Hurco Companies (HURC) investor relations material

Executive summary

• Sales and service fees for the nine months ended July 31, 2025, were $133.1 million, flat year-over-year, with growth in the Americas and Asia Pacific offset by declines in Europe.

• Orders declined 15% year-over-year to $124.8 million, reflecting weaker demand in the Americas and Europe, partially offset by growth in Asia Pacific.

• Operating loss for the nine months was $6.8 million, an improvement from a $7.8 million loss in the prior year period, driven by cost savings and lower discretionary spending.

• Net loss for the nine months was $12.1 million ($1.87/share), compared to $15.2 million ($2.33/share) in the prior year period, both impacted by tax valuation allowances.

• Gross profit margin remained steady at 19% of sales for the nine months, with Q3 margin improving to 20% from 18% year-over-year.

Financial highlights

• Third quarter sales and service fees were $45.8 million, up 7% year-over-year, with notable growth in the Americas (10%) and Asia Pacific (48%).

• Gross profit for the third quarter was $9.1 million (20% of sales), up from $7.8 million (18%) in the prior year quarter.

• Selling, general, and administrative expenses for the nine months were $32.0 million (24% of sales), down from $33.4 million year-over-year.

• Cash and cash equivalents increased to $44.5 million at July 31, 2025, from $33.3 million at October 31, 2024.

• No borrowings outstanding under any credit facilities as of July 31, 2025; $51.2 million available for borrowing.

Outlook and guidance

• Management suspended the regular quarterly cash dividend to enhance financial flexibility and focus on reinvestment and share repurchases.

• Ongoing investments in technology and R&D, with potential reinstatement of dividends once profitability returns.

• Management expects cautious capital spending to persist due to macroeconomic uncertainty but sees growing customer confidence.

• The company remains committed to product innovation, targeted market penetration, and balanced capital allocation.

• Management expects adequate liquidity to fund global operations over the next twelve months and beyond.