Research Reports

Q3 2025 total revenue: $153M, up 7% YoY, at high end of guidance (prepared).
EPS: $0.33, up 22% YoY, at high end of guidance (prepared).
Cash from operations: $29M, at high end of guidance, driven by lower net working capital (CFO).
Medtech & Specialty Audio segment: Q3 revenue $65M, up 2% YoY, driven by specialty audio demand (CEO, CFO). Gross margin 53%, flat YoY; segment gross margins improved >200 bps sequentially (CFO). Expect full-year 2025 gross margins above 50% (CFO).
Precision Devices segment: Q3 revenue $88M, up 12% YoY, growth across medtech, defense, industrial, EV & energy (CEO). Gross margin 41.5%, up 150 bps YoY, driven by higher capacity utilization in ceramic capacitors and RF microwave; partially offset by specialty film ramp costs (CFO). Bookings remained strong, especially in defense and distribution (CEO).
Total company R&D: $9M, flat YoY (CFO).
SG&A: $26M, up $2M YoY from merit increases and incentive compensation (CFO).
Capital spending: Q3 $8M; expected full-year ~5% of revenues due to specialty film capacity expansion (CFO).
Share repurchases: $20M spent on 940K shares in Q3 (CFO).
Balance sheet: Cash $93M, debt $176M; net leverage 0.6x; liquidity >$350M (CFO).
Tariff exposure: <5% of revenue, <3% of COGS; costs being passed to customers (CFO).

Official guidance (Q4 2025):

Mgmt quotes:

“Revenue was $153 million, up 7% year-over-year. EPS of $0.33, up 22% year-over-year, and cash from operations was $29 million, all of which were above the midpoint of our guided range.” (CEO)
“I expect the Precision Devices segment will grow at the high end of our stated growth range of 6% to 8% in 2025.” (CEO)
“With new design wins ramping and a very healthy backlog of existing orders, we expect to see organic growth rates at the high end of our stated range of 4% to 6% for the total company.” (CEO)
“We continue to believe our exposure to tariffs is less than 5% of revenue and 3% of cost of goods sold. We’ve had success in passing these additional costs on to our customers.” (CFO)
“We’re projecting EPS to be within a range of $0.33 to $0.37 per share. This assumes weighted average shares outstanding during the quarter of 87.2 million.” (CFO)

Metric	Value	Speaker/Context
Total revenue	$153M, +7% YoY	(prepared)
EPS (non-GAAP)	$0.33, +22% YoY	(prepared)
Cash from operations	$29M	(prepared)
Medtech & Specialty Audio revenue	$65M, +2% YoY	(CEO)
Precision Devices revenue	$88M, +12% YoY	(CEO)
Medtech & Specialty Audio gross margin	53%	(CFO)
Precision Devices gross margin	41.5%, +150 bps YoY	(CFO)
Total company R&D	$9M, flat YoY	(CFO)
SG&A	$26M, +$2M YoY	(CFO)
Capital spending	$8M (Q3)	(CFO)
Cash	$93M	(CFO)
Debt	$176M	(CFO)
Net leverage ratio	0.6x	(CFO)
Liquidity	>$350M	(CFO)
Q4 revenue guidance	$151M–$161M	(CFO)
Q4 EPS guidance	$0.33–$0.37	(CFO)
Q4 cash from operations guidance	$30M–$40M	(CFO)
Q4 capital spending guidance	$12M	(CFO)
Q4 adjusted EBITDA margin guidance	22%–24%	(CFO)
Q4 effective tax rate guidance	7%–11%	(CFO)
Full-year 2025 operating cash flow	16%–20% of revenues	(CFO)
Full-year 2025 capital spending	~5% of revenues	(CFO)
2026 expected tax rate	15%–19%	(CFO)

Topic: Specialty film capacity, revenue outlook, and segment growth
Key points:
- Energy order (Q1) on track: ~$25M revenue starting Q2, fully ramping end of Q2, deliveries in back half.
- Specialty film backlog (ex-energy) ~$25M–$30M; 2025 revenue expected $25M–$30M; with energy order, 2026 revenue at least $55M–$60M.
- Medtech & Specialty Audio 2026 growth: 2%–4%; Precision Device growth: high end or slightly above 6%–8% organic target.
Mgmt stance: Bullish — strong design win activity across med, industrial, defense, and EV; capacity expansion underway.

Topic: Specialty film applications, follow-on orders, and M&A environment
Key points:
- Specialty film focused on pulse power: defibs, railgun, radiotherapy, downhole (prototype orders); new applications emerging.
- M&A pipeline improved vs. a quarter ago; more assets available, interest rate expectations declining; disciplined approach.
- Balance sheet strong; buybacks ongoing.
Mgmt stance: Neutral-to-bullish on M&A — hopeful for a deal in 1–2 years, but being picky; bullish on specialty film new applications.

Topic: Palladium cost impact and Precision Device book-to-bill
Key points:
- Palladium costs increased; prebuys lock in prices below market through H1 2026; no negative gross margin impact expected.
- If prices stay elevated into H2 2026, discussions with customers likely; historical ability to raise prices.
- PD book-to-bill: 1.0 in Q3; second-largest bookings quarter in last 4 quarters; backlog high; October month-to-date bookings strong.
Mgmt stance: Neutral on palladium — hedged near-term, manageable; bullish on PD bookings — strong trends in defense and distribution.

Topic: Gross margin leverage, specialty film ramp, and distribution/industrial inventory
Key points:
- Incremental revenue drop-through: 35%–40% on average; variable contribution margin above 45% gross margin.
- Specialty film gross margin: sequential improvement Q3→Q4, Q4→Q1, Q1→Q2; big jump in Q3 2026 when energy order fully ramps.
- 2025 gross margin finish ~44%–45%; opportunity to go higher in 2026, driven by specialty film back half.
- Distribution/industrial inventory normalized; POS reports show nice growth; orders aligning with demand.
Mgmt stance: Bullish — specialty film gross margin upside will help raise EBITDA margins over time; industrial inventory destocking complete.