Evertz Technologies Reports Record Quarterly Revenue of $139 Million in The Third Quarter Ended January 31, 2026

Attention Business/Financial Editors: Burlington, Ontario--(Newsfile Corp. - March 4, 2026) - Evertz Technologies Limited (TSX: ET), the leader in Software Defined Video Network ("SDVN") technology, today reported its results for the third quarter ended January 31, 2026. Third Quarter 2026 Highlights Record quarterly revenue of $139.3 million, an increase of $2.4 million or 2% from the prior year quarter International quarterly revenue of $43.7 million up $5.9 million or 15% from the prior year quarter Earnings from operations, before foreign exchange, of $28.1 million, an increase of $3.9 million or of 16% from the prior year Net earnings of $18.7 million for the quarter Fully diluted earnings per share of $0.24 for the quarter Selected Financial Information     Consolidated Statement of Earnings Data     (in thousands of dollars, except earnings per share and share data)     Q3 ' 26     Q3 ' 25 Revenue $  139,333     $  136,916 Gross margin 81,246     79,098 Earnings from operations 25,818     28,108 Earnings from operations (before foreign exchange) 28,133     24,213 Net earnings 18,662     21,076 Fully-diluted earnings per share $  0.24      $  0.27 Fully-diluted shares 76,679,260     76,860,180   Selected Financial Information Consolidated Balance Sheet Data (in thousands of dollars)     Q3 ' 26     YE ' 25 Cash and cash equivalents $  24,790     $  111,665 Working capital 133,184     206,900 Total assets 417,037     469,485 Shareholders' equity 196,529     268,123   Revenue For the quarter ended January 31, 2026, revenues were $139.3 million, an increase of $2.4 million compared to revenues of $136.9 million for the quarter ended January 31, 2025. For the quarter, revenues in the United States/Canada region were $95.6 million, a decrease compared to $99.1 million in the same quarter last year. The International region had revenues of $43.7 million, an increase of $5.9 million or 15.5% compared to $37.8 million in the same quarter last year. Gross Margin Gross margin for the third quarter ended January 31, 2026 was $81.2 million, an increase of $2.1 million or 2.7% compared to $79.1 million for the third quarter ended January 31, 2025. As a percentage of revenue, the gross margin was 58.3% for the third quarter ended January 31, 2026 compared to 57.8% for the third quarter ended January 31, 2025. Earnings For the quarter ended January 31, 2026, net earnings, before the impact of foreign exchange was $28.1 million, an increase compared to $24.2 million in the corresponding period last year. For the quarter ended January 31, 2026, net earnings were $18.7 million compared to $21.1 million in the corresponding period last year. For the quarter ended January 31, 2026, earnings per share on a fully-diluted basis were $0.24 as compared to $0.27 in the corresponding period last year. Operating Expenses For the quarter ended January 31, 2026, selling and administrative expenses were $18.6 million as compared to $19.2 million for the quarter ended January 31, 2025. For the quarter ended January 31, 2026, gross research and development expenses were $36.7 million as compared to $36.6 million for the quarter ended January 31, 2025. Liquidity and Capital Resources The Company's working capital as at January 31, 2026 was $133.2 million as compared to $206.9 million on April 30, 2025. Cash and cash equivalent was $24.8 million as at January 31, 2026 as compared to $111.7 million on April 30, 2025. Cash generated from operations was $29.3 million for the quarter ended January 31, 2026 as compared to $53.0 million cash generated for the quarter ended January 31, 2025. Before taking into account taxes and the changes in non-cash working capital and current taxes, the Company generated $24.9 million from operations for the quarter ended January 31, 2026 compared to $26.8 million for the same period last year. For the quarter, the Company used $7.0 million from investing activities which includes the acquisition of an airplane for $4.4 million. For the quarter, the Company used cash in financing activities of $92.4 million which was principally a result of the payment of dividends of $91.0 million, including a special dividend of $75.5 million. Shipments and Backlog At the end of February 2026, purchase order backlog was in excess of $246 million and shipments during the month of February 2026 were $32 million. Dividend Declared Evertz Board of Directors declared a regular quarterly dividend on March 4, 2026 of $0.205 per share. The dividend is payable to shareholders of record on March 13, 2026 and will be paid on or about March 20, 2026. Selected Consolidated Financial Information (in thousands of dollars, except earnings per share and percentages) Selected Consolidated Financial Information             (in thousands of dollars except earnings per share and share data)                                 Three month period ended       Nine month period ended     January 31,       January 31,     2026     2025       2026   2025 Revenue   $   139,333    $  136,916      $  384,213  $  373,818 Cost of goods sold     58,087     57,818       156,296   154,198 Gross margin     81,246     79,098       227,917   219,620                 Expenses                 Selling and administrative     18,596     19,198       56,322   55,174 General     797     1,318       3,332   3,901 Research and development     36,739     36,584       110,357   110,237 Investment tax credits     (4,758)     (3,529)       (12,455)   (10,879) Share based compensation     1,739     1,314       3,721   3,756 Foreign exchange loss (gain)     2,315     (3,895)       804   (4,677)     55,428     50,990       162,081   157,512 Earnings before undernoted     25,818     28,108       65,836   62,108                 Finance income     590     531       2,597   2,073 Finance costs     (281)     (421)       (1,139)   (1,104) Other (expenses) income     (333)     (62)       (235)   249 Earnings before income taxes     25,794     28,156       67,059   63,326 Provision for (recovery of) income taxes                 Current     7,286     7,505       16,207   18,381 Deferred     (154)     (425)       1,678   (1,779)     7,132     7,080       17,885   16,602                 Net earnings for the period    $ $ 18,662    $ $ 21,076      $ $ 49,174  $ $ 46,724                 Net earnings attributable to non-controlling interest     204     161       349   336 Net earnings attributable to shareholders     18,458     20,915       48,825   46,388 Net earnings for the period    $  18,662    $  21,076      $  49,174  $  46,724                 Earnings per share                 Basic    $  0.24    $  0.28      $  0.65  $  0.61 Diluted    $  0.24    $  0.27      $  0.64  $ 0.60   Consolidated Balance Sheet Data       As at     As at       January 31, 2026     April 30, 2025 Cash and cash equivalents      $  24,790     $  111,665 Inventory      $  195,418     $  181,011 Working capital      $  133,184     $  206,900 Total assets      $  417,037     $  469,485 Shareholders' equity      $  196,529     $ 268,123             Number of common shares outstanding:             Basic       75,528,850     75,750,235 Fully-diluted       79,979,150     80,627,710             Weighted average number of shares outstanding:             Basic       75,498,904     76,010,401 Fully-diluted       76,706,039     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 March 4, 2026 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 April 4, 2026. The rebroadcast can be accessed at 1-289-819-1325 or Toll Free 1-888-660-6264, passcode 66926#. About Evertz Evertz Technologies Limited (TSX: ET) designs, manufactures and markets video and audio infrastructure solutions for the production, post-production and transmission of video content. The Company's solutions are purchased by the television broadcast, telecommunications, professional audio-visual, content creator, advanced education, government, military, enterprise, and new media sectors to support increasingly complex multi-channel digital and high-definition, Ultra HD, and high dynamic range formats and next generation high bandwidth low latency IP network environments. The Company's products allow its customers to generate additional revenue while reducing costs through efficient, highly reliable and secure 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/286269