Moving iMage Technologies (NYSEAMERICAN:MITQ) reported a narrower full-year net loss for fiscal 2026 as gross-margin expansion and lower operating expenses helped offset a decline in revenue tied to delayed customer projects.
For the fourth quarter, revenue totaled $4.55 million, down from $5.88 million in the prior-year period and below the company’s prior expectations. Chief Financial Officer Bart Bedard said the decline primarily reflected customers shifting project timing into future periods, underscoring the potential effect that larger contracts can have on quarterly results.
The company posted a fourth-quarter net loss of $296,000, or $0.03 per share, compared with a loss of $156,000, or $0.02 per share, a year earlier. Bedard said the wider quarterly loss was principally caused by lower-than-expected project activity, partly offset by stronger margins and reduced expenses.
Full-Year Loss Narrows as Margins Expand
For fiscal 2026, Moving iMage reported revenue of $17.32 million, compared with $18.15 million in fiscal 2025. The company said lower customer project activity and the deferral of some projects drove the year-over-year revenue decrease.
Revenue from the DCS Cinema loudspeaker business, acquired during the second quarter of fiscal 2026, partially offset the decline. DCS contributed $822,000 in initial revenue during the year.
Despite lower annual revenue, gross profit rose 10% to $5.03 million from $4.57 million. Gross margin expanded to 29.1% from 25.2%, reflecting a favorable revenue mix and the company’s emphasis on higher-margin opportunities.
Operating expenses declined 2.3% to $5.53 million from $5.66 million. Lower credit losses, compensation costs, marketing expenses and facility rent contributed to the reduction, though the company incurred approximately $200,000 in additional legal costs related to ongoing merger-and-acquisition initiatives.
Fiscal 2026 net loss narrowed to $297,000, or approximately $0.03 per share, from $948,000, or $0.10 per share, in fiscal 2025. Bedard said the results, including DCS acquisition and integration costs, represented progress toward profitability and positive cash flow.
DCS Acquisition Supports International Expansion
President Francois Godfrey said the DCS acquisition adds a proprietary cinema audio platform, expands the company’s customer base and provides an entry point into international markets. DCS loudspeakers have shipped to more than 22 countries, he said, and the company is building a dealer network to support global growth.
DCS generated $399,600 in fourth-quarter sales, compared with $460,000 in the third quarter and $17,000 in the second quarter. Bedard said the sequential decrease was largely related to limited availability of certain products amid onboarding challenges and efforts to establish production and logistics capabilities.
Following a significant shipment to a customer in Argentina, the company’s DCS order backlog stood at approximately $458,000. Management said its outlook for growth in the DCS line remains positive.
Godfrey said the company sees an opportunity to use its international DCS network to market other Moving iMage products and capabilities, beyond loudspeakers and audio systems.
Pipeline Includes Bay Area Project and Theater Refurbishments
Management pointed to a stronger exhibition environment, including premium large-format auditorium demand and continued interest in immersive audio. Godfrey said theater operators have more reason to invest in upgrades as audiences seek differentiated experiences involving improved picture, sound and integrated theater environments.
The company is pursuing several domestic opportunities, including a substantial multifaceted project in the Bay Area. Godfrey said the potential project could be larger than any single project Moving iMage has undertaken in several years. The company has received an initial customer deposit and expects work to conclude by the end of calendar 2026.
For the fiscal 2027 first quarter ending Sept. 30, Moving iMage expects revenue of approximately $4.5 million, as several larger contracts are slated for later in the year. Bedard said the company expects a 16-screen refurbishment program at two locations for an existing cinema customer, along with the Bay Area project, to contribute primarily to fiscal second- and third-quarter results.
At fiscal year-end, the company had approximately $4 million of working capital, including $2.4 million of inventory, and net cash of $3.19 million. Net cash was down from $5.72 million at the end of fiscal 2025, primarily due to the $1.5 million cash investment to acquire DCS assets and a nearly $1.7 million reduction in accounts payable.
Management said it will continue to prioritize its core cinema products, projects and international opportunities while maintaining capital-allocation discipline. Other initiatives, including the iMage Translator accessibility platform, esports hardware, CineQC software and the Caddy stadium advertising concept, require further investment or evaluation before they can be pursued at greater scale.
About Moving iMage Technologies (NYSEAMERICAN:MITQ)
Moving iMage Technologies, Inc is a provider of products, services and technology solutions for the motion picture exhibition industry. The company works with cinema operators to design, equip and maintain movie theaters, with offerings spanning digital cinema systems, projection equipment, screens, sound systems, theater seating and concession-related equipment.
Through its integration and installation services, Moving iMage Technologies helps customers plan and build new theaters, renovate existing auditoriums and deploy updated exhibition technology.
