Sono-Tek Reports Fiscal Third Quarter and Nine-Month Fiscal 2026 Financial Results

Rhea-AI Summary

Sono-Tek (Nasdaq: SOTK) reported third-quarter and nine-month fiscal 2026 results for the period ended Nov. 30, 2025. Q3 net sales were $5.0M (seventh consecutive quarter >$5M) and nine-month sales were $15.3M (essentially flat YoY). Q3 gross margin expanded to 50% (QTD) and nine-month gross margin was 51%. Q3 net income rose 24% to $340k and nine-month net income rose 32% to $1.25M. Cash and marketable securities totaled $11.7M with no debt. Backlog reached a record $12.26M (up 16% YoY). The company reiterated FY2026 guidance, forecasting modest revenue growth.

Positive

• Gross margin expansion to 50% in Q3
• Nine-month gross margin at 51%
• Net income +24% Q3 and +32% nine months
• Record backlog of $12.26M (+16% YoY)
• Cash and marketable securities of $11.7M with no debt

Negative

• Q3 revenue declined 4% to $5.0M versus prior year
• Nine-month sales essentially flat, down 1%

News Market Reaction

-0.48%

1 alert

-0.48% News Effect

On the day this news was published, SOTK declined 0.48%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Q3 Net Sales: $5.0M Q3 Gross Margin: 50% Q3 Net Income: $340K +5 more

8 metrics

Q3 Net Sales $5.0M Q3 FY2026, down from $5.191M prior-year quarter

Q3 Gross Margin 50% Up from 45% in prior-year quarter

Q3 Net Income $340K Up 24% from $274K in prior-year quarter

Nine-Month Net Sales $15.3M First nine months FY2026, essentially flat vs $15.383M

Nine-Month Gross Margin 51% First nine months FY2026, up from 48%

Nine-Month Net Income $1.25M First nine months FY2026, up 32% from $946K

Quarter-End Cash $11.7M Cash, equivalents and marketable securities, no outstanding debt

Total Backlog $12.26M Record backlog, up 16% year over year and 9% sequentially

Market Reality Check

Price: $4.20 Vol: Volume 20,414 is slightly...

normal vol

$4.20 Last Close

Volume Volume 20,414 is slightly below 20-day average of 23,468, suggesting no outsized positioning ahead of results. normal

Technical Price at $4.18 is above 200-day MA of $3.87, but trades 18.83% below 52-week high.

Peers on Argus

SOTK was down 2.34% pre-news while key peers (ODYS, MIND, ACFN, GNSS, WRAP) show...

SOTK was down 2.34% pre-news while key peers (ODYS, MIND, ACFN, GNSS, WRAP) showed gains between 1.12% and 14.07%, pointing to stock-specific dynamics rather than a sector-wide move.

Historical Context

4 past events · Latest: Oct 14 (Positive)

Pattern 4 events

Date	Event	Sentiment	Move	Catalyst
Oct 14	Earnings release	Positive	-3.6%	Record first-half revenue and margin expansion with strong medical backlog.
Oct 13	Large order win	Positive	-3.5%	New $2.8M medical coating order from major U.S. manufacturer.
Oct 07	Conference call	Neutral	-1.0%	Scheduled call to discuss Q2 and first-half FY2026 results.
Sep 03	Large order win	Positive	+7.2%	Medical device coating systems order exceeding $5M over 12 months.

Pattern Detected

Recent positive operational updates, especially earnings and large orders, often saw negative next-day price moves, indicating a pattern of selling into good news.

Recent Company History

Over the last four reported events since Jan 13, 2025, Sono-Tek has consistently highlighted revenue above $5M per quarter, expanding gross margins, and a strong cash position with no debt. Major medical-device orders (over $5M and $2.8M) and a growing backlog supported its shift toward high-ASP systems. Despite this, earnings releases on Jan 13, 2025 and Oct 14, 2025 were followed by share-price declines, suggesting investors previously reacted cautiously to fundamentally solid updates.

Market Pulse Summary

This announcement highlights stable revenue above $5M per quarter, meaningful gross margin expansion...

Analysis

This announcement highlights stable revenue above $5M per quarter, meaningful gross margin expansion to 50–51%, and nine-month net income up 32%. A record backlog of $12.26M and cash of $11.7M with no debt underscore financial strength. At the same time, sales were roughly flat year over year and management signaled only modest full-year growth, so monitoring order trends and margin sustainability remains important.

Key Terms

electrolysis, balloon catheter, stent, tariff policies

4 terms

electrolysis technical

"Multi-Axis Coating Systems declined 53% year over year due to reduced electrolysis-related demand"

Electrolysis is a process that uses an electric current to drive a chemical change, commonly splitting a compound into simpler substances—most often separating water into hydrogen and oxygen. Investors care because electrolysis underpins technologies like clean hydrogen production, certain metal refining and industrial processes, and some medical devices; its efficiency, cost and scale can directly affect a company’s expenses, revenue potential and regulatory profile, much like the productivity of a factory machine determines output and margins.

balloon catheter medical

"Medical sales increased 27%, supported by strong demand for balloon catheter, stent, and diagnostic device"

A balloon catheter is a thin medical tube with a small inflatable balloon near its tip that doctors guide into blood vessels or other body passages to widen a blockage, position implants, or deliver treatments. For investors, it matters because sales, regulatory approval, or safety issues for these devices can directly affect a medical device maker’s revenue and growth, much like a popular tool driving demand for a construction company.

stent medical

"Medical sales increased 27%, supported by strong demand for balloon catheter, stent, and diagnostic device"

A stent is a small, flexible tube or mesh placed inside a narrowed or blocked blood vessel to hold it open, like a tiny scaffold propping up a collapsing pipe so blood can flow normally. Investors watch stent news because approvals, clinical results, pricing, supply or recalls directly affect sales and profitability of medical device makers and can signal regulatory or market risk for companies that manufacture, sell or use these devices.

tariff policies regulatory

"balances market adjustments to recent governmental deemphasis of clean energy initiatives and evolving tariff policies"

Tariff policies are government rules that impose taxes or fees on goods crossing national borders, similar to a toll a city charges on vehicles using a bridge. They matter to investors because changes or uncertainty in those rules can raise companies’ costs, shift supply chains, change where firms compete, alter consumer prices and demand, and create geopolitical risks that affect revenues, profits and share prices across industries.

AI-generated analysis. Not financial advice.

Seventh Consecutive Quarter of Revenue Over $5 Million Driven by Continued Strength in Medical Market and High-ASP Production Systems

Gross Margin Expands to 50% in the Quarter and 51% Year-to-Date

Third Quarter and Nine-Month Net Income Increased 24% and 32% Respectively

Backlog Reaches Record $12.3 Million Reflecting Continued Order Momentum

Reiterates Full Year FY 2026 Guidance Anticipating Modest Revenue Growth

MILTON, N.Y., Jan. 13, 2026 (GLOBE NEWSWIRE) -- Sono-Tek Corporation (Nasdaq: SOTK), the leading developer and manufacturer of ultrasonic coating systems, today reported financial results for the third quarter and first nine months of fiscal year 2026, ended November 30, 2025.

Third Quarter Fiscal 2026 Highlights

• Net sales for the quarter were $5.0 million, compared with $5.2 million in the prior-year period. This marked the seventh consecutive quarter with revenue exceeding $5 million.
• Gross profit increased 7% year over year to $2.5 million, with gross margin expanding to 50%, up from 45% in the prior-year quarter.
• Operating income increased 61% to $319 thousand, reflecting improved gross margin and operating leverage.
• Net income increased 24% to $340 thousand, or $0.02 per diluted share, compared with $274 thousand, or $0.02 per diluted share, in the prior-year quarter.

First Nine Months Fiscal 2026 Highlights

• Net sales for the first nine months totaled $15.3 million, essentially flat year over year.
  
• Gross profit increased 6% to $7.8 million, with gross margin expanding to 51% from 48% in the prior-year period.
  
• Operating income increased 69% to $1.22 million.
• Net income increased 32% to $1.25 million, or $0.08 per diluted share, compared with $0.06 per diluted share in the prior-year period.
  

Balance Sheet, Backlog and Guidance for Fiscal Year 2026

• The Company ended the quarter with $11.7 million in cash, cash equivalents and marketable securities and no outstanding debt.
• Total backlog reached a record $12.26 million, increasing 16% year over year and 9% sequentially, reflecting continued strength in customer order activity.
• For the full fiscal year, the Company is reiterating its guidance reflecting an improved but watchful outlook, anticipating modest revenue growth, that balances market adjustments to recent governmental deemphasis of clean energy initiatives and evolving tariff policies with a positive offset from growing demand in the medical device market.
  

Management Commentary

Dr. Christopher L. Coccio, Executive Chairman, stated, “We delivered another solid quarter marked by our seventh consecutive period of revenue above $5 million, continued profitability, and meaningful margin expansion. The improvement in gross margin reflects the success of our strategy to prioritize higher-ASP production systems and maintain disciplined cost management, even as certain end markets experience near-term variability. Reaching a record backlog is particularly encouraging and highlights sustained customer confidence in Sono-Tek’s technology and long-term value proposition.”

Steve Harshbarger, CEO & President, added, “Demand for our advanced ultrasonic coating platforms remains strong, led by continued momentum in the medical device market and increasing adoption of high-value production systems. While U.S. alternative energy demand softened as anticipated due to policy-related timing shifts, growth across medical, electronics, and industrial applications more than offset this impact. With a strong balance sheet, record backlog, and an expanding mix of high-ASP systems, we are well positioned to drive consistent performance and long-term growth.

Third Quarter Fiscal 2026 Results
(Narrative compares with prior-year period unless otherwise noted) ($ in thousands)

	Three Months Ended November 30,								Change
		2025				2024			$			%
Net Sales	$	5,004			$	5,191			(187)			(4%)
Gross Profit	$	2,512			$	2,343			169			7%
Gross Profit %		50%				45%
Operating Income	$	319			$	198			121			61%
Operating Margin		6%				4%
Net Income	$	340			$	274			66			24%
Net Margin		7%				5%

Third Quarter Fiscal 2026 Product and Market Highlights

• Product Categories
  • In-Line Coating Systems (previously referred to as Integrated Coating Systems) revenue increased sharply by 2,177%, driven by shipments of high-ASP production systems to a major solar energy customer.
  • Multi-Axis Coating Systems declined 53% year over year due to reduced electrolysis-related demand following shifts in U.S. policy incentives.
  • OEM Systems revenue increased 64%, reflecting stronger demand from fluxing and medical OEM partners.
  • Fluxing Systems revenue increased 213%, driven primarily by stronger demand in Asia.
• End Markets
  • Medical sales increased 27%, supported by strong demand for balloon catheter, stent, and diagnostic device coating systems.
  • Electronics/Microelectronics sales increased 27%, reflecting increased fluxing demand and a semiconductor system shipment to South Korea.
  • Industrial sales increased 116%, due to the shipment of a large, advanced textile coating platform to a U.S. government-related customer.
  • Alternative Energy sales declined 35% due to reduced U.S. electrolysis activity following changes in government policy initiatives.

Geographic Highlights

• U.S. & Canada sales increased 21% in the quarter, supported by shipments of high-ASP integrated coating systems.
• Asia Pacific sales declined 34% in the quarter following a strong prior year quarter.
• Latin America sales declined 50% due to slower fluxing activity in Mexico and the non-recurrence of a prior-year orthopedic system shipment.
• EMEA sales decreased 26% due primarily to softer demand in the advanced energy market, particularly within electrolysis and fuel cell applications.  

Nine Month Fiscal 2026 Results
(Narrative compares with prior-year period unless otherwise noted) ($ in thousands)

	Nine Months Ended November 30,								Change
		2025				2024			$			%
Net Sales	$	15,300			$	15,383			(83)			(1%)
Gross Profit	$	7,766			$	7,314			452			6%
Gross Profit %		51%				48%
Operating Income	$	1,223			$	722			501			69%
Operating Margin		8%				5%
Net Income	$	1,249			$	946			303			32%
Net Margin		8%				6%

First Nine-Month Fiscal 2026 Product and Market Highlights

• Product Categories
  • In-Line Coating Systems (previously referred to as Integrated Coating Systems) revenue increased by 126%, reflecting shipments of 8 high-ASP production systems totaling approximately $5.9M to a major solar energy customer.
  • Multi-Axis Coating Systems declined 46% year over year primarily due to slower electrolysis system demand following government policy changes.
  • OEM Systems revenue increased 18%, reflecting stronger demand from fluxing OEM partners.
  • Fluxing Systems revenue increased 80%, driven primarily by stronger demand in Asia.
    
• End Markets
  
  • Medical sales increased 37%, supported by strong balloon coating systems shipped to the U.S., Europe, and China, solid stent coating activity, and expanding new applications in the medical field.
  • Electronics/Microelectronics sales decreased 9%, following strong FY2025 semiconductor sales, and FY2026 customer timing for similar machines.
  • Industrial sales decreased 26%, influenced by a large FY2025 European glass coating order that did not repeat.
  • Alternative Energy sales declined slightly by 2% influenced by the shipment of eight high-ASP solar coating systems to the solar industry, which offset declines from the US electrolysis market.
    

Geographic Highlights

• U.S. & Canada sales increased 3%, supported by shipments of high-ASP in-line coating systems.
• Asia Pacific sales increased 13% driven by medical sales in China and strong alternative energy demand in Japan and South Korea.
• Latin America sales declined 48% due to slower fluxing activity in Mexico.
• EMEA sales decreased 9% primarily due to softening advanced energy demand in electrolysis and fuel cell applications, partially offset by continued strength in medical system shipments.

About Sono-Tek

Sono-Tek Corporation (Nasdaq: SOTK) is a global leader in the design and manufacture of ultrasonic coating systems that are shaping industries and driving innovation worldwide. Our ultrasonic coating systems are used to apply thin films onto parts in diverse industries including medical devices, semiconductors, microelectronics, alternative energy, advanced industrial manufacturing, and research and development sectors.

Sono-Tek has a long history of providing advanced coating solutions to the medical device industry, enabling precision coatings for life-saving technologies such as stents, balloons, diagnostic devices, and various drug delivery platforms. At the same time, our expertise in semiconductor and microelectronics applications continues to expand, as customers increasingly turn to Sono-Tek for solutions supporting next-generation chips, displays, and sensors. Alongside these markets, our technologies are also leading the way in next-generation clean energy coatings for fuel cells, carbon capture, advanced solar cells, and various other advanced industrial applications, underscoring the versatility and broad reach of Sono-Tek’s ultrasonic coating platforms.

Our product line is rapidly evolving, transitioning from R&D tools to high-volume production machines with significantly higher average selling prices, showcasing our market leadership and adaptability. Our comprehensive suite of thin film coating solutions and application consulting services ensures unparalleled results for our clients and helps some of the world’s most promising companies achieve technological breakthroughs and bring them to market. We strategically deliver our products to customers through a network of direct sales personnel, carefully chosen independent distributors, and experienced sales representatives, ensuring efficient market reach across diverse sectors around the globe.

Our growth strategy is focused on leveraging our innovative technologies, proprietary know-how, unique talent and experience, and global reach to further develop microscopic coating technologies that enable better outcomes for our customers’ products and processes. For further information, visit www.sono-tek.com.

Safe Harbor Statement

This news release contains forward looking statements regarding future events and the future performance of Sono-Tek Corporation that involve risks and uncertainties that could cause actual results to differ materially. These “forward-looking statements’ are based on currently available competitive, financial and economic data and our operating plans. They are inherently uncertain, and investors must recognize that events could turn out to be significantly different from our expectations and could cause actual results to differ materially. These factors include, among other considerations, general economic and business conditions, including political, regulatory, tax, competitive and technological developments affecting our operations or the demand for our products; inflationary and supply chain pressures; continued strength of sales to the medical device market; continued private and public funding for the clean energy sector; continued strong demand for Sono-Tek’s suite of thin film coating solutions and application consulting services in the clean energy and other markets; maintenance of order backlog; evolving tariff policies; timely development and market acceptance of new products and continued customer validation of our coating technologies; adequacy of financing; capacity additions, the ability to enforce patents; maintenance of operating leverage; consummation of order proposals; completion of large orders on schedule and on budget; successful transition from primarily selling ultrasonic nozzles and components to a more complex business providing complete machine solutions and higher value subsystems; and realization of quarterly and annual revenues within the forecasted range of sales guidance. We undertake no obligation to update any forward-looking statement.

For more information:

Sono-Tek Corp.
Stephen J. Bagley
Chief Financial Officer
Ph: (845) 795-2020
info@sono-tek.com

Investor Relations
Kirin Smith
PCG Advisory, Inc.
ksmith@pcgadvisory.com

 -FINANCIAL TABLES FOLLOW -

SONO-TEK CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS
		November 30, 2025 (Unaudited)				February 28, 2025
ASSETS
Current Assets:
Cash and cash equivalents		$	5,395,695			$	5,202,361
Marketable securities			6,323,566				6,727,678
Accounts receivable (less allowance of $12,225, respectively)			4,411,663				2,347,764
Inventories			3,656,898				4,474,401
Prepaid expenses and other current assets			305,690				236,261
Total current assets			20,093,512				18,988,465
Land			250,000				250,000
Buildings, equipment, furnishings and leasehold improvements, net			2,288,462				2,610,600
Intangible assets, net			31,794				37,386
Deferred tax asset			1,266,846				1,525,185
TOTAL ASSETS		$	23,930,614			$	23,411,636
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable		$	534,692			$	859,483
Accrued expenses			2,008,801				1,718,574
Customer deposits			2,151,930				2,413,195
Income taxes payable			43,422				496,055
Total current liabilities			4,738,845				5,487,307
Deferred tax liability			59,349				132,134
Total liabilities			4,798,194				5,619,441
Commitments and Contingencies (Note 10)
Stockholders’ Equity
Common stock, $.01 par value; 25,000,000 shares authorized, 15,754,480 issued and 15,710,389 outstanding as of November 30, 2025 and 15,751,153 issued and 15,749,037 outstanding February 28, 2025, respectively			157,545				157,512
Additional paid-in capital			10,260,711				10,018,034
Accumulated earnings			8,873,153				7,624,516
Treasury stock, at cost 44,091 shares and 2,116 shares, November 30, 2025 and February 28, 2025, respectively			(158,989	)			(7,867	)
Total stockholders’ equity			19,132,420				17,792,195
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY		$	23,930,614			$	23,411,636

See notes to unaudited condensed consolidated financial statements.

SONO-TEK CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
		Nine Months Ended November 30,								Three Months Ended November 30,
		2025				2024				2025				2024
Net Sales		$	15,299,839			$	15,383,416			$	5,004,370			$	5,190,596
Cost of Goods Sold			7,533,347				8,069,633				2,492,129				2,847,397
Gross Profit			7,766,492				7,313,783				2,512,241				2,343,199
Operating Expenses
Research and product development costs			1,934,109				2,054,846				638,361				627,543
Marketing and selling expenses			2,656,804				2,814,804				927,300				929,196
General and administrative costs			1,952,085				1,722,210				627,608				588,823
Total Operating Expenses			6,542,998				6,591,860				2,193,269				2,145,562
Operating Income			1,223,494				721,923				318,972				197,637
Interest and Dividend Income			332,147				359,248				108,487				131,518
Net unrealized gain/(loss) on marketable securities			912				38,776				(658	)			(15,165	)
Income Before Income Taxes			1,556,553				1,119,947				426,801				313,990
Income Tax Expense			307,916				174,247				86,842				39,812
Net Income		$	1,248,637			$	945,700			$	339,959			$	274,178
Basic Earnings Per Share		$	0.08			$	0.06			$	0.02			$	0.02
Diluted Earnings Per Share		$	0.08			$	0.06			$	0.02			$	0.02
Weighted Average Outstanding Shares - Basic			15,721,548				15,750,980				15,708,817				15,751,153
Weighted Average Outstanding Shares - Diluted			15,736,330				15,771,039				15,724,960				15,771,511

See notes to unaudited condensed consolidated financial statements.

SONO-TEK CORPORATION PRODUCT, MARKET, AND GEOGRAPHIC SALES (Unaudited)
Product Sales
		Three Months Ended November 30,								Change									Nine Months Ended November 30,								Change
		2025				2024				$				%					2025				2024				$				%
Fluxing Systems		$	222,000			$	71,000				151,000				213	%			$	583,000			$	324,000				259,000				80	%
In-Line Coating Systems			1,844,000				81,000				1,763,000				2,177	%				6,428,000				2,850,000				3,578,000				126	%
Multi-Axis Coating Systems			1,666,000				3,563,000				(1,897,000	)			(53	%	)			4,373,000				8,158,000				(3,785,000	)			(46	%	)
OEM Systems			425,000				259,000				166,000				64	%				936,000				796,000				140,000				18	%
Other			847,000				1,217,000				(370,000	)			(30	%	)			2,980,000				3,255,000				(275,000	)			(8	%	)
TOTAL		$	5,004,000			$	5,191,000				(187,000	)			(4	%	)		$	15,300,000			$	15,383,000				(83,000	)			(1	%	)

Market Sales

		Three Months Ended November 30,								Change									Nine Months Ended November 30,								Change
		2025				2024				$				%					2025				2024				$				%
Electronics/Microelectronics		$	1,287,000			$	1,016,000				271,000				27	%			$	3,686,000			$	4,060,000				(374,000	)			(9	%	)
Medical			1,136,000				897,000				239,000				27	%				2,949,000				2,156,000				793,000				37	%
Alternative Energy			1,912,000				2,959,000				(1,047,000	)			(35	%	)			7,592,000				7,740,000				(148,000	)			(2	%	)
Emerging R&D and Other			18,000				17,000				1,000				6	%				65,000				57,000				8,000				14	%
Industrial			651,000				302,000				349,000				116	%				1,008,000				1,370,000				(362,000	)			(26	%	)
TOTAL		$	5,004,000			$	5,191,000				(187,000	)			(4	%	)		$	15,300,000			$	15,383,000				(83,000	)			(1	%	)

Geographic Sales 

		Three Months Ended November 30,								Change									Nine Months Ended November 30,								Change
		2025				2024				$				%					2025				2024				$				%
U.S. & Canada		$	3,415,000			$	2,823,000				592,000				21	%			$	9,674,000			$	9,409,000				265,000				3	%
Asia Pacific (APAC)			734,000				1,114,000				(380,000	)			(34	%	)			2,262,000				1,994,000				268,000				13	%
Europe, Middle East, Asia (EMEA)			706,000				957,000				(251,000	)			(26	%	)			3,027,000				3,338,000				(311,000	)			(9	%	)
Latin America			149,000				297,000				(148,000	)			(50	%	)			337,000				642,000				(305,000	)			(48	%	)
TOTAL		$	5,004,000			$	5,191,000				(187,000	)			(4	%	)		$	15,300,000			$	15,383,000				(83,000	)			(1	%	)

FAQ

What were Sono-Tek (SOTK) third-quarter fiscal 2026 sales and net income?

Q3 net sales were $5.0M and net income was $340k (24% increase).

How did Sono-Tek's gross margin change in fiscal Q3 2026 (SOTK)?

Gross margin expanded to 50% in Q3 2026, up from 45% year ago.

What is Sono-Tek's backlog and why does it matter for SOTK?

Backlog reached a record $12.26M (16% YoY), indicating strong order momentum.

What is Sono-Tek's cash position at Q3 fiscal 2026 (SOTK)?

The company held $11.7M in cash, cash equivalents and marketable securities and reported no debt.

Did Sono-Tek change full-year FY2026 guidance (SOTK)?

The company reiterated FY2026 guidance, forecasting modest revenue growth.

Which end markets drove Sono-Tek's Q3 2026 performance (SOTK)?

Strength came from the medical market and high-ASP production systems; alternative energy softened.