Hurco Reports Third Quarter Results For Fiscal Year 2025

Core Viewpoint - Hurco Companies, Inc. reported a net loss of $3.69 million for Q3 2025, an improvement from a net loss of $9.60 million in Q3 2024, indicating progress in financial performance despite ongoing challenges in the market [1][18]. Financial Performance - For Q3 2025, Hurco's sales and service fees reached $45.81 million, a 7% increase from $42.65 million in Q3 2024, aided by a favorable currency impact of $1.38 million [2][18]. - The gross profit for Q3 2025 was $9.11 million, representing 20% of sales, compared to $7.84 million or 18% of sales in the same quarter of the previous year [10][18]. - Selling, general, and administrative expenses for Q3 2025 were $10.76 million, or 23% of sales, down from 24% in Q3 2024, reflecting cost management efforts [11][12]. Geographic Sales Breakdown - Sales in the Americas increased by 10% to $16.90 million in Q3 2025, while sales in Europe remained flat at $24.17 million, and Asia Pacific saw a significant increase of 48% to $4.74 million [3][4][5]. - For the nine months of fiscal year 2025, total sales were $133.09 million, a slight increase of less than 1% compared to the same period in 2024 [2][3]. Orders and Demand - Total orders for Q3 2025 were $40.99 million, a decrease of 22% from $52.82 million in Q3 2024, with notable declines in orders from the Americas and Europe [6][7][8]. - Orders in the Americas decreased by 12% in Q3 2025, primarily due to reduced demand for Hurco and Milltronics machines [7][8]. Cash Position and Capital Allocation - As of July 31, 2025, cash and cash equivalents totaled $44.49 million, an increase from $33.33 million at the end of October 2024, indicating a strengthened cash position [14][18]. - The company has a share repurchase program with $19.68 million available for future repurchases, reflecting a commitment to returning value to shareholders [15][16]. Management Commentary - The CEO expressed optimism about the company's progress, highlighting improved gross profit and reduced operating costs, while acknowledging cautious capital purchase decisions due to macroeconomic uncertainty [3][16].