Evertz Technologies (ET) Q3 2026 earnings summary

Executive summary

• Achieved record Q3 sales of CAD 139.3 million (USD 139.3 million), up 5% sequentially and 2% year-over-year.

• Software and services revenue grew 12.3% year-over-year to CAD 62.5 million, representing 45% of total revenue.

• Net earnings reached CAD 18.7 million, with EPS of CAD 0.24, down from CAD 0.27 in the prior year.

• Gross margin was 58.3%, up from 57.8% in the prior year.

• Strong international growth offset a decline in North America.

Financial highlights

• International revenue rose 27.7% sequentially and 15% year-over-year to CAD 43.7 million.

• Hardware revenue for the quarter was CAD 76.8 million, down from CAD 81.2 million last year.

• Year-to-date sales were CAD 384.2 million, up 3% from the prior year.

• Working capital stood at CAD 133.2 million, with cash of CAD 24.8 million, both down from prior fiscal year-end.

• Purchase order backlog exceeded CAD 246 million at quarter-end.

Outlook and guidance

• Entering Q4 with strong momentum, driven by a robust backlog and continued adoption of IP/cloud solutions.

• Expecting higher OpEx in Q4 due to major trade shows and increased R&D materials.

• No significant changes anticipated in OpEx beyond Q4, aside from inflationary pressures.

• Shipments in February 2026 totaled CAD 32 million.