AstroNova Reports $37.7 Million Revenue in Q1 Fiscal 2026, Faces Net Loss of $376,000

AstroNova, Inc. reported a revenue of $37.7 million for the first quarter of fiscal 2026, marking a 14.4% increase from $33.0 million in the same period last year. The growth was driven by a 13.4% rise in the Product Identification (Product ID) segment, which generated $26.3 million, and a 16.8% increase in the Aerospace segment, which brought in $11.4 million. The company’s gross profit for the quarter was $12.7 million, reflecting a gross margin of 33.6%, down from 36.3% in the prior year, primarily due to higher manufacturing costs and product mix changes.

Despite the revenue growth, AstroNova reported a net loss of $376,000, or $(0.05) per diluted share, compared to a net income of $1.2 million, or $0.15 per diluted share, in the previous year. The current quarter's loss was attributed to several factors, including $0.3 million in transaction costs related to the acquisition of MTEX, a Portugal-based manufacturer of digital printing equipment, and $0.6 million in restructuring charges. The company incurred total operating expenses of $12.1 million, a 13.7% increase from $10.6 million in the prior year, largely due to costs associated with the MTEX integration and restructuring efforts.

AstroNova's acquisition of MTEX, finalized on May 6, 2024, has been integrated into the Product ID segment and is expected to enhance the company’s product offerings and market reach. The acquisition is anticipated to provide a competitive advantage through innovative print engine technology, which is expected to lower the total cost of ownership for customers. However, the integration process has proven to be more complex than initially expected, leading to a restructuring plan that includes a 10% reduction in the global workforce and a focus on higher-margin products.

Operationally, AstroNova reported an increase in cash and cash equivalents to $5.4 million as of April 30, 2025, compared to $5.1 million at the end of the previous fiscal year. The company has also amended its credit agreement with Bank of America to support the MTEX acquisition, increasing its revolving credit facility from $25 million to $30 million. As of the end of the quarter, AstroNova had $18.3 million drawn on its revolving credit facility, with $6.7 million available for borrowing.

Looking ahead, AstroNova aims to focus on reducing its debt and enhancing operational efficiencies following the restructuring. The company anticipates that the changes will generate approximately $3 million in annualized savings and expects to complete the restructuring actions in the first half of fiscal 2026. The management remains optimistic about leveraging the MTEX acquisition to drive future growth and improve profitability.