Core Insights - AstroNova, Inc. reported a net loss of 5 cents per share for Q1 fiscal 2026, a decline from a net income of 15 cents per share in the same quarter last year [2] - The company's revenues increased by 14.4% year over year to $37.7 million, driven by growth in both the Product Identification and Aerospace segments [2] - Despite revenue growth, profitability metrics declined, with operating income dropping to $0.6 million from $1.3 million a year ago [3] Financial Performance - Adjusted net income for the quarter was 5 cents per share, down from 15 cents per share in the prior-year quarter [2] - Operating income for the Product ID segment decreased by 6.7% to $2.8 million, while adjusted operating income rose 4.4% to $3.1 million [4] - The Aerospace segment's operating income increased by 60.5% year over year to $2.8 million, with adjusted operating income at 25.7% of revenue [5] Orders and Backlog - Orders rose 5.4% year over year to $34.9 million, supported by growth in Product ID [6] - Backlog declined to $25.5 million from $28.3 million at the end of fiscal 2025, primarily due to fulfillment of previously delayed shipments [6] Management Commentary - CEO Greg Woods highlighted the transition to high-margin ToughWriter products and the commercialization of next-generation Product ID printers [7] - Management noted that 83% of revenue was recurring and attributed improved adjusted operating income to synergies from the MTEX acquisition [7] Cost Management and Guidance - AstroNova reaffirmed its full-year fiscal 2026 outlook, expecting revenue between $160 million and $165 million, indicating about 7% growth at the midpoint [12] - Adjusted EBITDA margin is projected to range from 8.5% to 9.5%, reflecting continued margin expansion from cost containment efforts [12] Other Developments - The integration of MTEX into the Product ID segment contributed $1.4 million in revenues [13] - The company executed $1.9 million in annualized cost reductions as part of a broader $3 million restructuring initiative [13] - AstroNova improved its liquidity position to $12.6 million and reported free cash flow of $4.4 million for the quarter [13]

Financial Performance - Revenue for Q4 FY25 was $37361 thousand, a 5.6% decrease compared to $39594 thousand in Q4 FY24 [32] - Non-GAAP operating income for Q4 FY25 was $1408 thousand, a 61.2% decrease compared to $3630 thousand in Q4 FY24 [32] - Adjusted EBITDA for Q4 FY25 was $2793 thousand, a 46.7% decrease compared to $5236 thousand in Q4 FY24 [32] - Net loss for Q4 FY25 was $15600 thousand, compared to a net income of $2711 thousand in Q4 FY24 [32] - Non-GAAP net income per diluted share for Q4 FY25 was $0.06, an 81.8% decrease compared to $0.33 in Q4 FY24 [32] Segment Performance - Aerospace segment revenue for Q4 FY25 was $11.7 million, a 9.9% decrease year-over-year [39] - Aerospace segment operating income for Q4 FY25 was $2.3 million, a 36.0% decrease year-over-year, with an operating margin of 20.0% [39] - Product Identification segment revenue for Q4 FY25 was $25.7 million, a 3.6% decrease year-over-year [33] - Product Identification segment operating loss was $11.2 million, compared to an operating income of $3.2 million in Q4 FY24 [33] Strategic Initiatives and Outlook - The company is driving $3 million in annualized savings through a restructuring plan, including a 10% workforce reduction to be completed by August 31, 2025 [12] - The company expects FY26 revenue to be between $160 million and $165 million, representing 7.4% growth at the midpoint versus FY25 [48]