Evertz Technologies Reports Quarterly Revenue of $132.7 Million in the Second Quarter Ended October 31, 2025

Attention Business/Financial Editors:

Burlington, Ontario–(Newsfile Corp. – December 10, 2025) – Evertz Technologies Limited (TSX: ET), the leader in Software Defined Video Network (“SDVN”) technology, today reported its results for the second quarter ended October 31, 2025.

Second Quarter 2026 Highlights

• Quarterly revenue of $132.7 million, an increase of $7.5 million or 6.0% from the prior year quarter
• International quarterly revenue of $34.2 million up $3.8 million or 12.5% from the prior year quarter
• Earnings from operations of $25.0 million for the quarter, an increase of 17.0% from the prior quarter
• Net earnings of $18.6 million for the quarter, an increase of 16.9% from the prior quarter
• Fully diluted earnings per share of $0.24 for the quarter
• Regular quarterly dividend increased to $0.205 per share
• Special dividend declared of $1.00 per share.

Selected Financial Information
Consolidated Statement of Earnings Data
(in thousands of dollars, except earnings per share and share data)

		Q2 ‘ 26				Q2 ‘ 25
Revenue	$	132,735			$	125,259
Gross margin		77,829				74,260
Earnings from operations		25,036				21,391
Net earnings		18,620				15,937
Fully-diluted earnings per share	$	0.24			$	0.21
Fully-diluted shares		77,523,650				77,077,835

 

Selected Financial Information
Consolidated Balance Sheet Data
(in thousands of dollars)

		Q2 ‘ 26				YE ‘ 25
Cash and cash equivalents	$	96,695			$	111,665
Working capital		205,673				206,900
Total assets		466,690				469,485
Shareholders’ equity		267,996				268,123

 

Revenue
For the quarter ended October 31, 2025, revenues were $132.7 million an increase of $7.5 million compared to revenues of $125.3 million for the quarter ended October 31, 2024. For the quarter, revenues in the United States/Canada region were $98.5 million an increase of $3.7 million or 3.9% compared to $94.8 million in the same quarter last year. The International region had revenues of $34.2 million, an increase of $3.8 million or 12.5% compared to $30.4 million in the same quarter last year.

Gross Margin
Gross margin for the second quarter ended October 31, 2025 was $77.8 million, compared to $74.3 million for the second quarter ended October 31, 2024. As a percentage of revenue, the gross margin was 58.6% for the second quarter ended October 31, 2025 compared to 59.3% for the second quarter ended October 31, 2024.

Earnings
For the quarter ended October 31, 2025, net earnings were $18.6 million or an increase of 16.9% compared to $15.9 million in the corresponding period last year.

For the quarter ended October 31, 2025, earnings per share on a fully-diluted basis were $0.24 as compared to $0.21 in the corresponding period last year.

Operating Expenses
For the quarter ended October 31, 2025, selling and administrative expenses were $19.1 million as compared to $18.4 million for the quarter ended October 31, 2024.

For the quarter ended October 31, 2025, gross research and development expenses were $36.6 million as compared to $36.3 million for the quarter ended October 31, 2024.

Liquidity and Capital Resources
The Company’s working capital as at October 31, 2025 was $205.6 million as compared to $206.9 million on April 30, 2025.

Cash and cash equivalent was $96.7 million as at October 31, 2025 as compared to $111.7 million on April 30, 2025.

Cash used from operations was $5.0 million for the quarter ended October 31, 2025 as compared to $9.7 million cash used for the quarter ended October 31, 2024. Before taking into account taxes and the changes in non-cash working capital and current taxes, the Company generated $25.6 million from operations for the quarter ended October 31, 2024 compared to $21.8 million for the same period last year.

For the quarter, the Company used $6.3 million from investing activities which includes the purchase of land and building for $3.0 million

For the quarter ended, the Company used cash in financing activities of $17.5 million which was principally a result of the payment of dividends of $15.4 million.

Shipments and Backlog
At the end of November 2025, purchase order backlog was in excess of $240 million and shipments during the month of November 2025 were $46 million.

Dividend Declared
Evertz Board of Directors declared a regular quarterly dividend on December 10, 2025 of $0.205 per share.

The dividend is payable to shareholders of record on December 18, 2025 and will be paid on or about December 24, 2025.

Special Dividend
Evertz Board of Directors declared a special dividend on December 10, 2025 of $1.00. The dividend is payable to shareholders of record on December 18, 2025 and will be paid on or about December 24, 2025.

The Special dividend reflects both the strong long-term operational performance of the Company and its solid balance sheet, thereby enabling a distribution of cash over and above what is considered necessary to meeting known commitments and maintain adequate reserves.

Selected Consolidated Financial Information
(in thousands of dollars, except earnings per share and percentages)

		Three month period ended								Six month period ended
		October 31,								October 31,
		2025				2024				2025				2024
Revenue	$	132,735			$	125,259			$	244,880			$	236,902
Cost of goods sold		54,906				50,999				98,209				96,380
Gross margin		77,829				74,260				146,671				140,522
Expenses
Selling and administrative		19,102				18,372				37,726				35,976
General		1,268				1,302				2,535				2,583
Research and development		36,635				36,279				73,618				73,653
Investment tax credits		(4,350		)		(3,590		)		(7,697		)		(7,350		)
Share based Compensation		914				1,267				1,982				2,442
Foreign exchange gain		(776		)		(761		)		(1,512		)		(782		)
		52,793				52,869				106,652				106,522
Earnings before undernoted		25,036				21,391				40,019				34,000
Finance income		642				837				1,417				1,542
Finance costs		(620		)		(374		)		(858		)		(683		)
Other income		188				101				688				311
Earnings before income taxes		25,246				21,955				41,266				35,170
Provision for (recovery of) income taxes
Current		4,956				5,313				8,921				10,876
Deferred		1,670				705				1,832				(1,354		)
		6,626				6,018				10,753				9,522
Net earnings for the period	$	18,620			$	15,937			$	30,513			$	25,648
Net earnings attributable to non-controlling interest		93				133				145				175
Net earnings attributable to shareholders		18,527				15,804				30,368				25,473
Net earnings for the period	$	18,620			$	15,937			$	30,513			$	25,648
Earnings per share
Basic	$	0.25			$	0.21			$	0.40			$	0.33
Diluted	$	0.24			$	0.21			$	0.40			$	0.33

 

Consolidated Balance Sheet Data		As at				As at
		October 31, 2025				April 30, 2025
Cash and cash equivalents	$	96,695			$	111,665
Inventory	$	182,696			$	181,011
Working capital	$	205,673			$	205,900
Total assets	$	466,690			$	469,485
Shareholders’ equity	$	267,996			$	268,123
Number of common shares outstanding:
Basic		75,484,550				75,750,235
Fully-diluted		77,523,650				80,627,710
Weighted average number of shares outstanding:
Basic		75,495,006				76,010,401
Fully-diluted		76,589,935				76,975,472

 

Forward-Looking Statements
The report contains forward-looking statements reflecting Evertz’s objectives, estimates and expectations. Such forward looking statements use words such as “may”, “will”, “expect”, “believe”, “anticipate”, “plan”, “intend”, “project”, “continue” and other similar terminology of a forward-looking nature or negatives of those terms.

Although management of the Company believes that the expectations reflected in such forward-looking statements are reasonable, all forward-looking statements address matters that involve known and unknown risks, uncertainties and other factors. Accordingly, there are or will be a number of significant factors which could cause the Company’s actual results, performance or achievements, or industry results to be materially different from any future results performance or achievements expressed or implied by such forward-looking statements.

Conference Call
The Company will hold a conference call with financial analysts to discuss the results on December 10, 2025 at 5:00 p.m. (EDT). Media and other interested parties are invited to join the conference call in listen only mode. The conference call may be accessed by dialing 1-289-514-5100 or Toll Free (North America) 1-800-717-1738.

For those unable to listen to the live call, a rebroadcast will also be available until January 6, 2025. The rebroadcast can be accessed at 1-289-819-1325 or Toll Free 1-800-660-6264, passcode 56182.

About Evertz
Evertz Technologies Limited (TSX: ET) designs, manufactures and markets video and audio infrastructure solutions for the television, telecommunications and new-media industries. The Company’s solutions are purchased by content creators, broadcasters, specialty channels and television service providers to support their increasingly complex multi-channel digital, and high and ultra-high definition television (“HDTV” and “UHD”) and next generation high bandwidth low latency IP network environments and by telecommunications and new-media companies. The Company’s products allow its customers to generate additional revenue while reducing costs through efficient signal routing, distribution, monitoring and management of content as well as the automation and orchestration of more streamlined and agile workflow processes on premise and in the “Cloud”.

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