Monitor next quarter for sustained order growth, especially in the U.S., and whether gross margin improvements can offset rising SG&A. The valuation allowance on U.S. and Chinese deferred tax assets could limit future tax benefits even if profitability recovers.
Price Chart
Executive Summary
Hurco Companies (HURC) reported a narrower net loss of $3.5M ($0.54/share) in Q1 FY2026 versus a $4.3M loss ($0.67/share) in the prior year, despite an 8% YoY revenue decline to $42.9M. Gross margin improved to 19% from 18%, but SG&A rose to 26% of sales from 22%. Orders increased 5% YoY, led by an 18% jump in the Americas, signaling potential demand recovery. The stock remains small-cap ($110M), with stable cash and no debt.
Key Financial Metrics
Key Facts
- Q1 FY2026 net loss: $3.468M (-$0.54/share) vs. $4.320M (-$0.67/share) in Q1 FY2025
- Revenue: $42.868M, down 8% YoY (organic decline ~12% after 4% currency tailwind)
- Gross margin improved to 19% from 18% due to product mix and cost leverage
- SG&A increased to 26% of sales from 22%, driven by currency and higher employee costs
- Orders up 5% YoY to $41.98M, with Americas orders surging 18%
- Cash: $48.0M; working capital $169.5M; no debt; shareholders' equity $195.0M
- Full valuation allowance on deferred tax assets in Italy, U.S., and China
Financial Impact
Revenue down $3.5M YoY, but net loss improved by $852K. SG&A increased $726K despite lower sales, pressuring margins. Operating loss widened to $3.2M from $2.1M.
Risk Factors
- Revenue continues to decline despite improving orders, suggesting lagged impact or inventory drawdown
- SG&A expense rising as a percentage of sales erodes operating leverage
- Full valuation allowance on U.S., Italian, and Chinese deferred tax assets increases future tax burden if earnings recover
- European and Asia Pacific demand remains weak, with sales down 5% and 15% respectively
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3250994 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 4, 2026 7w ago | 8-K | $22.99 $22.37 | ▼ −2.70% | ▼ −3.30% | $21.29 (−7.39%) |
Sep 4, 2026 7w ago | Press Release | $22.99 $22.37 | ▼ −2.70% | ▼ −3.30% | $21.29 (−7.39%) |
Jun 11, 2026 19w ago | Institutional Cluster | $21.50 $22.76 | ▲ +5.86% | ▲ +3.97% | $21.29 (−0.98%) |
Jun 5, 2026 20w ago | 8-K | $21.13 $22.26 | ▲ +5.35% | ▲ +3.49% | $21.29 (+0.76%) |
Mar 6, 2026 33w ago | Press Release | $15.54 $15.50 | ▼ −0.26% | ▲ +1.79% | $21.29 (+37.00%) |
US Market Status
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