ZTEST Electronics Inc. Announces Fiscal 2026 Year End Results with 10.6% Annual and 18.1% Fourth Quarter Revenue Growth

Working capital increased by $1,483,226 during fiscal 2026, while shareholders’ equity reached $7.186 million at year-end.

Rhea-AI Summary

ZTEST Electronics (ZTSTF) reported fiscal 2026 revenue growth of 10.6% in its audited results for the year ended June 30, 2026. Revenue reached $9,199,804, while net income rose 6.8% to $1,162,251, or $0.032 per share. Gross margin increased 14.8% to $3,967,638, with its percentage improving to 43.1% from 41.6%. EBITDA, earnings before interest, taxes, depreciation and amortization, rose 7.8% to $1,981,055.

Fourth-quarter revenue increased 18.1% to $2,495,236. Net income fell to $123,096 from $299,569, and EBITDA declined to $298,404 from $493,928. A $260,000 one-time retiring allowance for the former CEO was charged against quarterly income. Year-end cash increased 33.1% to $5,464,705. The equipment term loan was repaid in April 2026, and the $1,000,000 operating line remained undrawn. Dave Barnett became president and CEO in August 2026. The company plans to support organic growth and evaluate growth opportunities.

14 points · 0 major

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0 major · 4 points

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Positive

• Moderate pointFiscal 2026 revenue increased 10.6% to $9,199,804 from fiscal 2025.
• Moderate pointAnnual net income rose 6.8% to $1,162,251; basic earnings per share increased to $0.032 from $0.030.
• Moderate pointAnnual gross margin rose 14.8% to $3,967,638; margin percentage improved to 43.1% from 41.6%.
• Moderate pointAnnual EBITDA increased 7.8% to $1,981,055.
• Moderate pointFourth-quarter revenue rose 18.1% to $2,495,236, marking the third consecutive quarter of year-over-year growth.
• Moderate pointFourth-quarter gross margin rose 22.4% to $1,065,814; margin percentage improved to 42.7% from 41.2%.
• Moderate pointYear-end cash and cash equivalents increased $1,359,974, or 33.1%, to $5,464,705.
• Moderate pointWorking capital increased $1,483,226, or 29.6%, during fiscal 2026.
• Moderate pointCapital under management increased $1,323,653, or 22.6%, during fiscal 2026.
• Moderate pointShareholders’ equity increased to $7.186 million at June 30, 2026, from $5.807 million a year earlier.

4 minor points

• Minor pointAnnual operating cash flow before non-cash working capital changes increased to $1,661,240 from $1,657,486.
• Minor pointEquipment term loan was repaid in full at maturity in April 2026.
• Minor point$1,000,000 bank operating line remained undrawn at fiscal year-end.
• Minor point. Forward-looking: it has not happened yet and may not happen.Growth plans include supporting organic growth at Permatech and evaluating growth opportunities.

Negative

• Moderate pointFourth-quarter net income fell to $123,096 from $299,569; earnings per share declined to $0.003 from $0.008.
• Moderate pointFourth-quarter EBITDA declined to $298,404 from $493,928 in Q4 2025.
• Moderate pointFourth-quarter operating cash flow before non-cash working capital changes fell to $296,000 from $445,000.
• Moderate point$260,000 one-time retiring allowance payable to the former CEO was fully charged against fourth-quarter income. 2.2% of market cap

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NORTH YORK, ON / ACCESS Newswire / October 6, 2026 / ZTEST Electronics Inc. ("ZTEST" or the "Company") (CSE:ZTE)(OTCID:ZTSTF) is pleased to announce its audited financial results for the fiscal year ended June 30, 2026, with revenues of $9,199,804, an increase of 10.6% over fiscal 2025, and net income increasing 6.8% to $1,162,251 ($0.032 per share).

Gross margin for the year climbed 14.8% to $3,967,638 from $3,456,883 in fiscal 2025, with the gross margin percentage improving to 43.1% from 41.6%. EBITDA for the year increased 7.8% to $1,981,055, and operating cash flow, before changes in non-cash working capital, was $1,661,240 compared to $1,657,486 in fiscal 2025.

Revenue growth strengthened through the year. Fourth quarter revenues were $2,495,236, an increase of 18.1% from $2,113,637 in Q4 2025, marking the third consecutive quarter of year over year revenue growth and the highest quarterly revenue reported by the Company since the fourth quarter of fiscal 2024. Fourth quarter gross margin rose 22.4% to $1,065,814 from $871,074, with the gross margin percentage improving to 42.7% from 41.2%.

Fourth quarter net income was $123,096 ($0.003 per share), compared to $299,569 ($0.008 per share) in Q4 2025, and EBITDA was $298,404, compared to $493,928. Fourth quarter results were reduced by a one-time retiring allowance of $260,000 payable to the Company's former Chief Executive Officer under the separation agreement announced in June 2026, the full value of which was charged against income in the quarter and is included in selling, general and administrative expenses.

The Company ended the year with cash and cash equivalents of $5,464,705, an increase of $1,359,974 (33.1%), and over the course of the fiscal year added $1,483,226 (29.6%) to working capital and $1,323,653 (22.6%) to capital under management. The Company's equipment term loan was repaid in full upon maturity in April 2026, and its $1,000,000 bank operating line remained undrawn.

Financial Highlights		Year ended
(in thousands of dollars, except per share amounts)		Jun 30 2026				Jun 30 2025
Revenue			9,200				8,319
Gross Margin			3,968				3,457
Gross Margin %			43.1	%			41.6	%
EBITDA (1)			1,981				1,837
Net Income			1,162				1,089
Basic Net Income Per Share			0.032				0.030
Operating Cash Flow (2)			1,661				1,657

Financial Highlights		Three months ended
(in thousands of dollars, except per share amounts)		Jun 30 2026				Jun 30 2025
Revenue			2,495				2,114
Gross Margin			1,066				871
Gross Margin %			42.7	%			41.2	%
EBITDA (1)			298				494
Net Income			123				300
Basic Net Income Per Share			0.003				0.008
Operating Cash Flow (2)			296				445

		As at
(in thousands of dollars)		Jun 30 2026				Jun 30 2025
Cash			5,465				4,105
Working Capital			6,492				5,008
Long-Term Debt			-				56
Shareholders' Equity			7,186				5,807

(1) EBITDA (earnings before interest, taxes, depreciation and amortization) is a non-IFRS financial measure, does not have a standardized meaning under IFRS and may not be comparable to similar measures used by other companies. A reconciliation of EBITDA to net income is provided in the Company's Management's Discussion and Analysis for the year ended June 30, 2026.

(2) Operating cash flow is presented before changes in non-cash working capital items.

During fiscal 2026 and subsequent to year end, the Company underwent significant leadership changes. In December 2025 the Board of Directors was expanded with the addition of Trevor Treweeke as an independent director. In June 2026 Steve Smith resigned as President, Chief Executive Officer and a director, Dave Barnett was appointed Chair of the Board, and Stephen Harpur, CPA joined the Board as an independent director. In August 2026 Mr. Barnett was appointed President and Chief Executive Officer.

Dave Barnett, CEO, commented, "Fiscal 2026 was a year of solid progress for ZTEST. Revenue growth built steadily through the year, culminating in our strongest quarter in almost two years, and our continued improvement in gross margin percentage reflects the value our customers place on Permatech's quality, flexibility and service. Excluding the one-time cost of our leadership transition, our underlying earnings momentum remains strong.

With more than $5.4 million in cash, no bank debt and a strengthened Board, ZTEST is well positioned to build on this momentum, both by supporting continued organic growth at Permatech and by evaluating strategic growth opportunities, while maintaining our commitment to enhancing shareholder value."

The Company's audited consolidated financial statements and Management's Discussion and Analysis for the year ended June 30, 2026 are available on SEDAR+ at www.sedarplus.com.

About ZTEST Electronics Inc.

ZTEST Electronics Inc., through its wholly owned subsidiary Permatech Electronics Corporation ("Permatech"), offers Electronic Manufacturing Services (EMS) to a wide range of customers. Permatech's offering includes Printed Circuit Board (PCB) Assembly, Materials Management and Testing services. Permatech operates from an ISO 9001:2015 certified facility in North York, Ontario, Canada. Permatech is a contract assembler of complex circuit boards, serving customers in the Medical, Power, Computer, Telecommunications, Wireless, Industrial, Trucking, Wearables and Consumer Electronics markets. It specializes in servicing customers who are looking for high yield and require high quality and rapid-turnaround to produce high complexity products.

For more information contact: Dave Barnett, President and CEO 604-897-9663 email: davebarnett@ztest.com

Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.

FORWARD LOOKING STATEMENTS: This press release contains forward looking statements, which relate to future events or future performance and reflect management's current expectations and assumptions. Such forward looking statements reflect management's current beliefs and are based on assumptions made by and information currently available to the Company. Investors are cautioned that these forward-looking statements are neither promises nor guarantees and are subject to risks and uncertainties that may cause future results to differ materially from those expected. These forward looking statements are made as of the date hereof and, except as required under applicable securities legislation, the Company does not assume any obligation to update or revise them to reflect new events or circumstances. All of the forward-looking statements made in this press release are qualified by these cautionary statements and by those made in our filings with SEDAR+ in Canada (available at www.sedarplus.com).

SOURCE: ZTEST Electronics Inc.

View the original press release on ACCESS Newswire

FAQ

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What were ZTEST Electronics’ fiscal 2026 revenue and earnings?

ZTEST reported $9,199,804 in revenue and $1,162,251 in net income for the year ended June 30, 2026. Revenue increased 10.6% and net income increased 6.8% over fiscal 2025. Basic earnings per share were $0.032, compared with $0.030.

Why were ZTEST Electronics’ fourth-quarter fiscal 2026 earnings lower?

A $260,000 one-time retiring allowance payable to the former CEO reduced fourth-quarter results. The full amount was charged against income and included in selling, general and administrative expenses. Quarterly net income was $123,096, compared with $299,569 in Q4 2025.

How does ZTEST Electronics define EBITDA in its fiscal 2026 results?

ZTEST defines EBITDA as earnings before interest, taxes, depreciation and amortization. It is a non-IFRS financial measure without a standardized meaning under IFRS and may not be comparable with similarly named measures at other companies. A reconciliation to net income is available in the fiscal 2026 Management’s Discussion and Analysis.