CETX earnings analysis
What we found in CETX's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
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.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- 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.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- 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.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.8
- Gross margin
- 37.9%
- Operating margin
- -12.0%
What they said about what is next.
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.
The filing reads worse than the one before it.
What came before.
- 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…
- 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. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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