AstroNova Inc. has reported its second-quarter financial results, revealing a revenue of $36.1 million, which marks a decline of 10.9% year-over-year and a sequential drop of 4.2%. The downturn in revenue is primarily attributed to significant declines in both the Product ID and Aerospace segments, which experienced decreases of 8.9% and 15.1%, respectively. The company’s gross profit also suffered, amounting to $11.6 million—down $2.7 million compared to the same quarter last year—with a gross margin of 32.9% for the first half of fiscal 2026.
The financial report highlighted a net loss of $1.2 million, translating to a loss of $0.16 per share. Adjusted EBITDA came in at $2.1 million, reflecting a reduction of $1.8 million from the prior year period, leading to an adjusted EBITDA margin of 5.7% for the second quarter. On a more positive note, AstroNova generated cash from operations amounting to $4.6 million for the first half of the fiscal year, and capital expenditures were kept low at nearly $0.1 million, with expectations to remain below $0.5 million for the entire fiscal year.
AstroNova has actively worked on debt management, successfully reducing its total liabilities by $5.1 million in the first half of fiscal 2026. As of July 31, 2025, the company reported total liquidity of $10.4 million and a leverage ratio of 3.5x funded debt to adjusted EBITDA. The orders recorded in the second quarter were $30.9 million, showing stability year-over-year but an increase of $1 million since the previous quarter. However, the backlog fell to $25.3 million, down $4.6 million year-over-year, indicating ongoing difficulties in customer retention.
In response to these challenges, AstroNova is implementing strategic changes within its sales team, restructuring it into two focused groups: one dedicated to customer acquisition and the other to customer retention. CEO Jorik Ittmann emphasized that this new structure is aimed at regaining lost customers and expanding the client base, aligning the sales team’s skills with higher-value product offerings.
The company is also addressing specific challenges within its Product Identification segment, particularly regarding the validation of upgrades to the MTEX product line. Efforts are underway to meet customer expectations for improved print quality and faster delivery, particularly amid high demand for Mail & Sheet printer products. In the Aerospace sector, despite revenue declines, AstroNova continues to have a strong footing, particularly with the transition to its ToughWriter flight deck printers, which accounted for 50% of second-quarter shipments.
Looking ahead, financial strategies focus on enhancing cash flow, with careful capital management being a priority. Limitations on capital expenditures and an active debt restructuring discussion are part of this strategy, expected to be finalized within 60 days. Ittmann noted that the company aims to streamline operations, reduce costs by $3 million in annualized savings, and improve overall lead times to bolster profitability.
As AstroNova moves forward in fiscal 2026, the emphasis remains on re-engagement with customers, refining operational processes, and retaining existing clients while attracting new ones in a competitive marketplace.
