MNDO · MIND C.T.I. Ltd

MIND CTI reported first quarter 2026 results with revenues of $5.1 million, essentially flat compared to $5.0 million in the same period last year. The company achieved a significant improvement in profitability, with operating income rising to $0.9 million (18% of revenues) from $0.4 million (7% of revenues) in Q1 2025. Net income increased to $0.9 million ($0.04 per share) from $0.5 million ($0.02 per share). Management attributed the higher net income primarily to an allowance for credit loss recorded in the prior year quarter, which did not recur. The revenue mix remained stable, with customer care and billing software contributing 44% of revenues, enterprise messaging 34%, and UC analytics 22%. Geographically, Europe accounted for 63% of revenues (including 34% from Germany messaging), the Americas 32%, and rest of world 5%. Maintenance and services revenues comprised 93% of total revenues, while licenses were 7%. The company highlighted a major customer non-renewal notice effective March 2027, which is expected to negatively impact future revenues and income. Management noted ongoing price pressures and a challenging market environment, while continuing to invest in cloud, 5G, and AI capabilities. The company's cash position stood at $13.8 million as of March 31, 2026, including cash equivalents and short-term deposits. Operating cash flow was $0.6 million, slightly down from $0.7 million a year ago. The share buyback program initiated in November 2025 has repurchased 278 thousand shares for $331 thousand out of a $2.4 million authorization. The Annual General Meeting held on May 6, 2026 approved the re-appointment of Grant Thornton Israel as auditor and the re-election/election of directors Itay Barzilay and Asher Mechlovich.