InTest Reports Third Quarter 2025 Results

MT. LAUREL, N.J.--( BUSINESS WIRE)--InTest Corporation (NYSE American: INTT), a global supplier of innovative test and process technology solutions for use in manufacturing and testing in key target markets which include semiconductor (“semi”), automotive/EV, defense/aerospace, industrial, life sciences, and safety/security, today announced financial results for the third quarter of 2025 ended September 30, 2025.

Nick Grant, President and CEO, commented, “Against a backdrop of ongoing global economic uncertainty, orders 1 for the third quarter surged to $37.6 million, our highest level since Q2 2022. This order strength is a testament to the continued success of our end market diversification strategy, higher demand from automotive customers associated with 2027 model year programs and increased defense/aerospace spending. We continue to gain traction with our newly introduced products and our expanding customer base. Nevertheless, some customers in certain end markets remain cautious to commit to capital projects. Overall, our funnel remains strong and in the third quarter we further strengthened our readiness for a market recovery and opportunities to scale the business as we continue to execute toward our Vision 2030 goals.”

Mr Grant continued, “Reported revenue for the quarter came in below guidance primarily due to technical challenges associated with a few systems reflecting a combination of new capabilities, new customers, and new markets. These challenges have since been resolved and the shipments have been fulfilled. Operating expenses were lower than forecasted, reflecting rigorous spending discipline, and we continued to generate strong operating cash flow.”

Third Quarter 2025 Review (see revenue by market and by segments in accompanying tables)

Three Months Ended

($ in thousands except percentages and per share data)

Change

September 30,

June 30,

2025

2024

2025

Revenue

26,236

30,272

(4,036

)

(13.3

28,130

(1,894

)

(6.7

Gross profit

10,992

14,012

(3,020

)

(21.6

11,973

(981

)

(8.2

Gross margin

41.9

46.3

42.6

Operating expenses (including intangible amortization & restructuring)

12,185

13,525

(1,340

)

(9.9

12,900

(715

)

(5.5

Operating (loss) income

(1,193

)

487

(1,680

)

(345.0

(927

)

(266

)

(28.7

Operating margin

(4.5

1.6

(3.3

Net (loss) earnings

(938

)

495

(1,433

)

(289.5

(503

)

(435

)

(86.5

Net margin

(3.6

1.6

(1.8

(Loss) earnings per diluted share (“EPS”)

(0.08

)

0.04

(0.12

)

(300.0

(0.04

)

(0.04

)

(100.0

Adjusted net (loss) earnings (Non-GAAP) 2

(198

)

1,311

(1,509

)

(115.1

398

(596

)

(149.7

Adjusted EPS (Non-GAAP) 2

(0.02

)

0.11

(0.13

)

(118.2

0.03

(0.05

)

(166.7

Adjusted EBITDA (Non-GAAP) 2

383

2,441

(2,058

)

(84.3

1,262

(879

)

(69.7

Adjusted EBITDA margin (Non-GAAP) 2

1.5

8.1

4.5

Sequentially, revenue for the third quarter was down $1.9 million over the second quarter as sales in defense/aerospace declined $1.3 million, auto/EV declined $0.9 million, and semi decreased $0.4 million. This decline more than offset the combined growth of $0.7 million across life sciences, safety/security and other markets.

Compared with the prior-year period, third quarter revenue was down $4.0 million, driven primarily by the delayed shipments. Within the end markets, we saw a $1.6 million decline in semi, a $1.3 million decline in auto/EV sales, a $1.2 million decline in other markets, and a $0.9 million decline in defense/aerospace. This contraction was partially mitigated by increases of $0.6 million in life sciences and $0.3 million in safety/security.

Sequentially, gross margin decreased 70 basis points to 41.9% driven by lower volume. The 440-basis point decrease compared with the prior-year period, reflects the combination of lower volume and unfavorable product mix.

Sequentially, operating expenses decreased $0.7 million due to ongoing cost reduction efforts. Operating expenses decreased $1.3 million from the prior-year period primarily as a result of cost reduction efforts.

Net loss for the third quarter was $0.9 million, or $(0.08) per diluted share. Adjusted net loss (Non-GAAP) 2 was $0.2 million, or $(0.02) adjusted EPS (Non-GAAP) 2.

Balance Sheet and Cash Flow Review

Cash, cash equivalents and restricted cash at the end of the third quarter of 2025 were $21.1 million, up $1.8 million from the end of the second quarter. During the quarter, the Company reduced total debt by $1.2 million from June 30, 2025 to $8.9 million and generated $3.5 million from operations. Capital expenditures were $0.4 million in the third quarter of 2025.

At September 30, 2025, the Company had $30.0 million available under its delayed draw term loan facility and no borrowings under the $10.0 million revolving credit facility. On August 5, 2025, the Company entered into a covenant waiver agreement with its U.S. based lender through the first quarter of 2026 in exchange for pledging cash equal to U.S. debt outstanding. At September 30, 2025, there was $4.9 million U.S. based debt outstanding.

Third Quarter 2025 Orders 1 and Backlog 1 (see orders by market in accompanying tables)

Three Months Ended

Change

September 30,

June 30,

($ in thousands except percentages)

2025

2024

2025

Orders

37,642

28,054

9,588

34.2

27,759

9,883

35.6

Backlog (at quarter end)

49,267

45,454

3,813

8.4

37,861

11,406

30.1

Third quarter orders of $37.6 million grew $9.6 million, or 34.2%, versus the prior-year period, and $9.9 million, or 35.6%, compared with the second quarter of 2025. The year-over-year increase reflects strength in auto/EV, industrial, defense/aerospace and life sciences while orders slowed in safety/security and other markets.

Sequentially, the 35.6% increase in orders was primarily driven by strong demand in auto/EV, defense/aerospace and other markets. These increases outpaced the declines in life sciences and safety/security.

Backlog at September 30, 2025, was $49.3 million, substantially above the June 30, 2025 level. Approximately 55.0% of the backlog is expected to ship beyond the fourth quarter of 2025.

Focusing Outlook on Forward Quarter

Mr. Grant concluded, “We were encouraged to see some pockets of customers moving forward with capital projects during the third quarter, particularly in the auto/EV and defense/aerospace end markets, which resulted in a backlog that increased $11.4 million over the second quarter and a funnel that remained strong. The work we have done to diversify the company into these non-semi markets is paying off. At the same time, many of our customers continue to hold back on capital investments in the face of ongoing trade and economic uncertainties, and we still do not have visibility into the timing of an overall market recovery.”

Based on the shipments which slipped from the third quarter to the fourth quarter and the backlog at quarter end, we expect fourth quarter 2025 revenue to be $30 million to $32 million, with gross margin of approximately 43% and operating expenses of $12.3 million to $12.7 million, which excludes approximately $0.2 million in Videology and other restructuring expenses.

The foregoing guidance is based on management’s current views with respect to operating and market conditions and customers’ forecasts. It also assumes macroeconomic conditions remain unchanged through the fourth quarter. Actual results may differ materially from what is provided here today as a result of, among other things, the factors described under “Forward-Looking Statements” below.

Conference Call and Webcast

The Company will host a conference call and webcast today at 8:30 a.m. ET. During the conference call, management will review the financial and operating results and discuss InTest’s corporate strategy and outlook. A question-and-answer session will follow. To listen to the live call, dial (201) 689-8263. In addition, the webcast and slide presentation may be found at intest.com/investor-relations.

A telephonic replay will be available from 12:30 p.m. ET on the day of the call through Wednesday, November 19, 2025. To listen to the archived call, dial (412) 317-6671 and enter replay pin number 13756099. The webcast replay can be accessed via the investor relations section of intest.com, where a transcript will also be posted once available.

About InTest Corporation

InTest Corporation is a global supplier of innovative test and process technology solutions for use in manufacturing and testing in key target markets including both the front-end and back-end of the semiconductor manufacturing industry (“semi”), automotive/EV, defense/aerospace, industrial, life sciences and safety/security. Backed by decades of engineering expertise and a culture of operational excellence, InTest solves difficult thermal, mechanical, and electronic challenges for customers worldwide while generating strong cash flow and profits. InTest’s growth strategy leverages these strengths to grow organically and with acquisitions through the addition of innovative technologies, deeper and broader geographic reach, customer penetration and market expansion. For more information, visit https://www.intest.com/.

Non-GAAP Financial Measures

In addition to disclosing results that are determined in accordance with generally accepted accounting practices in the United States (“GAAP”), we also disclose non-GAAP financial measures. These non-GAAP financial measures consist of adjusted net (loss) earnings, adjusted (loss) earnings per diluted share (“adjusted EPS”), adjusted EBITDA, and adjusted EBITDA margin.

The Company defines these non-GAAP measures as follows:

These results are provided as a complement to the results provided in accordance with GAAP. Adjusted net (loss) earnings and adjusted (loss) earnings per diluted share (“adjusted EPS”) are non-GAAP financial measures presented to provide investors with meaningful, supplemental information regarding our baseline performance before acquired intangible amortization, restructuring costs and inventory step-up charges as management believes these expenses may not be indicative of our underlying operating performance. Adjusted EBITDA and adjusted EBITDA margin are non-GAAP financial measures presented primarily as a measure of liquidity as they exclude non-cash charges for acquired intangible amortization, acquired inventory step-up, depreciation and stock-based compensation. In addition, adjusted EBITDA and adjusted EBITDA margin also exclude the impact of restructuring costs, interest income or expense and income tax expense or benefit, as management believes these expenses may not be indicative of our underlying operating performance.

Management’s Use of Non-GAAP Measures

The non-GAAP financial measures presented in this press release are used by management to make operational decisions, to forecast future operational results, and for comparison with our business plan, historical operating results and the operating results of our peers. Reconciliations from net (loss) earnings and (loss) earnings per diluted share (“EPS”) to adjusted net (loss) earnings and adjusted earnings per diluted share (“adjusted EPS”) and from net (loss) earnings and net margin to adjusted EBITDA and adjusted EBITDA margin, are contained in the tables below.

Management believes these Non-GAAP financial measures are important in evaluating our performance, results of operations, and financial position. We use non-GAAP financial measures to supplement our GAAP results to provide a more complete understanding of the factors and trends affecting our business. Non-GAAP measures as presented in this press release may differ from and may not be comparable to similarly titled measures used by other companies.

Key Performance Indicators

In addition to the foregoing non-GAAP measures, management uses orders and backlog as key performance metrics to analyze and measure the Company’s financial performance and results of operations. Management uses orders and backlog as measures of current and future business and financial performance, and these may not be comparable with measures provided by other companies. Orders represent written communications received from customers requesting the Company to provide products and/or services. Backlog is calculated based on firm purchase orders we receive for which revenue has not yet been recognized. Management believes tracking orders and backlog are useful as they are often leading indicators of future performance. In accordance with industry practice, contracts may include provisions for cancellation, termination, or suspension at the discretion of the customer.

Given that each of orders and backlog are operational measures and that the Company’s methodology for calculating orders and backlog does not meet the definition of a non-GAAP measure, as that term is defined by the U.S. Securities and Exchange Commission, a quantitative reconciliation for each is not required or provided.

Forward-Looking Statements

This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. These statements do not convey historical information but relate to predicted or potential future events and financial results, such as statements of the Company’s plans, strategies and intentions, or our future performance or goals, that are based upon management’s current expectations. These forward-looking statements can often be identified by the use of forward-looking terminology such as “believe,” “continue,” “expects,” “guidance,” “may,” “outlook,” “opportunities,” “will,” “plan,” “forecasts,” “strategy,” “target,” or similar terminology. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Such risks and uncertainties include, but are not limited to, any mentioned in this press release as well as the Company’s ability to execute on its VISION 2030 Strategy, realize the potential benefits of acquisitions and successfully integrate any acquired operations, grow the Company’s presence in its key target and international markets, manage supply chain challenges, convert backlog to sales and to ship product in a timely manner; the success of the Company’s strategy to diversify its markets; the impact of inflation on the Company’s business and financial condition; indications of a change in the market cycles in the semi market or other markets served; changes in business conditions and general economic conditions both domestically and globally including rising interest rates and fluctuation in foreign currency exchange rates; changes in the demand for semiconductors; access to capital and the ability to borrow funds or raise capital to finance potential acquisitions or for working capital; changes in the rates and timing of capital expenditures by the Company’s customers; and other risk factors set forth from time to time in the Company’s Securities and Exchange Commission filings, including, but not limited to, the Annual Report on Form 10-K for the year ended December 31, 2024. Any forward-looking statement made by the Company in this press release is based only on information currently available to management and speaks to circumstances only as of the date on which it is made. The Company undertakes no obligation to update the information in this press release to reflect events or circumstances after the date hereof or to reflect the occurrence of anticipated or unanticipated events, except as required by law.

____________________

1 Orders and Backlog are key performance metrics. See “Key Performance Indicators” below for important disclosures regarding InTest’s use of these metrics.

2 Adjusted net (loss) earnings, adjusted EPS, adjusted EBITDA, and adjusted EBITDA margin are non-GAAP financial measures. Further information can be found under “Non-GAAP Financial Measures.” See also the reconciliations of GAAP financial measures to non-GAAP financial measures that accompany this press release.

– FINANCIAL TABLES FOLLOW –

InTest Corporation

Consolidated Statements of Operations

(Unaudited)

Three Months Ended

Nine Months Ended

September 30,

(In thousands, except share and per share data)

2025

2024

2025

2024

Revenue

26,236

30,272

81,003

94,087

Cost of revenue

15,244

16,260

46,982

53,202

Gross profit

10,992

14,012

34,021

40,885

Operating expenses:

Selling expense

3,765

4,281

12,141

12,976

Engineering and product development expense

2,335

2,182

7,028

6,382

General and administrative expense

5,128

6,118

16,704

17,776

Amortization of acquired intangible assets

841

944

2,504

2,436

Restructuring costs

116

—

645

—

Total operating expenses

12,185

13,525

39,022

39,570

Operating (loss) income

(1,193

)

487

(5,001

)

1,315

Interest expense

(95

)

(219

)

(366

)

(612

)

Other income

301

768

949

(Loss) earnings before income tax (benefit) expense

(1,227

)

569

(4,599

)

1,652

Income tax (benefit) expense

(289

)

(829

)

265

Net (loss) earnings

(938

)

495

(3,770

)

1,387

(Loss) earnings per common share:

Basic

(0.08

)

0.04

(0.31

)

0.11

Diluted

(0.08

)

0.04

(0.31

)

0.11

Weighted average common shares outstanding:

Basic

12,208,586

12,189,761

12,201,087

12,150,240

Diluted

12,208,586

12,251,712

12,201,087

12,246,763

InTest Corporation

Consolidated Balance Sheets

September 30,

2025

December 31,

2024

(In thousands, except share and per share data)

(Unaudited)

ASSETS

Current assets:

Cash and cash equivalents

16,230

19,830

Restricted cash

4,867

—

Trade accounts receivable, net of allowance for credit losses of $395 and $423, respectively

20,893

29,495

Inventories

28,001

26,837

Prepaid expenses and other current assets

5,101

2,650

Total current assets

75,092

78,812

Property and equipment, net of accumulated depreciation of $9,762 and $8,830, respectively

4,722

4,457

Right-of-use assets, net

9,646

10,767

Goodwill

32,314

30,744

Intangible assets, net

25,670

26,376

Deferred tax assets

—

Other assets

833

1,065

Total assets

148,277

152,288

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

Current portion of long-term debt

6,533

7,494

Current portion of operating lease liabilities

2,064

1,989

Accounts payable

7,448

7,991

Customer deposits and deferred revenue

6,559

4,989

Accrued expenses and other current liabilities

9,845

9,485

Total current liabilities

32,449

31,948

Operating lease liabilities, net of current portion

7,902

9,021

Long-term debt, net of current portion

2,336

7,538

Contingent consideration, net of current portion

431

825

Deferred revenue, net of current portion

1,106

1,432

Deferred tax liabilities

436

—

Other liabilities

1,747

1,734

Total liabilities

46,407

52,498

Commitments and Contingencies

Stockholders’ equity:

Preferred stock, $0.01 par value; 5,000,000 shares authorized; no shares issued or outstanding

—

Common stock, $0.01 par value; 20,000,000 shares authorized; 12,564,225 and 12,457,658 shares issued, respectively; 12,482,148 and 12,378,276 shares outstanding, respectively

125

124

Additional paid-in capital

58,994

57,658

Retained earnings

41,317

45,087

Accumulated other comprehensive earnings (loss)

2,393

(2,137

)

Treasury stock, at cost; 82,077 and 79,382 shares, respectively

(959

)

(942

)

Total stockholders’ equity

101,870

99,790

Total liabilities and stockholders’ equity

148,277

152,288

InTest Corporation

Consolidated Statements of Cash Flows

(Unaudited)

Nine Months Ended September 30,

(In thousands)

2025

2024

CASH FLOWS FROM OPERATING ACTIVITIES

Net (loss) earnings

(3,770

)

1,387

Adjustments to reconcile net (loss) earnings to net cash provided by (used in) operating activities:

Depreciation and amortization

5,009

4,469

Provision for excess and obsolete inventory

583

509

Amortization of deferred compensation related to stock-based awards

1,212

1,450

Deferred income tax expense

546

140

Other non-cash reconciling items

(400

)

114

Changes in assets and liabilities:

Trade accounts receivable

9,393

(3,694

)

Inventories

(515

)

(129

)

Prepaid expenses and other current assets

(405

)

569

Other assets

(177

)

(27

)

Operating lease liabilities

(1,536

)

(1,173

)

Accounts payable

(510

)

(1,029

)

Customer deposits and deferred revenue

1,206

468

Domestic and foreign income taxes payable

(1,579

)

(817

)

Deferred revenue, net of current portion

(326

)

(123

)

Accrued expenses and other liabilities

(394

)

(880

)

Net cash provided by operating activities

8,337

1,234

CASH FLOWS FROM INVESTING ACTIVITIES

Acquisition of business, net of cash acquired

—

(18,727

)

Purchases of property and equipment

(1,098

)

(1,161

)

Net cash used in investing activities

(1,098

)

(19,888

)

CASH FLOWS FROM FINANCING ACTIVITIES

Repurchases of common stock

—

(1,042

)

Repayments of short-term borrowings, net of proceeds

(3,852

)

(1,856

)

Repayments of long-term debt

(3,075

)

(5,475

)

Proceeds from stock options exercised

145

Proceeds from shares sold under Employee Stock Purchase Plan

111

Settlement of employee tax liabilities in connection with treasury stock transaction

(17

)

(41

)

Net cash used in by financing activities

(6,836

)

(8,158

)

Effects of exchange rates on cash

864

(476

)

Net cash provided by (used in) all activities

1,267

(27,288

)

Cash, cash equivalents and restricted cash at beginning of period

19,830

45,260

Cash, cash equivalents and restricted cash at end of period

21,097

17,972

Cash and cash equivalents

16,230

17,972

Restricted cash

4,867

—

Total cash, cash equivalents and restricted cash at end of period

21,097

17,972

Cash payments for:

Domestic and foreign income taxes, net of receipts

1,147

Interest

368

634

SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES

Equity issued in conjunction with acquisition of business

—

2,086

Issuance of unvested shares of restricted stock awards

1,039

1,580

Forfeiture of shares of unvested restricted stock awards

(557

)

(200

)

InTest Corporation

Revenue by Market

(Unaudited)

($ in thousands)

Three Months Ended

Change

September 30,

June 30,

2025

2024

2025

Revenue

Semi

9,842

37.5

11,410

37.7

(1,568

)

(13.7

10,192

36.2

(350

)

(3.4

Auto/EV

4,964

18.9

6,250

20.6

(1,286

)

(20.6

5,862

20.8

(898

)

(15.3

Defense/Aerospace

2,313

8.8

3,239

10.7

(926

)

(28.6

3,578

12.7

(1,265

)

(35.4

Industrial

3,658

13.9

3,534

11.7

124

3.5

3,786

13.5

(128

)

(3.4

Life Sciences

1,930

7.4

1,322

4.4

608

46.0

1,386

4.9

544

39.2

Safety/Security

927

3.5

666

2.2

261

39.2

898

3.2

Other

2,602

9.9

3,851

12.7

(1,249

)

(32.4

2,428

8.6

174

7.2

26,236

100.0

30,272

100.0

(4,036

)

(13.3

28,130

100.0

(1,894

)

(6.7

* Components may not add up to total due to rounding

Orders by Market

(Unaudited)

($ in thousands)

Three Months Ended

Change

September 30,

June 30,

2025

2024

2025

Orders

Semi

8,031

21.3

7,648

27.2

383

5.0

7,292

26.3

739

10.1

Auto/EV

14,580

38.7

7,141

25.5

7,439

104.2

7,066

25.5

7,514

106.3

Defense/Aerospace

6,403

17.0

4,470

15.9

1,933

43.2

2,499

9.0

3,904

156.2

Industrial

4,670

12.4

2,237

8.0

2,433

108.8

4,680

16.9

(10

)

(0.2

Life Sciences

1,450

3.9

534

1.9

916

171.5

2,863

10.3

(1,413

)

(49.4

Safety/Security

267

0.7

1,062

3.8

(795

)

(74.9

1,173

4.2

(906

)

(77.2

Other

2,241

6.0

4,962

17.7

(2,721

)

(54.8

2,186

7.9

2.5

37,642

100.0

28,054

100.0

9,588

34.2

27,759

100.0

9,883

35.6

* Components may not add up to total due to rounding

InTest Corporation

Segment Data

(Unaudited)

Three Months Ended September 30, 2025

($ in thousands)

Electronic Test

Environmental Technologies

Process

Technologies

Corporate &

Other

Consolidated

Revenue

12,099

7,490

6,647

—

26,236

Cost of revenue

6,498

4,566

4,180

—

15,244

Other divisional costs

4,455

2,144

2,565

—

9,164

Division operating income (loss)

1,146

780

(98

)

—

1,828

Acquired intangible amortization

841

Restructuring costs

116

Corporate expenses

2,064

Operating (loss) income

1,146

780

(98

)

(3,021

)

(1,193

)

Interest expense

(95

)

(95

)

Other income

(Loss) earnings before income tax expense

1,146

780

(98

)

(3,055

)

(1,227

)

Three Months Ended September 30, 2024

($ in thousands)

Electronic Test

Environmental Technologies

Process

Technologies

Corporate &

Other

Consolidated

Revenue

15,481

6,734

8,057

—

30,272

Cost of revenue

7,861

4,035

4,364

—

16,260

Other divisional costs

5,309

2,273

2,623

—

10,205

Division operating income

2,311

426

1,070

—

3,807

Acquired intangible amortization

944

Corporate expenses

2,376

Operating income (loss)

2,311

426

1,070

(3,320

)

487

Interest expense

(219

)

(219

)

Other income

301

Earnings (loss) before income tax expense

2,311

426

1,070

(3,238

)

569

InTest Corporation

Segment Data

(Unaudited)

Nine Months Ended September 30, 2025

($ in thousands)

Electronic Test

Environmental Technologies

Process

Technologies

Corporate &

Other

Consolidated

Revenue

39,091

20,973

20,939

—

81,003

Cost of revenue

21,229

13,263

12,490

—

46,982

Other divisional costs

14,475

6,574

7,941

—

28,990

Division operating income

3,387

1,136

508

—

5,031

Acquired intangible amortization

2,504

Restructuring costs

645

Corporate expenses

6,883

Operating (loss) income

3,387

1,136

508

(10,032

)

(5,001

)

Interest expense

(366

)

(366

)

Other income

768

(Loss) earnings before income tax expense

3,387

1,136

508

(9,630

)

(4,599

)

Nine Months Ended September 30, 2024

($ in thousands)

Electronic Test

Environmental Technologies

Process

Technologies

Corporate &

Other

Consolidated

Revenue

42,756

21,835

29,496

—

94,087

Cost of revenue

22,869

13,584

16,749

—

53,202

Other divisional costs

14,020

6,817

8,746

—

29,583

Division operating income

5,867

1,434

4,001

—

11,302

Acquired intangible amortization

2,436

Corporate expenses

7,551

Operating income (loss)

5,867

1,434

4,001

(9,987

)

1,315

Interest expense

(612

)

(612

)

Other income

949

Earnings (loss) before income tax expense

5,867

1,434

4,001

(9,650

)

1,652

InTest Corporation

Reconciliation of Non-GAAP Financial Measures

(Unaudited)

Reconciliation of Net (Loss) Earnings to Adjusted Net (Loss) Earnings (Non-GAAP) and (Loss) Earnings Per Diluted Share to Adjusted EPS (Non-GAAP):

Three Months Ended

September 30,

June 30,

(in thousands except per share amounts)

2025

2024

2025

Net (loss) earnings

(938

)

495

(503

)

Acquired intangible amortization

841

944

850

Restructuring costs

116

—

216

Tax effect of adjusting items

(217

)

(128

)

(165

)

Adjusted net (loss) earnings (Non-GAAP)

(198

)

1,311

398

Diluted weighted average shares outstanding

12,209

12,252

12,246

(Loss) earnings per diluted share:

Net (loss) earnings

(0.08

)

0.04

(0.04

)

Acquired intangible amortization

0.07

0.08

0.07

Restructuring costs

0.01

—

0.02

Tax effect of adjusting items

(0.02

)

(0.01

)

(0.01

)

Adjusted EPS (Non-GAAP) *

(0.02

)

0.11

0.03

* Components may not add up to total due to rounding

Reconciliation of Net (Loss) Earnings and Net Margin to Adjusted EBITDA (Non-GAAP) and Adjusted EBITDA Margin (Non-GAAP):

Three Months Ended

September 30,

June 30,

(in thousands except percentage data)

2025

2024

2025

Net (loss) earnings

(938

)

495

(503

)

Acquired intangible amortization

841

944

850

Net interest expense

(18

)

Income tax (benefit) expense

(289

)

(80

)

Depreciation

317

355

314

Restructuring costs

116

—

216

Stock-based compensation

354

537

435

Adjusted EBITDA (Non-GAAP)

383

2,441

1,262

Revenue

26,236

30,272

28,130

Net margin

(3.6

1.6

(1.8

Adjusted EBITDA margin (Non-GAAP)

1.5

8.1

4.5