FEIM earnings analysis
What we found in FEIM'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
Frequency Electronics, Inc. reported a decline in Q3 FY2026 results with revenue of $17 million, falling short of estimates by $2.8 million, and EPS of $0.16, missing expectations by $0.14. The company experienced increased operational challenges leading to lower gross margins and a significant drop in operating income, highlighting the need for strategic revisions.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Decline
- Reported revenue of $17 million, down 10.8% year-over-year from $19 million.
- Gross Margin Pressure
- Gross margin decreased to 39.2%, down from 43.8% in the same quarter last year.
- Decrease in Operating Income
- Operating income fell to $1.3 million from $3.4 million, a decline of 63.4% year-over-year.
- Cash Position Still Strong
- Working capital improved to $32.4 million as of January 31, 2026, up from $29.7 million at April 30, 2025.
- Increased R&D Investment
- R&D expenses rose 22.8% to $1.76 million as the company continues to innovate.
- Backlog Growth
- Funded backlog increased to $83 million from $70 million at April 30, 2025.
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.
- Significant EPS Miss
- Reported Q3 EPS of $0.16, missing estimates by 46.67%.
- Segmentation Performance Issues
- FEI-NY segment revenue fell by 15.3%, a decline of $2.2 million year-over-year.
- Cash Used in Operations
- Net cash used in operations increased to $0.8 million for 9M FY2026, up from $1.3 million in the same period last year.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.16
- Gross margin
- 39.2%
- Operating margin
- 7.5%
- Segment
- FEI-NY
- Segment
- FEI-Zyfer
What they said about what is next.
Outlook deferred to earnings press release / call.
The filing reads worse than the one before it.
What came before.
- 10-Q · December 15, 2025
- Frequency Electronics, Inc. reported a 2.5% increase in revenue to $17.1 million for Q2 2026, compared to $16.6 million in Q1 2026, driven by growth in the FEI-Zyfer segment. However, diluted EPS fell to $0.18 from the…
- 10-Q · September 15, 2025
- Frequency Electronics, Inc. reported a decline in both revenue and earnings for Q1 FY2026, with total revenue of $13.8 million, down 8.4% from $15.1 million in Q1 FY2025. Gross margin reduced significantly from 44.4% to…
- 10-K · July 18, 2025
- Frequency Electronics, Inc. reported significant growth in fiscal year 2025, achieving total revenues of $69,811,000, a 26.3% increase from the previous year. The net income surged to $23,686,000 from $5,594,000…
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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