Sono-Tek (SOTK) Q4 2026 earnings summary

Executive summary

• Fiscal 2026 marked the third consecutive year of annual revenue growth and the sixteenth year of profitability, with revenue reaching $20.9 million and gross margin expanding to 51%.

• Achieved eight consecutive quarters above $5 million in revenue, reflecting business stability and growth.

• Significant profitability expansion, with operating income up 81% and strong backlog at $9.1 million, up 5% year-over-year.

• Strategic focus on high-value, high ASP production systems drove both revenue quality and margin expansion.

Financial highlights

• Fiscal 2026 revenue increased 2% year-over-year to $20.9 million; gross profit rose 8% to $10.56 million.

• Gross margin expanded to 51% from 48% year-over-year, driven by favorable product mix and increased U.S. sales.

• Operating income grew 81% to $1.82 million, with operating margin improving to 9% from 5%.

• Net income rose 42% to $1.8 million; cash, equivalents, and marketable securities increased to $14.8 million with no debt.

• Fourth quarter net sales reached $5.6 million, up 10% year-over-year; net income for the quarter rose 70% to $557,043.

Outlook and guidance

• Anticipates continued revenue growth and profitability in the first half of fiscal 2027, led by medical and high-ASP systems.

• Full-year fiscal 2027 revenue expected to be flat to modestly higher than fiscal 2026, with limited visibility beyond the first half due to uncertainty in clean energy and timing of large orders.

• Backlog at year-end was $9.12 million, supporting visibility into fiscal 2027.