Evertz Technologies Reports Strong Revenue Growth and Increased Order Backlog
News related to:Evertz Technologies Limited · 2 min read
Evertz Technologies, a leader in Software Defined Video Network (SDVN) technology, reported its first quarter results for the period ending July 31, 2026. The company saw a revenue increase of $6.1 million, reaching $118.3 million compared to $112.1 million in the same period last year. Revenue from the United States and Canada rose slightly to $79.9 million, up $0.5 million from the previous year.
The company’s order backlog as of August 31, 2026, stood at $259 million, marking a 9% sequential increase from May 31, 2026. Gross margin for the quarter was 58.6%, down from 61.4% in the previous year. Earnings from operations amounted to $11.0 million, while net earnings were $8.0 million, translating to a fully diluted earnings per share of $0.10.
Revenue breakdown showed that the United States and Canada region contributed $79.9 million, an increase of $0.5 million, while the International region saw a rise from $32.7 million to $38.3 million. Selling and administrative expenses were $19.9 million, up from $18.6 million, while research and development expenses increased to $38.5 million from $37.0 million.
Despite the increase in revenue, the company experienced a decrease in cash generated from operations, which was $0.8 million compared to $33.5 million in the same period last year. The company’s working capital as of July 31, 2026, was $131.4 million, a slight decrease from $131.7 million on April 30, 2026. Cash, net of bank indebtedness, was $2.5 million, down from $19.1 million on April 30, 2026.
For the quarter, the company used $2.1 million for investing activities, primarily due to the acquisition of capital assets worth $1.8 million and business acquisitions totaling $0.2 million. Cash used in financing activities, net of bank indebtedness, was $16.8 million, driven by dividends paid of $15.5 million and lease payments of $1.0 million.
Evertz Technologies ended the quarter with a purchase order backlog of over $259 million, and shipments during August 2026 reached $30 million. The company also declared a regular quarterly dividend of $0.205 per share, payable to shareholders of record on September 24, 2026, with payment on October 1, 2026.
The company’s Chief Financial Officer, Doug Moore, commented on the results, stating, "While we experienced a slight decrease in cash generated from operations, the increase in revenue and order backlog indicate a strong pipeline for future growth. We remain committed to investing in research and development to support our customers in the evolving media landscape."
The results reflect Evertz Technologies' ongoing efforts to adapt to the changing demands of the video and audio infrastructure market, particularly in the areas of multi-channel digital and high-definition formats. The company continues to focus on providing efficient, reliable, and secure solutions for its diverse customer base, including television broadcasters, telecommunications companies, and content creators.