TECHPRECISION CORP
For the period ended Sep 30, 2025. Filed Nov 13, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Nov 13, 2025
TPCS$4.90-2.4%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-08-21.
0001410578-25-001869
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-13.
0001104659-25-111296
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 92 previous paragraphs and 126 current paragraphs.
57 unchanged; 28 reworded; 32 added; 7 removed; 0 previous and 9 current paragraphs rearranged.
Tables are not compared: 31 previous and 35 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (32)
Current report
We have two wholly owned subsidiaries that are each a reportable segment, Ranor and Stadco. Each reportable segment focuses on the manufacture and assembly of specific components, primarily for defense and other precision industrial customers.
Current report
Corporate expenses include stock-based compensation, board of director compensation, and other corporate general expenses not allocated to the segments. Prior period segment data is restated to reflect changes in the allocation of corporate expenses to the segments.
Current report
Consolidated– Revenue was $9,086 for the three months ended September 30, 2025, an increase of $140 or 2% higher when compared with revenue for the three months ended September 30, 2024, primarily driven by a favorable project mix. Stadco revenue increased by 14% year-over-year which more than offset a 9% revenue decrease at Ranor.
Current report
Ranor – Revenue was $4,373 for the three months ended September 30, 2025, a decrease of $417 or 9% lower when compared with the same period a year ago. as our customer project mix has changed from the same prior year period. Revenue increased by $1,601 for work with certain defense customers, but decreased by $2,081 for all other defense customer projects, as project work shifted among our defense customers.
Current report
Stadco – Revenue was $4,819 for the three months ended September 30, 2025, an increase of $596 or 14% higher when compared with revenue for the three months ended September 30, 2024. The project mix for the current quarter included products with higher contract values and gross margins. Revenue increased by a total of $1,475 with almost all of our customers, but decreased by $879 for a single defense customer when compared with the same period a year ago.
Current report
Ranor – Gross profit increased by $623 or 39% when compared to the same period a year ago. Cost of revenue decreased by $1,001 or 31%, when compared with the same period in the prior year, as a favorable project mix in the fiscal 2026 second quarter included more projects than normal with higher gross margins.
Current report
Stadco – Gross profit was $250 for the three months ended September 30, 2025 an increase of $821 when compared with the same period a year ago. Cost of revenue decreased by $264 or 6%, as productivity was driven by continuing improvements in manufacturing, and lower loss provisions when compared with the same period a year ago.
Current report
*Consolidated –*Total selling, general and administrative expenses for the three months ended September 30, 2025, increased by $14, or 1%, as higher costs for compensation and benefits more than offset a decrease in advisory costs as we added staff to the back-office support.
Current report
Corporate and unallocated – SG&A increased by $68 primarily on an increase in stock-based compensation.
Current report
Operating income (loss)
Current report
Ranor – Operating income increased on lower manufacturing costs and a favorable project mix.
Current report
*Corporate and unallocated –*Operating loss increased primarily due to an increase in stock-based compensation.
Current report
nm- not meaningful
Current report
Interest expense increased by $11 when compared with the same period a year ago, primarily due to higher levels of borrowings under the amended and restated loan agreement with Berkshire Bank, and the revolving line of credit, or the “Revolver Loan”, offset in part by lower interest expense paid in connection with the term loans.
Current report
Net Income (loss)
Current report
Six Months Ended September 30, 2025 and 2024
Current report
Revenue
Current report
Consolidated– Revenue was $16,465 for the six months ended September 30, 2025, a decrease of $467 or 3% lower when compared to revenue for the six months ended September 30, 2024, on a favorable project mix at both Stadco and Ranor. Because of improved throughput at Stadco, gross profit and gross margin also expanded in the second quarter.
Current report
Ranor – Revenue was $8,670 for the six months ended September 30, 2025, a decrease of $502 or 5% lower when compared to the same period a year ago. Our rate of progress fulfilling obligations decreased in the second quarter, as our customer project mix has changed slightly from the same prior year period. Revenue increased due to work on new components for certain defense customers who were
Current report
not part of the prior year six month project mix, and decreased year-over-year with the other remaining defense customers who were part of the project mix for both comparable reporting periods.
Current report
Stadco – Revenue was $8,151 for the six months ended September 30, 2025, compared with revenue of $7,827 for the six months ended September 30, 2024, an increase of $324, or 4%. Revenue recognized on projects in the current year six month period included more projects with higher revenue and gross margin as compared with the project mix a year ago.
Current report
Gross Profit and Gross Margin
Current report
Ranor – Gross profit increased by $879 or 31% when compared to the same period a year ago. Cost of revenue decreased by $1,202 or 19%, when compared with the same period in the prior year, as a favorable project mix resulted in a lower cost of goods sold when compared with the same period a year ago.
Current report
Ranor – SG&A expense increased by $196 primarily for allocated compensation, benefits, payroll taxes and office costs, reflecting added staff to back-office support when compared with the same period a year ago.
Current report
Stadco – SG&A expense increased by $13 primarily for allocated compensation, benefits, payroll taxes and office costs. reflecting the added staff to back-office support when compared with the same period a year ago.
Current report
Operating income (loss)
Current report
Consolidated – As a result of the foregoing, for the six months ended September 30, 2025, we reported operating income of $479 compared with operating loss of $1,829 for the six months ended September 30, 2024. The change was primarily due to lower operating losses at Stadco and increased profitability at Ranor.
Current report
Other Income (Expense), net
Current report
Income Tax expense
Current report
Net Income (loss)
Current report
Cash used in operating activities for the six months ended September 30, 2025 and 2024 was $436 and $425, respectively. Non-cash adjustments to reconcile net income (loss) to net cash used in operating activities for the six months ended September 30, 2025 and 2024 totaled $1,445 and $2,089, respectively. For the six months ended September 30, 2025 and 2024, we used $2,109 and $453 of cash, respectively, for changes in operating assets and liabilities.
Current report
On July 3, 2024, the Company sold 521,800 shares of the Company’s common stock, par value $0.0001 per share, and 521,800 common stock purchase warrants to purchase 521,800 shares of Common Stock in a private placement at an aggregate purchase price of $1,801. Placement agent’s fees in connection with the offering totaled $213.
Removed paragraphs (7)
Previous report
Consolidated– Revenue was $7,379 for the three months ended June 30, 2025, or 8% lower when compared to revenue of $7,986 for the three months ended June 30, 2024. Revenue decreased by less than 10% at both Ranor and Stadco. We realized more direct labor hours at both Ranor and Stadco on projects executed during the first quarter of fiscal 2026 as compared with the same period a year ago. However, because of improved throughput, gross profit and gross margin expanded in the first quarter.
Previous report
Ranor – Revenue was $4,297 for the three months ended June 30, 2025, a decrease of $85 or 2% lower when compared to the same period a year ago, as our project mix changed for components manufactured for certain prime defense contractors. We realized 4% more direct labor hours during the first quarter of fiscal 2026 as compared with the same period a year ago.
Previous report
Stadco – Revenue was $3,332 for the three months ended June 30, 2025, compared with revenue of $3,604 for the three months ended June 30, 2024, a decrease of $272, or 8%. We had a similar project mix for the comparable period as we made progress achieving a more predictable repeat business over time with our prime defense customers. Direct labor hours increased by 2% during the first quarter of fiscal 2026 as compared with the same period a year ago.
Previous report
Ranor – Gross profit increased by $256 or 21% when compared to the same period a year ago. Cost of revenue decreased by $341 or 11%, when compared with the same period in the prior year, primarily driven by better overhead absorption and a reduction in the provision for losses.
Previous report
Operating (loss) income
Previous report
Net Loss
Previous report
Cash provided by operating activities for the three months ended June 30, 2025 and 2024 was $646 and $107, respectively. Our net loss adjusted by our non-cash adjustments used $48 of cash during the three months ended June 30, 2025, as compared to a use of cash of $161 to the same period a year ago. Working capital changes to our balance sheet provided $694 of cash during the three months ended June 30, 2025, as compared to $268 provided by during the same period a year ago.
Reworded paragraphs (28)
Previous wording
These forward-looking statements are based on current expectations, estimates and projections made by management about our business, our industry and other conditions affecting our financial condition, results of operations or business prospects. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in, or implied by, the forward-looking statements due to numerous risks and uncertainties. As discussed below under*“Liquidity and Capital Resources”,* certain events and conditions, when examined in the aggregate, indicate substantial doubt about our ability to continue as a going concern for at least one year beyond the date of the financial statements. Factors that could cause such outcomes and results to differ include, but are not limited to, risks and uncertainties arising from:
Current wording
These forward-looking statements are based on current expectations, estimates and projections made by management about our business, our industry and other conditions affecting our financial condition, results of operations or business prospects. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in, or implied by, the forward-looking statements due to numerous risks and uncertainties. As discussed below under*“Liquidity, Capital Resources and Going Concern”,* certain events and conditions, when examined in the aggregate, indicate substantial doubt about our ability to continue as a going concern for at least one year beyond the date of the financial statements. Factors that could cause such outcomes and results to differ include, but are not limited to, risks and uncertainties arising from:
Previous wording
All manufacturing at Ranor is performed in accordance with customer requirements. Ranor is an ISO 9001:2015 certificate holder. Ranor is a US defense-centric company with over 95% of its revenue in the defense sector. Ranor is registered and compliant with ITAR.
Current wording
All manufacturing at Ranor is performed in accordance with customer requirements. Ranor is an ISO 9001:2015 certificate holder. Ranor is a U.S. defense-centric company with over 95% of its revenue in the defense sector. Ranor is registered and compliant with ITAR.
Previous wording
All manufacturing at Stadco is performed in accordance with customer requirements. Stadco is an AS 9100 D and ISO 9001:2015 certificate holder and a NADCAP NonDestructive Testing certificate holder. Stadco is a US defense-centric company with over 95% of its revenue in the defense sector. Stadco is registered and compliant with ITAR.
Current wording
All manufacturing at Stadco is performed in accordance with customer requirements. Stadco is an AS 9100 D and ISO 9001:2015 certificate holder and a NADCAP NonDestructive Testing certificate holder. Stadco is a U.S. defense-centric company with over 95% of its revenue in the defense sector. Stadco is registered and compliant with ITAR.
Previous wording
*Consolidated –*Cost of revenue consists primarily of raw materials, parts, labor, overhead and subcontracting costs. Our cost of revenue for the three months ended June 30, 2025, was $6,349, or 18% lower when compared to the three months ended June 30, 2024. The decrease in cost of revenue was primarily the result of lower loss provisions at both Ranor and Stadco. As a result, gross profit increased by $791, or 331% when compared to the same period a year ago. Gross margin for the three months ended June 30, 2025 was 14.0% compared to 3.0% in the same period a year ago.
Current wording
*Consolidated –*Cost of revenue consists primarily of raw materials, parts, labor, overhead and subcontracting costs. Our cost of revenue for the three months ended September 30, 2025, was $6,628 or 16% lower when compared to the three months ended September 30, 2024. The decrease in cost of revenue was primarily the result of a favorable project mix at both Ranor and Stadco. As a result, gross profit increased by $1,444, or 143% when compared to the same period a year ago. Gross margin for the three months ended September 30, 2025 was 27.0% compared to 11.0% in the same period a year ago.
Previous wording
Ranor – SG&A expense increased by $199 primarily for compensation, benefits, payroll taxes and office costs.
Current wording
Ranor – SG&A expense decreased by $2 as allocated lower advisory costs slightly offset higher costs for compensation, benefits, payroll taxes and office costs.
Previous wording
Stadco – SG&A expense increased by $64 primarily for compensation, benefits, payroll taxes and office costs.
Current wording
Stadco – SG&A expense decreased by $52 as allocated lower advisory costs more than offset higher allocated costs for compensation, benefits, payroll taxes and office costs.
Previous wording
Consolidated – As a result of the foregoing, for the three months ended June 30, 2025, we reported an operating loss of $463, or $878 lower than the operating loss for the three months ended June 30, 2024. The change was primarily due to lower operating losses at Stadco and the absence of acquisition costs at corporate.
Current wording
Consolidated – As a result of the foregoing, for the three months ended September 30, 2025, we reported operating income of $942, compared with an operating loss of $488 for the three months ended September 30, 2024. The change was primarily due to lower operating losses at Stadco.
Previous wording
Stadco – Operating loss narrowed as manufacturing costs decreased and productivity improved.
Current wording
Stadco – Operating loss narrowed on a favorable project mix as throughput improved and manufacturing costs decreased.
Previous wording
Amortization of debt issue costs for the three months ended June 30, 2025, was slightly higher when compared to three months ended June 30, 2024, due to higher issue costs in connection with the Revolver Loan renewals.
Current wording
Amortization of debt issue costs for the three months ended September 30, 2025 decreased when compared to three months ended September 30, 2024, due primarily to lower amortized issue costs in connection with revolver loan renewal.
Previous wording
As a result of the foregoing, for the three months ended June 30, 2025, we recorded a net loss of $597, or $0.06 per share basic and fully diluted, compared with a net loss of $1,460, or $0.16 per share basic and fully diluted for the three months ended June 30, 2024.
Current wording
As a result of the foregoing, for the three months ended September 30, 2025, we recorded net income of $825, or $0.08 per share basic and fully diluted, compared with a net loss of $601, or $0.06 per share basic and fully diluted for the three months ended September 30, 2024.
Previous wording
The backlog for Ranor remains strong as new orders continue to flow to us from our existing customer base of prime defense contractors. The backlog at Ranor on June 30, 2025 and 2024 was $24,402 and $18,759, respectively.
Current wording
The backlog at Ranor on September 30, 2025 and 2024 was $25,018 and $21,714, respectively, as new orders continue to flow to us from our existing customer base of prime defense contractors.
Previous wording
The backlog remains strong as new orders for components related to a variety of programs, including the U.S. Marine Corps heavy lift helicopter programs, continue to flow to us from our existing customer base of prime defense contractors. Stadco’s backlog as of June 30, 2025 and June 30, 2024 was $25,712 and $22,406, respectively.
Current wording
Stadco’s backlog as of September 30, 2025 and 2024 was $22,781 and $26,927, respectively, as new orders for components related to a variety of programs, including the U.S. Marine Corps heavy lift helicopter programs, continue to flow to us from our existing customer base of prime defense contractors.
Previous wording
Stadco – Gross profit was negative $463 for the three months ended June 30, 2025, as our losses decreased when compared to the same period a year ago. Cost of revenue decreased by $807 or 18%, primarily driven by a lower loss provision and a decrease in repairs and maintenance when compared with the same period a year ago.
Current wording
Stadco – Gross profit was negative $213 for the six months ended September 30, 2025, as our losses decreased significantly when compared to the same period a year ago. Cost of revenue decreased by $1,211 or 13%, as productivity with manufacturing continue to improve along with lower loss provisions and cost of goods sold.
Previous wording
*Consolidated –*Total selling, general and administrative expenses for the three months ended June 30, 2025, decreased by $87, or 6%, as lower corporate costs more than offset an increase in office costs as both Ranor and Stadco rationalize back-office support.
Current wording
*Consolidated –*Total selling, general and administrative expenses for the six months ended September 30, 2025, decreased by $73, or 2%, as an increase in allocated office costs were slightly offset by lower corporate and unallocated expenses.
Previous wording
Corporate and unallocated – SG&A decreased by $350 primarily on the absence of that change in fair value in connection with the breakup fee for the terminated Votaw Precision Technologies, Inc. “Votaw” acquisition.
Current wording
Corporate and unallocated – SG&A decreased primarily on the absence of that change in fair value ($419) in connection with the breakup fee for the terminated Votaw Precision Technologies, Inc. “Votaw” acquisition, offset in part by an increase of $137 in stock based compensation and board fees.
Previous wording
Ranor – Operating income and profit margins expanded on lower manufacturing costs and improved productivity.
Current wording
Ranor – Operating income and profit margins expanded on a lower manufacturing costs and improved productivity.
Previous wording
*Corporate and unallocated –*Operating loss decreased on the absence of a breakup fee in connection with the terminated Votaw acquisition which was evident in the three months ended June 30, 2024.
Current wording
*Corporate and unallocated –*Operating loss decreased on the absence of that change in fair value ($419) in connection with the breakup fee for the terminated Votaw acquisition, offset in part by an increase of $137 in stock based compensation and board fees.
Previous wording
Interest expense decreased by $3 when compared with the same period a year ago, due primarily to lower levels of borrowings under the Revolver Loan and lower interest expense paid in connection with the term loans.
Current wording
Interest expense increased by $8 when compared with the same period a year ago, due primarily to higher levels of borrowings under the Revolver Loan and lower interest expense paid in connection with the term loans.
Previous wording
Our liquidity is highly dependent on the availability of financing facilities and our ability to maintain gross profit and operating income. As of June 30, 2025, we had $1,856 in total available liquidity, consisting of $1,949 in undrawn capacity under our Revolver Loan, $143 in cash and cash equivalents, and $236 of book overdrafts. As of March 31, 2025, we had $1,451 in total available liquidity, consisting of $195 in cash and cash equivalents and $1,256 in undrawn capacity under our Revolver Loan (as defined below). Our working capital was negative because of the reclassification of our long-term debt from noncurrent to current in the condensed consolidated balance sheet.
Current wording
Our liquidity is highly dependent on the availability of financing facilities and our ability to maintain gross profit and operating income. As of September 30, 2025, we had $1,400 in total available liquidity, consisting of $1,180 in undrawn capacity under our Revolver Loan and $220 in cash and cash equivalents. As of March 31, 2025, we had $1,451 in total available liquidity, consisting of $195 in cash and cash equivalents and $1,256 in undrawn capacity under our Revolver Loan (as defined below). Our working capital was negative because of the reclassification of our long-term debt from noncurrent to current in the condensed consolidated balance sheet.
Previous wording
There was $1,664 and $3,150 outstanding under the Revolver Loan on June 30, 2025 and March 31, 2025, respectively. The Company pays interest at an adjusted SOFR - based rate. Interest - only payments on advances made under the Revolver Loan will continue to be payable monthly in arrears. Interest paid and accrued on advances made under the Revolver Loan during the three months ended June 30, 2025 and 2024, totaled $53 and $56, respectively. The weighted average interest rate on June 30, 2025 and March 31, 2025 was 6.93% and 7.47%, respectively. The weighted average amount outstanding during the three months ended June 30, 2025 was $2,991. Our working capital was negative because of the reclassification of our long-term debt from noncurrent to current in the condensed consolidated balance sheet. The table below presents selected liquidity and capital measures at the fiscal years ended:
Current wording
There was $3,320 and $3,150 outstanding under the Revolver Loan on September 30, 2025 and March 31, 2025, respectively. The Company pays interest at an adjusted SOFR - based rate. Interest - only payments on advances made under the Revolver Loan will continue to be payable monthly in arrears. Interest paid and accrued on advances made under the Revolver Loan during the six months ended September 30, 2025 and 2024, totaled $102 and $90, respectively. The weighted average interest rate on September 30, 2025 and March 31, 2025 was 6.93% and 7.47%, respectively. The weighted average amount outstanding during the six months ended September 30, 2025 was $2,907. Our working capital was negative on March 31, 2025 because of the reclassification of our long-term debt from noncurrent to current in the condensed consolidated balance sheet. The table below presents selected liquidity and capital measures at the fiscal years ended:
Previous wording
The next table summarizes changes in cash by primary component in the cash flows statements for the fiscal years ended:
Current wording
The next table summarizes changes in cash by primary component in the cash flows statements for the six months ended:
Previous wording
For the three months ended June 30, 2025 and 2024, we invested $1,250 and $201, respectively, in new factory machinery and equipment. We were reimbursed during the three months ended June 30, 2025 and 2024 for $2,226 and $170, respectively, of certain purchases under a supplier development fund.
Current wording
For the six months ended September 30, 2025 and 2024, we invested $2,245 and $1,622, respectively, in new factory machinery and equipment. We were reimbursed for certain purchases under a supplier development fund during the six months ended September 30, 2025 and 2024 for $2,907 and $1,000, respectively.
Previous wording
We drew down $2,755 under our Revolver Loan during the three months ended June 30, 2025, and repaid $4,241 during the same period. We also used $188 of cash to pay down debt principal, periodic lease payments, and debt issue costs to renew the Revolver Loan.
Current wording
We drew down $8,940 under our Revolver Loan during the six months ended September 30, 2025, and repaid $8,770 during the same period. We also used $371 of cash to pay down debt principal, periodic lease payments, and debt issue costs to renew the Revolver Loan.
Previous wording
For the three months ended June 30, 2024, we drew down $2,778 under the Revolver Loan and repaid $2,781 during the same period. We also used $167 of cash to pay down debt principal, periodic lease payments, and debt issue costs to renew the Revolver Loan.
Current wording
For the six months ended September 30, 2024, we drew down $6,746 under the Revolver Loan and repaid $6,931 during the same period. We also used $362 of cash to pay down debt principal, periodic lease payments, and debt issue costs to renew the Revolver Loan.
Previous wording
All of the above activity resulted in a net decrease in cash of $52 for the three months ended June 30, 2025 compared with a net decrease in cash of $94 for the three months ended June 30, 2024.
Current wording
All of the above activity resulted in a net increase in cash of $25 for the six months ended September 30, 2025 compared with a net decrease in cash of $6 for the six months ended September 30, 2024.
Previous wording
Since December 20, 2021, Ranor and certain affiliates of the Company entered into eleven separate amendments to the Amended and Restated Loan Agreement and First Amendment to Promissory Note to, among other things, extend the maturity date of the Ranor Term Loan and Revolver Loan to December 15, 2027 and August 29, 2025, respectively.
Current wording
Since December 20, 2021, Ranor and certain affiliates of the Company entered into twelve separate amendments to the Amended and Restated Loan Agreement and First Amendment to Promissory Note to, among other things, extend the maturity date of the Ranor Term Loan and Revolver Loan to December 15, 2027 and January 16, 2026, respectively.
Previous wording
There was $5,741 and $7,387 outstanding under the Loan Agreement on June 30, 2025 and March 31, 2025, respectively. Without a waiver, the lender has the right, but not the obligation, to demand repayment from the Company for noncompliance with the debt covenants. In addition, the bank retains the right to act on covenant violations that occur after the date of delivery of any waiver. The lender has not granted us a waiver. As such, we need to seek alternative financing to pay these obligations as the Company does not have existing facilities or sufficient cash on hand to satisfy these obligations. It is also probable that the Company will not be in compliance with the same debt covenants at subsequent measurement dates within the next twelve months. As a result of the above, all of our long-term debt has been classified as current in our consolidated balance sheet.
Current wording
There was $7,235 and $7,387 outstanding under the Loan Agreement on September 30, 2025 and March 31, 2025, respectively. Without a waiver, the lender has the right, but not the obligation, to demand repayment from the Company for noncompliance with the debt covenants. In addition, the bank retains the right to act on covenant violations that occur after the date of delivery of any waiver. The lender has not granted us a waiver. As such, we need to seek alternative financing to pay these obligations as the Company does not have existing facilities or sufficient cash on hand to satisfy these obligations. It is also probable that the Company will not be in compliance with the same debt covenants at subsequent measurement dates within the next twelve months. As a result of the above, all of our long-term debt has been classified as current in our consolidated balance sheet.
Previous wording
We define EBITDA as net loss plus interest, income taxes, depreciation, and amortization. Net loss was $597 and $1,460 for the three months ended June 30, 2025 and 2024, respectively. EBITDA, a non-GAAP financial measure, was negative for the three months ended June 30, 2024. The following table provides a reconciliation of EBITDA to net loss, the most directly comparable U.S. GAAP measure reported in our condensed consolidated financial statements for the three months ended:
Current wording
We define EBITDA as net loss plus interest, income taxes, depreciation, and amortization. For the three and six months ended September 30, 2025 and 2024, net income was $825 and $228, and net loss was $601 and $2,061, respectively. EBITDA, a non-GAAP financial measure, was positive for all periods reported except for the six months ended September 30, 2024. The following table provides a reconciliation of EBITDA to net loss, the most directly comparable U.S. GAAP measure reported in our condensed consolidated financial statements for the three and six months ended:
Rearranged current paragraphs (9)
Current report — wording carried from elsewhere
The following table presents revenue, cost of revenue and gross profit, consolidated and by reportable segment:
Current report — wording carried from elsewhere
*Consolidated –*Cost of revenue consists primarily of raw materials, parts, labor, overhead and subcontracting costs. Our cost of revenue for the six months ended September 30, 2025, was $12,977, or 17% lower when compared to the six months ended September 30, 2024. The decrease in cost of revenue was primarily the result of a favorable project mix at both Ranor and Stadco. As a result, gross profit increased by $2,235, or 179% when compared to the same period a year ago. Gross margin for the six months ended September 30, 2025 was 21.0% compared to 7.0% in the same period a year ago.
Current report — wording carried from elsewhere
Selling, General and Administrative (SG&A) Expenses
Current report — wording carried from elsewhere
Stadco – Operating loss narrowed as manufacturing costs decreased on efficient throughput.
Current report — wording carried from elsewhere
The following table presents other income (expense) for the six months ended:
Current report — wording carried from elsewhere
Amortization of debt issue costs for the three months ended September 30, 2025 were unchanged as amortized higher issue costs in connection with the Revolver Loan renewals offset lower term loan issue costs amortization.
Current report — wording carried from elsewhere
For the three months ended September 30, 2025, there has been no change in our judgment about the realizability of deferred tax assets in future years, and, therefore, no expense or benefit provided for income taxes.
Current report — wording carried from elsewhere
Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences and carryforwards are expected to be recovered or settled. The valuation allowance on deferred tax assets at September 30, 2025 was approximately $5,700. We believe that it is more likely than not that the benefit from certain state NOL carryforwards and other deferred tax assets will not be realized. The assessment was based on the weight of negative evidence at the balance sheet date, our recent operating losses and unsettled circumstances that, if unfavorably resolved, would adversely affect future operations and profit levels. In recognition of this risk, we continue to provide a valuation allowance on these items.
Current report — wording carried from elsewhere
As a result of the foregoing, for the six months ended September 30, 2025, we recorded net income of $228, or $0.02 per share basic and fully diluted, compared with a net loss of $2,061, or $0.22 per share basic and fully diluted for the six months ended September 30, 2024.