Hurco Companies, Inc. reported a net loss of $3.04 million, or $0.47 per diluted share, for the fourth quarter of fiscal 2025, compared with a $1.44 million loss ($0.23 per share) in the same quarter a year earlier. The company’s full‑year loss narrowed to $15.12 million, or $2.34 per share, from a $16.61 million loss ($2.56 per share) in fiscal 2024. Revenue from sales and service fees fell 15% to $45.47 million in the quarter and 4% to $178.55 million for the year, while gross profit was $7.75 million (17% of sales) in the quarter and 18% of sales for the year. Selling, general, and administrative expenses were $11.21 million (25% of sales) in the quarter and $43.25 million (24% of sales) for the year. Cash rose to $48.71 million, up $15 million year‑over‑year, and working capital stood at $173.06 million.
The 15% revenue decline in the quarter reflects a broader downturn in the machine‑tool market and the impact of U.S. tariffs, which increased input costs and compressed pricing power. Despite these headwinds, order and sales momentum in the U.S. and Germany helped mitigate the decline, preventing a larger drop in top line. The 4% year‑over‑year revenue decline indicates a modest slowdown in demand, but the company’s ability to maintain a 17% gross margin in the quarter shows that it has managed to preserve profitability in a challenging environment.
Gross margin contraction from 23% to 17% YoY in the quarter is largely driven by lower volume and higher tariff costs, which eroded the company’s pricing power. However, Hurco’s disciplined cost‑control program cut selling, general, and administrative expenses by nearly $3 million, improving operating leverage and offsetting some of the margin pressure. The 18% full‑year gross margin, while lower than the 20% margin in fiscal 2024, still represents a relatively healthy level for a company operating in a cyclical market.
Cash and liquidity have strengthened, with the cash balance increasing by $15 million to $48.71 million and working capital at $173.06 million. This financial cushion provides Hurco with the flexibility to invest in its strategic pivot toward AI and automation, including the launch of ChatCNC and other smart‑manufacturing initiatives. CEO Greg Volovic emphasized that disciplined cost management and continued investment in innovative technologies are key to navigating the current market downturn.
The company’s strategic focus on AI and automation positions it to capture future growth as manufacturing firms seek digital transformation. While the machine‑tool market remains weak and tariffs continue to weigh on margins, the narrowing of the full‑year loss and the build‑up of cash suggest resilience. Investors are watching how Hurco balances short‑term margin compression with long‑term investment in high‑return technology initiatives.
The market reaction was muted, with no significant movement in premarket trading. Hurco did not provide forward guidance, leaving investors to assess the company’s outlook based on the current financial performance and strategic priorities.
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