Shares of MIND Technology, Inc. (MIND) have declined 19.8% since the company reported its earnings for the quarter ended Oct. 31, 2025. This compares to the S&P 500 index’s 0.4% decline over the same time frame. Over the past month, the stock has declined 23.4% compared with the S&P 500’s 2.8% growth.MIND Technology reported a fiscal third-quarter 2026 net income of 1 cent per share, a steep decline from $2.87 in the prior-year quarter, which had included a significant effect from the conversion of preferre ...

Financial Performance - Revenues for the three months ended October 31, 2025, were approximately $9.7 million, a decrease from $12.1 million for the same period in 2024, while revenues for the nine months ended October 31, 2025, were approximately $31.2 million compared to $31.8 million in 2024[88]. - Operating income for the three months ended October 31, 2025, was approximately $774,000, down from $1.9 million in the same period of 2024, and for the nine months ended October 31, 2025, it was approximately $2.8 million compared to $4.0 million in 2024[88]. - Gross profit margin for the three months ended October 31, 2025, increased to 47% from 45% in the same period of 2024, and for the nine months, it remained at 47% compared to 45% in 2024[90]. - The company anticipates generating net income for fiscal 2026, following positive Adjusted EBITDA for fiscal 2024 and fiscal 2025[97]. Order Backlog and Future Expectations - As of October 31, 2025, the backlog of firm orders was approximately $7.2 million, down from $16.9 million as of January 31, 2025, but additional orders totaling approximately $9.5 million were received after this date[79]. - The company expects revenue in the fourth quarter of fiscal 2026 to improve compared to the third quarter of fiscal 2026, driven by increased activity and backlog[80]. - The company is pursuing new product initiatives and significant project opportunities that could positively impact future financial results, particularly in fiscal 2027[80]. Cash Flow and Capital - For the nine months ended October 31, 2025, the company generated net cash provided by operating activities of approximately $5.9 million, compared to cash used in operating activities of approximately $1.4 million for the same period in 2024[99][104]. - As of October 31, 2025, the company had working capital of approximately $36.0 million, including cash and cash equivalents of approximately $19.4 million, an increase from working capital of approximately $23.5 million and cash equivalents of approximately $5.3 million as of January 31, 2025[98][103]. - The company raised approximately $10.8 million in new capital through the sale of common stock, significantly increasing liquidity[82]. - Net cash provided by financing activities for the nine months ended October 31, 2025, was approximately $10.8 million, primarily from sales of common stock under the ATM program[106]. - The company initiated an at-the-market (ATM) offering program in September 2025, allowing for gross proceeds of up to $25.0 million, and has generated net proceeds of approximately $10.8 million from the issuance of approximately 1.0 million shares of common stock[100]. Expenses and Investments - Research and development costs for the three and nine months ended October 31, 2025, were approximately $506,000 and $1.2 million, respectively, compared to $562,000 and $1.4 million in the same periods of 2024[92]. - General and administrative expenses for the three and nine months ended October 31, 2025, were approximately $3.0 million and $10.0 million, respectively, compared to $2.8 million and $8.3 million in 2024, primarily due to higher stock-based compensation[91]. - The company’s facility in Huntsville, Texas underwent an expansion, which is expected to lead to increased revenue following the resumption of repair and production operations[78]. Tax and Foreign Operations - The income tax expense for the three months ended October 31, 2025, was approximately $716,000 on pre-tax income of approximately $778,000, compared to an income tax expense of approximately $396,000 on pre-tax income of approximately $1.7 million for the same period in 2024[95]. - As of October 31, 2025, the company had deposits in foreign banks totaling approximately $4.9 million, which could be distributed to the United States without adverse tax consequences[108]. - The company has determined that undistributed earnings of foreign subsidiaries are not deemed indefinitely reinvested outside of the United States as of October 31, 2025[107]. - The company does not currently hold or issue foreign exchange contracts or other derivative instruments to hedge currency exposure, which includes approximately $566,000 in cash and cash equivalents denominated in foreign currencies[113]. - The company has no off-balance sheet arrangements as of October 31, 2025[109].

MIND Technology (NasdaqCM:MIND) Q3 2026 Earnings Call December 10, 2025 09:00 AM ET Company ParticipantsZach Vaughan - Head of Investor RelationsRob Capps - President and CEOMark Cox - VP and CFOConference Call ParticipantsMike Mitcham - AnalystTyson Bauer - AnalystRoss Taylor - AnalystOperatorGreetings and welcome to the MIND Technology Fiscal 2026 Third Quarter Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. If any ...

Financial Data and Key Metrics Changes - MIND Technology reported third-quarter revenues of $9.7 million, slightly down from the previous quarter but still profitable, indicating consistent execution and cost structure optimization [12][14] - Gross profit for the quarter was $4.5 million, resulting in a gross profit margin of 47%, an improvement from 45% year-over-year, primarily due to a favorable product mix [14][17] - Net income decreased to $62,000 compared to $1.3 million in the same quarter last year, influenced by a higher effective tax rate due to discrete tax expense items [17][18] Business Line Data and Key Metrics Changes - The aftermarket business accounted for approximately 64% of total revenues in the first nine months of the fiscal year, providing a stable and recurring revenue stream [11][12] - The backlog of firm orders as of October 31, 2025, was approximately $7.2 million, down from $12.8 million as of July 31, 2025, but new orders totaling about $9.5 million were received after the quarter ended [7][10] Market Data and Key Metrics Changes - Customers across various industries are adopting a wait-and-see approach to larger system orders due to geopolitical and economic uncertainties, although the long-term outlook for the seismic exploration industry remains positive [8][19] - The company maintains a solid pipeline of potential orders, primarily from its three main product lines: GunLink source controllers, BuoyLink positioning systems, and SeaLink streamer systems [10][19] Company Strategy and Development Direction - MIND Technology aims to capitalize on growth opportunities by investing in the development of next-generation marine technology products and expanding its product offerings [13][20] - The company is exploring mergers and acquisitions, organic growth opportunities, and strategic alliances to enhance stockholder value and expand its scale [22][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving improved results in the fourth quarter despite current market uncertainties, viewing the recent lull in order activity as temporary [6][19] - The long-term pipeline of opportunities is considered very positive, with expectations for a clearer outlook for fiscal 2027 in the next call [20][24] Other Important Information - The company raised approximately $11 million through share issuance via its ATM program, enhancing its liquidity and flexibility for future opportunities [18][22] - MIND Technology maintains a clean, debt-free balance sheet with significant working capital of approximately $35.8 million, including $19.4 million in cash [17][18] Q&A Session Summary Question: Confidence in fiscal Q4 and order turnaround - Management confirmed that recent orders were anticipated and in process, contributing to confidence for Q4 results [28][29] Question: Gross margin improvement and system sales contribution - The improvement in gross margin was attributed to fixed cost absorption rather than pricing strategies on large systems [30][31] Question: Geopolitical risks and customer interest - Management noted a mix of new and existing customers showing interest, indicating a positive outlook despite geopolitical risks [32] Question: ATM program and capital deployment - The ATM program was utilized to strengthen working capital, with no specific event targeted for financing [33][34] Question: Future revenue growth and scaling opportunities - Management indicated that growth could come from new product offerings or market expansions, not solely through M&A [36][38] Question: GWL collaboration details - The collaboration is focused on product line expansion rather than aftermarket servicing [42][43] Question: U.S. revenue generation and tax asset utilization - The company aims to increase U.S. revenue to leverage tax loss carryforwards, with potential annual contributions of $3-10 million [60] Question: Maintenance work as a revenue driver - Maintenance work is expected to grow as the installed base increases, contributing to recurring revenue [61][62] Question: Operating profit margin expectations - Management anticipates improvements in operating profit margins as top-line revenue increases, despite recent stock-based compensation impacts [63][64]

Financial Performance - Revenues for Q3 fiscal 2026 were approximately $9.7 million, down 28.7% from $13.6 million in Q2 fiscal 2026 and down 19.5% from $12.1 million in Q3 fiscal 2025[2] - Operating income for Q3 fiscal 2026 was $774,000, a decrease of 71.5% from $2.7 million in Q2 fiscal 2026 and down 59.3% from $1.9 million in Q3 fiscal 2025[3] - Net income for Q3 fiscal 2026 was $62,000, compared to $1.9 million in Q2 fiscal 2026 and approximately $1.3 million in Q3 fiscal 2025, resulting in a net income per share of $0.01[3] - Adjusted EBITDA for Q3 fiscal 2026 was approximately $1.3 million, down 58.1% from $3.1 million in Q2 fiscal 2026 and down 35% from $2.0 million in Q3 fiscal 2025[4] - For the nine months ended October 31, 2025, net income was $1,021 million, a decrease from $3,043 million in the same period of 2024, representing a decline of approximately 66.5%[23] - EBITDA for the nine months ended October 31, 2025, was $3,355 million, down from $5,080 million in 2024, reflecting a decrease of about 34%[24] - Adjusted EBITDA for the nine months ended October 31, 2025, was $4,191 million, down from $5,221 million in 2024, reflecting a decrease of approximately 19.8%[24] Cash Flow and Working Capital - The company generated approximately $11.0 million in cash through its ATM program during the quarter, ending with nearly $36.0 million in working capital, of which $19.4 million was cash[7] - Net cash provided by operating activities for the nine months ended October 31, 2025, was $3,803 million, compared to a net cash used of $1,407 million in 2024, indicating a significant turnaround[23] - Cash and cash equivalents at the end of the period were $19,387 million, up from $3,505 million at the end of the same period in 2024, showing an increase of approximately 453%[23] - The company reported a net cash used in investing activities of $512 million for the nine months ended October 31, 2025, compared to a net cash provided of $244 million in 2024[23] Assets and Equity - Total current assets increased to $42.8 million as of October 31, 2025, compared to $32.1 million as of January 31, 2025[19] - Total stockholders' equity rose to $39.9 million as of October 31, 2025, up from $27.3 million as of January 31, 2025[19] Backlog and Future Expectations - The backlog of Marine Technology Products was approximately $7.2 million as of October 31, 2025, down from $12.8 million at July 31, 2025 and $26.2 million at October 31, 2024[5] - The company expects an improved fourth quarter based on the anticipated delivery schedule of its backlog and recent orders[6] Stock-Based Compensation and Foreign Exchange - Stock-based compensation for the nine months ended October 31, 2025, was $836 million, significantly higher than $141 million in 2024, marking an increase of about 493%[23] - The company experienced a foreign exchange rate effect of $6 million on cash and cash equivalents for the nine months ended October 31, 2025, compared to a negative effect of $2 million in 2024[23] Accounts Receivable Changes - Changes in accounts receivable for the nine months ended October 31, 2025, resulted in a cash inflow of $1,228 million, compared to a cash outflow of $3,006 million in 2024[23] Common Stock Issuance - The net proceeds from the issuance of common stock amounted to $10,754 million in the nine months ended October 31, 2025, while there were no proceeds in the same period of 2024[23]

Revenues for the third quarter of fiscal 2026 were approximately $9.7 million compared to $13.6 million for the second quarter of fiscal 2026 and $12.1 million for the third quarter of fiscal 2025. The Company reported operating income of approximately $774,000 for the third quarter of fiscal 2026 compared to $2.7 million for the second quarter of fiscal 2026 and $1.9 million for the third quarter of fiscal 2025. Net income for the third quarter of fiscal 2026 amounted to approximately $62,000 compared to $ ...

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Core Viewpoint - MIND Technology, Inc. is set to release its financial results for the fiscal 2026 third quarter on December 9, 2025, with a conference call scheduled for December 10, 2025, to discuss the results [1][2]. Company Information - MIND Technology, Inc. operates in the oceanographic, hydrographic, defense, seismic, and security industries, with headquarters in The Woodlands, Texas, and key locations in the United States, Singapore, Malaysia, and the United Kingdom [3]. - The company's Seamap unit specializes in designing, manufacturing, and selling high-performance marine exploration and survey equipment [3]. Conference Call Details - The conference call will take place on December 10, 2025, at 9:00 a.m. Eastern Time / 8:00 a.m. Central Time, and will be accessible via phone or live over the Internet [2]. - A replay of the call will be available until December 17, 2025, and an archive of the webcast will be accessible for 90 days after the call [2].

Core Insights - Small caps are generally US-based companies with a majority of sales from the US, contrasting with large caps that have a higher percentage of foreign sales [1] - In times of geopolitical uncertainty, investors may prefer small caps as a hedge due to the perceived stability of the US economy [1] Company Summaries MIND Technology, Inc. (MIND) - MIND Technology is based in The Woodlands, TX, providing technology solutions for oceanographic, hydrographic, seismic, and maritime security industries [3] - For the six months ended July 2025, over 56% of MIND's revenue came from Norway, highlighting its reliance on international sales [3] - In Q2 fiscal 2026, MIND reported a net income of $0.24 per share, a turnaround from a net loss of $0.11 per share in the prior year, with revenues of $13.6 million, a 35% increase from $10 million year-over-year [4] Perma-Pipe International Holdings, Inc. (PPIH) - PPIH, headquartered in Rolling Meadows, IL, specializes in manufacturing specialty piping systems and leak detection systems [6] - The company has received approval from Aramco, expanding its total addressable market and aligning with Saudi Vision 2030 objectives [7] - In Q2, PPIH reported net sales of $47.9 million, a 27.7% increase from $37.5 million in the same period last year, driven by stronger sales in the Middle East and North America [8] - As of FY ending January 31, 2025, 67% of PPIH's sales were to foreign customers, indicating a significant international market presence [8]

Group 1 - The focus has shifted towards offshore drilling, supply industry, and shipping, including tankers, containers, and dry bulk [1] - The fuel cell industry is being monitored as it is still in its early stages of development [1] Group 2 - The individual has extensive experience in navigating significant market events such as the dotcom bubble, the aftermath of the World Trade Center attacks, and the subprime crisis [2] - The individual has a background in auditing with PricewaterhouseCoopers before transitioning to day trading [2]