MIND Technology (MIND) investor relations material

Executive summary

• Fiscal 2026 delivered resilient results amid macroeconomic and geopolitical uncertainty, with positive earnings and adjusted EBITDA, and meaningful cash flow from operations.

• Q4 revenue was $9.8 million, flat sequentially but down from $15.0 million year-over-year; full-year revenue was $40.9 million, down from $46.9 million in fiscal 2025.

• Aftermarket business, including spare parts and services, accounted for about 60% of total revenues, providing recurring revenue and higher margins.

• Seamap revenues remained elevated and flat sequentially in Q4, with customer order deferrals due to commodity price volatility and global instability.

• Large pipeline of opportunities and a backlog of $13.9 million as of January 31, 2026, with $9.5 million in new orders received in Q4, half delivered and half to be fulfilled in early fiscal 2027.

Financial highlights

• Q4 revenue was $9.8 million; full year revenue was $40.9 million.

• Full year gross profit was $18.7 million, with a gross margin of 46%, up from 45% in fiscal 2025 due to favorable product mix.

• Q4 operating income was $78,000, down from $2.8 million in Q4 2025; full year operating income was $2.9 million, down from $6.8 million in fiscal 2025.

• Q4 adjusted EBITDA was $1.1 million, down from $3.0 million in Q4 2025; full year adjusted EBITDA was $5.3 million.

• Q4 net loss was $271,000 after $471,000 in income tax expense; full year net income was $750,000 after $2.2 million in income tax expense, down from $5.1 million in fiscal 2025.

• Working capital at year-end was $37 million, including $19.1 million in cash, up from $5.3 million a year earlier; company remains debt-free.

• Net cash provided by operating activities was $2.6 million for the year, up from $651,000 in fiscal 2025.

Outlook and guidance

• Fiscal 2027 results expected to be down compared to fiscal 2026 due to lower anticipated systems order volume and ongoing customer caution.

• Despite lower revenue expectations, management anticipates remaining cash flow positive for the year and leveraging $19.1 million in cash to position for improved results as market conditions stabilize.

• Long-term industry fundamentals and pipeline remain strong, with optimism for backlog and order growth as market conditions stabilize.

• Management is focused on adding scale through organic growth, acquisitions, or strategic combinations, with disciplined capital allocation.