Evertz Technologies Stock Earnings Reports

Key points for investors: Evertz reported a record Q3 fiscal 2025 with revenue of $136.9M (up 9% sequentially, +1% YoY), driven by a strong U.S./Canada quarter ($99.1M, +23% QoQ). Recurring software and services grew ~6% YoY to ~$55M. Gross margin was 57.8%, within the company's target range. International revenue declined materially (Q3 international $37.8M, down ~31% YoY), and year-to-date international weakness reflects a large prior-year project that did not repeat. R&D spending remains elevated ($36.6M in the quarter; R&D ~26.7% of revenue; $110.2M YTD) as Evertz invests in IP, software-defined video, cloud, and UHD solutions. Liquidity is healthy with cash of $96.3M and working capital of $207.9M; operating cash generation was strong (cash from operations $53M in the quarter, or $26.8M excluding working capital effects). Purchase order backlog exceeded $269M at February, and combined backlog plus February shipments exceeded $308M, giving momentum into Q4. The board declared a quarterly dividend of $0.20 per share. Risk: recent U.S.–Canada tariff developments pose near-term uncertainty; management is accelerating U.S. manufacturing to mitigate exposure (expected incremental CapEx of roughly $2–5M over 6–12 months) but said margin impacts and who ultimately bears tariffs depend on customer arrangements and remain difficult to quantify.