MIND Technology(MIND) - 2026 Q2 - Quarterly Results

Fiscal 2026 Second Quarter Results Overview MIND Technology, Inc. reported strong Q2 FY26 financial performance, driven by Seamap systems sales and after-market contributions, with management optimistic about future prospects despite backlog fluctuations Key Financial Highlights MIND Technology, Inc. reported strong Q2 FY26 financial performance, with significant increases in revenue, operating income, net income, and Adjusted EBITDA, resuming profitability after Q1 delivery delays Fiscal 2026 Second Quarter Financial Performance (in millions) | Metric | Q2 FY26 | Q1 FY26 | Q2 FY25 | | :-------------------------------- | :------ | :------ | :------ | | Revenues | $13.6 | $7.9 | $10.0 | | Operating Income (Loss) | $2.7 | $(0.658) | $1.4 | | Net Income (Loss) | $1.9 | $(0.970) | $0.798 | | Net Income (Loss) Attributable to Common Stockholders | $1.9 | $(0.970) | $(0.149) | | Net Income (Loss) Per Share | $0.24 | $(0.12) | $(0.11) | | Adjusted EBITDA | $3.1 | $(0.179) | $1.8 | - The backlog of Marine Technology Products for the Seamap segment was approximately $12.8 million as of July 31, 2025, a decrease from $21.1 million at April 30, 2025, and $26.2 million at July 31, 2024[4] - After-market activities contributed approximately 68% of total revenues in the first six months of fiscal year 2026[5] Management Commentary CEO Rob Capps expressed satisfaction with strong Q2 results, driven by Seamap systems sales and after-market contributions, highlighting focus on shareholder value and optimism for the fiscal year despite backlog decline - MIND delivered strong Q2 results, largely in line with expectations, resuming positive Adjusted EBITDA and profitability after Q1 delivery delays[5] - Improved Seamap revenues were driven by systems sales and increasing contributions from after-market activities, which accounted for about 68% of revenues in the first six months of the fiscal year[5] - Despite a decline in reported backlog, the pipeline of prospects remains strong, with specific orders expected to restore backlog levels imminently[5] - The company is focused on enhancing shareholder value by maintaining financial flexibility, preserving the balance sheet, adding scale, expanding offerings, and growing existing product lines[6] - Management remains bullish on the balance of the fiscal year, citing steady customer interest in Seamap products and optimism for favorable financial performance, despite market uncertainty slowing customer decision-making for the next year[7] Company Information This section details the company's conference call, global operations, specialized offerings, and important disclaimers regarding forward-looking statements and non-GAAP financial measures Conference Call Details MIND Technology, Inc. scheduled a conference call to discuss its fiscal 2026 second quarter results, providing access details for investors - A conference call was scheduled for Wednesday, September 10, 2025, at 9:00 a.m. Eastern Time to discuss fiscal 2026 second quarter results[9] - Investors can access the call by dialing (412) 902-0030 or listening live on the MIND Technology website[9] - A telephonic replay and webcast archive will be available through September 17, 2025, and for approximately 90 days, respectively[9] About MIND Technology MIND Technology, Inc. is a global provider of technology to various oceanographic and security industries, with its Seamap unit specializing in marine exploration and survey equipment - MIND Technology, Inc. provides technology to the oceanographic, hydrographic, defense, seismic, and security industries[10] - The company is headquartered in The Woodlands, Texas, with a global presence including operating locations in the United States, Singapore, Malaysia, and the United Kingdom[10] - Its Seamap unit designs, manufactures, and sells specialized, high-performance marine exploration and survey equipment[10] Forward-looking Statements The press release contains forward-looking statements regarding future operations and financial position, subject to significant risks and uncertainties that could cause actual results to differ materially - Statements in the press release regarding future results, financial position, business strategy, and objectives are considered "forward-looking statements" under the Private Securities Litigation Reform Act of 1995[11] - These statements are based on current expectations and beliefs but involve significant risks and uncertainties, such as reductions in customer capital budgets, capital availability, and volatility in commodity prices, which could cause actual results to differ materially[11] - The company undertakes no obligation to publicly update or revise any forward-looking statements after their date, unless required by law[13] Non-GAAP Financial Measures The company utilizes non-GAAP financial measures like Adjusted EBITDA to provide investors with additional insights into operating results, not as substitutes for GAAP results - Non-GAAP financial measures are numerical measures of performance that either exclude or include amounts not normally excluded or included in GAAP-comparable measures[14] - Management believes these measures are useful for investors to understand period-over-period operating results, analyze business trends, and assess performance, and are used in forecasting, budgeting, and compensation[14] - Non-GAAP measures should only be used in conjunction with GAAP results and are not measures of financial performance or liquidity under GAAP[14] Condensed Consolidated Financial Statements This section presents the company's condensed consolidated balance sheets, statements of operations, cash flows, and a reconciliation of non-GAAP financial measures, highlighting key financial positions and performance Condensed Consolidated Balance Sheets The balance sheet shows a slight decrease in total assets and liabilities, with an increase in total stockholders' equity as of July 31, 2025, compared to January 31, 2025 Condensed Consolidated Balance Sheet Highlights (in thousands) | Item | July 31, 2025 | January 31, 2025 | | :-------------------------------- | :------------ | :--------------- | | Cash and cash equivalents | $7,832 | $5,336 | | Total current assets | $31,728 | $32,115 | | Total assets | $35,831 | $36,720 | | Total current liabilities | $6,621 | $8,645 | | Total liabilities | $6,987 | $9,388 | | Total stockholders' equity | $28,844 | $27,332 | Condensed Consolidated Statements of Operations The statements of operations reflect significant revenue and profit growth for the three months ended July 31, 2025, compared to the prior year, with net income attributable to common stockholders turning positive Condensed Consolidated Statements of Operations Highlights (in thousands, except per share data) | Metric | Three Months Ended July 31, 2025 | Three Months Ended July 31, 2024 | Six Months Ended July 31, 2025 | Six Months Ended July 31, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenues | $13,561 | $10,036 | $21,463 | $19,714 | | Gross profit | $6,829 | $4,778 | $10,160 | $8,996 | | Operating income | $2,664 | $1,430 | $2,006 | $2,160 | | Net income | $1,929 | $798 | $959 | $1,752 | | Net income (loss) attributable to common stockholders | $1,929 | $(149) | $959 | $(142) | | Net income (loss) per common share - Basic and diluted | $0.24 | $(0.11) | $0.12 | $(0.10) | Condensed Consolidated Statements of Cash Flows For the six months ended July 31, 2025, the company generated positive cash flow from operating activities, a significant improvement from the prior year, leading to an increase in cash and cash equivalents Condensed Consolidated Statements of Cash Flows Highlights (in thousands) | Activity | Six Months Ended July 31, 2025 | Six Months Ended July 31, 2024 | | :-------------------------------- | :----------------------------- | :----------------------------- | | Net cash provided by (used in) operating activities | $2,909 | $(3,695) | | Net cash (used in) provided by investing activities | $(419) | $311 | | Net cash provided by financing activities | $0 | $0 | | Net change in cash and cash equivalents | $2,496 | $(3,385) | | Cash and cash equivalents, end of period | $7,832 | $1,904 | Reconciliation of Non-GAAP Financial Measures The reconciliation provides a clear bridge from GAAP net income and net cash from operating activities to non-GAAP EBITDA and Adjusted EBITDA, demonstrating strong non-GAAP profitability Reconciliation of Net Income to EBITDA and Adjusted EBITDA (in thousands) | Metric | Three Months Ended July 31, 2025 | Three Months Ended July 31, 2024 | Six Months Ended July 31, 2025 | Six Months Ended July 31, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income | $1,929 | $798 | $959 | $1,752 | | Depreciation and amortization | $217 | $236 | $442 | $503 | | Provision for income taxes | $670 | $672 | $964 | $917 | | EBITDA | $2,816 | $1,706 | $2,365 | $3,172 | | Stock-based compensation | $281 | $46 | $553 | $95 | | Adjusted EBITDA | $3,097 | $1,752 | $2,918 | $3,267 | - EBITDA is defined as net income before interest income and expense, provision for income taxes, and depreciation and amortization. Adjusted EBITDA further excludes non-cash foreign exchange gains/losses, stock-based compensation, impairment of intangible assets, and other non-cash tax-related items[21]