MIND Technology, Inc. (NASDAQ: MIND) reported fiscal 2026 third‑quarter results that fell short of Wall Street expectations, with revenue of $9.7 million and earnings per share of $0.01, compared with analyst consensus estimates of $10.9 million and $0.16, respectively. The company’s operating income was $774,000 and net income $62,000, while adjusted EBITDA declined to $1.3 million from $3.1 million in the prior quarter.
Revenue slipped 28% sequentially and 19% year‑over‑year, driven by a 15% drop in Seamap Marine Products sales and a 12% decline in after‑market service revenue. The Seamap segment, which accounted for roughly 64% of first‑nine‑month revenue, saw a modest 3% decline in sales volume, offset only partially by higher pricing in the high‑margin service portion. The company’s gross margin contracted to 47% from 50% in Q2, reflecting the lower mix of high‑margin service contracts and increased raw‑material costs.
EPS of $0.01 represented a miss of $0.15 per share, or 94% below consensus. The miss was largely due to the revenue shortfall and a $200,000 one‑time restructuring charge that was not fully offset by cost‑control measures. Operating income fell 60% from the prior quarter, while the company’s net margin dropped to 0.6% from 1.2% in Q2. Management noted that the decline in Seamap sales was driven by a cautious customer environment amid geopolitical uncertainty, while after‑market service continued to provide a stable, high‑margin revenue stream.
The company’s order backlog stood at $7.2 million as of October 31, down from $12.8 million in July and $26.2 million a year earlier. However, MIND received $9.5 million in new orders after the quarter‑end, which management expects to translate into a rebound in Q4. The company reiterated its confidence in a positive fiscal 2026 finish, citing the backlog and new orders as evidence of resilience. No new guidance was issued, but the CEO emphasized that the company remains debt‑free and is focused on maintaining cash flow and investing in next‑generation marine technology.
Market reaction was sharply negative, with the stock falling nearly 25% in pre‑market trading on December 10. Investors cited the revenue and EPS misses, along with the declining backlog, as the primary drivers of the sell‑off. The sharp decline underscored market concerns about the company’s near‑term revenue trajectory, despite the company’s strong after‑market service business and debt‑free balance sheet.
MIND’s earnings highlight a short‑term challenge in its core Seamap segment, but the company’s robust after‑market service and cash position provide a cushion. Management’s confidence in a rebound, coupled with new orders, suggests that the company may recover in the final quarter, though investors will likely remain cautious until the backlog trend stabilizes.
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