $ | 0.07 | $ | (0.15 | ) | $ | 0.19 | $ | (0.16 | ) | |||||
| Loss on disposal of healthcare assets and other charges | — | 0.26 | — | 0.26 | |||||||||||
| Non-GAAP net income per share (diluted) | $ | 0.07 | $ | 0.11 | $ | 0.19 | $ | 0.10 | |||||||
| EBITDA | |||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||
| February 28, 2026 | March 1, 2025 | February 28, 2026 | March 1, 2025 | ||||||||||||
| Net income (loss) | $ | 893 | $ | (2,057 | ) | $ | 2,681 | $ | (2,218 | ) | |||||
| Income tax provision (benefit) | 302 | (1,031 | ) | 648 | (1,277 | ) | |||||||||
| Depreciation & amortization | 989 | 978 | 2,897 | 3,037 | |||||||||||
| EBITDA | 2,184 | (2,110 | ) | 6,226 | (458 | ) | |||||||||
| Loss on disposal of healthcare assets and other charges | — | 4,916 | — | 4,916 | |||||||||||
| Adjusted EBITDA | $ | 2,184 | $ | 2,806 | $ | 6,226 | $ | 4,458 | |||||||
| For Details Contact: | 40W267 Keslinger Road | |
| Edward J. Richardson | Robert J. Ben | PO BOX 393 |
| Chairman and CEO | EVP & CFO | LaFox, IL 60147-0393 USA |
| Phone: (630) 208-2320 | (630) 208-2203 | (630) 208-2200 | Fax: (630) 208-2550 |
