Evertz Technologies Reports Quarterly Revenue of $132.7 Million in the Second Quarter Ended October 31, 2025
MWN-AI** Summary
Evertz Technologies Limited (TSX: ET) announced its financial results for the second quarter ended October 31, 2025, reporting revenue of $132.7 million, reflecting a 6.0% increase from $125.3 million in the same quarter the previous year. This uptick was bolstered by international revenues of $34.2 million, up 12.5% from $30.4 million. The company's earnings from operations reached $25.0 million, marking a significant 17.0% rise compared to the prior quarter, while net earnings rose by 16.9% to $18.6 million, translating to fully diluted earnings per share of $0.24, up from $0.21 year-over-year.
The company reported a gross margin of $77.8 million, representing 58.6% of revenue, slightly down from 59.3% a year earlier. An analysis of expenses showed selling and administrative costs at $19.1 million, alongside gross research and development expenses of $36.6 million.
Evertz maintained a solid balance sheet, with working capital at $205.7 million and $96.7 million in cash and cash equivalents as of the quarter's end. The company declared a regular quarterly dividend of $0.205 per share and a special $1.00 dividend, reflecting its strong operational performance and robust balance sheet.
Looking ahead, Evertz reported a purchase order backlog exceeding $240 million as of November 2025, with shipments in that month amounting to $46 million. The company continues to innovate in the Software Defined Video Network technology space, providing critical solutions to the telecommunications and entertainment industries. A conference call to discuss the results was scheduled for December 10, 2025.
MWN-AI** Analysis
Evertz Technologies Limited (TSX: ET) has delivered solid results for the second quarter ended October 31, 2025, reporting a revenue of $132.7 million, a notable increase of 6% year-over-year. This growth trajectory, coupled with robust international revenue expansion of 12.5%, underscores the company's competitive position in the Software Defined Video Network (SDVN) technology sector.
The company’s operational efficiencies are reflected in the 17% increase in earnings from operations to $25 million, showcasing better cost management and operational leverage. Furthermore, net earnings rose by 16.9% to $18.6 million, translating into a fully diluted earnings per share (EPS) of $0.24, which is an improvement from $0.21 in the same period last year.
Strategically, Evertz's decision to increase its regular quarterly dividend to $0.205 per share, alongside the declaration of a special dividend of $1.00 per share, signals confidence in sustained financial health and cash flow generation. This strong dividend policy can attract income-focused investors, enhancing shareholder value.
However, while the gross margin decreased slightly from 59.3% to 58.6%, it remains healthy. Investors should keep an eye on the company’s cost structure, particularly in research and development expenditures, which have remained stable yet substantial at approximately $36.6 million—indicating ongoing investment in innovation.
Furthermore, with a backlog exceeding $240 million and $46 million in shipments during November 2025, Evertz appears well-positioned for future growth. Nevertheless, investors should consider potential headwinds, including competition and market volatility.
In summary, Evertz maintains a strong outlook driven by diversified revenue streams and effective management. Investors may find the current stock price attractive, especially given the recent increases in dividends, which reinforce the company’s commitment to delivering shareholder returns. Monitoring upcoming quarterly results will be critical for assessing ongoing performance and strategic adjustments.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
Attention Business/Financial Editors:
Burlington, Ontario--(Newsfile Corp. - December 10, 2025) - Evertz Technologies Limited (TSX: ET), the leader in Software Defined Video Network ("SDVN") technology, today reported its results for the second quarter ended October 31, 2025.
Second Quarter 2026 Highlights
- Quarterly revenue of $132.7 million, an increase of $7.5 million or 6.0% from the prior year quarter
- International quarterly revenue of $34.2 million up $3.8 million or 12.5% from the prior year quarter
- Earnings from operations of $25.0 million for the quarter, an increase of 17.0% from the prior quarter
- Net earnings of $18.6 million for the quarter, an increase of 16.9% from the prior quarter
- Fully diluted earnings per share of $0.24 for the quarter
- Regular quarterly dividend increased to $0.205 per share
- Special dividend declared of $1.00 per share.
Selected Financial Information
Consolidated Statement of Earnings Data
(in thousands of dollars, except earnings per share and share data)
| Q2 ' 26 | Q2 ' 25 | ||||||
| Revenue | $ | 132,735 | $ | 125,259 | |||
| Gross margin | 77,829 | 74,260 | |||||
| Earnings from operations | 25,036 | 21,391 | |||||
| Net earnings | 18,620 | 15,937 | |||||
| Fully-diluted earnings per share | $ | 0.24 | $ | 0.21 | |||
| Fully-diluted shares | 77,523,650 | 77,077,835 |
Selected Financial Information
Consolidated Balance Sheet Data
(in thousands of dollars)
| Q2 ' 26 | YE ' 25 | ||||||
| Cash and cash equivalents | $ | 96,695 | $ | 111,665 | |||
| Working capital | 205,673 | 206,900 | |||||
| Total assets | 466,690 | 469,485 | |||||
| Shareholders' equity | 267,996 | 268,123 |
Revenue
For the quarter ended October 31, 2025, revenues were $132.7 million an increase of $7.5 million compared to revenues of $125.3 million for the quarter ended October 31, 2024. For the quarter, revenues in the United States/Canada region were $98.5 million an increase of $3.7 million or 3.9% compared to $94.8 million in the same quarter last year. The International region had revenues of $34.2 million, an increase of $3.8 million or 12.5% compared to $30.4 million in the same quarter last year.
Gross Margin
Gross margin for the second quarter ended October 31, 2025 was $77.8 million, compared to $74.3 million for the second quarter ended October 31, 2024. As a percentage of revenue, the gross margin was 58.6% for the second quarter ended October 31, 2025 compared to 59.3% for the second quarter ended October 31, 2024.
Earnings
For the quarter ended October 31, 2025, net earnings were $18.6 million or an increase of 16.9% compared to $15.9 million in the corresponding period last year.
For the quarter ended October 31, 2025, earnings per share on a fully-diluted basis were $0.24 as compared to $0.21 in the corresponding period last year.
Operating Expenses
For the quarter ended October 31, 2025, selling and administrative expenses were $19.1 million as compared to $18.4 million for the quarter ended October 31, 2024.
For the quarter ended October 31, 2025, gross research and development expenses were $36.6 million as compared to $36.3 million for the quarter ended October 31, 2024.
Liquidity and Capital Resources
The Company's working capital as at October 31, 2025 was $205.6 million as compared to $206.9 million on April 30, 2025.
Cash and cash equivalent was $96.7 million as at October 31, 2025 as compared to $111.7 million on April 30, 2025.
Cash used from operations was $5.0 million for the quarter ended October 31, 2025 as compared to $9.7 million cash used for the quarter ended October 31, 2024. Before taking into account taxes and the changes in non-cash working capital and current taxes, the Company generated $25.6 million from operations for the quarter ended October 31, 2024 compared to $21.8 million for the same period last year.
For the quarter, the Company used $6.3 million from investing activities which includes the purchase of land and building for $3.0 million
For the quarter ended, the Company used cash in financing activities of $17.5 million which was principally a result of the payment of dividends of $15.4 million.
Shipments and Backlog
At the end of November 2025, purchase order backlog was in excess of $240 million and shipments during the month of November 2025 were $46 million.
Dividend Declared
Evertz Board of Directors declared a regular quarterly dividend on December 10, 2025 of $0.205 per share.
The dividend is payable to shareholders of record on December 18, 2025 and will be paid on or about December 24, 2025.
Special Dividend
Evertz Board of Directors declared a special dividend on December 10, 2025 of $1.00. The dividend is payable to shareholders of record on December 18, 2025 and will be paid on or about December 24, 2025.
The Special dividend reflects both the strong long-term operational performance of the Company and its solid balance sheet, thereby enabling a distribution of cash over and above what is considered necessary to meeting known commitments and maintain adequate reserves.
Selected Consolidated Financial Information
(in thousands of dollars, except earnings per share and percentages)
| Three month period ended | Six month period ended | |||||||||||||||
| October 31, | October 31, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Revenue | $ | 132,735 | $ | 125,259 | $ | 244,880 | $ | 236,902 | ||||||||
| Cost of goods sold | 54,906 | 50,999 | 98,209 | 96,380 | ||||||||||||
| Gross margin | 77,829 | 74,260 | 146,671 | 140,522 | ||||||||||||
| Expenses | ||||||||||||||||
| Selling and administrative | 19,102 | 18,372 | 37,726 | 35,976 | ||||||||||||
| General | 1,268 | 1,302 | 2,535 | 2,583 | ||||||||||||
| Research and development | 36,635 | 36,279 | 73,618 | 73,653 | ||||||||||||
| Investment tax credits | (4,350 | ) | (3,590 | ) | (7,697 | ) | (7,350 | ) | ||||||||
| Share based Compensation | 914 | 1,267 | 1,982 | 2,442 | ||||||||||||
| Foreign exchange gain | (776 | ) | (761 | ) | (1,512 | ) | (782 | ) | ||||||||
| 52,793 | 52,869 | 106,652 | 106,522 | |||||||||||||
| Earnings before undernoted | 25,036 | 21,391 | 40,019 | 34,000 | ||||||||||||
| Finance income | 642 | 837 | 1,417 | 1,542 | ||||||||||||
| Finance costs | (620 | ) | (374 | ) | (858 | ) | (683 | ) | ||||||||
| Other income | 188 | 101 | 688 | 311 | ||||||||||||
| Earnings before income taxes | 25,246 | 21,955 | 41,266 | 35,170 | ||||||||||||
| Provision for (recovery of) income taxes | ||||||||||||||||
| Current | 4,956 | 5,313 | 8,921 | 10,876 | ||||||||||||
| Deferred | 1,670 | 705 | 1,832 | (1,354 | ) | |||||||||||
| 6,626 | 6,018 | 10,753 | 9,522 | |||||||||||||
| Net earnings for the period | $ | 18,620 | $ | 15,937 | $ | 30,513 | $ | 25,648 | ||||||||
| Net earnings attributable to non-controlling interest | 93 | 133 | 145 | 175 | ||||||||||||
| Net earnings attributable to shareholders | 18,527 | 15,804 | 30,368 | 25,473 | ||||||||||||
| Net earnings for the period | $ | 18,620 | $ | 15,937 | $ | 30,513 | $ | 25,648 | ||||||||
| Earnings per share | ||||||||||||||||
| Basic | $ | 0.25 | $ | 0.21 | $ | 0.40 | $ | 0.33 | ||||||||
| Diluted | $ | 0.24 | $ | 0.21 | $ | 0.40 | $ | 0.33 |
| Consolidated Balance Sheet Data | As at | As at | ||||||
| October 31, 2025 | April 30, 2025 | |||||||
| Cash and cash equivalents | $ | 96,695 | $ | 111,665 | ||||
| Inventory | $ | 182,696 | $ | 181,011 | ||||
| Working capital | $ | 205,673 | $ | 205,900 | ||||
| Total assets | $ | 466,690 | $ | 469,485 | ||||
| Shareholders' equity | $ | 267,996 | $ | 268,123 | ||||
| Number of common shares outstanding: | ||||||||
| Basic | 75,484,550 | 75,750,235 | ||||||
| Fully-diluted | 77,523,650 | 80,627,710 | ||||||
| Weighted average number of shares outstanding: | ||||||||
| Basic | 75,495,006 | 76,010,401 | ||||||
| Fully-diluted | 76,589,935 | 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 December 10, 2025 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 January 6, 2025. The rebroadcast can be accessed at 1-289-819-1325 or Toll Free 1-800-660-6264, passcode 56182.
About Evertz
Evertz Technologies Limited (TSX: ET) designs, manufactures and markets video and audio infrastructure solutions for the television, telecommunications and new-media industries. The Company's solutions are purchased by content creators, broadcasters, specialty channels and television service providers to support their increasingly complex multi-channel digital, and high and ultra-high definition television ("HDTV" and "UHD") and next generation high bandwidth low latency IP network environments and by telecommunications and new-media companies. The Company's products allow its customers to generate additional revenue while reducing costs through efficient 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".
For further information, please contact:
Doug Moore, CPA, CA
Chief Financial Officer
(905) 335-3700
ir@evertz.com
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/277599
FAQ**
What factors contributed to the 6.0% increase in revenue for Evertz Technologies Limited ET:CC in Q2 2026 compared to Q2 2025, and how do these relate to market trends in the SDVN technology space?
Can you elaborate on the geographic performance differences observed, particularly the 12.5% growth in international revenue, for Evertz Technologies Limited ET:CC?
With earnings from operations increasing by 17.0% and a special dividend declared, how is Evertz Technologies Limited ET:CC planning to sustain this growth while managing cash flow and investments for future expansion?
What are the anticipated impacts of the company's current backlog of over $2million on revenue projections for Evertz Technologies Limited ET:CC in the upcoming quarters?
**MWN-AI FAQ is based on asking OpenAI questions about Evertz Technologies Limited (TSXC: ET:CC).
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