1. Sono-Tek reports $5.163 million Q2 revenue, stable year-over-year. 2. 150% annual increase in medical market sales highlighted. 3. Net income up 35% for first half of fiscal 2026. 4. Backlog rose 50%, indicating strong order momentum. 5. Updated FY26 guidance anticipates modest revenue growth.
The company's continued revenue growth and backlog increase suggest positive future performance, reminiscent of past successful quarters that led to price rallies.
The financial improvements and increase in medical market demand are directly relevant to SOTK's market performance and growth potential.
The robust growth in the medical device sector and sustained profitability position the company well for long-term profitability, similar to trends observed in previous fiscal years.
- Reports Sixth Consecutive Quarter of Revenue over $5 million Highlighted by 150% Annual Increase in Medical Market Sales-
-Fiscal First Half Net Income Increases 35%-
-Backlog Increased 50% Sequentially Reflecting New Order Momentum-
-Updates FY26 Guidance Reflecting Improved Outlook, Anticipating Modest Revenue Growth with Increasing Demand in the Medical Device Market-
-Conference Call Today at 10:30 am ET-
MILTON, N.Y., Oct. 14, 2025 (GLOBE NEWSWIRE) -- Sono-Tek Corporation (NASDAQ:SOTK), the leading developer and manufacturer of ultrasonic coating systems, today reported financial results for the second quarter and first half of fiscal year 2026, ended August 31, 2025.
Second Quarter Fiscal 2026 Highlights
First Half Fiscal 2026 Highlights
Balance Sheet, Backlog and Guidance for Fiscal Year 2026
Dr. Christopher L. Coccio, Executive Chairman, stated, "We are pleased to report continued growth and profitability in line with our guidance with the continuing trend of over $5 million in quarterly revenue for the past six quarters. Importantly, we remain solidly profitable with strong margins and effective cost controls. Based on projected shipments for the second half of our fiscal year 2026, we are raising guidance slightly, now anticipating modest revenue growth, taking into consideration evolving governmental clean energy incentives and tariff policies which each may affect the initiation and timing of customer orders. Despite the evolving landscape in the clean energy industry, we have successfully offset it with our diversification strategy into other sectors such as the medical device industry. It is gratifying to see the promising demand in the medical device industry that we projected coming to fruition with our recently announced $5 million dollar order for multiple state-of-the-art MediCoat systems designed for high-precision, scalable manufacturing in addition to our most recent order of over $2.8 million from another major medical device manufacturer. With a healthy balance sheet, solid backlog and strong customer demand, we remain laser focused on execution and look forward to building on our recent success."
Steve Harshbarger, CEO & President of Sono-Tek stated, "We continue to see the success of our growth strategies with customers moving into complex large-scale production systems with significantly higher average selling prices "ASPs". Customer demand and momentum remain strong, and it is validating to see the growing adoption of Sono-Tek's advanced coating platforms by leading medical device manufacturers worldwide. We are well positioned with our strong balance sheet and backlog to navigate potential short-term demand shifts that may result from changes in tariff policies and clean energy incentives. We remain focused on our long-term growth strategy and look forward to continued revenue growth and profitability over the long term."
Second Quarter Fiscal 2026 Results
(Narrative compares with prior-year period unless otherwise noted) ($ in thousands)
| Three Months Ended August 31, | Change | ||||||||||||
| 2025 | 2024 | $ | % | ||||||||||
| Net Sales | $ | 5,163 | $ | 5,162 | 1 | 0% | |||||||
| Gross Profit | $ | 2,590 | $ | 2,516 | 74 | 3% | |||||||
| Gross Margin | 50% | 49% | |||||||||||
| Operating Income | $ | 421 | $ | 286 | 135 | 47% | |||||||
| Operating Margin | 8% | 6% | |||||||||||
| Net Income | $ | 424 | $ | 341 | 83 | 24% | |||||||
| Net Margin | 8% | 7% | |||||||||||
Second Quarter Fiscal Year 2026 Product and Market Sales Overview
First Half Fiscal Year 2026 Overview
(Narrative compares with prior-year period unless otherwise noted) ($ in thousands)
| Six Months Ended August 31, | Change | ||||||||||||
| 2025 | 2024 | $ | % | ||||||||||
| Net Sales | $ | 10,295 | $ | 10,193 | 102 | 1% | |||||||
| Gross Profit | $ | 5,254 | $ | 4,971 | 283 | 6% | |||||||
| Gross Margin | 51% | 49% | |||||||||||
| Operating Income | $ | 905 | $ | 524 | 381 | 73% | |||||||
| Operating Margin | 9% | 5% | |||||||||||
| Net Income | $ | 909 | $ | 672 | 237 | 35% | |||||||
| Net Margin | 9% | 7% | |||||||||||
First Half Fiscal Year 2026 Product and Market Sales Overview
Balance Sheet and Cash Flow Overview
At August 31, 2025, cash, cash equivalents and marketable securities totaled $10.6 million, with no debt, and stockholders' equity was $18.7 million.
Capital expenditures in the first half of fiscal 2026 were $113K, which were invested in ongoing upgrades to the Sono-Tek's manufacturing facilities. Sono-Tek anticipates that capital expenditures will total approximately $300k in fiscal year 2026.
Conference Call Information
Sono-Tek will hold a conference call to discuss its second quarter and first half of fiscal year 2026 financial results today, Tuesday, October 14, 2025 at 10:30 am ET. To participate, please call 1-844-481-2752 or 1-412-317-0668 for international callers at least 10 minutes prior to the start of the call and ask to join the Sono-Tek call.
A simultaneous webcast of the call may be accessed through the Company's website, Events & Presentations | Sono-Tek or at https://event.choruscall.com/mediaframe/webcast.html?webcastid=L9LSqRTH
A replay of the call will be available at 1-877-344-7529 or 1-412-317-0088 for international callers, access code 6867548, through October 21, 2025. A replay of the call will also be available on the Company's website for one year at www.sono-tek.com.
About Sono-Tek
Sono-Tek Corporation (NASDAQ:SOTK) is a global leader in the design and manufacture of ultrasonic coating systems that are shaping industries and driving innovation worldwide. Our ultrasonic coating systems are used to apply thin films onto parts in diverse industries including medical devices, semiconductors, microelectronics, alternative energy, advanced industrial manufacturing, and research and development sectors.
Sono-Tek has a long history of providing advanced coating solutions to the medical device industry, enabling precision coatings for life-saving technologies such as stents, balloons, diagnostic devices, and various drug delivery platforms. At the same time, our expertise in semiconductor and microelectronics applications continues to expand, as customers increasingly turn to Sono-Tek for solutions supporting next-generation chips, displays, and sensors. Alongside these markets, our technologies are also leading the way in next-generation clean energy coatings for fuel cells, carbon capture, advanced solar cells, and various other advanced industrial applications, underscoring the versatility and broad reach of Sono-Tek's ultrasonic coating platforms.
Our product line is rapidly evolving, transitioning from R&D tools to high-volume production machines with significantly higher average selling prices, showcasing our market leadership and adaptability. Our comprehensive suite of thin film coating solutions and application consulting services ensures unparalleled results for our clients and helps some of the world's most promising companies achieve technological breakthroughs and bring them to market. The company strategically delivers its products to customers through a network of direct sales personnel, carefully chosen independent distributors, and experienced sales representatives, ensuring efficient market reach across diverse sectors around the globe.
Our growth strategy is focused on leveraging our innovative technologies, proprietary know-how, unique talent and experience, and global reach to further develop microscopic coating technologies that enable better outcomes for our customers' products and processes. For further information, visit www.sono-tek.com.
Safe Harbor Statement
This news release contains forward looking statements regarding future events and the future performance of Sono-Tek Corporation that involve risks and uncertainties that could cause actual results to differ materially. These "forward-looking statements' are based on currently available competitive, financial and economic data and our operating plans. They are inherently uncertain, and investors must recognize that events could turn out to be significantly different from our expectations and could cause actual results to differ materially. These factors include, among other considerations, general economic and business conditions, including political, regulatory, tax, competitive and technological developments affecting our operations or the demand for our products; inflationary and supply chain pressures; continued strength of sales to the medical device market; continued private and public funding for the clean energy sector and continued strong demand for Sono-Tek's suite of thin film coating solutions and application consulting services in the clean energy and other markets; maintenance of order backlog; the imposition of tariffs; timely development and market acceptance of new products and continued customer validation of our coating technologies; adequacy of financing; capacity additions, the ability to enforce patents; maintenance of operating leverage; consummation of order proposals; completion of large orders on schedule and on budget; successful transition from primarily selling ultrasonic nozzles and components to a more complex business providing complete machine solutions and higher value subsystems; and realization of quarterly and annual revenues within the forecasted range of sales guidance. We undertake no obligation to update any forward-looking statement.
For more information:
Sono-Tek Corp.
Stephen J. Bagley
Chief Financial Officer
Ph: (845) 795-2020
info@sono-tek.com
Investor Relations
Kirin Smith
PCG Advisory, Inc.
ksmith@pcgadvisory.com
-FINANCIAL TABLES FOLLOW-
| SONO-TEK CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| August 31, 2025 | February 28, 2025 | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Current Assets: | ||||||||
| Cash and cash equivalents | $ | 3,832,133 | $ | 5,202,361 | ||||
| Marketable securities | 6,736,469 | 6,727,678 | ||||||
| Accounts receivable (less allowance of $12,225, respectively) | 4,212,354 | 2,347,764 | ||||||
| Inventories | 4,152,027 | 4,474,401 | ||||||
| Prepaid expenses and other current assets | 188,695 | 236,261 | ||||||
| Total current assets | 19,121,678 | 18,988,465 | ||||||
| Land | 250,000 | 250,000 | ||||||
| Buildings, equipment, furnishings and leasehold improvements, net | 2,413,664 | 2,610,600 | ||||||
| Intangible assets, net | 33,529 | 37,386 | ||||||
| Deferred tax asset | 1,366,864 | 1,525,185 | ||||||
| TOTAL ASSETS | $ | 23,185,735 | $ | 23,411,636 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current Liabilities: | ||||||||
| Accounts payable | $ | 614,512 | $ | 859,483 | ||||
| Accrued expenses | 1,852,959 | 1,718,574 | ||||||
| Customer deposits | 1,906,629 | 2,413,195 | ||||||
| Income taxes payable | 27,813 | 496,055 | ||||||
| Total current liabilities | 4,401,913 | 5,487,307 | ||||||
| Deferred tax liability | 88,153 | 132,134 | ||||||
| Total liabilities | 4,490,066 | 5,619,441 | ||||||
| Commitments and Contingencies (Note 10) | ||||||||
| Stockholders' Equity | ||||||||
| Common stock, $.01 par value; 25,000,000 shares authorized, 15,751,153 issued and 15,707,062 outstanding as of August 31, 2025 and 15,751,153 issued and 15,749,037 outstanding February 28, 2025, respectively | 157,512 | 157,512 | ||||||
| Additional paid-in capital | 10,163,952 | 10,018,034 | ||||||
| Accumulated earnings | 8,533,194 | 7,624,516 | ||||||
| Treasury stock, at cost, 44,091 shares and 2,116 shares, August 31, 2025 and February 28, 2025, respectively | (158,989 | ) | (7,867 | ) | ||||
| Total stockholders' equity | 18,695,669 | 17,792,195 | ||||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 23,185,735 | $ | 23,411,636 | ||||
| See notes to unaudited condensed consolidated financial statements. | ||||||||
| SONO-TEK CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) | ||||||||||||||||
| Six Months Ended August 31, | Three Months Ended August 31, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Net Sales | $ | 10,295,469 | $ | 10,192,820 | $ | 5,162,696 | $ | 5,161,782 | ||||||||
| Cost of Goods Sold | 5,041,218 | 5,222,236 | 2,572,959 | 2,645,685 | ||||||||||||
| Gross Profit | 5,254,251 | 4,970,584 | 2,589,737 | 2,516,097 | ||||||||||||
| Operating Expenses | ||||||||||||||||
| Research and product development costs | 1,295,748 | 1,427,303 | 627,278 | 695,873 | ||||||||||||
| Marketing and selling expenses | 1,729,504 | 1,885,608 | 871,353 | 988,418 | ||||||||||||
| General and administrative costs | 1,324,477 | 1,133,387 | 669,952 | 545,816 | ||||||||||||
| Total Operating Expenses | 4,349,729 | 4,446,298 | 2,168,583 | 2,230,107 | ||||||||||||
| Operating Income | 904,522 | 524,286 | 421,154 | 285,990 | ||||||||||||
| Interest and Dividend Income | 223,660 | 227,730 | 81,562 | 85,076 | ||||||||||||
| Net unrealized gain on marketable securities | 1,570 | 53,941 | 23,493 | 43,580 | ||||||||||||
| Income Before Income Taxes | 1,129,752 | 805,957 | 526,209 | 414,646 | ||||||||||||
| Income Tax Expense | 221,074 | 134,435 | 102,516 | 73,961 | ||||||||||||
| Net Income | $ | 908,678 | $ | 671,522 | $ | 423,693 | $ | 340,685 | ||||||||
| Basic Earnings Per Share | $ | 0.06 | $ | 0.04 | $ | 0.03 | $ | 0.02 | ||||||||
| Diluted Earnings Per Share | $ | 0.06 | $ | 0.04 | $ | 0.03 | $ | 0.02 | ||||||||
| Weighted Average Shares - Basic | 15,727,844 | 15,750,895 | 15,721,162 | 15,750,910 | ||||||||||||
| Weighted Average Shares - Diluted | 15,740,384 | 15,771,472 | 15,731,571 | 15,768,251 | ||||||||||||
| See notes to unaudited condensed consolidated financial statements. | ||||||||||||||||
Product Sales
| Three Months Ended August 31, | Change | Six Months Ended August 31, | Change | |||||||||||||||||||||||||||||
| 2025 | 2024 | $ | % | 2025 | 2024 | $ | % | |||||||||||||||||||||||||
| Fluxing Systems | $ | 165,000 | $ | 119,000 | 46,000 | 39% | $ | 317,000 | $ | 253,000 | 64,000 | 25% | ||||||||||||||||||||
| In-Line Coating Systems 1 | 1,530,000 | 2,023,000 | (493,000 | ) | (24% | ) | 4,584,000 | 2,770,000 | 1,814,000 | 65% | ||||||||||||||||||||||
| Multi-Axis Coating Systems | 2,030,000 | 1,931,000 | 99,000 | 5% | 2,707,000 | 4,595,000 | (1,888,000 | ) | (41% | ) | ||||||||||||||||||||||
| OEM Systems | 394,000 | 205,000 | 189,000 | 92% | 524,000 | 537,000 | (13,000 | ) | (2% | ) | ||||||||||||||||||||||
| Spare Parts, Services and Other | 1,044,000 | 884,000 | 160,000 | 18% | 2,164,000 | 2,038,000 | 126,000 | 6% | ||||||||||||||||||||||||
| TOTAL | $ | 5,163,000 | $ | 5,162,000 | 1,000 | 0% | $ | 10,296,000 | $ | 10,193,000 | 103,000 | 1% | ||||||||||||||||||||
Market Sales
| Three Months Ended August 31, | Change | Six Months Ended August 31, | Change | |||||||||||||||||||||||||||||
| 2025 | 2024 | $ | % | 2025 | 2024 | $ | % | |||||||||||||||||||||||||
| Electronics/Microelectronics | $ | 1,455,000 | $ | 1,477,000 | (22,000 | ) | (1% | ) | $ | 2,399,000 | $ | 3,045,000 | (646,000 | ) | (21% | ) | ||||||||||||||||
| Medical | 1,004,000 | 402,000 | 602,000 | 150% | 1,812,000 | 1,259,000 | 553,000 | 44% | ||||||||||||||||||||||||
| Alternative/Clean Energy | 2,433,000 | 2,498,000 | (65,000 | ) | (3% | ) | 5,681,000 | 4,780,000 | 901,000 | 19% | ||||||||||||||||||||||
| Emerging R&D and Other | 33,000 | 30,000 | 3,000 | 10% | 47,000 | 41,000 | 6,000 | 15% | ||||||||||||||||||||||||
| Industrial | 238,000 | 755,000 | (517,000 | ) | (68% | ) | 357,000 | 1,068,000 | (711,000 | ) | (67% | ) | ||||||||||||||||||||
| TOTAL | $ | 5,163,000 | $ | 5,162,000 | 1,000 | 0% | $ | 10,296,000 | $ | 10,193,000 | 103,000 | 1% | ||||||||||||||||||||
Geographic Sales
| Three Months Ended August 31, | Change | Six Months Ended August 31, | Change | |||||||||||||||||||||||||||||
| 2025 | 2024 | $ | % | 2025 | 2024 | $ | % | |||||||||||||||||||||||||
| U.S. & Canada | $ | 2,720,000 | $ | 3,495,000 | (775,000 | ) | (22% | ) | $ | 6,263,000 | $ | 6,587,000 | (324,000 | ) | (5% | ) | ||||||||||||||||
| Asia Pacific (APAC) | 930,000 | 368,000 | 562,000 | 153% | 1,527,000 | 880,000 | 647,000 | 74% | ||||||||||||||||||||||||
| Europe, Middle East, Asia (EMEA) | 1,424,000 | 1,136,000 | 288,000 | 25% | 2,321,000 | 2,381,000 | (60,000 | ) | (3% | ) | ||||||||||||||||||||||
| Latin America | 89,000 | 163,000 | (74,000 | ) | (45% | ) | 185,000 | 345,000 | (160,000 | ) | (46% | ) | ||||||||||||||||||||
| TOTAL | $ | 5,163,000 | $ | 5,162,000 | 1,000 | 0% | $ | 10,296,000 | $ | 10,193,000 | 103,000 | 1% | ||||||||||||||||||||
