MIND Technology (MIND) Q2 2027 earnings summary

Executive summary

• Revenue for Q2 FY2027 was $5.6M, down from $13.6M in Q2 FY2026, with after-market business contributing 87% of total revenue and providing stability amid market softness and geopolitical disruptions, particularly the war with Iran impacting Middle East projects and payments.

• Operating loss for Q2 FY2027 was $1.8M, compared to operating income of $2.7M in Q2 FY2026; net loss was $1.7M ($0.19/share), versus net income of $1.9M ($0.24/share) in Q2 FY2026.

• Management remains optimistic about long-term industry prospects, citing a solid pipeline of potential large projects, continued investment in technology, and energy security drivers.

• Strategic focus includes profitability, divestiture of non-core assets, recapitalization, and streamlined operations.

Financial highlights

• FY26 revenue reached $46.9M, up from $40.9M in FY25; Q2 FY2027 revenue was $5.6M, with 87% from after-market activity.

• Gross profit for Q2 FY2027 was $2.1M (37% margin), down from $6.8M (50% margin) in Q2 FY2026; FY26 gross profit was $20.97M.

• Adjusted EBITDA loss for Q2 FY2027 was $949K, compared to $3.1M in Q2 FY2026; FY26 adjusted EBITDA was $8.24M.

• Cash and cash equivalents as of July 31, 2026, were $15.8M; working capital was $36.7M.

• Net cash used in operating activities for the six months ended July 31, 2026, was $3.1M.

Outlook and guidance

• Management expects fiscal 2027 results to be below fiscal 2026 due to customer hesitancy, project delays, and macro uncertainty, but remains confident in long-term growth driven by marine exploration, alternative energy, and a strong project pipeline.

• Backlog as of July 31, 2026, was $4.8M, down from $7.6M at April 30, 2026, and $12.8M at July 31, 2025.

• Revenue consistently exceeds reported backlog from prior year-end.