Hurco Companies Reports 7% Sales Increase but Net Loss in Third Quarter

Hurco Companies, Inc. reported its financial results for the third quarter and nine months ended July 31, 2025, revealing a modest increase in sales and service fees. For the third quarter, the company generated $45.8 million in sales, a 7% increase from $42.7 million in the same period last year. The nine-month figures showed a slight rise to $133.1 million from $132.9 million year-over-year. Despite the increase in revenue, Hurco experienced a net loss of $3.7 million for the quarter, an improvement from a loss of $9.6 million in the prior year, and a nine-month net loss of $12.1 million compared to $15.2 million in the previous year.

The company's gross profit for the third quarter was $9.1 million, representing 20% of sales, up from 18% in the same quarter last year. This increase was attributed to a higher concentration of machine sales in Europe and reduced fixed costs due to cost-saving measures implemented over the past year. However, selling, general, and administrative expenses rose slightly to $10.8 million, or 23% of sales, compared to 24% in the prior year, primarily due to unfavorable currency impacts.

Operationally, Hurco's orders decreased significantly, with total orders for the third quarter falling to $41.0 million, a 22% decline from $52.8 million in the same period last year. The decrease was driven by reduced demand in the Americas and Europe, particularly for Hurco and Takumi machines. In contrast, orders in the Asia Pacific region saw a slight increase. The company noted that approximately 51% of its revenues were derived from European customers, with 11% from the Asia Pacific region.

In terms of strategic developments, Hurco has continued to focus on its product portfolio, which includes three main brands: Hurco, Milltronics, and Takumi. The company is also exploring potential acquisitions and investments in emerging technologies to enhance its market position. As of July 31, 2025, Hurco had cash and cash equivalents of $44.5 million, an increase from $33.3 million at the end of the previous fiscal year, providing a solid liquidity position to support its operations and strategic initiatives moving forward. The company has suspended its regular quarterly cash dividend to enhance financial flexibility and focus on reinvestment in its core business.