AstroNova, Inc.

Consolidated revenue increased to $39.4 million from $37.7 million a year ago and $37.5 million in the prior quarter. Gross profit rose to $14.4 million from $12.0 million, and gross margin expanded 490 basis points to 36.6%; adjusted gross margin was 36.9%, up 410 basis points. Operating income increased to $1.6 million from $0.6 million, non-GAAP operating income rose 70% to $2.6 million, and adjusted EBITDA reached $4.1 million with a 10.5% margin. Net income improved by $0.7 million, or $0.08 per diluted share, versus a net loss in the prior-year period; non-GAAP net income was $1.4 million, or $0.19 per diluted share. Cash from operations was $3 million, debt fell by $1.7 million to $36 million, and liquidity ended at $17.4 million, including $4.7 million in cash and $12.7 million of revolver capacity. Total orders were $46.3 million, up 33%, and backlog ended at $32.4 million. No formal next-quarter or full-year revenue/EPS guidance was given; management said the outlook is supported by strong Aerospace demand, improving Product ID execution, growing backlog, and the expected royalty expiration, which is expected to provide about $2 million of annualized gross profit benefit beginning in the fourth quarter.

Jorik Ittmann said the company had a solid start to fiscal 2027 and is seeing momentum from greater sales, marketing and operating discipline. He pointed to Aerospace as the main growth driver, with ToughWriter shipments benefiting from commercial aircraft build-rate tailwinds, while Product ID is progressing through a platform transition and improving its go-to-market approach. His tone was constructive but measured: he emphasized continued execution, investments in the team, and that the board’s strategic alternatives review is ongoing without speculation on outcomes.

Tom DeByle emphasized the financial improvement across the quarter: revenue of $39.4 million, gross margin of 36.6%, operating income of $1.6 million, and adjusted EBITDA of $4.1 million. He noted Aerospace sales of $13.3 million, Product ID revenue that was modestly down but with stronger desktop labeling, higher aftermarket orders, and double-digit operating improvement in Product ID. On cash and capital allocation, he said AstroNova generated $3 million from operations, spent only $36,000 on capex, reduced debt to $36 million, and ended with $17.4 million of liquidity; he also highlighted net debt leverage of 2.6x, below covenant threshold.

There was no analyst Q&A on the call; the operator stated there were no questions. The most notable management commentary in lieu of Q&A was that the board’s strategic alternatives review remains ongoing, but management would not comment further on timing or possible outcomes. Management also underscored the expected expiration of a major royalty obligation in fiscal Q3, which should lift gross profit beginning in Q4.