ZTEST Electronics Inc. Announces Fiscal Q1 2026 Results

Executive Summary

• ZTEST Electronics Inc. reported Q1 2026 revenue of $1,823,428, a 9.7% decline versus the same quarter last year.
• Gross margin fell to 42.7% of revenue (down from 45.6% YoY), while EBITDA decreased to $404 k and net income to $237 k.
• Cash balances rose to $4.27 M and working capital improved to $5.32 M, with long‑term debt reduced to $39 k.

Key Details

• Revenue: $1.823 M (down 9.7% YoY).
• Gross Margin: $778 k; Gross margin % of revenue: 42.7% (vs. 45.6% YoY).
• EBITDA: $404 k (down from $519 k YoY).
• Net Income: $237 k (down from $324 k YoY).
• Basic Net Income per Share: $0.006 (vs. $0.009 YoY).
• Operating Cash Flow: $323 k (down from $442 k YoY).
• Cash Balance: $4.268 M (up from $3.259 M YoY).
• Working Capital: $5.324 M (up from $3.986 M YoY).
• Long‑term Debt: $39 k (down from $105 k YoY).
• Shareholders’ Equity: $6.050 M (up from $4.871 M YoY).
• Inventory Value: Increased ~34% to $1.40 M, the highest since Q3 2024, indicating improving customer confidence per CEO comment.

Notable Quotes

“In the first quarter, inventory values rose almost 34% to $1.40 million, the highest inventory value since Q3 2024, a definitive indication of improving customer confidence.” – Steve Smith, CEO

Materiality Assessment: Material – Negative (revenue and earnings declines signal a material adverse change).