AstroNova Reports $151.3 Million Revenue with Net Loss of $14.5 Million for Fiscal Year Ending January 31, 2025

AstroNova, Inc. reported a net revenue of $151.3 million for the fiscal year ending January 31, 2025, marking a 2.2% increase from $148.1 million in the previous fiscal year. The growth was primarily driven by a 5.6% increase in domestic revenue, which reached $89.5 million, while international revenue decreased by 2.4% to $61.8 million, impacted by unfavorable foreign exchange rates. The company’s Product Identification (PI) segment generated $102.3 million, a slight decline of 1.6% from the prior year, while the Test & Measurement (T&M) segment saw an 11.1% increase in revenue to $48.9 million.

The fiscal year was marked by significant operational challenges, including a goodwill impairment charge of $13.4 million related to the acquisition of MTEX, a Portugal-based manufacturer of digital printing equipment. This acquisition, completed in May 2024, was expected to enhance AstroNova's product offerings but faced integration difficulties, leading to an operating loss of $16.9 million for MTEX on revenues of $4.2 million. The company also implemented a restructuring plan aimed at reducing costs in the PI segment, which included workforce reductions and the discontinuation of certain low-margin products.

AstroNova's total operating expenses rose sharply to $61.4 million, a 43.3% increase from $42.8 million in the previous year, largely due to the aforementioned goodwill impairment and increased general and administrative costs. The company reported a net loss of $14.5 million, or $1.93 per diluted share, compared to a net income of $4.7 million, or $0.63 per diluted share, in the prior year. The loss was exacerbated by transaction costs associated with the MTEX acquisition and restructuring efforts.

As of January 31, 2025, AstroNova employed 441 full-time employees, including 72 from the MTEX acquisition. The company continues to focus on product innovation and market expansion, with plans to enhance its product lines and improve operational efficiencies. The management anticipates that the restructuring actions will yield annualized savings of approximately $3.0 million, which is expected to support future profitability.

Looking ahead, AstroNova aims to leverage its acquisitions and streamline operations to improve financial performance. The company is also addressing quality issues related to its PI products and is committed to enhancing customer relationships through improved service and product offerings. Despite the challenges faced in fiscal 2025, management remains optimistic about the long-term growth potential of the business, particularly in the T&M segment, which has shown resilience and growth in revenue.