Q4'26 and FY'26
Filed Sep 30, 2026Moving iMage Technologies Progresses Toward Profitability, Trimming FY 2026 Net Loss 69% to ($297K) on Net Sales of $17.3M
FY'26 gross margin expanded to 29.1% from 25.2% and net loss narrowed to ($0.30M) from ($0.95M), but FY'26 revenue decreased 4.6% and Q4'26 sales, gross profit and net income declined versus Q4'25. Operating cash flow was ($2,467) (in thousands), and cash ended at $3,193 (in thousands).
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q4'26 net salesother | $4.54M | – | – |
| Q4'26 cost of goods soldother | 3.54M | – | – |
| Q4'26 gross profitother | 1.01M | – | – |
| Q4'26 research and development expenseother | 46K | – | – |
| Q4'26 selling and marketing expenseother | 555K | – | – |
| Q4'26 general and administrative expenseother | 715K | – | – |
| Q4'26 total operating expensesother | 1.32M | – | – |
| Q4'26 operating income (loss)other | −306K | – | – |
| Q4'26 interest and other income, netother | 10K | – | – |
| Q4'26 total other incomeother | 10K | – | – |
| Q4'26 net income (loss)other | −$296K | – | – |
| Q4'26 basic earnings per shareother | (0.03) | – | – |
| Q4'26 diluted earnings per shareother | $ (0.03) | – | – |
| Q4'26 basic shares used in computing earnings per shareother | 9,948,569 | – | – |
| Q4'26 diluted shares used in computing earnings per shareother | 9,948,569 | – | – |
| Q4'26 DCS product salesother | $400K | – | – |
| FY'26 net salesother | $17.32M | – | decreased 4.6% |
| FY'26 cost of goods soldother | 12.29M | – | – |
| FY'26 gross profitother | 5.03M | – | increased 10% |
| FY'26 gross marginother | 29.1% | – | – |
| FY'26 research and development expenseother | 186K | – | – |
| FY'26 selling and marketing expenseother | 1.87M | – | – |
| FY'26 general and administrative expenseother | 3.47M | – | – |
| FY'26 total operating expensesother | 5.53M | – | decreased 2.3% |
| FY'26 operating income (loss)other | −498K | – | – |
| FY'26 extinguishment of payablesother | 128K | – | – |
| FY'26 interest and other income, netother | 73K | – | – |
| FY'26 total other incomeother | 201K | – | – |
| FY'26 net income (loss)other | −$297K | – | improved 69% |
| FY'26 basic earnings per shareother | (0.03) | – | – |
| FY'26 diluted earnings per shareother | $ (0.03) | – | – |
| FY'26 basic shares used in computing earnings per shareother | 9,943,913 | – | – |
| FY'26 diluted shares used in computing earnings per shareother | 9,943,913 | – | – |
| FY'26 DCS revenueother | $882K | – | – |
| FY'26 net cash provided by (used in) operating activitiesother | −2.47M | – | – |
| FY'26 purchases of property and equipmentother | −49K | – | – |
| FY'26 net cash used in investing activitiesother | −49K | – | – |
| FY'26 net cash used in financing activitiesother | −6K | – | – |
| FY'26 net increase (decrease) in cashother | −2.52M | – | – |
| Cash, end of periodother | $3.19M | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Q1'27 ending September 30 outlook
- Revenueapproximately $4.5M
- NoteMiT is optimistic regarding the potential to deliver top line growth and profitability for the full FY 2027 year.
Capital returns
- Stock repurchase: (6) (in thousands) for the year ended June 30, 2026.
What drove it
- FY'26 revenue decline was principally due to reduced customer project activity, offset by $882k in revenue from DCS.
- Q4'26 net sales were principally affected by customers shifting the timing of projects one or more quarters forward.
- FY'26 gross profit increase was principally due to management's focus on enhancing gross margins.
- FY'26 operating-expense decline reflected efficiencies within sales and marketing budgets and expense-management initiatives.
- DCS expands MiT's proprietary product offerings and international reach; shipments have been completed to over 22 countries as of the release date.
- The DCS products order backlog stood at approximately $458,000.
Concerns
- Q4'26 net sales declined to $4.55M from $5.88M in Q4'25 and were below management's expectations.
- Q4'26 gross profit decreased to $1.01M from $1.20M, reflecting lower net sales and a change in the mix of products and models delivered.
- Q4'26 net loss increased to ($296K) from ($156K).
- FY'26 revenue decreased 4.6% to $17.32M from $18.15M.
- Net cash used in operating activities was (2,467) (in thousands), compared with cash provided by operating activities of 437 (in thousands) in FY'25.
- Cash declined to $3,193 (in thousands) at June 30, 2026 from $5,715 (in thousands) at June 30, 2025.
What to watch
- Execution of the repeat-customer refurbishment across sixteen screens at two locations.
- Commencement of the Bay Area complete technical solution overhaul expected early in calendar 2027.
- Conversion of advanced discussions with major Northeast arts organizations into renovations and installations.
- DCS order-backlog development from approximately $458,000 and further international distribution.
- Delivery against revenue of approximately $4.5M for Q1'27 ending September 30.
Balance sheet and cash flow
- Working capital of $4.0M at FY'26 year-end, compared to working capital of $4.3M at year-end FY'25.
- Net cash of $3.2M and zero debt at FY'26 year-end.
- Cash: $ 3,193 (in thousands) at June 30, 2026, compared with $ 5,715 (in thousands) at June 30, 2025.
- Accounts receivable, net: 1,114 (in thousands), compared with 1,464 (in thousands).
- Inventories, net: 2,411 (in thousands), compared with 2,066 (in thousands).
- Total Current Assets: 7,234 (in thousands), compared with 9,407 (in thousands).
- Total Assets: $ 8,460 (in thousands), compared with $ 10,888 (in thousands).
- Total Current Liabilities: 3,192 (in thousands), compared with 5,113 (in thousands).
- Total Liabilities: 3,850 (in thousands), compared with 6,031 (in thousands).
- Total Stockholders' Equity: 4,610 (in thousands), compared with 4,857 (in thousands).
- Net cash provided by (used in) operating activities: (2,467) (in thousands), compared with 437 (in thousands).
- Accounts payable change: (1,681) (in thousands), compared with 748 (in thousands).
- Inventories change: (439) (in thousands), compared with 744 (in thousands).
- Cash, beginning of the period: 5,715 (in thousands), compared with 5,278 (in thousands).
Analysis
Moving iMage reported an improved full fiscal year earnings profile despite lower sales. FY'26 net sales decreased 4.6% to $17.32M versus $18.15M in FY'25, principally because of reduced customer project activity. Gross profit increased 10% to $5.03M from $4.57M, while gross margin expanded to 29.1% from 25.2%. The company attributed the gross-profit gain to its focus on higher-margin opportunities, and DCS contributed $882k of FY'26 revenue.
Expense discipline added to the full-year improvement. FY'26 operating expenses decreased 2.3% to $5.53M from $5.66M, and operating loss narrowed to ($498) (in thousands) from ($1,086) (in thousands). Net loss improved to ($297) (in thousands), or ($0.03) per share, from ($948) (in thousands), or ($0.10) per share. FY'26 other income also included 128 (in thousands) of extinguishment of payables.
The fourth quarter was weaker. Q4'26 net sales were $4.55M versus $5.88M in Q4'25, with the company citing customer shifts in project timing of one or more quarters. Gross profit declined to $1.01M from $1.20M amid lower sales and a changed product and model mix. Operating expenses decreased to $1.32M from $1.39M, but net loss increased to ($296) (in thousands), or ($0.03) per share, from ($156) (in thousands), or ($0.02) per share.
Liquidity and cash conversion require attention. The company ended FY'26 with working capital of $4.0M, net cash of $3.2M and zero debt, but cash was $3,193 (in thousands), down from $5,715 (in thousands). Net cash used in operating activities was ($2,467) (in thousands), compared with 437 (in thousands) provided in FY'25, including an accounts-payable change of ($1,681) (in thousands). Management cited a growing project pipeline, including a sixteen-screen refurbishment and a Bay Area technical overhaul expected early in calendar 2027.
For Q1'27 ending September 30, MiT expects revenue of approximately $4.5M. Management is optimistic about the potential for full-FY'27 top-line growth and profitability, but provided no quantitative full-year revenue, margin, operating-expense or tax-rate targets. The approximately $458,000 DCS order backlog, continuing international distribution, project timing and operating cash flow are the central reported indicators for the coming period.
Management, verbatim
Though we did experience lower than expected project activity in the fourth quarter, much of this related to customer delays. Looking forward we are optimistic about the coming fiscal year as cinema operators work to enhance their guest experience across their theater footprint.
Phil Rafnson, Chairman and CEO
We continued to focus on our profit margin profile and overall expense structure during fiscal 2026, while also substantially expanding our proprietary product offerings with the DCS cinema loudspeaker line.
Francois Godfrey, President and COO
This feedback provides us with optimism for project potential over the next twelve months.
Francois Godfrey, President and COO
Not in the filing
stated, not guessed- No prior-period outlook was provided, so no comparison of actual results with prior guidance is available.
- No non-GAAP financial measures were reported.
- No reportable operating-segment revenue disclosure was provided.
- No free cash flow measure was reported.
- No Q4'26 gross-margin percentage was reported.
- No Q4'26 or FY'26 tax rate was reported.
- No quantitative FY'27 revenue, gross-margin, operating-expense or tax-rate guidance was reported.
- No dividend declaration or dividend amount was reported.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.