Financial Performance - Consolidated recurring revenue is at 68%[13] - Q3 FY26 revenue for Product ID increased by 8.5% Q/Q[11] - Q3 FY26 revenue for Aerospace increased by 8.6% Q/Q[12] - Adjusted Gross Profit Margin for Q3 2026 is 37.2%, compared to 34.0% in Q3 2025[20] - Adjusted EBITDA Margin for Q3 2026 is 10.7%, compared to 8.0% in Q3 2025[33] - Net cash provided by operating activities for the nine months ended October 31, 2025, was $8.1 million[35] Segment Performance - Aerospace segment operating income margin increased to 36.8% in Q3 FY26 from 23.0% in Q3 FY25[27] - Product ID segment adjusted operating income margin increased to 10.6% in Q3 FY26 from 7.2% in Q3 FY25[25] Orders and Backlog - Product ID orders decreased by $4.3 million Y/Y due to delays in renewing blanket orders[38] - Aerospace orders increased 24% Y/Y due to improved OEM demand[38]

Revenue and Income - Revenue for the third quarter of fiscal 2026 was $39.2 million, reflecting an 8.5% sequential growth compared to the previous quarter[4] - Net income was $0.4 million, or $0.05 per diluted share, while non-GAAP net income was $1.5 million, or $0.20 per diluted share[4] - Adjusted EBITDA for the quarter was $4.2 million, representing 10.7% of sales, an increase from the previous quarter[4] - Revenue for the three months ended October 31, 2025, was $39,169,000, a decrease of 3.1% compared to $40,422,000 for the same period in 2024[32] - Net income for the three months ended October 31, 2025, was $378,000, representing a significant increase of 57.3% compared to $240,000 in the same period last year[32] - The company reported a total revenue of $112,979,000 for the nine months ended October 31, 2025, slightly down from $113,922,000 for the same period in 2024[38] Segment Performance - Product Identification (Product ID) segment revenue was $26.8 million, up 2.0% year-over-year and 8.5% sequentially[11] - Aerospace segment revenue decreased by 12.7% to $12.3 million due to atypical orders in the prior-year period[13] - Operating income for the Product ID segment was $1.9 million, with a non-GAAP operating income of $2.9 million, up 50% year-over-year[12] - Segment operating income for Product ID was $1,878,000 with a segment operating margin of 7.0%, while Aerospace segment operating income was $4,531,000 with a margin of 36.8%[38] - The segment gross profit for the Aerospace division was $6,391,000, resulting in a gross profit margin of 51.9% for the three months ended October 31, 2025[58] - Non-GAAP segment gross profit for the Aerospace division was $14,126,000 for the nine months ended October 31, 2025, with a non-GAAP gross profit margin of 40.3%[58] Cash Flow and Debt - The company generated $3.4 million in operating cash during the quarter, totaling $8.1 million year-to-date[15] - Debt was reduced by $3.2 million in the quarter, bringing total debt down to $40.3 million[16] - Cash and cash equivalents decreased to $3,606,000 as of October 31, 2025, down from $5,050,000 at the beginning of the period[34] - The company reported a net cash provided by operating activities of $8,057,000 for the nine months ended October 31, 2025, compared to $2,324,000 in the prior year[36] Guidance and Future Outlook - The company expects fiscal 2026 revenue to be in the range of $149 million to $154 million, with fourth-quarter revenue projected between $36 million and $41 million[21] - Bookings for the Product ID segment were $22.5 million, down $4.3 million year-over-year, while Aerospace segment orders increased by 23.7% to $13.4 million[18][19] - New bookings during the fourth quarter of FY 2025 totaled $38,576,000, contributing to a total of $145,112,000 for the fiscal year[46] - The backlog at the end of the period was $25,291,000, down from $28,307,000 at the beginning of the period[46] Impairments and Provisions - Goodwill impairment of $297,000 was recorded in the three months ended October 31, 2025, compared to no impairment in the same period last year[32] - The company incurred restructuring charges of $338,000 for the three months ended October 31, 2025[59] - Inventory provisions amounted to $360,000 for the three months ended October 31, 2025, reflecting adjustments in inventory valuation[58] Corporate Expenses and Interest - Corporate expenses increased to $(5,122,000) for the three months ended October 31, 2025, compared to $(3,855,000) in the prior year[38] - Interest expense for the three months ended October 31, 2025, was $827,000, a decrease from $944,000 in the same period last year[38]

Core Viewpoint - AstroNova, Inc. reported disappointing financial results for the second quarter of fiscal 2026, leading to a significant decline in its stock price and highlighting ongoing challenges in its Product Identification segment [1][2][7]. Financial Performance - The company incurred a net loss of $1.2 million, or 16 cents per share, compared to a loss of $0.3 million, or 4 cents per share, in the prior-year period [2][3]. - Revenues fell 10.9% year over year to $36.1 million from $40.5 million [2]. - Gross profit dropped 18.8% to $11.6 million, with gross margin compressing to 32.2% from 35.3% [3]. Segment Performance - The Product Identification segment generated $24.8 million in revenue, down 8.9% year over year, with operating income falling to $1.9 million and operating margin slipping to 7.7% [4]. - The Aerospace segment posted revenues of $11.3 million, a 15.1% decline compared to last year's $13.4 million, with operating profit sliding 37.1% to $2.4 million [5]. Orders and Backlog - Orders for the quarter remained steady at $35.9 million, with a backlog of $25.3 million, slightly down from $25.5 million in the previous quarter [6]. Management Commentary - The CEO described the quarter's results as "disappointing," emphasizing the need to rebuild customer relationships and improve execution [7]. - The CFO noted expectations for modest revenue growth in the second half of the year, driven by an improving product mix and cost-cutting efforts [8]. Factors Influencing Results - The revenue decline was primarily due to shipment delays in the Product ID segment and challenging comparisons against last year's unusual Aerospace orders [9]. - Operating expenses were reduced by approximately $0.9 million, but these savings were insufficient to offset the impact of weaker sales and gross profit [9]. Guidance - Management revised fiscal 2026 revenue guidance downward to $149-$154 million, implying revenues to be roughly flat with fiscal 2025 [10]. - Adjusted EBITDA margin expectations were trimmed to 7.5-8.5% from a previous range of 8.5-9.5% [11]. Other Developments - The company shipped redesigned printers using MTEX's autonomous ink printheads and launched shipments of its ToughWriter 640 printer to a major aircraft manufacturer [12]. - AstroNova amended its credit agreement after breaching a covenant and is negotiating a restructuring into a real estate-backed loan expected within 60 days [12].

[Part I. FINANCIAL INFORMATION](index=3&type=section&id=Part%20I.%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) The company's unaudited condensed consolidated financial statements and accompanying notes are presented [Unaudited Condensed Consolidated Balance Sheets](index=3&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets%20%E2%80%93%20July%2031%2C%202025%20and%20January%2031%2C%202025) **Condensed Consolidated Balance Sheet Highlights (in thousands)** | Item | July 31, 2025 | January 31, 2025 | | :--- | :--- | :--- | | Total Assets | $143,149 | $145,595 | | Total Liabilities | $67,363 | $69,845 | | Total Shareholders' Equity | $75,786 | $75,750 | | Cash and Cash Equivalents | $3,855 | $5,050 | | Accounts Receivable, net | $18,535 | $21,218 | | Inventories, net | $48,393 | $47,894 | | Revolving Line of Credit | $19,079 | $20,929 | | Long-Term Debt, net of current portion | $18,566 | $19,044 | [Unaudited Condensed Consolidated Statements of Income (Loss)](index=4&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Income%20(Loss)%20%E2%80%93%20Three%20and%20Six%20Months%20Ended%20July%2031%2C%202025%20and%20August%203%2C%202024) **Condensed Consolidated Statements of Income (Loss) (in thousands, except per share data)** | Item | Three Months Ended July 31, 2025 | Three Months Ended August 3, 2024 | Six Months Ended July 31, 2025 | Six Months Ended August 3, 2024 | | :--- | :--- | :--- | :--- | :--- | | Revenue | $36,102 | $40,539 | $73,810 | $73,500 | | Gross Profit | $11,633 | $14,326 | $24,286 | $26,298 | | Operating Income (Loss) | $(708) | $1,061 | $(135) | $2,407 | | Net Income (Loss) | $(1,243) | $(311) | $(1,619) | $869 | | Net Income (Loss) per Common Share—Diluted | $(0.16) | $(0.04) | $(0.21) | $0.11 | [Unaudited Condensed Consolidated Statements of Comprehensive Income (Loss)](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)%20%E2%80%93%20Three%20and%20Six%20Months%20Ended%20July%2031%2C%202025%20and%20August%203%2C%202024) **Condensed Consolidated Statements of Comprehensive Income (Loss) (in thousands)** | Item | Three Months Ended July 31, 2025 | Three Months Ended August 3, 2024 | Six Months Ended July 31, 2025 | Six Months Ended August 3, 2024 | | :--- | :--- | :--- | :--- | :--- | | Net Income (Loss) | $(1,243) | $(311) | $(1,619) | $869 | | Foreign Currency Translation Adjustments | $47 | $343 | $1,022 | $146 | | Comprehensive Income (Loss) | $(1,196) | $32 | $(597) | $1,015 | [Unaudited Condensed Consolidated Statements of Changes in Shareholders' Equity](index=6&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Shareholders'%20Equity%20%E2%80%93%20Three%20and%20Six%20Months%20Ended%20July%2031%2C%202025%20and%20August%203%2C%202024) **Changes in Shareholders' Equity (in thousands)** | Item | January 31, 2025 | July 31, 2025 | | :--- | :--- | :--- | | Common Stock | $547 | $552 | | Additional Paid-in Capital | $64,215 | $65,023 | | Retained Earnings | $49,380 | $47,761 | | Treasury Stock | $(35,043) | $(35,223) | | Accumulated Other Comprehensive Loss | $(3,349) | $(2,327) | | **Total Shareholders' Equity** | **$75,750** | **$75,786** | - Retained Earnings decreased by **$1,619 thousand** from January 31, 2025, to July 31, 2025, primarily due to net losses incurred during the period[15](index=15&type=chunk) - Accumulated Other Comprehensive Loss improved by **$1,022 thousand**, mainly driven by foreign currency translation adjustments[15](index=15&type=chunk)[99](index=99&type=chunk) [Unaudited Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20%E2%80%93%20Six%20Months%20Ended%20July%2031%2C%202025%20and%20August%203%2C%202024) **Condensed Consolidated Statements of Cash Flows (in thousands)** | Cash Flow Activity | Six Months Ended July 31, 2025 | Six Months Ended August 3, 2024 | | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | $4,644 | $7,066 | | Net Cash Used for Investing Activities | $(107) | $(21,559) | | Net Cash Provided by (Used for) Financing Activities | $(5,968) | $14,576 | | Net (Decrease) Increase in Cash and Cash Equivalents | $(1,195) | $297 | | Cash and Cash Equivalents, End of Period | $3,855 | $4,824 | - Net cash used for investing activities **significantly decreased in 2025** due to the absence of a major acquisition like MTEX, which occurred in 2024[18](index=18&type=chunk) - Net cash provided by operating activities **decreased by $2,422 thousand**, primarily due to a shift from net income to net loss and a decrease in cash provided by working capital[18](index=18&type=chunk)[194](index=194&type=chunk) [Notes to the Condensed Consolidated Financial Statements (unaudited)](index=8&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements%20(unaudited)) [Note 1 – Business and Basis of Presentation](index=8&type=section&id=Note%201%20%E2%80%93%20Business%20and%20Basis%20of%20Presentation) - AstroNova, Inc operates in two segments: **Product Identification (Product ID)** and **Aerospace** (formerly Test & Measurement)[21](index=21&type=chunk) - The Test & Measurement segment was renamed "Aerospace" effective February 1, 2025, to better reflect its end markets, with no change to segment composition[21](index=21&type=chunk) - The company acquired MTEX New Solution, S.A on May 6, 2024, integrating its digital printing equipment into the Product ID segment[23](index=23&type=chunk) - Product ID segment revenue is approximately **20% hardware sales** and **80% recurring supplies**, parts, and service revenue[24](index=24&type=chunk) - Aerospace segment revenue is approximately **57% hardware sales** and **43% recurring supplies**, parts, and service revenue[26](index=26&type=chunk) [Note 2 – Summary of Significant Accounting Policies Update](index=9&type=section&id=Note%202%20%E2%80%93%20Summary%20of%20Significant%20Accounting%20Policies%20Update) - The accounting policies remain consistent with the Annual Report on Form 10-K for the fiscal year ended January 31, 2025[32](index=32&type=chunk) - ASU 2024-03 (Expense Disaggregation Disclosures) and ASU 2023-09 (Improvements to Income Tax Disclosures) are **not expected to have a material impact** on consolidated financial statements or disclosures upon adoption[33](index=33&type=chunk)[35](index=35&type=chunk)[36](index=36&type=chunk) [Note 3 – Acquisition](index=10&type=section&id=Note%203%20%E2%80%93%20Acquisition) - AstroNova acquired MTEX New Solution, S.A on May 6, 2024, for a final purchase price of **$19,473 thousand**[37](index=37&type=chunk)[39](index=39&type=chunk) **Final Purchase Price Allocation of MTEX Acquisition (in thousands)** | Item | Amount | | :--- | :--- | | Cash | $364 | | Accounts Receivable | $1,212 | | Inventory | $3,607 | | Property, Plant and Equipment | $4,802 | | Identifiable Intangible Assets | $7,539 | | Goodwill | $14,279 | | Accounts Payable and Other Current Liabilities | $(6,095) | | Debt Assumed | $(7,918) | | Other Long-Term Liabilities | $(4,826) | | **Total Purchase Price** | **$19,473** | - Goodwill of **$14.3 million** was recognized, allocated to the Product ID segment, and is not deductible for tax purposes[43](index=43&type=chunk) **MTEX Financial Results Included in Consolidated Statements of Income (Loss) (in thousands)** | Item | Three Months Ended July 31, 2025 | Six Months Ended July 31, 2025 | | :--- | :--- | :--- | | Revenue | $711 | $2,114 | | Gross Profit | $(522) | $(403) | | Operating Loss | $(1,879) | $(2,796) | | Earnings (Loss) before Taxes | $(47) | $(1,103) | [Note 4 – Revenue Recognition](index=13&type=section&id=Note%204%20%E2%80%93%20Revenue%20Recognition) - Revenue is derived from the sale of hardware, related supplies, repairs and maintenance, and service agreements[49](index=49&type=chunk) **Revenue by Major Product Type (in thousands)** | Product Type | Six Months Ended July 31, 2025 | Six Months Ended August 3, 2024 | % Change | | :--- | :--- | :--- | :--- | | Hardware | $22,231 | $21,234 | 4.7% | | Supplies | $40,576 | $40,977 | (1.0)% | | Service and Other | $11,003 | $11,289 | (2.5)% | | **Total Revenue** | **$73,810** | **$73,500** | **0.4%** | - Deferred revenue increased to **$1,459 thousand** at July 31, 2025, from $543 thousand at January 31, 2025, including a $1.1 million advance payment for an Aerospace product line[9](index=9&type=chunk)[52](index=52&type=chunk)[53](index=53&type=chunk) [Note 5 – Net Income (Loss) Per Common Share](index=14&type=section&id=Note%205%20%E2%80%93%20Net%20Income%20(Loss)%20Per%20Common%20Share) **Net Income (Loss) per Common Share** | Item | Three Months Ended July 31, 2025 | Six Months Ended July 31, 2025 | | :--- | :--- | :--- | | Net Income (Loss) per Common Share—Basic | $(0.16) | $(0.21) | | Net Income (Loss) per Common Share—Diluted | $(0.16) | $(0.21) | - Weighted average common stock equivalent shares of 38,232 (three months) and 51,130 (six months) were **excluded from diluted EPS computation** for July 31, 2025, due to their anti-dilutive effect given the net loss[55](index=55&type=chunk) [Note 6 – Intangible Assets](index=15&type=section&id=Note%206%20%E2%80%93%20Intangible%20Assets) **Intangible Assets, Net (in thousands)** | Item | July 31, 2025 | January 31, 2025 | | :--- | :--- | :--- | | Intangible Assets, net | $22,729 | $23,519 | - Amortization expense for acquired intangible assets was **$1.4 million** for the six months ended July 31, 2025[59](index=59&type=chunk) **Estimated Amortization Expense for Next Five Fiscal Years (in thousands)** | Fiscal Year | Estimated Amortization Expense | | :--- | :--- | | 2026 | $1,439 | | 2027 | $2,878 | | 2028 | $2,376 | | 2029 | $2,009 | | 2030 | $2,009 | [Note 7 – Inventories](index=15&type=section&id=Note%207%20%E2%80%93%20Inventories) **Inventories, Net (in thousands)** | Item | July 31, 2025 | January 31, 2025 | | :--- | :--- | :--- | | Materials and Supplies | $32,839 | $35,181 | | Work-In-Process | $2,602 | $2,559 | | Finished Goods | $22,401 | $19,879 | | Inventory Reserve | $(9,449) | $(9,725) | | **Total Inventories, net** | **$48,393** | **$47,894** | [Note 8 – Property, Plant and Equipment](index=16&type=section&id=Note%208%20%E2%80%93%20Property%2C%20Plant%20and%20Equipment) **Net Property, Plant and Equipment (in thousands)** | Item | July 31, 2025 | January 31, 2025 | | :--- | :--- | :--- | | Gross Property, Plant and Equipment | $63,094 | $62,361 | | Accumulated Depreciation | $(46,076) | $(44,722) | | **Net Property, Plant and Equipment** | **$17,018** | **$17,639** | - Depreciation expense on property, plant and equipment was **$1.1 million** for the six months ended July 31, 2025[62](index=62&type=chunk) [Note 9 – Credit Agreement and Long-Term Debt](index=16&type=section&id=Note%209%20%E2%80%93%20Credit%20Agreement%20and%20Long-Term%20Debt) - The company entered into a **Fourth Amendment** to its credit agreement on March 20, 2025, modifying Term Loan repayment terms and interest rate margins[65](index=65&type=chunk)[66](index=66&type=chunk)[72](index=72&type=chunk) - As of July 31, 2025, the company was **not in compliance** with the minimum consolidated fixed charge coverage ratio but received a waiver via a Fifth Amendment on September 8, 2025[76](index=76&type=chunk)[217](index=217&type=chunk) **Summary of Outstanding Debt (in thousands)** | Debt Type | July 31, 2025 | January 31, 2025 | | :--- | :--- | :--- | | USD Term Loan | $8,800 | $9,450 | | Euro Term Loan | $12,667 | $12,719 | | MTEX Euro Term Loan | $1,590 | $1,514 | | MTEX Euro Government Grant Term Loan | $561 | $876 | | Equipment Loan | $605 | $680 | | **Total Debt** | **$24,223** | **$25,239** | | Revolving Line of Credit (Current Liability) | $19,079 | $20,929 | - As of July 31, 2025, **$5.9 million remained available** for borrowing under the revolving credit facility[82](index=82&type=chunk) [Note 10 – Financial Instruments and Risk Management](index=19&type=section&id=Note%2010%20%E2%80%93%20Financial%20Instruments%20and%20Risk%20Management) - The company uses foreign currency-denominated debt to partially hedge its net investment in European operations, specifically in its German operation as of January 31, 2025[85](index=85&type=chunk) - A foreign currency translation gain of **$1,022 thousand** was recognized in Other Comprehensive Income for the six months ended July 31, 2025[14](index=14&type=chunk)[99](index=99&type=chunk) [Note 11 – Royalty Obligation](index=20&type=section&id=Note%2011%20%E2%80%93%20Royalty%20Obligation) - As of July 31, 2025, **$13.5 million** of the $15.0 million guaranteed minimum royalty obligation with Honeywell has been paid[87](index=87&type=chunk) - The remaining guaranteed minimum royalty obligation is **$1.0 million (current)** and **$0.5 million (long-term)** at July 31, 2025[87](index=87&type=chunk) - A new royalty agreement for Boeing 787 aircraft printers has an outstanding obligation of **$0.5 million** as of July 31, 2025, including $0.2 million current[89](index=89&type=chunk) [Note 12 – Leases](index=20&type=section&id=Note%2012%20%E2%80%93%20Leases) **Operating Lease Information (in thousands)** | Item | July 31, 2025 | January 31, 2025 | | :--- | :--- | :--- | | Right of Use Assets | $2,689 | $1,781 | | Lease Liabilities – Current | $547 | $320 | | Lease Liabilities – Long Term | $2,235 | $1,535 | | **Total Lease Liabilities** | **$2,782** | **$1,855** | - Operating lease costs were **$341 thousand** for the six months ended July 31, 2025[90](index=90&type=chunk) - The weighted-average remaining lease term is **5.8 years**, with a weighted-average discount rate of **6.10%** as of July 31, 2025[92](index=92&type=chunk) [Note 13 – Government Grants](index=22&type=section&id=Note%2013%20%E2%80%93%20Government%20Grants) - MTEX receives government grants from Portugal for operations and capital projects[95](index=95&type=chunk) - As of July 31, 2025, **$1.3 million** in short and long-term deferred revenue for capital grants is recognized[97](index=97&type=chunk) - Grant revenue of **$0.1 million** (capital-related) was recognized as an offset to depreciation expense, and **$0.2 million** (operational-related) was offset against selling and marketing expense for the six months ended July 31, 2025[97](index=97&type=chunk)[98](index=98&type=chunk) [Note 14 – Accumulated Other Comprehensive Loss](index=22&type=section&id=Note%2014%20%E2%80%93%20Accumulated%20Other%20Comprehensive%20Loss) **Accumulated Other Comprehensive Loss (in thousands)** | Item | January 31, 2025 | July 31, 2025 | | :--- | :--- | :--- | | Balance | $(3,349) | $(2,327) | | Other Comprehensive Income | N/A | $1,022 | | **Change** | **N/A** | **$1,022** | - The improvement in accumulated other comprehensive loss is primarily due to **foreign currency translation adjustments**[99](index=99&type=chunk) [Note 15 – Share-Based Compensation](index=22&type=section&id=Note%2015%20%E2%80%93%20Share-Based%20Compensation) **Share-Based Compensation Expense (in thousands)** | Item | Three Months Ended July 31, 2025 | Six Months Ended July 31, 2025 | | :--- | :--- | :--- | | Stock Options | $35 | $35 | | Restricted Stock Awards and Restricted Stock Units | $421 | $702 | | Stock-Settled Performance Awards | $43 | $43 | | Employee Stock Purchase Plan | $0 | $25 | | **Total** | **$499** | **$805** | - Approximately **$1.1 million** of unrecognized compensation expense related to RSUs, PSUs, and RSAs is expected to be recognized over a weighted average period of 2.3 years[108](index=108&type=chunk) - The Employee Stock Purchase Plan (ESPP) was **terminated** effective April 22, 2025[111](index=111&type=chunk) [Note 16 – Income Taxes](index=24&type=section&id=Note%2016%20%E2%80%93%20Income%20Taxes) **Effective Tax Rates** | Period | Fiscal 2026 | Fiscal 2025 | | :--- | :--- | :--- | | Three Months Ended July 31 | 26.8% | (522.0)% | | Six Months Ended July 31 | 18.9% | (24.9)% | - An income tax benefit of **$378 thousand** was recognized for the six months ended July 31, 2025[115](index=115&type=chunk) - The "One Big Beautiful Bill Act" (OBBBA), enacted on July 4, 2025, is **not expected to have a material impact** on the consolidated financial statements[116](index=116&type=chunk) [Note 17 – Segment Information](index=25&type=section&id=Note%2017%20%E2%80%93%20Segment%20Information) - AstroNova operates in two reporting segments: **Product ID** and **Aerospace** (formerly Test & Measurement)[118](index=118&type=chunk)[119](index=119&type=chunk) **Revenue by Segment (in thousands)** | Segment | Three Months Ended July 31, 2025 | Three Months Ended August 3, 2024 | Six Months Ended July 31, 2025 | Six Months Ended August 3, 2024 | | :--- | :--- | :--- | :--- | :--- | | Product ID | $24,754 | $27,165 | $51,043 | $50,350 | | Aerospace | $11,348 | $13,374 | $22,767 | $23,150 | | **Total Revenue** | **$36,102** | **$40,539** | **$73,810** | **$73,500** | **Segment Operating Income (in thousands)** | Segment | Three Months Ended July 31, 2025 | Three Months Ended August 3, 2024 | Six Months Ended July 31, 2025 | Six Months Ended August 3, 2024 | | :--- | :--- | :--- | :--- | :--- | | Product ID | $1,916 | $2,348 | $4,707 | $5,340 | | Aerospace | $2,410 | $3,834 | $5,176 | $5,555 | | **Total Segment Operating Income** | **$4,326** | **$6,182** | **$9,883** | **$10,895** | [Note 18 – Fair Value](index=27&type=section&id=Note%2018%20%E2%80%93%20Fair%20Value) - The fair value of long-term debt, including the current portion, is estimated at **$24,115 thousand** as of July 31, 2025, and is classified as a Level 3 measurement[126](index=126&type=chunk) [Note 19 – Restructuring](index=27&type=section&id=Note%2019%20%E2%80%93%20Restructuring) - A restructuring plan for fiscal 2026 was announced on March 20, 2025, including a **10% global workforce reduction** and realignment of the MTEX operation[127](index=127&type=chunk) - The plan involves cutting approximately **70% of the MTEX product portfolio** to focus on higher-margin products and integrating MTEX sales, marketing, and customer support functions[127](index=127&type=chunk) - The company anticipates **$3.0 million in annualized savings** and has recognized **$1.2 million in pre-tax restructuring charges** as of July 31, 2025[127](index=127&type=chunk)[128](index=128&type=chunk) [Note 20 – Subsequent Events](index=28&type=section&id=Note%2020%20%E2%80%93%20Subsequent%20Events) - On September 8, 2025, the company entered into a **Fifth Amendment** to its credit agreement, which waived a covenant default as of July 31, 2025[130](index=130&type=chunk)[217](index=217&type=chunk) - The Fifth Amendment also requires the company to provide a mortgage on its Elk Grove Village, Illinois property and obtain a Phase II environmental site assessment for its West Warwick, Rhode Island property[130](index=130&type=chunk)[217](index=217&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management analyzes financial condition, operational results, liquidity, and the impact of acquisitions and restructuring [Business Overview](index=28&type=section&id=Business%20Overview) - AstroNova operates in Product Identification and Aerospace segments, focusing on organic growth through product innovation and customer-centric strategies[132](index=132&type=chunk)[133](index=133&type=chunk)[136](index=136&type=chunk) - The MTEX acquisition (May 2024) was integrated into the Product ID segment, but its integration has been challenging, leading to an investigation of potential breaches of representations and warranties[134](index=134&type=chunk)[159](index=159&type=chunk) - A fiscal 2026 restructuring plan, announced March 20, 2025, includes a **10% global workforce reduction** and realignment of MTEX operations, aiming for **$3.0 million in annualized savings**[135](index=135&type=chunk) - Jorik E Ittmann was appointed President and Chief Executive Officer, effective August 15, 2025[137](index=137&type=chunk) [Results of Operations](index=29&type=section&id=Results%20of%20Operations) [Three Months Ended July 31, 2025 vs. Three Months Ended August 3, 2024](index=29&type=section&id=Three%20Months%20Ended%20July%2031%2C%202025%20vs.%20Three%20Months%20Ended%20August%203%2C%202024) **Revenue by Segment (in thousands)** | Segment | July 31, 2025 | August 3, 2024 | % Change | | :--- | :--- | :--- | :--- | | Product ID | $24,754 | $27,165 | (8.9)% | | Aerospace | $11,348 | $13,374 | (15.1)% | | **Total** | **$36,102** | **$40,539** | **(10.9)%** | - Gross profit **decreased by 18.8% to $11.6 million**, with gross profit margin declining 3.1 points to 32.2%, primarily due to unfavorable product mix and lower sales[142](index=142&type=chunk) - Net loss for the quarter was **$1.2 million**, or $(0.16) per diluted share, impacted by $0.7 million in restructuring charges, $0.1 million in legal fees, and $0.4 million in proxy solicitation costs[146](index=146&type=chunk) [Six Months Ended July 31, 2025 vs. Six Months Ended August 3, 2024](index=30&type=section&id=Six%20Months%20Ended%20July%2031%2C%202025%20vs.%20Six%20Months%20Ended%20August%203%2C%202024) **Revenue by Segment (in thousands)** | Segment | July 31, 2025 | August 3, 2024 | % Change | | :--- | :--- | :--- | :--- | | Product ID | $51,043 | $50,350 | 1.4% | | Aerospace | $22,767 | $23,150 | (1.7)% | | **Total** | **$73,810** | **$73,500** | **0.4%** | - Gross profit **decreased by 7.7% to $24.3 million**, with gross profit margin declining 2.9 percentage points to 32.9%, primarily due to lower sales, product mix, and $0.4 million in restructuring costs[151](index=151&type=chunk)[152](index=152&type=chunk) - The company reported a **net loss of $1.6 million**, or $(0.21) per diluted share, a shift from net income of $0.9 million in the prior year, significantly impacted by $1.2 million in restructuring charges and other non-recurring costs[156](index=156&type=chunk) [Segment Analysis](index=31&type=section&id=Segment%20Analysis) [Product ID Segment Analysis](index=32&type=section&id=Product%20ID%20Segment%20Analysis) - Product ID segment revenue **decreased by 8.9% in Q2 2025**, primarily due to declines in desktop, professional label, and direct-to-package printers[162](index=162&type=chunk) - For the six months ended July 31, 2025, Product ID revenue **increased by 1.4%**, driven by direct-to-package/overprinters and mail & sheet/flat pack printers[163](index=163&type=chunk) - Segment operating profit margin for Product ID **decreased to 7.7% in Q2 2025 and 9.2% for H1 2025**, primarily due to lower sales, unfavorable product mix, and higher costs associated with restructuring[162](index=162&type=chunk)[163](index=163&type=chunk) - The integration of MTEX has been more challenging than anticipated, leading to an investigation of potential breaches of representations and warranties and a **reduction of 70% of the MTEX product portfolio**[159](index=159&type=chunk)[135](index=135&type=chunk) [Aerospace Segment Analysis](index=33&type=section&id=Aerospace%20Segment%20Analysis) - Aerospace segment revenue **decreased by 15.1% in Q2 2025**, mainly due to a 25.2% decrease in commercial aircraft sales, partially offset by a 72.2% increase in defense market sales[168](index=168&type=chunk) - For the six months ended July 31, 2025, Aerospace revenue **decreased by 1.7%**, with declines in commercial aircraft and regional/business jet markets, partially offset by a 98.3% increase in defense market sales[169](index=169&type=chunk) - Segment operating profit margin for Aerospace **decreased to 21.2% in Q2 2025 and 22.7% for H1 2025**, due to lower revenue and product mix[168](index=168&type=chunk)[169](index=169&type=chunk) - Certain sales amounts for the three months ended April 30, 2025, were reclassified between market categories to correct a presentation error, with no impact on total net sales or financial statements[166](index=166&type=chunk)[167](index=167&type=chunk) [Liquidity and Capital Resources](index=35&type=section&id=Liquidity%20and%20Capital%20Resources) [Overview of Liquidity](index=35&type=section&id=Overview%20of%20Liquidity) - Primary liquidity sources are cash from operating activities and borrowings under the revolving credit facility[171](index=171&type=chunk) - Despite net losses for the three and six months ended July 31, 2025, management believes current liquidity sources will support anticipated needs[172](index=172&type=chunk) - As of July 31, 2025, the company **failed to satisfy certain financial covenants** under its credit agreement but received a waiver from the Lender[173](index=173&type=chunk) - Cash and cash equivalents were **$3.9 million** at July 31, 2025, with **$5.9 million available** under the revolving credit facility[177](index=177&type=chunk) [Indebtedness](index=35&type=section&id=Indebtedness) - The **Fourth Amendment** (March 20, 2025) modified repayment installments for the Term Loan and adjusted interest rate margins for various loans[176](index=176&type=chunk)[178](index=178&type=chunk)[183](index=183&type=chunk) - The **Fifth Amendment** (September 8, 2025) waived a covenant default as of July 31, 2025, and required additional collateral, including a mortgage on an Illinois property[187](index=187&type=chunk) - Assumed MTEX financing obligations include a Term Loan (**$1.6 million remaining**) and interest-free Government Grant Term Loans (**$0.6 million remaining**) as of July 31, 2025[191](index=191&type=chunk)[192](index=192&type=chunk) [Cash Flow](index=37&type=section&id=Cash%20Flow) - Net cash provided by operating activities **decreased to $4.6 million** for the six months ended July 31, 2025, from $7.1 million in the prior year, primarily due to a shift to net loss and decreased cash from working capital[194](index=194&type=chunk) - Net cash used for investing activities **significantly decreased to $(0.1) million** in 2025, compared to $(21.6) million in 2024, due to the absence of the MTEX acquisition[18](index=18&type=chunk)[194](index=194&type=chunk) - Accounts receivable decreased to $18.5 million, with days sales outstanding **improving to 47 days** from 51 days[195](index=195&type=chunk) - Inventory increased to $48.4 million, primarily to satisfy ink supply obligations, with inventory days on hand **increasing to 178 days** from 175 days[195](index=195&type=chunk) [Contractual Obligations, Commitments and Contingencies](index=38&type=section&id=Contractual%20Obligations%2C%20Commitments%20and%20Contingencies) - No material changes to contractual obligations, commitments, and contingencies have occurred since the Annual Report on Form 10-K for January 31, 2025, other than those in the ordinary course of business[197](index=197&type=chunk) [Critical Accounting Policies, Estimates and Certain Other Matters](index=38&type=section&id=Critical%20Accounting%20Policies%2C%20Estimates%20and%20Certain%20Other%20Matters) - The preparation of financial statements involves significant estimates and assumptions, including revenue recognition, inventory valuation, income taxes, and valuation of long-lived assets[198](index=198&type=chunk)[29](index=29&type=chunk) - Management continuously re-evaluates these estimates based on facts, historical experience, and economic conditions, acknowledging that actual results may differ materially[199](index=199&type=chunk) - There have been **no material changes** to the application of critical accounting policies since the Annual Report on Form 10-K for January 31, 2025[200](index=200&type=chunk) [Cautionary Note Regarding Forward-Looking Statements](index=38&type=section&id=Cautionary%20Note%20Regarding%20Forward-Looking%20Statements) - The report contains forward-looking statements subject to risks and uncertainties that could cause actual results to differ materially from expectations[201](index=201&type=chunk) - Key risk factors include general economic conditions, declining demand, new product development, supply chain dependence, competition, intellectual property, cybersecurity, and the ability to manage debt and integrate acquisitions[201](index=201&type=chunk) - The company assumes no obligation to update or revise any forward-looking statement[201](index=201&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=39&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risks involve foreign currency exchange rates and interest rate fluctuations [Foreign Currency Exchange Risk](index=39&type=section&id=Foreign%20Currency%20Exchange%20Risk) - The company is exposed to foreign currency exchange risk from translating foreign subsidiary financial statements (primarily Danish Kroner and Euro) and from transactional exposure[203](index=203&type=chunk)[204](index=204&type=chunk) - A hypothetical **10% change in exchange rates** would result in an increase or decrease in consolidated net income of **less than $0.1 million** for the quarter ended July 31, 2025[203](index=203&type=chunk) - Foreign exchange losses from transactional exposure were **less than $0.1 million** for the six months ended July 31, 2025[204](index=204&type=chunk) [Item 4. Controls and Procedures](index=39&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of July 31, 2025 [Evaluation of Disclosure Controls and Procedures](index=39&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) - Management, with CEO and CFO participation, concluded that disclosure controls and procedures were **effective** as of July 31, 2025[206](index=206&type=chunk) [Changes in Internal Control over Financial Reporting](index=39&type=section&id=Changes%20in%20Internal%20Control%20over%20Financial%20Reporting) - **No changes** in internal control over financial reporting materially affected or are reasonably likely to materially affect the company's internal control over financial reporting during the fiscal quarter ended July 31, 2025[207](index=207&type=chunk) [Part II. OTHER INFORMATION](index=39&type=section&id=Part%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=39&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in arbitration proceedings related to the MTEX acquisition, with a ruling expected in 2026 - Arbitration proceedings were initiated on March 11, 2025, by Effort Premier Solutions LDA and Elói Serafim Alves Ferreira, alleging breaches of the MTEX acquisition agreement[208](index=208&type=chunk) - AstroNova has rejected the claims and intends to file counterclaims based on breaches of the MTEX acquisition agreement[208](index=208&type=chunk) - The evidentiary process and hearings are planned over the next six months, with a ruling not expected until the first half of 2026[209](index=209&type=chunk) [Item 1A. Risk Factors](index=40&type=section&id=Item%201A.%20Risk%20Factors) Non-compliance with the credit agreement could have a material adverse impact on the company's business - Readers should carefully consider the risk factors discussed in Part I, Item 1A of the Annual Report on Form 10-K for the fiscal year ended January 31, 2025[211](index=211&type=chunk) - A significant risk is the **inability to comply with the credit agreement** or secure alternative financing, which could materially adversely affect the business and financial condition[212](index=212&type=chunk) - As of July 31, 2025, the company was **not in compliance** with the minimum consolidated fixed charge coverage ratio under its credit agreement, though a waiver was subsequently obtained[212](index=212&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=40&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased common stock from employees to cover tax obligations from vested restricted shares **Common Stock Repurchases (Q2 FY2026)** | Period | Total Number of Shares Repurchased | Weighted Average Price Paid Per Share | | :--- | :--- | :--- | | June 1 - June 30 | 2,739 | $9.01 | - The shares were repurchased from employees to satisfy taxes due in connection with the vesting of restricted shares[214](index=214&type=chunk) [Item 5. Other Information](index=41&type=section&id=Item%205.%20Other%20Information) A Fifth Amendment to the credit agreement waived a covenant default and added new collateral requirements - On September 8, 2025, the company entered into a **Fifth Amendment** to its credit agreement, waiving the event of default for non-compliance with the minimum consolidated fixed charge coverage ratio as of July 31, 2025[217](index=217&type=chunk) - The Fifth Amendment requires the company to provide a mortgage on its Elk Grove Village, Illinois property and obtain a Phase II environmental site assessment for its West Warwick, Rhode Island property[217](index=217&type=chunk) - No director or officer adopted or terminated a Rule 10b5-1 trading arrangement during the three months ended July 31, 2025[217](index=217&type=chunk) [Item 6. Exhibits](index=42&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the report, including key agreements and required certifications - The exhibits include organizational documents (Restated Articles of Incorporation, By-laws), key agreements (Stock-Settled Performance Award, Separation Agreement, Fifth Amendment to Credit Agreement), and certifications (CEO, CFO)[220](index=220&type=chunk) [Signatures](index=43&type=section&id=Signatures) The report is officially signed by the CEO and CFO, confirming its submission on September 9, 2025 - The report was signed on September 9, 2025, by Jorik E Ittmann, President and Chief Executive Officer, and Thomas D DeByle, Vice President, Chief Financial Officer and Treasurer[224](index=224&type=chunk)

Core Insights - The article discusses the limitations of AI-generated earnings call insights and emphasizes the lack of editorial review, which may affect the accuracy and completeness of the information provided [1] Group 1 - The earnings call insights are compilations of transcripts and content available on the Seeking Alpha website [1] - The insights are generated by an AI tool, which has inherent limitations [1] - There is no guarantee regarding the accuracy, completeness, or timeliness of the earnings call insights [1]

Core Insights - The company is focused on the development of transcript-related projects, indicating a commitment to enhancing their offerings in this area [1] Group 1 - The company publishes thousands of quarterly earnings calls each quarter, showcasing significant growth and expansion in their coverage [1]

Financial Data and Key Metrics Changes - The second quarter revenue was $36.1 million, a decline of 10.9% year-over-year and 4.2% sequentially, with 70% of this quarter's revenue being recurring [10] - Gross profit for the second quarter was $11.6 million, down $2.7 million year-over-year, reflecting lower sales and an unfavorable mix primarily related to the decline in Aerospace volume [11] - The net loss was $1.2 million, or $0.16 per share, reflecting lower volume, partially offset by a $0.5 million tax benefit [13] - Adjusted EBITDA was $2.1 million, down $1.8 million compared to the prior year period, with an adjusted EBITDA margin of 5.7% [13] Business Line Data and Key Metrics Changes - Product Identification segment revenue decreased by 8.9%, primarily driven by a $2.6 million decline in recurring supplies, parts, and service from customer attrition [10] - Aerospace segment revenue declined by 15.1% year-over-year, attributed to a tough comparison against last year's second quarter, which benefited from unusually large spare printer shipments [10][11] - Product Identification operating income for the quarter declined by $0.4 million, or 18%, while Aerospace operating income was down $1.4 million, or 37% [12] Market Data and Key Metrics Changes - Orders for the second quarter were $35.9 million, relatively unchanged from the prior year period but up $1 million sequentially, with aerospace orders increasing by $3.8 million [15] - Backlog for the quarter decreased by $4.6 million year-over-year to $25.3 million, representing about 30% of expected shipments for the second half of the year [15] Company Strategy and Development Direction - The company is focusing on restructuring its sales team to be more customer-centric, with a new approach that includes Customer Acquisition and Customer Retention teams [5] - There is an emphasis on validating new product upgrades and addressing production challenges in the mill and sheet flat-pack printer operation [6][16] - The company aims to grow sales, drive product profitability, generate cash, and pay down debt as part of its turnaround strategy [14] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the need to regain trust with key stakeholders, including customers and investors, and emphasizes the importance of transparency and accountability [8][9] - The aerospace business is expected to benefit from increasing aircraft build rates and a profit margin improvement anticipated in fiscal 2028 [17] - Management is optimistic about the potential of new printers and expects to see a full benefit of $3 million in annualized cost reductions in the second half of the fiscal year [17] Other Important Information - The company has been managing capital carefully, with CapEx expected to be less than $0.5 million for the fiscal year [14] - The leverage ratio of funded debt to adjusted EBITDA was 3.5x, and discussions regarding restructuring of debt are ongoing [14] Q&A Session Summary - The Q&A session was conducted but no specific questions or answers were documented in the provided content [18]

Financial Data and Key Metrics Changes - The second quarter revenue was $36.1 million, a decline of 10.9% year over year and 4.2% sequentially, with 70% of this quarter's revenue being recurring [10] - Gross profit for the second quarter was $11.6 million, down $2.7 million year over year, reflecting lower sales and an unfavorable mix primarily related to the decline in Aerospace volume [11] - The net loss was $1.2 million, or $0.16 per share, partially offset by a $0.5 million tax benefit, with adjusted EBITDA at $2.1 million, down $1.8 million compared to the prior year [13] Business Line Data and Key Metrics Changes - Product Identification segment revenue decreased by 8.9%, primarily due to a $2.6 million decline in recurring supplies, parts, and service from customer attrition [10] - Aerospace segment revenue declined by 15.1% year over year, attributed to a tough comparison against last year's second quarter, which included unusually large spare printer shipments [10][11] - Operating income for Product Identification declined by $0.4 million, or 18%, while Aerospace operating income was down $1.4 million, or 37% [12] Market Data and Key Metrics Changes - Orders for the second quarter were $35.9 million, relatively unchanged from the prior year but up $1 million sequentially, with aerospace orders increasing by $3.8 million [15] - Backlog for the quarter decreased by $4.6 million year over year to $25.3 million, representing about 30% of expected shipments for the second half of the year [15] Company Strategy and Development Direction - The company is restructuring its sales team to focus on customer acquisition and retention, aiming to regain lost customers while attracting new ones [5] - A new go-to-market strategy is being implemented, with expectations of improved results over the next several quarters [6] - The company is focused on improving cash generation through operational performance and is managing capital investments carefully, with CapEx expected to be less than half a million for the fiscal year [14] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenges faced in the Product Identification segment and is working to validate product upgrades to meet customer needs [6] - The aerospace business is expected to benefit from increasing aircraft build rates and a potential profit margin improvement as certain royalties roll off in fiscal 2028 [17] - Management is optimistic about the potential of new printers and expects to see the full benefit of $3 million in annualized cost reductions in the second half of the fiscal year [17] Other Important Information - The company has paid down $5.1 million in debt through the first half of fiscal 2026 and has a total liquidity of $10.4 million [14] - The leverage ratio of funded debt to adjusted EBITDA was 3.5 times, with ongoing discussions regarding debt restructuring expected to be completed in the next 60 days [14] Q&A Session Summary - The Q&A session was conducted but no specific questions or answers were documented in the provided content [18]

Financial Data and Key Metrics Changes - The second quarter revenue was $36.1 million, a decline of 10.9% year over year and 4.2% sequentially, with 70% of this quarter's revenue being recurring [11] - Gross profit for the second quarter was $11.6 million, down $2.7 million year over year, reflecting lower sales and an unfavorable mix primarily related to the decline in Aerospace volume [12] - The net loss was $1.2 million, or $0.16 per share, partially offset by a $0.5 million tax benefit, with adjusted EBITDA at $2.1 million, down $1.8 million compared to the prior year [14] Business Line Data and Key Metrics Changes - Product Identification revenue decreased by 8.9%, primarily due to a $2.6 million decline in recurring supplies, parts, and service from customer attrition, although there was higher demand for mail and sheet flat-pack products [11] - Aerospace revenue declined by 15.1% year over year, attributed to a tough comparison against last year's second quarter, which included unusually large spare printer shipments [12] - Product Identification operating income for the quarter declined by $0.4 million, or 18%, while Aerospace operating income was down $1.4 million, or 37% [13] Market Data and Key Metrics Changes - Orders for the second quarter were $35.9 million, relatively unchanged from the prior year but up $1 million sequentially, with aerospace orders increasing by $3.8 million [18] - Backlog for the quarter decreased by $4.6 million year over year to $25.3 million, representing about 30% of expected shipments for the second half of the year [19] Company Strategy and Development Direction - The company is restructuring its sales team to focus on customer acquisition and retention, aiming to regain lost customers while attracting new ones [5] - There is a strong emphasis on validating new product offerings and improving the sales process for higher-value print solutions [6] - The company aims to grow sales, drive product profitability, generate cash, and pay down debt as part of its turnaround strategy [16] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenges in regaining customer trust and improving operational performance, emphasizing the need for a customer-centric approach [9] - The aerospace segment is expected to benefit from increasing aircraft build rates and improved profit margins in the future [20] - Management is optimistic about the potential of new printers and anticipates a full benefit from cost reductions in the second half of the fiscal year [20] Other Important Information - The company has been managing capital carefully, with CapEx expected to be less than half a million for the fiscal year [16] - The leverage ratio of funded debt to adjusted EBITDA was 3.5 times, with ongoing discussions regarding debt restructuring [16] Q&A Session Summary Question: What are the expectations for future sales growth? - Management expects steady growth in hardware sales related to new builds as Boeing increases its build rates and inventories level out [18] Question: How is the company addressing customer retention? - The company is re-engaging with customers and simplifying processes to improve responsiveness and retention rates [19]

Financial Performance - AstroNova's Q2 FY26 consolidated revenue was $361 million, compared to $405 million in Q2 FY25[14] - Product ID Q2 FY26 revenue declined by 89% year-over-year[10] - Aerospace Q2 FY26 revenue declined by 151% year-over-year[11] - The company reported a net loss of $124 million in Q2 FY26, compared to a net loss of $031 million in Q2 FY25[33] - Adjusted EBITDA for Q2 FY26 was $21 million, compared to $39 million in Q2 FY25[33] - For the first six months of FY26, revenue was $7381 million compared to $735 million in the first six months of FY25[16] - The company paid down $51 million in debt during the first half of FY26, excluding FX impacts[38] Segment Performance - Product ID segment gross profit for Q2 FY26 was $7677 million with a gross profit margin of 310%[56] - Aerospace segment gross profit for Q2 FY26 was $3956 million with a gross profit margin of 349%[56] Future Outlook - The company expects full-year revenue of $149 million to $154 million and an adjusted EBITDA margin in the range of 75% to 85%[47] - AstroNova anticipates modest revenue growth and EBITDA margin improvement in the second half of FY26 due to demand for new Product ID solutions and higher profitability of new ToughWriter sales[47]