Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) Commission File No. 0-9143 HURCO COMPANIES, INC. (Exact name of registrant as specified in its charter) | Indiana | 35-1150732 | | --- | --- | | (State or other jurisdiction of | (I.R.S. Employer Identification Number) | | incorporation or organization) | | | One Technology Way | | | Indianapolis, Indiana | 46268 | | (Address of principal executive offices) | (Zip code) | Registrant's telephone num ...

Exhibit 99.1 FOR IMMEDIATE RELEASE FRIDAY, SEPTEMBER 5, 2025 HURCO REPORTS THIRD QUARTER RESULTS FOR FISCAL YEAR 2025 INDIANAPOLIS, INDIANA – September 5, 2025 -- Hurco Companies, Inc. (Nasdaq: HURC) today reported results for the third fiscal quarter ended July 31, 2025. Hurco recorded a net loss of $3,693,000, or $0.58 per diluted share, for the third quarter of fiscal year 2025, compared to a net loss of $9,596,000, or $1.47 per diluted share, for the corresponding period in fiscal year 2024. These net l ...

INDIANAPOLIS, Sept. 05, 2025 (GLOBE NEWSWIRE) -- Hurco Companies, Inc. (Nasdaq: HURC) today reported results for the third fiscal quarter ended July 31, 2025. Hurco recorded a net loss of $3,693,000, or $0.58 per diluted share, for the third quarter of fiscal year 2025, compared to a net loss of $9,596,000, or $1.47 per diluted share, for the corresponding period in fiscal year 2024. These net losses for the third quarter of fiscal years 2025 and 2024 included non-cash tax valuation allowances of $1,639,000 ...

Group 1 - The equity markets are performing relatively well, but there is significant uncertainty and concern in the manufacturing sector in North America and Western Europe [1] - This uncertainty in the manufacturing sector is negatively impacting companies like Hurco [1]

Core Viewpoint - Hurco Companies, Inc. reported a net loss for the second quarter of fiscal 2025, with significant declines in revenue and orders, contrasting with a positive performance of the S&P 500 Index during the same period [1][2][5]. Financial Performance - The company recorded a net loss of $4.1 million, or $0.62 per diluted share, compared to a net loss of $3.9 million, or $0.61 per share, in the same quarter last year, indicating a marginal increase in losses [2]. - Revenues decreased by 9.5% to $40.9 million from $45.2 million year-over-year, attributed to lower shipments of machines [2]. - Gross profit was $7.8 million, representing 19.2% of sales, an improvement from 17.8% in the same quarter last year, due to a favorable sales mix and lower fixed costs [3]. - Operating loss narrowed to $3.1 million from $3.4 million, while SG&A expenses decreased by 4.9% to $10.9 million [3]. Segment Performance - Sales in the Americas declined by 9.4% to $15.4 million, Europe saw a 4.9% decrease to $21.6 million, and Asia Pacific experienced a 29.2% fall to $3.9 million [4]. - Total new orders booked were $43.7 million, down 1.1% from the prior year, with significant regional variations [5]. - For the six-month period, total orders declined 11.3% to $83.8 million, with notable softness in the Americas and Europe, while Asia Pacific registered a 28.5% increase [6]. Tax and Balance Sheet - The effective tax rate was (15%), influenced by valuation allowances against deferred tax assets [7]. - Cash and equivalents increased to $43.8 million as of April 30, 2025, compared to $33.3 million as of October 31, 2024, while working capital decreased to $175.9 million [8]. Operational Efficiency - Inventory turnover remained at 1x, and days sales outstanding increased from 49 to 51 days [9]. - Capital expenditures rose to $800,000 from $479,000 a year earlier, indicating modest reinvestment [9]. Management Commentary - CEO Greg Volovic highlighted challenges in global markets and reaffirmed the company's commitment to long-term strategies, including cash flow improvement and cost reduction [11]. - The company emphasized ongoing product development and innovation despite short-term headwinds [11]. Performance Influences - Hurco's performance was negatively impacted by reduced machine shipments, particularly in the Americas and Europe, while Asia Pacific saw increased demand [12][13]. - The gross margin improvement was supported by a favorable regional sales mix and lower overhead costs [13]. Other Developments - No acquisitions, divestitures, or major restructuring announcements were reported, and no dividends were declared for the fiscal second quarter [14].

Financial Performance - Sales and service fees for the second quarter of fiscal year 2025 were $40.9 million, a decrease of $4.3 million, or 10%, compared to the same period in fiscal year 2024[90]. - Orders for the second quarter of fiscal year 2025 were $43.7 million, a decrease of $0.5 million, or 1%, compared to the corresponding period in fiscal year 2024[96]. - Sales in the Americas for the second quarter of fiscal year 2025 decreased by 9%, while European sales decreased by 5%, and Asian Pacific sales decreased by 29% compared to the same period in fiscal year 2024[91][92][93]. - Gross profit for the second quarter of fiscal year 2025 was $7.8 million, or 19% of sales, compared to $8.0 million, or 18% of sales, for the corresponding prior year period[99]. - Selling, general, and administrative expenses for the second quarter of fiscal year 2025 were $10.9 million, or 27% of sales, compared to $11.5 million, or 25% of sales, in the corresponding fiscal year 2024 period[100]. - Operating loss for the second quarter of fiscal year 2025 was $3.1 million, compared to $3.4 million for the corresponding period in fiscal year 2024[101]. - Sales of computerized machine tools for the second quarter of fiscal year 2025 decreased by 10%, while sales of computer control systems and software increased by 12%[95]. - Sales and service fees for the first six months of fiscal year 2025 were $87.3 million, a decrease of $3.0 million, or 3%, compared to the prior year period[104]. - Orders for the first six months of fiscal year 2025 were $83.8 million, a decrease of $10.6 million, or 11%, compared to the prior year period[111]. - Gross profit for the first six months of fiscal year 2025 was $16.1 million, or 18% of sales, compared to $17.7 million, or 20% of sales, for the prior year period[115]. - Operating loss for the first six months of fiscal year 2025 was $5.2 million, compared to $5.3 million for the prior year period[117]. Cash Flow and Capital Management - Cash and cash equivalents at April 30, 2025, were $43.8 million, compared to $33.3 million at October 31, 2024[120]. - Working capital was $175.9 million at April 30, 2025, compared to $180.8 million at October 31, 2024[121]. - Capital expenditures of $1.4 million during the first six months of fiscal year 2025 were primarily for software development costs and capital improvements[121]. - The company announced a share repurchase program of up to $25.0 million, with $21.7 million remaining available as of April 30, 2025[122]. - The company suspended its regular quarterly cash dividend on June 14, 2024, to enhance financial flexibility and manage market volatility[123]. - As of April 30, 2025, the company had no debt or borrowings under any of its credit facilities, with approximately $50.8 million available for borrowing[129][130]. Credit Facilities and Compliance - The 2018 Credit Agreement provides for an unsecured revolving credit facility of up to $40.0 million, with a maturity date of December 31, 2025[124]. - The company has a minimum working capital requirement of $125.0 million and a minimum tangible net worth of $176.5 million under the 2018 Credit Agreement[126]. - The company is in compliance with all covenants related to its credit facilities as of April 30, 2025[130]. - The company has renewed its uncommitted revolving credit facilities in Taiwan and China on substantially similar terms in February and December 2023, respectively[128]. Market and Strategic Initiatives - The company operates in a cyclical industry with approximately 50% of revenues from Europe and 12% from the Asia Pacific region[84]. - The company derived approximately 62% of its revenues from customers located outside of the Americas in the first six months of fiscal year 2025[142]. - The company is committed to product innovation, acquisitions, and targeted penetration of developing markets as part of its strategic plan[131]. - The company continues to review potential acquisitions, including intellectual property assets[132]. Currency and Risk Management - The company seeks to mitigate cash flow risks from fluctuating currency exchange rates through the use of derivative instruments[89]. - The company has entered into foreign currency forward exchange contracts to hedge against cash flow risks related to forecasted inter-company sales and purchases, with notional amounts including €6,000,000 and £3,150,000[145]. - The company has maintained a forward contract with a notional amount of €3.0 million to hedge its net investment in Euro-denominated assets, maturing in November 2025[146]. - As of April 30, 2025, the company had seven outstanding third-party payment guarantees totaling approximately $0.8 million[135].

Financial Performance - Hurco reported a net loss of $4,063,000, or $0.62 per diluted share, for Q2 FY 2025, compared to a net loss of $3,922,000, or $0.61 per diluted share, in Q2 FY 2024[1]. - Sales and service fees for Q2 FY 2025 were $40,867,000, a decrease of $4,305,000, or 10%, compared to the same period in FY 2024[2]. - Orders for Q2 FY 2025 were $43,700,000, a decrease of $492,000, or 1%, compared to Q2 FY 2024[7]. - Gross profit for Q2 FY 2025 was $7,829,000, or 19% of sales, compared to $8,019,000, or 18% of sales, in Q2 FY 2024[12]. - Selling, general, and administrative expenses for Q2 FY 2025 were $10,897,000, or 27% of sales, compared to $11,461,000, or 25% of sales, in Q2 FY 2024[13]. - The net loss for the three months ended April 30, 2025, was $4,063,000, compared to a net loss of $3,922,000 for the same period in 2024[19]. - Selling, general and administrative expenses as a percentage of sales increased to 27% for the three months ended April 30, 2025, from 25% in the same period of 2024[20]. - Gross profit for the six months ended April 30, 2025, was $16,119,000, down from $17,714,000 in 2024, reflecting a gross margin of 18% compared to 20% in the prior year[19][20]. Cash and Working Capital - Cash and cash equivalents totaled $43,807,000 at April 30, 2025, compared to $33,330,000 at October 31, 2024[15]. - Working capital was $175,914,000 at April 30, 2025, down from $180,788,000 at October 31, 2024[15]. - Total current assets decreased to $222,909,000 as of April 30, 2025, from $228,577,000 as of October 31, 2024[22]. - Shareholders' equity decreased to $202,280,000 as of April 30, 2025, from $207,172,000 as of October 31, 2024[22]. - The company reported a decrease in accounts receivable, net, to $25,583,000 as of April 30, 2025, from $36,678,000 as of October 31, 2024[22]. - Days sales outstanding increased to 51 days as of April 30, 2025, compared to 49 days as of October 31, 2024[20]. Sales Performance by Region - Sales in the Americas decreased by 9% in Q2 FY 2025 compared to Q2 FY 2024, primarily due to decreased shipments of Hurco and Takumi machines[4]. - European sales decreased by 5% in Q2 FY 2025 compared to Q2 FY 2024, driven by decreased shipments in Germany, France, and Italy[5]. - Asian Pacific sales decreased by 29% in Q2 FY 2025 compared to Q2 FY 2024, primarily due to decreased sales of higher-performance machines in India[6]. Tax and Capital Expenditures - The effective tax rate for the six months ended April 30, 2025, was (44)%, compared to 9% in the same period of 2024[20]. - Capital expenditures for the six months ended April 30, 2025, were $1,356,000, compared to $1,311,000 in 2024[20].

Core Insights - Hurco Companies, Inc. reported a net loss of $4,063,000, or $0.62 per diluted share, for the second quarter of fiscal year 2025, compared to a net loss of $3,922,000, or $0.61 per diluted share, in the same period of fiscal year 2024 [1] - Sales and service fees decreased by 10% to $40,867,000 in the second quarter of fiscal year 2025, with a total of $87,281,000 for the first six months, reflecting a 3% decline compared to the prior year [2] - The CEO emphasized the commitment to long-term strategy and cash flow management despite significant market uncertainties [3] Financial Performance - The gross profit for the second quarter was $7,829,000, or 19% of sales, compared to $8,019,000, or 18% of sales, in the prior year [11] - Selling, general, and administrative expenses for the second quarter were $10,897,000, or 27% of sales, up from 25% in the same period last year [13] - The company recorded an income tax expense of $518,000 for the second quarter, which included a valuation allowance of $1,270,000 against deferred tax assets [14] Sales and Orders - Total orders for the second quarter were $43,700,000, a decrease of 1% compared to the same period in fiscal year 2024 [7] - Sales in the Americas decreased by 9% in the second quarter, while European sales fell by 5% [4][5] - Asian Pacific orders increased by 74% in the second quarter, driven by higher demand for Hurco and Takumi machines [10] Geographic Performance - In the Americas, sales for the second quarter were $15,361,000, down from $16,947,000 in the prior year [3] - European sales totaled $21,608,000, a decrease from $22,720,000, primarily due to reduced shipments in Germany, France, and Italy [4] - Asian Pacific sales were $3,898,000, reflecting a significant decline of 29% compared to the previous year [5] Cash and Working Capital - Cash and cash equivalents increased to $43,807,000 as of April 30, 2025, compared to $33,330,000 at the end of October 2024 [15] - Working capital decreased to $175,914,000 from $180,788,000, driven by reductions in inventories and accounts receivable [15]

Financial Performance - Hurco reported a net loss of $4.3 million, or $0.67 per diluted share, for Q1 fiscal 2025, compared to a net loss of $1.6 million, or $0.25 per diluted share, in the prior-year period [2] - Sales and service fees increased by 3% year over year to $46.4 million, driven by an 8.8% increase in the Americas and an 18.3% increase in the Asia Pacific region, despite a 4.9% decline in European sales [3] - Gross profit decreased by 14.5% to $8.3 million, with gross margin contracting to 18% from 22% due to lower sales volumes of high-margin products [4] Orders and Market Dynamics - Order volume declined by 20.2% year over year to $40.1 million, with a significant 29.6% drop in orders from the Americas and a 17.7% decline in Europe [6] - In Europe, reduced demand for Hurco and Takumi machines contributed to the decline, while the Asia Pacific region saw a modest 3.1% increase in orders, particularly in China [7] Cash and Working Capital - Hurco ended the quarter with $41.8 million in cash and cash equivalents, an increase from $33.3 million at the end of fiscal 2024, while working capital decreased to $172.6 million [8] Management Commentary - CEO Greg Volovic noted the softer order volume in the U.S. due to delayed capital investments amid economic uncertainty, emphasizing the company's financial strength and diverse product portfolio [9] Guidance and Strategic Focus - The company did not provide explicit forward-looking guidance but acknowledged challenges from market uncertainty, focusing on financial discipline and inventory management [10] Share Repurchase and Dividend Policy - The $25 million share repurchase program remains active, with $21.7 million available for future repurchases, although no buybacks occurred during the quarter [11]

Core Viewpoint - Hurco Companies, Inc. (NASDAQ: HURC) has reported results indicating that unlike many larger industrial companies, it believes that destocking has largely concluded and anticipates a recovery in end-market demand in the second half of the year [1] Group 1 - Hurco Companies, Inc. shows a positive outlook on market demand recovery, contrasting with the cautious stance of larger industrial firms [1]