0001174947-26-000585
SEC filingStrong Q3 with revenue growth and significant margin expansion, though operating cash flow declined due to working capital timing.
Revenue for the third quarter of fiscal 2026 increased 10.9% to $11.4 million compared to $10.3 million in the same period last year. The growth was primarily driven by higher unit deliveries and the timing of milestone achievements on key programs, as well as favorable product mix. For the nine months ended March 31, 2026, sales decreased compared to the prior year period due to the number of units delivered, product mix, and timing of milestone achievement on key programs, but the quarterly performance reflects a rebound in execution.
Net cash provided by operating activities was $6.3 million, down from $18.2 million in the prior year quarter, primarily due to working capital swings related to contract timing and advance collections. Capital expenditures were $2.8 million, resulting in free cash flow of $3.5 million. The company's working capital remains an appropriate indicator of liquidity, and the cash outlay for federal income taxes is expected to be recaptured in future periods.