MIND CTI (MNDO) investor relations material

Executive summary

• Publicly listed since 2000, headquartered in Israel with operations in Romania and Germany.

• Provides convergent BSS, customer care, e-commerce, call accounting, and omnichannel messaging solutions for telecom and enterprise clients.

• Revenues for Q1 2026 were $5.1 million, nearly flat compared to Q1 2025, reflecting stable top-line performance amid challenging market conditions.

• Net income rose to $0.9 million ($0.04 per share) from $0.5 million ($0.02 per share) year-over-year, mainly due to a prior-year credit loss allowance.

• A major customer notified of non-renewal effective March 2027, expected to negatively impact future revenues and income.

Financial highlights

• Q1 2026 revenue was $5,085K, up from $4,886K in Q4 2025.

• Q1 2026 net income was $868K, compared to $950K in Q4 2025.

• Operating income for Q1 2026 was $920K, up from $806K in Q4 2025.

• Gross profit for Q1 2026 was $2.7 million, up from $2.5 million in Q1 2025.

• Cash and cash equivalents at quarter-end were $3.7 million, with total current assets of $17.0 million.

Outlook and guidance

• Targets an operating margin of 20%.

• Management expects revenue and income to be negatively impacted by the loss of a major customer in March 2027.

• Ongoing price pressures and a challenging market environment are anticipated.

• The company is focusing on new opportunities and enhancing offerings in cloud, 5G, and AI.

• Maintains a dividend policy based on EBITDA plus financial income minus taxes, subject to board approval.