BOXL · Boxlight Corporation

Boxlight's Q1 2026 results showed revenue stability at $22.4 million, up a slight 0.1% year-over-year, driven by increased sales of interactive flat panel displays. However, cost of revenues rose 7.8% to $15.5 million, primarily from higher units sold and a $1.5 million increase in customs expenses related to IEEPA tariffs absorbed in 2025, leading to gross profit declining 13.7% to $6.9 million and margin compression to 30.9% from 35.9%, exacerbated by industry pricing pressures. Operating expenses increased with general and administrative costs up to $8.4 million (37.2% of revenue) due to higher professional fees and other expenses, while depreciation and amortization edged to $2.6 million. Other expenses jumped to $2.0 million, contributing to a net loss widening to $(6.5) million from $(3.2) million, though EPS improved to $(2.25) from $(8.45) likely due to share count changes. Adjusted EBITDA deteriorated to a $(2.8) million loss from a $0.55 million gain. Balance sheet reflects $6.9 million cash, $25.3 million working capital, but $(2.0) million stockholders' deficit and $34.1 million debt. Critically, the Company breached borrowing base and Minimum Consolidated Adjusted EBITDA covenants under the Whitehawk Credit Agreement at March 31 and April 30, 2026, but secured a limited waiver via the May 2026 Forbearance Agreement. Management highlighted operational efficiency gains, shift to scalable SIP-based solutions, product innovation like the January launch of FrontRow Symphony unifying campus communications, and external recognition on TIME's Top 250 EdTech list. CFO Ryan Zeek noted proactive tariff absorption impacting COGS, diversified portfolio resilience, and expectation of spending recovery amid stable global demand per Futuresource Consulting.