Hurco(HURC) - 2025 Q4 - Annual Results

Financial Performance - Hurco reported a net loss of $3,041,000, or $0.47 per diluted share, for Q4 FY 2025, compared to a net loss of $1,442,000, or $0.23 per diluted share, in Q4 FY 2024[1]. - Net loss for the fiscal year 2025 was $(15,117,000), slightly improved from $(16,608,000) in fiscal year 2024[19]. - Basic loss per share for Q4 2025 was $(0.47), compared to $(0.23) in Q4 2024[19]. - Operating loss for Q4 2025 was $(3,458,000), compared to a loss of $(491,000) in Q4 2024, reflecting an operating margin of (8)%[19][20]. Sales and Revenue - Sales and service fees for Q4 FY 2025 were $45,467,000, a decrease of $8,235,000, or 15%, compared to Q4 FY 2024, with a favorable currency impact of $882,000[2]. - Sales in the Americas for Q4 FY 2025 decreased by 22% compared to Q4 FY 2024, primarily due to a change in the mix of machine model shipments[4]. - European sales for Q4 FY 2025 decreased by 8%, with a favorable currency impact of 4%[5]. - Asian Pacific sales for Q4 FY 2025 decreased by 25%, primarily due to decreased sales in India and China[6]. - Sales and service fees for Q4 2025 were $45,467,000, a decrease of 15.3% from $53,702,000 in Q4 2024[19]. Profitability - Gross profit for Q4 FY 2025 was $7,749,000, or 17% of sales, down from $12,186,000, or 23% of sales, in Q4 FY 2024[12]. - Gross profit for Q4 2025 was $7,749,000, down 36.5% from $12,186,000 in Q4 2024, resulting in a gross margin of 17%[19][20]. Expenses - Selling, general, and administrative expenses for Q4 FY 2025 were $11,207,000, or 25% of sales, compared to $12,677,000, or 24% of sales, in Q4 FY 2024[13]. Assets and Equity - Cash and cash equivalents totaled $48,713,000 as of October 31, 2025, compared to $33,330,000 as of October 31, 2024[15]. - Total current assets decreased to $225,078,000 in Q4 2025 from $228,577,000 in Q4 2024[22]. - Shareholders' equity decreased to $198,787,000 as of October 31, 2025, down from $207,172,000 in 2024[22]. Capital Expenditures and Tax - Capital expenditures for fiscal year 2025 were $3,021,000, an increase from $2,876,000 in fiscal year 2024[20]. - The effective tax rate for fiscal year 2025 was 6%, compared to (29)% in fiscal year 2024[20]. Management Focus - Hurco's management team is focused on execution, customer engagement, and growth, positioning the company for long-term growth in FY 2026[3]. Operational Efficiency - Days sales outstanding improved to 42 days in Q4 2025 from 49 days in Q4 2024[20].