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

NORTH YORK, ON / ACCESS Newswire / December 1, 2025 / ZTEST Electronics Inc. ("ZTEST" or the "Company") (CSE:ZTE)(OTCID:ZTSTF) announces Q1 2026 revenues of $1,823,428, a decrease of 9.7% from Q1 2025. Though, the Company is very encouraged that the second fiscal quarter has started quite strongly, with orders for new boards increasing, providing solid indications that market confidence may be returning.

Financial Highlights		Three months ended
(in thousands of dollars, except per share amounts)		Sept 30 2025				Sept 30 2024
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 2025				Sept 30 2024
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 34% to $1.40 million, the highest inventory value since Q3 2024, a definitive indication of improving customer confidence.

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?

ZTEST reported $1,823,428 in Q1 2026 revenue, a 9.7% decline versus Q1 2025.

How did ZTSTF profitability metrics move in Q1 2026?

Q1 2026 showed EBITDA $404k and net income $237k, both down over 20% year-over-year.

What balance sheet changes did ZTEST report as of Sept 30, 2025 (ZTSTF)?

As of Sept 30, 2025 ZTEST had cash $4.268M, working capital $5.324M, and shareholders' equity $6.05M.

Why did ZTEST say inventory increased and what is the amount (ZTSTF)?

Management reported inventory rose ~34% to $1.40M, which it described as an indicator of improving customer confidence.

Did ZTEST (ZTSTF) report any debt reduction in Q1 2026?

Yes; long-term debt decreased to $39k from $105k year-over-year.

What guidance or outlook did ZTEST give for Q2 2026 (ZTSTF)?

The company said orders for new boards increased entering Q2 2026, suggesting early signs of market recovery.