The quarter was expected to show continued growth, and revenue essentially delivered. Q2 revenue of $15.1 million was close to the published consensus of roughly $15.04 million, making the top-line result effectively in line rather than a meaningful beat.
| Metric | Q2 2026 | Q2 2025 | Market expectation / comparison |
|---|---|---|---|
| Revenue | $15.1M | $13.3M | ~$15.04M consensus |
| Diluted EPS | $0.43 | $0.53 | ~$0.53-$0.54 consensus |
| Adjusted EBITDA | $3.4M | $2.4M | +40.6% year over year |
| Gross margin | 41.2% | 43.6% | Down 2.4 percentage points |
| Backlog | $84.0M | $61.2M at June 30, 2025 | $76.4M at December 31, 2025 |
The cleanest miss is diluted EPS, not revenue. Reported EPS of $0.43 fell well short of the roughly $0.53-$0.54 market estimate, while the April 2026 rights offering increased the share count and reduced per-share earnings. The quarter also included $1.0 million of non-cash stock compensation, including approximately $0.5 million in manufacturing costs, which pressured both EPS and gross margin. (Income Statement; Gross Margin; Adjusted EBITDA reconciliation)
Underlying operating momentum was better than the GAAP EPS headline suggests, but not enough to erase the miss. Adjusted EBITDA rose 40.6% to $3.4 million as higher aerospace and defense shipments more than offset increased engineering, selling and administrative costs. Still, gross margin declined to 41.2% from 43.6%, so the quarter was not a clean margin expansion story. (Financial Highlights; Gross Margin)
Backlog strengthens the forward picture, but it was supporting evidence rather than new guidance. Backlog reached $84.0 million, up from $76.4 million at December 31, 2025 and $61.2 million a year earlier, indicating demand remains healthy across aerospace, defense, avionics, and space. The filing did not provide new revenue or earnings guidance, so the backlog increase improves visibility without changing a formal outlook. (Backlog)
Net read: a modest earnings miss against an otherwise solid operating quarter. Revenue was in line, adjusted EBITDA and backlog were strong, but the per-share result missed consensus and dilution is now part of the earnings framework. The company’s explanation that the stock-compensation charge is non-recurring softens the quality concern; it does not remove the immediate EPS shortfall. (Financial Highlights; Income Statement)
Read the original 8-K on SEC EDGAR ↗