Evertz Technologies Reports Record Quarterly Revenue of $139 Million in The Third Quarter Ended January 31, 2026

Attention Business/Financial Editors:

Burlington, Ontario–(Newsfile Corp. – March 4, 2026) – Evertz Technologies Limited (TSX: ET), the leader in Software Defined Video Network (“SDVN”) technology, today reported its results for the third quarter ended January 31, 2026.

Third Quarter 2026 Highlights

• Record quarterly revenue of $139.3 million, an increase of $2.4 million or 2% from the prior year quarter
• International quarterly revenue of $43.7 million up $5.9 million or 15% from the prior year quarter
• Earnings from operations, before foreign exchange, of $28.1 million, an increase of $3.9 million or of 16% from the prior year
• Net earnings of $18.7 million for the quarter
• Fully diluted earnings per share of $0.24 for the quarter

Selected Financial Information
Consolidated Statement of Earnings Data
(in thousands of dollars, except earnings per share and share data)
					Q3 ‘ 26					Q3 ‘ 25
Revenue				$	139,333				$	136,916
Gross margin					81,246					79,098
Earnings from operations					25,818					28,108
Earnings from operations (before foreign exchange)					28,133					24,213
Net earnings					18,662					21,076
Fully-diluted earnings per share				$	0.24				$	0.27
Fully-diluted shares					76,679,260					76,860,180

 

Selected Financial Information Consolidated Balance Sheet Data (in thousands of dollars)
					Q3 ‘ 26					YE ‘ 25
Cash and cash equivalents				$	24,790				$	111,665
Working capital					133,184					206,900
Total assets					417,037					469,485
Shareholders’ equity					196,529					268,123

 

Revenue
For the quarter ended January 31, 2026, revenues were $139.3 million, an increase of $2.4 million compared to revenues of $136.9 million for the quarter ended January 31, 2025. For the quarter, revenues in the United States/Canada region were $95.6 million, a decrease compared to $99.1 million in the same quarter last year. The International region had revenues of $43.7 million, an increase of $5.9 million or 15.5% compared to $37.8 million in the same quarter last year.

Gross Margin
Gross margin for the third quarter ended January 31, 2026 was $81.2 million, an increase of $2.1 million or 2.7% compared to $79.1 million for the third quarter ended January 31, 2025. As a percentage of revenue, the gross margin was 58.3% for the third quarter ended January 31, 2026 compared to 57.8% for the third quarter ended January 31, 2025.

Earnings
For the quarter ended January 31, 2026, net earnings, before the impact of foreign exchange was $28.1 million, an increase compared to $24.2 million in the corresponding period last year. For the quarter ended January 31, 2026, net earnings were $18.7 million compared to $21.1 million in the corresponding period last year.

For the quarter ended January 31, 2026, earnings per share on a fully-diluted basis were $0.24 as compared to $0.27 in the corresponding period last year.

Operating Expenses
For the quarter ended January 31, 2026, selling and administrative expenses were $18.6 million as compared to $19.2 million for the quarter ended January 31, 2025.

For the quarter ended January 31, 2026, gross research and development expenses were $36.7 million as compared to $36.6 million for the quarter ended January 31, 2025.

Liquidity and Capital Resources
The Company’s working capital as at January 31, 2026 was $133.2 million as compared to $206.9 million on April 30, 2025.

Cash and cash equivalent was $24.8 million as at January 31, 2026 as compared to $111.7 million on April 30, 2025.

Cash generated from operations was $29.3 million for the quarter ended January 31, 2026 as compared to $53.0 million cash generated for the quarter ended January 31, 2025. Before taking into account taxes and the changes in non-cash working capital and current taxes, the Company generated $24.9 million from operations for the quarter ended January 31, 2026 compared to $26.8 million for the same period last year.

For the quarter, the Company used $7.0 million from investing activities which includes the acquisition of an airplane for $4.4 million.

For the quarter, the Company used cash in financing activities of $92.4 million which was principally a result of the payment of dividends of $91.0 million, including a special dividend of $75.5 million.

Shipments and Backlog
At the end of February 2026, purchase order backlog was in excess of $246 million and shipments during the month of February 2026 were $32 million.

Dividend Declared
Evertz Board of Directors declared a regular quarterly dividend on March 4, 2026 of $0.205 per share.

The dividend is payable to shareholders of record on March 13, 2026 and will be paid on or about March 20, 2026.

Selected Consolidated Financial Information
(in thousands of dollars, except earnings per share and percentages)

Selected Consolidated Financial Information
(in thousands of dollars except earnings per share and share data)
			Three month period ended										Nine month period ended
			January 31,										January 31,
			2026				2025						2026				2025
Revenue		$	139,333			$	136,916					$	384,213			$	373,818
Cost of goods sold			58,087				57,818						156,296				154,198
Gross margin			81,246				79,098						227,917				219,620
Expenses
Selling and administrative			18,596				19,198						56,322				55,174
General			797				1,318						3,332				3,901
Research and development			36,739				36,584						110,357				110,237
Investment tax credits			(4,758)				(3,529)						(12,455)				(10,879)
Share based compensation			1,739				1,314						3,721				3,756
Foreign exchange loss (gain)			2,315				(3,895)						804				(4,677)
			55,428				50,990						162,081				157,512
Earnings before undernoted			25,818				28,108						65,836				62,108
Finance income			590				531						2,597				2,073
Finance costs			(281)				(421)						(1,139)				(1,104)
Other (expenses) income			(333)				(62)						(235)				249
Earnings before income taxes			25,794				28,156						67,059				63,326
Provision for (recovery of) income taxes
Current			7,286				7,505						16,207				18,381
Deferred			(154)				(425)						1,678				(1,779)
			7,132				7,080						17,885				16,602
Net earnings for the period		$	$ 18,662			$	$ 21,076					$	$ 49,174			$	$ 46,724
Net earnings attributable to non-controlling interest			204				161						349				336
Net earnings attributable to shareholders			18,458				20,915						48,825				46,388
Net earnings for the period		$	18,662			$	21,076					$	49,174			$	46,724
Earnings per share
Basic		$	0.24			$	0.28					$	0.65			$	0.61
Diluted		$	0.24			$	0.27					$	0.64			$	0.60

 

Consolidated Balance Sheet Data					As at					As at
					January 31, 2026					April 30, 2025
Cash and cash equivalents				$	24,790				$	111,665
Inventory				$	195,418				$	181,011
Working capital				$	133,184				$	206,900
Total assets				$	417,037				$	469,485
Shareholders’ equity				$	196,529				$	268,123
Number of common shares outstanding:
Basic					75,528,850					75,750,235
Fully-diluted					79,979,150					80,627,710
Weighted average number of shares outstanding:
Basic					75,498,904					76,010,401
Fully-diluted					76,706,039					76,975,472

 

Forward-Looking Statements
The report contains forward-looking statements reflecting Evertz’s objectives, estimates and expectations. Such forward-looking statements use words such as “may”, “will”, “expect”, “believe”, “anticipate”, “plan”, “intend”, “project”, “continue” and other similar terminology of a forward-looking nature or negatives of those terms.

Although management of the Company believes that the expectations reflected in such forward-looking statements are reasonable, all forward-looking statements address matters that involve known and unknown risks, uncertainties and other factors. Accordingly, there are or will be a number of significant factors which could cause the Company’s actual results, performance or achievements, or industry results to be materially different from any future results performance or achievements expressed or implied by such forward-looking statements.

Conference Call
The Company will hold a conference call with financial analysts to discuss the results on March 4, 2026 at 5:00 p.m. (EDT). Media and other interested parties are invited to join the conference call in listen only mode. The conference call may be accessed by dialing 1-289-514-5100 or Toll Free (North America) 1-800-717-1738.

For those unable to listen to the live call, a rebroadcast will also be available until April 4, 2026. The rebroadcast can be accessed at 1-289-819-1325 or Toll Free 1-888-660-6264, passcode 66926#.

About Evertz
Evertz Technologies Limited (TSX: ET) designs, manufactures and markets video and audio infrastructure solutions for the production, post-production and transmission of video content. The Company’s solutions are purchased by the television broadcast, telecommunications, professional audio-visual, content creator, advanced education, government, military, enterprise, and new media sectors to support increasingly complex multi-channel digital and high-definition, Ultra HD, and high dynamic range formats and next generation high bandwidth low latency IP network environments. The Company’s products allow its customers to generate additional revenue while reducing costs through efficient, highly reliable and secure signal routing, distribution, monitoring and management of content as well as the automation and orchestration of more streamlined and agile workflow processes on premise and in the “Cloud”.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/286269