10-Q · April 30, 2026
FiEE, Inc. reported a notable increase in revenue to $2.12 million in Q1 2026 compared to $0.00 million in the same quarter last year, indicating a substantial turnaround fueled by its shift towards SaaS services.…
Earnings analysis · 10-Q
FIEE earnings analysis
Filed August 14, 2026 · Our reading of the company's report
The latest report
FiEE delivered a materially stronger second quarter, with $4.83 million of revenue, $0.14 diluted EPS, an 80.3% gross margin, and approximately a 54.7% operating margin. Revenue and profitability improved substantially…
Read full summary
FiEE delivered a materially stronger second quarter, with $4.83 million of revenue, $0.14 diluted EPS, an 80.3% gross margin, and approximately a 54.7% operating margin. Revenue and profitability improved substantially versus 2026 Q1, but the filing does not provide new quantitative guidance and does not establish a comparable prior-year trend in the supplied data. Sentiment remains neutral because disclosure controls were not effective as of June 30, 2026 due to an unremediated material weakness, despite management's remediation efforts.
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
- $0.14
What stood out
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Revenue and EPS improved sequentially
Second-quarter revenue was $4.83 million, up from $2.00 million in 2026 Q1, while diluted EPS increased from $0.02 to $0.14. A comparable prior-year quarterly figure was not provided in the supplied filing data.
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Profitability expanded sharply
Gross margin expanded to 80.3% from 70.4% in 2026 Q1, a 9.9 percentage-point increase. Operating margin rose to approximately 54.7% from 20.1%, a 34.6 percentage-point improvement, based on $2.64 million of operating income on $4.83 million of revenue.
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Operating income reached $2.64 million
The company reported $2.64 million of operating income on $4.83 million of second-quarter revenue, indicating substantial operating leverage versus the $0.40 million implied by 2026 Q1's 20.1% operating margin on $2.00 million of revenue.
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Internal-control remediation underway
Management identified insufficient accounting staffing during the 2025 restructuring and new-business launch as the cause of a material weakness and has added qualified accounting personnel with SEC-reporting expertise.
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Financial reporting reviews strengthened
Management implemented enhanced journal-entry and financial-reporting review procedures, including a formalized review process for significant transactions, and stated that these procedures are now in effect.
What to watch
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Unremediated internal-control weakness
As of June 30, 2026, management concluded that disclosure controls were not operating effectively because of a material weakness in internal control over financial reporting. The weakness originated during the year ended December 31, 2025 and has not been considered remediated because controls must operate for a sufficient period and undergo testing.
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Accounting staffing and review risk
The material weakness resulted from insufficient accounting staffing, reduced review capabilities, and prior-period errors during the 2025 restructuring and new-business launch. Although additional personnel and training have been added, the company stated that remediation remains subject to ongoing monitoring and evaluation.
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No change to disclosed risk profile
The filing states that there were no material changes to the risk factors in the December 31, 2025 Form 10-K, but also cautions that additional currently unknown or immaterial risks may adversely affect results. Accordingly, the 10-Q does not reduce the underlying business and execution risks identified in the 2025 annual report.
Management's outlook
The 10-Q provides no explicit quantitative revenue or EPS guidance. The previously cited $10 million-$12 million revenue outlook was not numerically reaffirmed or changed in the current report; management discusses commercialization of AI music and contributions from the home entertainment system launched in June 2026.
Earlier filings 4
10-K · April 29, 2026
FiEE, transitioning from a legacy networking hardware firm to a digital service provider, reported Q4 revenue of $4,545,000 and EPS of $0.35. The company generated revenue of $6.2 million from its digital services in…
10-K · March 20, 2026
FiEE completed a strategic pivot in 2025 from legacy networking hardware to digital services (digital content/MCN, customized software, and digital authentication), recorded service fees of $6.2 million for the year and…
10-Q · May 15, 2025
FiEE reported Q1 2025 revenue of $125 and a net loss of $373,910 (EPS $(0.10)), a sharp collapse in sales compared with Q1 2024 but a materially smaller loss versus prior-year quarter. Cash is critically low at $9,104…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.