Evertz Technologies Reports Quarterly Revenue of $132.7 Million in the Second Quarter Ended October 31, 2025

Attention Business/Financial Editors: Burlington, Ontario--(Newsfile Corp. - December 10, 2025) - Evertz Technologies Limited (TSX: ET), the leader in Software Defined Video Network ("SDVN") technology, today reported its results for the second quarter ended October 31, 2025. Second Quarter 2026 Highlights Quarterly revenue of $132.7 million, an increase of $7.5 million or 6.0% from the prior year quarter International quarterly revenue of $34.2 million up $3.8 million or 12.5% from the prior year quarter Earnings from operations of $25.0 million for the quarter, an increase of 17.0% from the prior quarter Net earnings of $18.6 million for the quarter, an increase of 16.9% from the prior quarter Fully diluted earnings per share of $0.24 for the quarter Regular quarterly dividend increased to $0.205 per share Special dividend declared of $1.00 per share. Selected Financial Information Consolidated Statement of Earnings Data (in thousands of dollars, except earnings per share and share data) Q2 ' 26   Q2 ' 25 Revenue $ 132,735   $ 125,259 Gross margin 77,829   74,260 Earnings from operations 25,036   21,391 Net earnings 18,620   15,937 Fully-diluted earnings per share $ 0.24   $ 0.21 Fully-diluted shares 77,523,650   77,077,835   Selected Financial Information Consolidated Balance Sheet Data (in thousands of dollars) Q2 ' 26   YE ' 25 Cash and cash equivalents $ 96,695   $ 111,665 Working capital 205,673   206,900 Total assets 466,690   469,485 Shareholders' equity 267,996   268,123   Revenue For the quarter ended October 31, 2025, revenues were $132.7 million an increase of $7.5 million compared to revenues of $125.3 million for the quarter ended October 31, 2024. For the quarter, revenues in the United States/Canada region were $98.5 million an increase of $3.7 million or 3.9% compared to $94.8 million in the same quarter last year. The International region had revenues of $34.2 million, an increase of $3.8 million or 12.5% compared to $30.4 million in the same quarter last year. Gross Margin Gross margin for the second quarter ended October 31, 2025 was $77.8 million, compared to $74.3 million for the second quarter ended October 31, 2024. As a percentage of revenue, the gross margin was 58.6% for the second quarter ended October 31, 2025 compared to 59.3% for the second quarter ended October 31, 2024. Earnings For the quarter ended October 31, 2025, net earnings were $18.6 million or an increase of 16.9% compared to $15.9 million in the corresponding period last year. For the quarter ended October 31, 2025, earnings per share on a fully-diluted basis were $0.24 as compared to $0.21 in the corresponding period last year. Operating Expenses For the quarter ended October 31, 2025, selling and administrative expenses were $19.1 million as compared to $18.4 million for the quarter ended October 31, 2024. For the quarter ended October 31, 2025, gross research and development expenses were $36.6 million as compared to $36.3 million for the quarter ended October 31, 2024. Liquidity and Capital Resources The Company's working capital as at October 31, 2025 was $205.6 million as compared to $206.9 million on April 30, 2025. Cash and cash equivalent was $96.7 million as at October 31, 2025 as compared to $111.7 million on April 30, 2025. Cash used from operations was $5.0 million for the quarter ended October 31, 2025 as compared to $9.7 million cash used for the quarter ended October 31, 2024. Before taking into account taxes and the changes in non-cash working capital and current taxes, the Company generated $25.6 million from operations for the quarter ended October 31, 2024 compared to $21.8 million for the same period last year. For the quarter, the Company used $6.3 million from investing activities which includes the purchase of land and building for $3.0 million For the quarter ended, the Company used cash in financing activities of $17.5 million which was principally a result of the payment of dividends of $15.4 million. Shipments and Backlog At the end of November 2025, purchase order backlog was in excess of $240 million and shipments during the month of November 2025 were $46 million. Dividend Declared Evertz Board of Directors declared a regular quarterly dividend on December 10, 2025 of $0.205 per share. The dividend is payable to shareholders of record on December 18, 2025 and will be paid on or about December 24, 2025. Special Dividend Evertz Board of Directors declared a special dividend on December 10, 2025 of $1.00. The dividend is payable to shareholders of record on December 18, 2025 and will be paid on or about December 24, 2025. The Special dividend reflects both the strong long-term operational performance of the Company and its solid balance sheet, thereby enabling a distribution of cash over and above what is considered necessary to meeting known commitments and maintain adequate reserves. Selected Consolidated Financial Information (in thousands of dollars, except earnings per share and percentages) Three month period ended Six month period ended October 31, October 31, 2025 2024 2025 2024 Revenue $ 132,735 $ 125,259 $ 244,880 $ 236,902 Cost of goods sold 54,906 50,999 98,209 96,380 Gross margin 77,829 74,260 146,671 140,522 Expenses         Selling and administrative 19,102 18,372 37,726 35,976 General 1,268 1,302 2,535 2,583 Research and development 36,635 36,279 73,618 73,653 Investment tax credits (4,350 ) (3,590 ) (7,697 ) (7,350 ) Share based Compensation 914 1,267 1,982 2,442 Foreign exchange gain (776 ) (761 ) (1,512 ) (782 ) 52,793 52,869 106,652 106,522 Earnings before undernoted 25,036 21,391 40,019 34,000         Finance income 642 837 1,417 1,542 Finance costs (620 ) (374 ) (858 ) (683 ) Other income 188 101 688 311 Earnings before income taxes 25,246 21,955 41,266 35,170 Provision for (recovery of) income taxes         Current 4,956 5,313 8,921 10,876 Deferred 1,670 705 1,832 (1,354 ) 6,626 6,018 10,753 9,522 Net earnings for the period $ 18,620 $ 15,937 $ 30,513 $ 25,648         Net earnings attributable to non-controlling interest 93 133 145 175 Net earnings attributable to shareholders 18,527 15,804 30,368 25,473 Net earnings for the period $ 18,620 $ 15,937 $ 30,513 $ 25,648         Earnings per share         Basic $ 0.25 $ 0.21 $ 0.40 $ 0.33 Diluted $ 0.24 $ 0.21 $ 0.40 $ 0.33   Consolidated Balance Sheet Data As at As at October 31, 2025 April 30, 2025 Cash and cash equivalents $ 96,695 $ 111,665 Inventory $ 182,696 $ 181,011 Working capital $ 205,673 $ 205,900 Total assets $ 466,690 $ 469,485 Shareholders' equity $ 267,996 $ 268,123     Number of common shares outstanding:     Basic 75,484,550 75,750,235 Fully-diluted 77,523,650 80,627,710     Weighted average number of shares outstanding:     Basic 75,495,006 76,010,401 Fully-diluted 76,589,935 76,975,472   Forward-Looking Statements The report contains forward-looking statements reflecting Evertz's objectives, estimates and expectations. Such forward looking statements use words such as "may", "will", "expect", "believe", "anticipate", "plan", "intend", "project", "continue" and other similar terminology of a forward-looking nature or negatives of those terms. Although management of the Company believes that the expectations reflected in such forward-looking statements are reasonable, all forward-looking statements address matters that involve known and unknown risks, uncertainties and other factors. Accordingly, there are or will be a number of significant factors which could cause the Company's actual results, performance or achievements, or industry results to be materially different from any future results performance or achievements expressed or implied by such forward-looking statements. Conference Call The Company will hold a conference call with financial analysts to discuss the results on December 10, 2025 at 5:00 p.m. (EDT). Media and other interested parties are invited to join the conference call in listen only mode. The conference call may be accessed by dialing 1-289-514-5100 or Toll Free (North America) 1-800-717-1738. For those unable to listen to the live call, a rebroadcast will also be available until January 6, 2025. The rebroadcast can be accessed at 1-289-819-1325 or Toll Free 1-800-660-6264, passcode 56182. About Evertz Evertz Technologies Limited (TSX: ET) designs, manufactures and markets video and audio infrastructure solutions for the television, telecommunications and new-media industries. The Company's solutions are purchased by content creators, broadcasters, specialty channels and television service providers to support their increasingly complex multi-channel digital, and high and ultra-high definition television ("HDTV" and "UHD") and next generation high bandwidth low latency IP network environments and by telecommunications and new-media companies. The Company's products allow its customers to generate additional revenue while reducing costs through efficient signal routing, distribution, monitoring and management of content as well as the automation and orchestration of more streamlined and agile workflow processes on premise and in the "Cloud". For further information, please contact: Doug Moore, CPA, CA Chief Financial Officer (905) 335-3700 [email protected] To view the source version of this press release, please visit https://www.newsfilecorp.com/release/277599