ZTEST Electronics Inc. Announces Fiscal Q1 2026 Results
Rhea-AI Summary
ZTEST Electronics (OTCID:ZTSTF) reported Q1 2026 revenue of $1,823,428, down 9.7% vs Q1 2025, with management noting stronger orders entering Q2. Key Q1 metrics: gross margin $778k (42.7%), EBITDA $404k, and net income $237k. Balance sheet highlights show cash $4.268M, working capital $5.324M, long-term debt of $39k, and shareholders' equity $6.05M. Inventory rose ~34% to $1.40M, which management says signals improving customer confidence. The company cautioned that forward-looking statements involve risks and referenced filings on SEDAR+.
Positive
- Cash +31% to $4.268M as at Sept 30, 2025
- Working capital +34% to $5.324M as at Sept 30, 2025
- Shareholders' equity +24% to $6.05M as at Sept 30, 2025
- Long-term debt reduced to $39k from $105k
- Inventory rose ~34% to $1.40M, indicating demand pickup
Negative
- Net income down 26.8% to $237k for Q1 2026
- EBITDA down 22.2% to $404k for Q1 2026
- Operating cash flow down 26.9% to $323k for Q1 2026
News Market Reaction
On the day this news was published, ZTSTF declined NaN%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
ZTSTF gained 0.99% while peers were mixed: HLRTF up 1.69%, IEHC up 4.52%, VPER up 10%, AAIRF and YNVYF flat. Moves do not indicate a unified sector trend.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Dec 01 | Q1 2026 earnings | Neutral | +0.0% | Quarter showed revenue decline but maintained profitability and strong cash position. |
| Nov 25 | Board appointment | Positive | +5.7% | Added director with capital markets experience and financing track record. |
| Oct 27 | FY2025 results fix | Negative | +25.3% | Corrected tables while confirming year-over-year revenue and net income declines. |
| Oct 27 | FY2025 results | Negative | +25.3% | Reported lower fiscal revenue and earnings despite stronger cash and equity. |
| Sep 19 | Conference participation | Positive | +10.6% | Investor conference presentation and one-on-one meetings spotlighted strategy. |
News tied to corporate developments and annual results has often seen strong positive moves, while earnings updates have shown muted or mixed reactions.
Over recent months, ZTEST highlighted cyclical revenue pressure but continued profitability and balance sheet strength. Fiscal 2025 results showed lower revenue and net income yet higher cash and equity, which coincided with a 25.27% move. Board enhancement via a new director and a conference appearance each preceded double‑digit gains. Against this backdrop, the Q1 2026 release on Dec 01 reported a 9.7% revenue decline but solid margins and cash, fitting the theme of resilient finances amid softer demand.
Market Pulse Summary
This announcement reported Q1 2026 revenue of $1.82M, a 9.7% year‑over‑year decline, but maintained profitability with net income of $237k and EBITDA of $404k. Gross margin remained solid at 42.7%, while cash increased to $4.27M and long‑term debt fell to $39k. Investors may watch future quarters for revenue stabilization, inventory trends around the cited $1.40M, and whether margins and cash generation remain resilient.
Key Terms
ebitda financial
electronic manufacturing services (ems) technical
printed circuit board (pcb) technical
iso 9001:2015 technical
AI-generated analysis. Not financial advice.
NORTH YORK, ON / ACCESS Newswire / December 1, 2025 / ZTEST Electronics Inc. ("ZTEST" or the "Company") (CSE:ZTE)(OTCID:ZTSTF) announces Q1 2026 revenues of
Financial Highlights | Three months ended | |||||||
(in thousands of dollars, except per share amounts) | Sept 30 | Sept 30 | ||||||
Revenue | 1,823 | 2,020 | ||||||
Gross Margin | 778 | 921 | ||||||
Gross Margin as a % of Revenue | 42.7 | % | 45.6 | % | ||||
EBITDA | 404 | 519 | ||||||
Net Income | 237 | 324 | ||||||
Basic Net Income per share | 0.006 | 0.009 | ||||||
Operating Cash Flow | 323 | 442 | ||||||
As at | ||||||||
(in thousands of dollars) | Sept 30 | Sept 30 | ||||||
Cash | 4,268 | 3,259 | ||||||
Working Capital | 5,324 | 3,986 | ||||||
Long-term Debt | 39 | 105 | ||||||
Shareholders' Equity | 6,050 | 4,871 | ||||||
Steve Smith, CEO commented, "In the first quarter, inventory values rose almost
We continue to lay a solid foundation, fully anticipating to capitalize on the recovering market, while also diligently assessing our overall business risks. This is clearly demonstrated through our continuous growth in cash, working capital, capital under management, and consistent and reliable gross margins."
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 on low and mid-volume production of high complexity products.
For more information contact: Steve Smith, CEO (604) 837-3751 email: steves@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
What were ZTEST Electronics (ZTSTF) Q1 2026 revenues and change vs prior year?
How did ZTSTF profitability metrics move in Q1 2026?
What balance sheet changes did ZTEST report as of Sept 30, 2025 (ZTSTF)?
Why did ZTEST say inventory increased and what is the amount (ZTSTF)?
Did ZTEST (ZTSTF) report any debt reduction in Q1 2026?
What guidance or outlook did ZTEST give for Q2 2026 (ZTSTF)?
