In This Article:
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Revenue: $136.9 million for Q3 2025, up 9% sequentially and 1% year-over-year.
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US and Canada Revenue: $99.1 million, up 23% sequentially.
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Recurring Software Services Revenue: $55 million, up 6.3% year-over-year.
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Gross Margin: $79.1 million or 57.8% for the quarter.
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Net Earnings: $21.1 million for Q3 2025.
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Earnings Per Share: $0.27 fully diluted.
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Working Capital: $207.9 million as of January 31, 2025.
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Cash: $96.3 million as of January 31, 2025.
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Purchase Order Backlog: Over $269 million at the end of February 2025.
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Research and Development Expenses: $36.6 million for the quarter.
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Selling and Administrative Expenses: $19.2 million for Q3 2025.
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Foreign Exchange Gain: $3.9 million for the quarter.
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Cash from Operations: $53 million generated during the quarter.
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Dividends Paid: $15.1 million during the quarter.
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Shares Outstanding: Approximately 75.9 million as of January 31, 2025.
Release Date: March 05, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Evertz Technologies Ltd (EVTZF) reported record high quarterly sales of $136.9 million for Q3 2025, marking a 9% sequential increase and a 1% year-over-year growth.
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The company achieved a strong gross margin of 57.8%, which is within their target range.
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Recurring software services and other software revenues increased by 6.3% year-over-year, totaling $55 million in the quarter.
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Evertz Technologies Ltd (EVTZF) has a well-diversified customer base, with the top 10 customers accounting for approximately 48% of sales, and no single customer accounting for over 10% of sales.
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The company declared a regular quarterly dividend of $0.20 per share, reflecting confidence in its financial stability and future prospects.
Negative Points
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International revenue for the quarter decreased by 31% year-over-year, highlighting challenges in the international market.
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Gross margin slightly decreased compared to the previous year, attributed to the product mix delivered in the quarter.
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Research and development expenses increased by $2.6 million from the same quarter last year, impacting overall profitability.
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The company faces potential negative impacts from US tariffs, which could affect near-term margins and operational costs.
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Selling and administrative expenses increased, representing approximately 14% of revenue compared to 13.5% in the same period last year.
Q & A Highlights
Q: How is Evertz Technologies dealing with the potential impact of US tariffs on its business? A: Douglas Moore, CFO, explained that Evertz is monitoring the situation closely and has been expanding its manufacturing capabilities in the US to mitigate potential impacts. The company has facilities in Canada and the US, and they are accelerating their expansion in the US to lessen tariff exposure. However, some near-term margin impacts are expected due to operational redundancies between Canadian and US facilities.