ELSE earnings analysis
What we found in ELSE'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
In the first quarter of 2026, ELSE reported a revenue of $2,579,000, up 15.2% from $2,239,000 in Q1 2025. The gross profit improved to $1,322,000 with a gross margin of 51.3%, a rise from 48.4% in the prior year. However, the company experienced increased operating expenses leading to a net loss of $147,000, which was a greater loss compared to $81,000 in the same quarter of 2025.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Growth of 15.2%
- Net sales increased to $2,579,000, up from $2,239,000 in Q1 2025.
- Improved Gross Margin
- Gross profit increased to $1,322,000, a 22% increase year-over-year, improving gross margin to 51.3%.
- Operating Expenses Rise
- Total operating expenses increased to $1,540,000, up 22.9% from the prior year.
- Increased Cash from Operating Activities
- Operating cash flow was $68,000, a positive shift from using $30,000 in Q1 2025.
- Cash and Cash Equivalents
- Cash and cash equivalents were $10,756,000, up from $10,545,000 at year-end.
- Merger Progression Signals
- Management expressed expectations for the Merger to close in Q2 2026.
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.
- Increased Operating Loss
- Loss before income tax increased to $147,000 from $81,000, attributed to higher operating expenses.
- Higher Legal and Professional Costs
- Increased legal expenses related to the Merger added pressure to operating profits.
- Supply Chain Challenges
- Uncertainties in supply chain and labor market conditions could negatively impact operations and profit margins.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.03
- Gross margin
- 51.3%
- Operating margin
- -8.3%
What they said about what is next.
Management expects the Merger to close in Q2 2026; details on numerical guidance deferred.
The filing reads worse than the one before it.
What came before.
- 10-K · March 30, 2026
- Electro‑Sensors reported record net sales of $10,142,000 in 2025, up $769,000 or 8.2% from $9,373,000 in 2024, driven by higher wired sensing product and HazardPRO wireless system sales. Gross margin expanded to 50.8%…
- 10-Q · August 12, 2025
- Electro‑Sensors reported Q2 2025 net sales of $2,400 (in thousands), up $183 or 8.3% vs Q2 2024, with gross margin expanding to 51.2% from 47.2% and net income of $59 (in thousands) versus a $4 loss in the year-ago…
- 10-Q · May 12, 2025
- Electro‑Sensors reported Q1 2025 net sales of $2,239 (in thousands), essentially flat versus Q1 2024 ($2,244), with gross profit of $1,084 and gross margin improving to 48.4% from 48.1%. However, operating loss widened…
- 10-K · March 19, 2025
- Electro-Sensors reported full-year 2024 net sales of $9,373,000, up 9.6% from $8,555,000 in 2023, driven largely by higher sales of HazardPRO wireless sensors and systems. Gross margin compressed to 48.9% from 49.6% as…
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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