The widening losses and equity erosion at a $47M market cap are concerning. However, the 54% sequential order surge at Sypris Electronics suggests a potential inflection point if material availability resolves. Monitor the next quarter for evidence of Electronics margin recovery and cash flow improvement before taking a position.
Price Chart
Executive Summary
Sypris Solutions reported Q2 2026 revenue of $30.3M, down 3.5% YoY from $31.4M, and a net loss of $3.1M ($0.14/share), widening from a $2.1M loss ($0.09/share) in Q2 2025. While Sypris Technologies showed a strong recovery with revenue up 5.6% YoY and gross margin expanding 330 bps, Sypris Electronics continued to struggle with material availability issues, posting a negative gross margin of -4.9%. The company's cash burn and rising debt levels are concerning, with stockholders' equity declining from $17.8M to $11.7M since year-end 2025. The sequential order growth (25% overall, 54% at Electronics) is a positive forward indicator, but the widening losses and operational headwinds at the Electronics segment dominate the near-term picture.
Key Financial Metrics
Key Facts
- Revenue declined 3.5% YoY to $30.3M from $31.4M
- Net loss widened to $3.1M ($0.14/share) from $2.1M ($0.09/share) YoY
- Sypris Electronics gross margin was negative at -4.9% vs +2.5% a year ago
- Total gross profit fell 23.3% YoY to $2.0M from $2.6M
- Stockholders' equity dropped 34% from $17.8M (Dec 2025) to $11.7M (Jul 2026)
- Cash burn of $476K from operations in H1 2026 (improved from -$4.4M in H1 2025)
- Orders increased 25% sequentially overall, with Sypris Electronics orders up 54%
- Sypris Technologies revenue grew 5.6% YoY and gross margin improved 330 bps to 18.5%
Financial Impact
Net loss widened by $1.1M YoY to $3.1M; revenue declined $1.1M YoY to $30.3M; equity eroded $6.1M in 6 months
Risk Factors
- Sypris Electronics gross margin remains deeply negative (-4.9%) with no near-term fix for material availability issues
- Stockholders' equity has fallen 34% in 6 months to $11.7M, approaching levels that could trigger Nasdaq compliance concerns
- Revenue has declined YoY for three consecutive quarters (Q4 2025, Q1 2026, Q2 2026)
- Company carries $12M in related-party notes payable and $1.1M in loans on a $47M market cap
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001437749-26-028251 |
| Document: sypr20260814_8k.htm | 0001437749-26-028251 |
| Document: 0001437749-26-028251-index-headers.html | 0001437749-26-028251 |
| Document: 0001437749-26-028251-index.html | 0001437749-26-028251 |
| Document: 0001437749-26-028251.txt | 0001437749-26-028251 |
| 8-K Data (Synthetic) | 0001437749-26-028251 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 18, 2026 9w ago | 8-K | $1.86 $1.73 | ▲ +6.99% | ▲ +6.00% | $1.36 (+26.88%) |
May 19, 2026 22w ago | 8-K | $2.65 $2.51 | ▲ +5.28% | ▲ +6.27% | $1.36 (+48.68%) |
US Market Status
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