Core Insights - Sono-Tek Corporation reported a sixth consecutive quarter of revenue exceeding $5 million, with a notable 150% year-over-year increase in medical market sales [1][3][5] - The company achieved a 35% increase in net income for the first half of fiscal year 2026, reflecting strong demand in the medical device market [1][5][17] - Sono-Tek's backlog increased by 50% sequentially, indicating robust new order momentum [1][5][12] Financial Performance - For the second quarter of fiscal 2026, net sales reached $5.163 million, slightly up from $5.162 million year-over-year [5][8] - Gross profit for the quarter increased by 3% to $2.6 million, with a gross margin of 50% [5][8] - Net income for the quarter rose 24% to $424 thousand, or $0.03 per share, compared to $341 thousand, or $0.02 per share, in the prior year [5][8] First Half Overview - Record revenue for the first half of fiscal 2026 was $10.30 million, up from $10.19 million in the same period last year [5][9] - Gross profit for the first half increased by 6% to $5.3 million, with a gross margin of 51% [5][9][17] - Net income for the first half rose 35% to $909 thousand, or $0.06 per share, compared to $672 thousand, or $0.04 per share, in the previous year [5][9][17] Market and Product Insights - The medical market sales surged by 150% year-over-year, driven by strong demand for balloon coating systems [5][8][26] - Sales in the alternative/clean energy sector decreased slightly by 3% year-over-year, while the electronics market saw a decline of 1% [5][8][26] - The industrial market experienced a significant decline of 68% year-over-year, influenced by a large order in FY 2025 that did not repeat [5][8][26] Geographic Sales Performance - Sales in the U.S. and Canada decreased by 22% year-over-year, while sales in Asia increased by 153% [5][11][27] - EMEA sales rose by 25%, while Latin American sales declined by 45% [5][11][27] Balance Sheet and Cash Flow - As of August 31, 2025, cash, cash equivalents, and marketable securities totaled $10.6 million, with no outstanding debt [5][12] - The company anticipates capital expenditures of approximately $300 thousand for fiscal year 2026 [5][12]

Core Insights - Sono-Tek Corporation has received a purchase order valued at over $2.8 million from a major U.S.-based medical device manufacturer, indicating strong demand for its ultrasonic coating systems [1][2] - The order includes multiple advanced ExactaCoat MD systems, which have expanded capabilities compared to previously supplied equipment, and will be installed alongside existing Sono-Tek equipment [2][3] - This order reflects the company's strong position in the medical device sector, which is a critical growth driver in its long-term strategy, and highlights the ability to secure repeat, multi-million-dollar orders from various leading manufacturers [3] Company Overview - Sono-Tek Corporation is a global leader in the design and manufacture of ultrasonic coating systems, serving diverse industries such as microelectronics, alternative energy, medical devices, and advanced industrial manufacturing [4] - The company is transitioning its product line from R&D to high-volume production machines with significantly higher average selling prices, showcasing its market leadership and adaptability [5] - Sono-Tek's ultrasonic coating systems are contributing to advancements in clean energy technologies, including next-gen solar cells and carbon capture applications [4][5]

Core Insights - Sono-Tek Corporation will hold a conference call on October 14, 2025, to discuss its fiscal second quarter and first half 2026 financial results, which ended on August 31, 2025 [1][2]. Company Overview - Sono-Tek Corporation is a global leader in the design and manufacture of ultrasonic coating systems, serving various industries such as microelectronics, alternative energy, medical devices, and advanced industrial manufacturing [5][6]. - The company is making significant advancements in the clean energy sector, particularly in next-generation solar cells, fuel cells, green hydrogen generation, and carbon capture applications [5]. Product and Market Strategy - Sono-Tek's product line is evolving from research and development to high-volume production machines, indicating a shift towards higher average selling prices and showcasing market leadership [6]. - The company employs a strategic distribution network that includes direct sales personnel, independent distributors, and experienced sales representatives to ensure efficient market reach across diverse sectors globally [6]. Environmental Impact - The solutions provided by Sono-Tek are environmentally friendly and efficient, leading to significant reductions in overspray, raw material usage, water and energy consumption, while improving process repeatability and reducing emissions [7]. Growth Strategy - Sono-Tek's growth strategy focuses on leveraging innovative technologies and proprietary know-how to enhance thin film coating technologies, aiming for better outcomes for customers' products and processes [8].

[Form 8-K Filing Details](index=1&type=section&id=Form%208-K%20Filing%20Details) This section outlines Sono-Tek Corporation's fundamental identification and contact information for its 8-K filing [Registrant and Filing Information](index=1&type=section&id=Registrant%20and%20Filing%20Information) This section details Sono-Tek Corporation's legal name, state of incorporation, principal executive offices, and contact number - Registrant: **Sono-Tek Corporation**[1](index=1&type=chunk) - State of Incorporation: **New York**[1](index=1&type=chunk) - Principal Executive Offices: **2012 Route 9W, Milton, New York 12547**[1](index=1&type=chunk) - Telephone Number: **(845) 795-2020**[1](index=1&type=chunk) [Securities Registration and Emerging Growth Company Status](index=1&type=section&id=Securities%20Registration%20and%20Emerging%20Growth%20Company%20Status) This section details the registrant's registered securities and confirms its status regarding the 'emerging growth company' definition | Title of each class | Symbol(s) | Name of each exchange on which registered | | :------------------ | :-------- | :---------------------------------------- | | Common Stock, $0.01 par value per share | SOTK | NASDAQ | - Sono-Tek Corporation is **not an 'emerging growth company'** as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934[3](index=3&type=chunk) [Current Report Event Disclosure](index=2&type=section&id=Current%20Report%20Event%20Disclosure) This section discloses significant events reported in the 8-K, including a major order and related legal disclaimers [Item 2.02: Results of Operations and Financial Condition & Item 7.01: Regulation FD Disclosure](index=2&type=section&id=Item%202.02%3A%20Results%20of%20Operations%20and%20Financial%20Condition%20%26%20Item%207.01%3A%20Regulation%20FD%20Disclosure) This section details a significant medical device coating systems order and clarifies the legal status of the furnished information [Medical Device Coating Systems Order](index=2&type=section&id=Medical%20Device%20Coating%20Systems%20Order) Sono-Tek Corporation announced a substantial order for medical device coating systems, indicating a positive operational development - Sono-Tek Corporation received an order for medical device coating systems valued at **over $5 Million**[4](index=4&type=chunk) - The order was announced via a press release dated **September 3, 2025**[4](index=4&type=chunk) [Information Furnishing Disclaimer](index=2&type=section&id=Information%20Furnishing%20Disclaimer) A standard disclaimer clarifies the legal status of the information provided under Item 2.02 and Item 7.01 - The information furnished pursuant to Item 2.02 and Item 7.01, including Exhibit 99.1, is **not deemed 'filed'** for purposes of Section 18 of the Securities Exchange Act of 1934[5](index=5&type=chunk) - This information is also **not subject to the liabilities under Section 18** and shall not be deemed incorporated by reference into any Company filing under the Securities Act of 1933 or the Exchange Act[5](index=5&type=chunk) [Exhibits and Signatures](index=2&type=section&id=Exhibits%20and%20Signatures) This section lists the accompanying exhibits and confirms the official signing of the report [Item 9.01: Financial Statements and Exhibits](index=2&type=section&id=Item%209.01%3A%20Financial%20Statements%20and%20Exhibits) This section lists the exhibit accompanying the 8-K filing, which is the press release detailing the significant order - Exhibit 99.1 is the press release dated **September 3, 2025**, regarding the medical device coating systems order[6](index=6&type=chunk) [Signatures](index=2&type=section&id=Signatures) The report is duly signed by an authorized officer of Sono-Tek Corporation - The report was signed by **Stephen J. Bagley, Chief Financial Officer** of Sono-Tek Corporation[6](index=6&type=chunk) - The signing date was **September 3, 2025**[6](index=6&type=chunk)

Core Insights - Sono-Tek Corporation has received a purchase order exceeding $5 million for ultrasonic coating systems intended for medical device production [1][2] - The order includes advanced MediCoat systems designed for high-precision and scalable manufacturing, with deliveries expected to start in 2026 and complete within 12 months [2] - The order reflects the increasing adoption of Sono-Tek's coating platforms by medical device manufacturers and validates the company's strategy of focusing on complex, high-value production systems [3] Company Overview - Sono-Tek Corporation is a leader in the design and manufacture of ultrasonic coating systems, serving various industries including microelectronics, alternative energy, and medical devices [4] - The company is transitioning its product line from R&D to high-volume production machines, which feature significantly higher average selling prices [5] - Sono-Tek's solutions are environmentally friendly and efficient, leading to reductions in overspray and savings in raw materials, water, and energy usage [6] Growth Strategy - The company's growth strategy emphasizes leveraging innovative technologies and global reach to enhance thin film coating technologies for better customer outcomes [7] - Sono-Tek aims to support customers in achieving technological breakthroughs and bringing products to market through a comprehensive suite of coating solutions and application consulting services [5]

Earnings Performance - Sono-Tek Corporation reported quarterly earnings of $0.03 per share, exceeding the Zacks Consensus Estimate of $0.02 per share, and up from $0.02 per share a year ago, representing an earnings surprise of +50.00% [1] - The company had revenues of $5.13 million for the quarter ended May 2025, which was 1.1% below the Zacks Consensus Estimate, but slightly up from $5.03 million year-over-year [2] Stock Performance - Sono-Tek shares have declined approximately 6.2% since the beginning of the year, contrasting with the S&P 500's gain of 6.5% [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating expectations of underperformance in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.03 on revenues of $5.6 million, and for the current fiscal year, it is $0.04 on revenues of $19.62 million [7] - The Electronics - Semiconductors industry, to which Sono-Tek belongs, is currently ranked in the top 34% of over 250 Zacks industries, suggesting a favorable industry outlook [8]

Part I [Condensed Consolidated Financial Statements](index=4&type=section&id=Item%201%20%E2%80%93%20Condensed%20Consolidated%20Financial%20Statements) The company's financial statements for the quarter ended May 31, 2025, show total assets increased to **$23.42 million**, net income rose to **$485,000**, and operating cash flow was **($922,000)** [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Balance Sheet Summary (as of May 31, 2025) | Account | May 31, 2025 (Unaudited) ($) | February 28, 2025 ($) | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $4,863,039 | $5,202,361 | | Total current assets | $18,966,929 | $18,988,465 | | **Total Assets** | **$23,422,323** | **$23,411,636** | | **Liabilities & Equity** | | | | Total current liabilities | $5,026,984 | $5,487,307 | | **Total Liabilities** | **$5,149,459** | **$5,619,441** | | **Total Stockholders' Equity** | **$18,272,864** | **$17,792,195** | [Condensed Consolidated Statements of Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Income Statement Summary (Three Months Ended May 31) | Account | 2025 (Unaudited) ($) | 2024 (Unaudited) ($) | | :--- | :--- | :--- | | Net Sales | $5,132,773 | $5,031,038 | | Gross Profit | $2,664,514 | $2,454,487 | | Operating Income | $483,368 | $238,296 | | **Net Income** | **$484,985** | **$330,837** | | Diluted Earnings Per Share | $0.03 | $0.02 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash Flow Summary (Three Months Ended May 31) | Activity | 2025 (Unaudited) ($) | 2024 (Unaudited) ($) | | :--- | :--- | :--- | | Net Cash (Used in) Provided by Operating Activities | ($922,293) | $327,964 | | Net Cash Provided by (Used in) Investing Activities | $662,450 | ($60,743) | | Net Cash Used in Financing Activities | ($79,479) | $0 | | **Net (Decrease)/Increase in Cash** | **($339,322)** | **$267,221** | [Notes to Unaudited Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) Key notes detail revenue recognition for short-term contracts, product line contributions, export sales, and significant customer concentration - Sales revenue is primarily derived from short-term contracts (less than 12 months) and recognized when control of equipment is transferred to the customer[33](index=33&type=chunk)[34](index=34&type=chunk) Revenue by Product Line (Three Months Ended May 31, 2025) | Product Line | Revenue ($) | % of Total | | :--- | :--- | :--- | | Integrated Coating Systems | $3,054,000 | 59% | | Multi-Axis Coating Systems | $677,000 | 13% | | OEM Systems | $130,000 | 3% | | Fluxing Systems | $152,000 | 3% | | Spare Parts, Services and Other | $1,120,000 | 22% | - For the three months ended May 31, 2025, sales to foreign customers were approximately **$1.59 million**, or **31% of total revenues**[49](index=49&type=chunk) - A single customer accounted for **57% of sales** during the first quarter of fiscal 2026 and **68% of outstanding accounts receivable** at May 31, 2025[50](index=50&type=chunk) [Management's Discussion and Analysis (MD&A)](index=16&type=section&id=Item%202%20-%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses a **2% increase in net sales** to **$5.1 million**, improved gross margin to **51.9%**, and a strong liquidity position with **$10.9 million** in cash - Net Sales increased **2% to $5.13 million**, driven by strong shipments to the Alternative/Clean Energy market[62](index=62&type=chunk) - Gross margin expanded **310 basis points to 51.9%**, attributed to a favorable product mix and higher concentration of U.S. sales with lower commission expenses[62](index=62&type=chunk) - Operating income increased to **$483,000** from **$238,000** in the prior year period[62](index=62&type=chunk) - As of May 31, 2025, the company had **$10.9 million** in cash, cash equivalents, and marketable securities with no outstanding debt[62](index=62&type=chunk) [Results of Operations](index=18&type=section&id=Results%20of%20Operations) Sales growth was driven by a **309% increase in Integrated Coating Systems**, with Alternative Energy sales up **42%**, and gross margin improving to **51.9%** Sales by Product (Three Months Ended May 31) | Product Line | 2025 ($) | 2024 ($) | Change (%) | | :--- | :--- | :--- | :--- | | Integrated Coating Systems | $3,054,000 | $747,000 | 309% | | Multi-Axis Coating Systems | $677,000 | $2,664,000 | (75%) | | OEM Systems | $130,000 | $332,000 | (61%) | Sales by Market (Three Months Ended May 31) | Market | 2025 ($) | 2024 ($) | Change (%) | | :--- | :--- | :--- | :--- | | Alternative Energy/Clean | $3,248,000 | $2,282,000 | 42% | | Electronics/Microelectronics | $943,000 | $1,568,000 | (40%) | | Medical | $809,000 | $857,000 | (6%) | Sales by Geography (Three Months Ended May 31) | Region | 2025 ($) | 2024 ($) | Change (%) | | :--- | :--- | :--- | :--- | | U.S. & Canada | $3,543,000 | $3,091,000 | 15% | | EMEA | $897,000 | $1,245,000 | (28%) | | Asia Pacific (APAC) | $597,000 | $513,000 | 16% | - Gross profit increased **9% to $2.67 million**, and gross margin improved to **51.9%** from **48.8%**, driven by a favorable product mix and lower commission expenses on a large U.S. order[66](index=66&type=chunk) [Liquidity and Capital Resources](index=20&type=section&id=Liquidity%20and%20Capital%20Resources) Working capital increased to **$13.94 million**, while cash and marketable securities decreased due to higher accounts receivable and inventories, resulting in **($922,000)** cash used in operations - Working capital increased to **$13.94 million** at May 31, 2025, from **$13.50 million** at February 28, 2025[77](index=77&type=chunk) - Cash used in operating activities was **$922,000**, a decrease of **$1.25 million** from the prior year, mainly due to increases in accounts receivable and inventories[80](index=80&type=chunk) - Accounts receivable increased by **$749,000** due to revised payment terms for one customer on a **$2.9 million** order; the company does not foresee collection issues[81](index=81&type=chunk) - The company has a **$1.5 million** revolving line of credit and a **$750,000** equipment line of credit, with no outstanding borrowings under either as of May 31, 2025[47](index=47&type=chunk)[48](index=48&type=chunk) [Critical Accounting Estimates](index=21&type=section&id=Critical%20Accounting%20Estimates) The company identifies Accounting for Income Taxes and Revenue Recognition as critical policies requiring significant judgment, particularly for deferred tax assets and equipment control transfer - The company's critical accounting policies are identified as Accounting for Income Taxes and Revenue Recognition[90](index=90&type=chunk) - For revenue recognition, judgment is required to determine the point in time control of manufactured equipment is transferred to customers, based on contract terms[93](index=93&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=24&type=section&id=Item%203%20%E2%80%93%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company is not subject to material market risk, avoiding speculative financial instruments, and faces immaterial foreign currency or interest rate risks due to U.S. dollar operations - The company does not issue or invest in financial instruments for trading or speculative purposes[97](index=97&type=chunk) - Operations are primarily in the United States and all sales transactions are in U.S. dollars, so the company is not subject to material foreign currency exchange rate risk[97](index=97&type=chunk) - Market rate risk from changing interest rates on its **$4.86 million** in cash and **$5.99 million** in marketable securities is not considered material[98](index=98&type=chunk) [Controls and Procedures](index=24&type=section&id=Item%204%20%E2%80%93%20Controls%20and%20Procedures) The CEO and CFO concluded that disclosure controls and procedures were effective as of May 31, 2025, with no material changes to internal controls during the quarter - The CEO and CFO evaluated the company's disclosure controls and procedures as of May 31, 2025, and concluded they were effective[99](index=99&type=chunk) - No changes in internal controls over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, these controls[100](index=100&type=chunk) Part II [Legal Proceedings & Risk Factors](index=25&type=section&id=Item%201.%20Legal%20Proceedings%20%26%20Item%201A.%20Risk%20Factors) The company reports no legal proceedings and no material changes to risk factors from its most recent Annual Report on Form 10-K - The company has no legal proceedings to report[103](index=103&type=chunk) - There are no material changes to risk factors from the most recent Form 10-K[103](index=103&type=chunk) [Issuer Purchases of Equity Securities](index=25&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased **21,335 shares** for **$79,479** under its **$2 million** stock repurchase program, with **$1.91 million** remaining Stock Repurchase Activity (Q1 FY2026) | Period | Shares Purchased | Average Price Paid ($) | | :--- | :--- | :--- | | March 2025 | 11,646 | $3.77 | | April 2025 | 9,689 | $3.67 | | May 2025 | - | - | | **Total** | **21,335** | **N/A** | - The total cost for shares repurchased during the quarter was **$79,479**[104](index=104&type=chunk) - The stock repurchase program, for up to **$2,000,000**, had **$1,912,654** remaining value for future purchases as of the end of the quarter[104](index=104&type=chunk)

[Q1 FY2026 Financial Highlights](index=1&type=section&id=First%20Quarter%20Fiscal%20Year%202026%20Highlights) Sono-Tek reported its fifth consecutive quarter with revenue over **$5 million**, driven by a significant solar order, leading to improved profitability with gross margins at **52%** and operating income more than doubling | Financial Metric | Q1 FY2026 | Q1 FY2025 | Change | | :--- | :--- | :--- | :--- | | **Net Sales** | $5.13 million | $5.03 million | +2% | | **Gross Profit** | $2.7 million | $2.5 million | +9% | | **Gross Margin** | 52% | 49% | +3 p.p. | | **Operating Income** | $483 thousand | $238 thousand | +103% | | **Net Income** | $485 thousand | $331 thousand | +47% | | **Diluted EPS** | $0.03 | $0.02 | +50% | - This marks the fifth consecutive quarter with sales over **$5 million**, driven by strong shipments to the Alternative/Clean Energy Market, including a single high ASP order of **$2.95 million**[1](index=1&type=chunk)[3](index=3&type=chunk)[7](index=7&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) Management expressed satisfaction with the strong start to FY2026, anticipating continued first-half profitability but a cautious full-year outlook due to policy uncertainties - The first half of fiscal year 2026 is expected to maintain current revenue levels and strong profitability[2](index=2&type=chunk) - The full-year outlook is cautious, with expectations for relatively flat revenue growth due to uncertainty related to governmental clean energy incentives and evolving tariff policies[2](index=2&type=chunk) - The company is seeing promising demand from the medical device industry for high-volume production systems and is focusing on large-scale systems with significantly higher average selling prices (ASPs)[2](index=2&type=chunk) [FY 2026 Guidance](index=2&type=section&id=FY%202026%20Guidance) The company expects continued first-half growth and profitability, supported by a **$7.5 million** backlog, but forecasts flat full-year revenue due to policy uncertainties - Strong growth and profitability are expected for the first half of FY2026, but the full-year outlook is for relatively flat revenue growth due to policy uncertainties[4](index=4&type=chunk) - As of May 31, 2025, the equipment and service-related backlog totaled **$7.5 million**, providing a stable base for near-term demand[4](index=4&type=chunk) [Detailed Financial Analysis](index=2&type=section&id=Detailed%20Financial%20Analysis) This section details financial performance, highlighting increased gross profit and operating income driven by product mix, and significant shifts in sales across categories, markets, and regions [Profitability Analysis](index=2&type=section&id=Profitability%20Analysis) Gross margin improved to **52%** from **49%** YoY due to favorable product mix and US sales, significantly increasing operating and net income | Profitability Metric | Q1 FY2026 | Q1 FY2025 | Change | | :--- | :--- | :--- | :--- | | **Gross Profit** | $2.7 million | $2.5 million | +9% | | **Gross Margin** | 52% | 49% | +3 p.p. | | **Operating Income** | $483 thousand | $238 thousand | +103% | | **Net Income** | $485 thousand | $331 thousand | +47% | - The gross margin increase was mainly due to a favorable product mix, including a repeat high ASP order, and a concentration of shipments to the U.S., which typically involve minimal distributor discounts[6](index=6&type=chunk) [Sales Analysis by Segment](index=2&type=section&id=Sales%20Analysis%20by%20Segment) Sales were significantly impacted by a **$2.95 million** solar order, driving substantial growth in Integrated Coating Systems and Alternative/Clean Energy, while other segments declined Sales by Product Category (YoY) | Product Category | Q1 FY2026 Sales ($) | YoY Change | | :--- | :--- | :--- | | Integrated Coating Systems | $3.05 million | +309% | | Multi-Axis Coating Systems | $0.68 million | -75% | | OEM Systems | $0.13 million | -61% | Sales by End Market (YoY) | End Market | Q1 FY2026 Sales ($) | YoY Change | | :--- | :--- | :--- | | Alternative/Clean Energy | $3.25 million | +42% | | Electronics/Microelectronics | $0.94 million | -40% | | Medical | $0.81 million | -6% | | Industrial | $0.12 million | -62% | Sales by Geography (YoY) | Geography | Q1 FY2026 Sales ($) | YoY Change | | :--- | :--- | :--- | | U.S. & Canada | $3.54 million | +15% | | Asia Pacific (APAC) | $0.60 million | +16% | | Europe, Middle East, Asia (EMEA) | $0.90 million | -28% | [Balance Sheet and Cash Flow Overview](index=3&type=section&id=Balance%20Sheet%20and%20Cash%20Flow%20Overview) As of May 31, 2025, Sono-Tek maintained a strong balance sheet with **$10.9 million** in cash and no debt, reflecting solid financial health - Cash, cash equivalents and marketable securities totaled **$10.9 million** at May 31, 2025[13](index=13&type=chunk) - The company had no debt on its balance sheet and stockholders' equity was **$18.3 million**[13](index=13&type=chunk) - Capital expenditures in Q1 FY2026 were **$52,000**, invested in manufacturing facility upgrades[13](index=13&type=chunk) [Financial Statements](index=5&type=section&id=FINANCIAL%20TABLES%20FOLLOW) This section presents detailed unaudited condensed consolidated financial statements for the period ended May 31, 2025, including the Balance Sheet, Statement of Income, and sales breakdowns [Condensed Consolidated Balance Sheets](index=5&type=section&id=SONO-TEK%20CORPORATION%20CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) This section presents the condensed consolidated balance sheets, detailing assets, liabilities, and equity as of May 31, 2025, and February 28, 2025 - Total assets were **$23.42 million** as of May 31, 2025, nearly unchanged from **$23.41 million** at February 28, 2025[17](index=17&type=chunk) - Total liabilities decreased to **$5.15 million** from **$5.62 million**, while total stockholders' equity increased to **$18.27 million** from **$17.79 million** over the same period[17](index=17&type=chunk) [Condensed Consolidated Statements of Income](index=6&type=section&id=SONO-TEK%20CORPORATION%20CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20INCOME) This section presents the condensed consolidated statements of income, detailing revenue, gross profit, operating income, and net income for Q1 FY2026 and Q1 FY2025 | Income Statement | Q1 FY2026 (3 mo ended May 31, 2025) ($) | Q1 FY2025 (3 mo ended May 31, 2024) ($) | | :--- | :--- | :--- | | **Net Sales** | $5,132,773 | $5,031,038 | | **Gross Profit** | $2,664,514 | $2,454,487 | | **Operating Income** | $483,368 | $238,296 | | **Net Income** | $484,985 | $330,837 | | **Diluted EPS** | $0.03 | $0.02 | [Product, Market, and Geographic Sales](index=7&type=section&id=SONO-TEK%20CORPORATION%20PRODUCT,%20MARKET,%20AND%20GEOGRAPHIC%20SALES) This section provides a detailed breakdown of sales performance by product category, end market, and geographic region for Q1 FY2026 - Sales of Integrated Coating Systems grew **309%** YoY to **$3.05 million**, while Multi-Axis Coating Systems declined **75%** to **$0.68 million**[21](index=21&type=chunk) - The Alternative Energy/Clean market became the largest segment, with sales growing **42%** YoY to **$3.25 million**, representing **63%** of total sales[22](index=22&type=chunk) - Sales in the U.S. & Canada region increased by **15%** YoY to **$3.54 million**, while sales in the EMEA region decreased by **28%**[23](index=23&type=chunk)

Core Insights - Sono-Tek Corporation reported its fifth consecutive quarter of revenue exceeding $5 million, driven by a significant order completion in the advanced solar market valued at $2.95 million [1][2][3] - The company achieved a gross margin of 52%, an increase from 49% in the previous year, and operating income rose by 103% year-over-year [1][7] - Despite strong performance in the first half of FY 2026, the company maintains a cautious full-year revenue outlook due to uncertainties surrounding governmental clean energy incentives and tariff policies [2][5] Financial Performance - Net sales for the first quarter of FY 2026 reached $5.13 million, a 2% increase from $5.03 million in the same quarter of FY 2025 [7] - Gross profit increased to $2.7 million, up 9% from $2.5 million year-over-year, contributing to a gross margin expansion [7] - Operating income rose to $483 thousand, a 103% increase compared to $238 thousand in the first quarter of FY 2025 [7] - Net income for the quarter was $485 thousand, reflecting a 47% increase from $331 thousand in the prior year [7] Market and Product Insights - Sales in the Alternative/Clean Energy market increased by 42% year-over-year, driven by production-scale system shipments, including a high ASP order of $2.95 million [9] - Integrated Coating Systems sales surged by 309% to $3.05 million, primarily due to a repeat order for high ASP systems [8] - Multi-Axis Coating Systems sales declined by 75% to $677,000, attributed to reduced R&D funding in the clean energy sector following government policy shifts [8] Guidance and Outlook - The company expects continued revenue growth and strong profitability in the first half of FY 2026, supported by a backlog of $7.5 million [5][6] - Full-year revenue growth is anticipated to be relatively flat due to market adjustments in response to recent governmental policy changes [5][6] - The company remains focused on high ASP orders and is well-positioned to navigate potential short-term demand shifts [3][5] Balance Sheet Overview - As of May 31, 2025, Sono-Tek reported cash, cash equivalents, and marketable securities totaling $10.9 million, with no debt on its balance sheet [16] - Stockholders' equity stood at $18.3 million, reflecting a healthy financial position [16]

Core Insights - Sono-Tek Corporation reported its fifth consecutive quarter of revenue exceeding $5 million, driven by a significant order in the advanced solar market valued at $2.95 million [1][5] - The company achieved a gross margin of 52%, an increase from 49% year-over-year, and operating income rose by 103% compared to the previous year [1][5] - Despite strong performance in the first half of FY 2026, the company maintains a cautious full-year revenue outlook due to uncertainties surrounding government clean energy incentives and tariff policies [2][4] Financial Performance - Net sales for the first quarter of FY 2026 reached $5.13 million, a 2% increase from $5.03 million in the same quarter of FY 2025 [5][20] - Gross profit increased to $2.7 million, up 9% from $2.5 million year-over-year, contributing to a significant rise in operating income to $483 thousand [5][20] - Net income rose by 47% to $485 thousand, reflecting improved gross profit and reduced operating expenses [5][20] Market and Product Insights - The alternative/clean energy market saw a 42% year-over-year increase in sales, driven by production-scale system shipments, including the high ASP order [14][24] - Integrated coating systems sales surged by 309% to $3.05 million, primarily due to the repeat high ASP order for clean energy applications [14][24] - The electronics market experienced a decline of 40% year-over-year, influenced by the absence of a significant prior year sale [14][24] Geographic Performance - Sales in the U.S. and Canada increased by 15% year-over-year, totaling $3.54 million, bolstered by the advanced solar market order [14][25] - Sales in the Asia Pacific region rose by 16%, while Europe, the Middle East, and Asia saw a decline of 28% [14][25] - Latin America experienced a significant drop in sales, decreasing by 47% compared to the previous year [14][25] Guidance and Outlook - The company expects continued revenue growth and strong profitability in the first half of FY 2026, supported by a backlog of $7.5 million [4][6] - Full-year revenue growth is anticipated to be relatively flat due to potential impacts from government policy changes affecting customer orders [2][4] - The company remains focused on long-term growth strategies, particularly in the medical device industry and high ASP orders [2][4]