10-Q · May 15, 2026
Cemtrex's Q2 results reflect a contrast in segment performance, with notable declines in security revenues while the industrial services segment showed growth. Overall, operating challenges persist as gross margins…
Earnings analysis · 10-Q
CETX earnings analysis
Filed August 14, 2026 · Our reading of the company's report
The latest report
Revenue increased to $18 million, up 12.5% sequentially and 5.9% year over year, while gross margin improved to 37.9%; however, operating margin remained negative at 12.0% and free cash flow deteriorated to negative $5…
Read full summary
Revenue increased to $18 million, up 12.5% sequentially and 5.9% year over year, while gross margin improved to 37.9%; however, operating margin remained negative at 12.0% and free cash flow deteriorated to negative $5 million. The filing highlights substantial financing and dilution activity, including 482,188 shares issued against $8,430,895 of notes payable. Nasdaq listing risk is particularly material because reported MVLS of approximately $5.249 million was only modestly above the new $5 million requirement, with no cure period if the threshold is breached for 30 consecutive business days.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.8
What stood out
-
Revenue Improved Sequentially and Year Over Year
Revenue was $18 million, up $2 million, or 12.5%, from $16 million in the prior quarter and up $1 million, or 5.9%, from $17 million in the year-ago quarter.
-
Gross Margin Rebounded Sequentially
Gross margin increased to 37.9% from 34.9% sequentially, a 3.0 percentage-point improvement, but remained 5.5 points below the 43.4% year-ago margin.
-
Operating Loss Narrowed Sequentially
Operating margin improved to negative 12.0% from negative 17.4% in the prior quarter, but deteriorated from negative 3.8% a year earlier.
-
EPS Improved From Prior Losses
Diluted EPS improved to $0.008 from a loss of $0.790 in the prior quarter and a loss of $2.670 in the year-ago quarter, based on the supplied earnings history.
-
Debt Settlement Reduced Cash Obligations
The company issued 482,188 common shares to settle $8,430,895 of notes payable and $511,546 of accrued interest; the filing also recorded $12,269,120 of excess share value as interest expense.
-
MVLS Remained Above Nasdaq Threshold
As of August 12, 2026, the stock traded at approximately $3.05 per share and the company reported approximately 1,721,141 common shares outstanding, producing MVLS of approximately $5.249 million.
What to watch
-
Cash Burn Remains Elevated
Free cash flow was negative $5 million, worsening from negative $1 million in the prior quarter and negative $2 million in the year-ago quarter, indicating continued cash-consumption pressure.
-
Nasdaq Listing Buffer Is Narrow
The company’s $5 million Nasdaq MVLS requirement creates delisting risk: its reported MVLS was approximately $5.249 million as of August 12, 2026, only about $249,000 above the threshold.
-
Potential Delisting Has No Cure Period
If MVLS falls below $5 million for 30 consecutive business days, Nasdaq may issue a Staff Delisting Determination with immediate suspension and no cure or compliance period; the company stated that delisting could impair liquidity and capital raising.
-
Equity-Based Debt Settlement Dilutes Holders
The company issued 482,188 common shares to satisfy $8,430,895 of notes payable and $511,546 of accrued interest, creating material dilution and signaling reliance on equity for debt settlement.
-
Profitability Remains Below Year-Ago Levels
Operating margin remained negative at 12.0% and was 8.2 percentage points worse than the negative 3.8% margin reported in the year-ago quarter.
Management's outlook
The provided 10-Q text contains no quantitative outlook. Prior company revenue guidance of $70 million-$78 million was reported as unchanged in the prior analysis, but it was not reiterated in the extracted filing text.
Earlier filings 4
10-Q · February 17, 2026
Cemtrex reported revenue of $16,133,311 for the quarter ended December 31, 2025, up $2,393,412 (17.4%) versus the prior-year quarter, while gross profit was $5,621,866 (down $80,070). Operating loss widened to…
10-K · December 29, 2025
Cemtrex, Inc. reported $76.5 million in revenue for the fiscal year 2025, reflecting a 14% increase year-over-year. The company achieved profitability during this period, although it continues to face significant…
10-Q · August 10, 2023
Cemtrex reported quarterly revenue of $14,730,140, up from $12,108,904 a year earlier, and gross profit rose to $6,480,643. Operating income turned to a small positive $53,774 versus an operating loss of $(1,531,297) in…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.