Richardson Electronics (RELL) Q1 2026 Financial Results Summary
On October 8, 2025, Richardson Electronics, Ltd. (NASDAQ: RELL) announced its financial results for the first quarter ended August 30, 2025. The report showcased notable increases in various key metrics and highlighted the company’s progress in operational performance.
Key Financial Highlights
- Net Sales:
- Reported $54.6 million, a 1.6% increase from $53.7 million in Q1 FY25.
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Excluding the Healthcare segment (assets sold in January 2025), net sales increased by 6.8% year-over-year.
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Contributions to Growth:
- The increase in net sales was attributed to higher sales in:
- Power and Microwave Technologies Group (PMT): rose 2.8% to $39.1 million, with a 10.5% increase when excluding Healthcare.
- Canvys: sales increased 8.3% to $8.3 million.
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GES (Global Energy Solutions): saw a decline in sales by 10.2%, influenced by the absence of a significant EV Locomotive order from the previous year.
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Backlog:
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Total backlog was $134.7 million, slightly up from $134.2 million at the end of FY25, primarily driven by PMT and Canvys.
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Gross Margin:
- Improved to 31.0% of net sales, up from 30.6% in Q1 FY25.
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Gross margin for PMT increased to 31.3% (from 30.1%) and for GES to 29.6% (from 29.4%). Canvys gross margin decreased to 30.9% (from 34.3%).
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Operating Expenses:
- Totaled $16.0 million, marginally down from $16.1 million in Q1 FY25.
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As a percentage of net sales, operating expenses reduced to 29.2% from 30.0%.
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Operating Income:
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Reported at $1.0 million, significantly up from $0.3 million in Q1 FY25.
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Other Income:
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Increased to $1.4 million from $0.3 million in the previous year, largely due to a non-recurring gain.
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Net Income:
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For Q1 FY26, net income was $1.9 million, compared to $0.6 million in Q1 FY25.
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Earnings Per Share (EPS):
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Diluted EPS rose to $0.13, up from $0.04 in the first quarter of the previous year.
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EBITDA:
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EBITDA improved to $3.3 million compared to $1.7 million in Q1 FY25.
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Cash and Cash Equivalents:
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Ended the quarter with $35.7 million, slightly down from $35.9 million at the end of FY25, with cash primarily used for dividend payments.
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Capital Expenditures:
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The company invested $1.0 million in capital expenditures during the quarter.
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Debt Status:
- No outstanding debt on the revolving line of credit, which has been extended through October 6, 2028, maintaining a $20 million borrowing limit.
Dividend Declaration
- The Board of Directors declared a $0.06 per share quarterly cash dividend for common stockholders and $0.054 per share for Class B common stockholders.
- Dividends will be payable on November 26, 2025, to common stockholders as of November 7, 2025.
Summary
Richardson Electronics reported strong financial performance in Q1 FY26, with growth driven by its semiconductor segment and cost management. The positive indicators of revenue, margin improvements, and net income growth suggest a solid foundation as the company continues to navigate its operational landscape successfully. The declared dividend reflects continued commitment to shareholder returns.
Here are the extracted tables in HTML format:
Richardson Electronics, Ltd. Unaudited Consolidated Statements of Comprehensive Income (in thousands, except per share amounts)
| August 30, 2025 | August 31, 2024 | |
|---|---|---|
| Net sales | $54,607 | $53,725 |
| Cost of sales | $37,678 | $37,299 |
| Gross profit | $16,929 | $16,426 |
| Selling, general and administrative expenses | $15,961 | $16,112 |
| Gain on disposal of property, plant and equipment | $— | $2 |
| Operating income | $968 | $316 |
| Other income (expense): | ||
| Interest income | $169 | $58 |
| Foreign exchange gain | $289 | $277 |
| Other, net | $904 | $(3) |
| Total other income | $1,362 | $332 |
| Income before income taxes | $2,330 | $648 |
| Income tax provision | $421 | $58 |
| Net income | $1,909 | $590 |
| Foreign currency translation gain, net | $1,054 | $636 |
| Comprehensive income | $2,963 | $1,226 |
| Net income per share: | ||
| Common stock – Basic | $0.13 | $0.04 |
| Class B common stock – Basic | $0.12 | $0.04 |
| Common stock – Diluted | $0.13 | $0.04 |
| Class B common stock – Diluted | $0.12 | $0.04 |
| Weighted average number of shares: | ||
| Common stock – Basic | 12,393 | 12,200 |
| Class B common stock – Basic | 2,049 | 2,049 |
| Common stock – Diluted | 12,544 | 12,431 |
| Class B common stock – Diluted | 2,049 | 2,049 |
Richardson Electronics, Ltd. Consolidated Balance Sheets (in thousands, except per share amounts)
| August 30, 2025 | May 31, 2025 | |
|---|---|---|
| Assets | ||
| Current assets: | ||
| Cash and cash equivalents | $35,654 | $35,901 |
| Accounts receivable, less allowance for credit losses of $301 and $250, respectively | $27,039 | $24,117 |
| Inventories, net | $104,635 | $102,799 |
| Prepaid expenses and other assets | $2,948 | $3,070 |
| Total current assets | $170,276 | $165,887 |
| Non-current assets: | ||
| Property, plant and equipment, net | $18,439 | $18,355 |
| Intangible assets, net | $330 | $345 |
| Right of use lease assets | $2,026 | $2,276 |
| Deferred income tax assets | $8,695 | $8,744 |
| Other non-current assets | $301 | $228 |
| Total non-current assets | $29,791 | $29,948 |
| Total assets | $200,067 | $195,835 |
| Liabilities and Stockholders’ Equity | ||
| Current liabilities: | ||
| Accounts payable | $23,172 | $21,339 |
| Accrued liabilities | $14,360 | $14,276 |
| Lease liabilities current | $1,167 | $1,171 |
| Total current liabilities | $38,699 | $36,786 |
| Non-current liabilities: | ||
| Deferred income tax liabilities | $83 | $81 |
| Lease liabilities non-current | $859 | $1,105 |
| Other non-current liabilities | $1,058 | $1,204 |
| Total non-current liabilities | $2,000 | $2,390 |
| Total liabilities | $40,699 | $39,176 |
| Stockholders’ Equity | ||
| Common stock, $0.05 par value; 12,444 and 12,362 shares issued and outstanding on August 30, 2025 and May 31, 2025, respectively | $622 | $618 |
| Class B common stock, convertible, $0.05 par value; 2,049 shares issued and outstanding on August 30, 2025 and May 31, 2025 | $102 | $102 |
| Additional paid-in-capital | $75,044 | $74,445 |
| Retained earnings | $80,392 | $79,340 |
| Accumulated other comprehensive income | $3,208 | $2,154 |
| Total stockholders’ equity | $159,368 | $156,659 |
| Total liabilities and stockholders’ equity | $200,067 | $195,835 |
