<div id="readability-page-1"><div>Hurco Companies Inc., a global leader in the machine tool industry, has released its Form 10-K report for the fiscal year 2025. The report provides a comprehensive overview of the company's financial performance, business operations, strategic initiatives, and the challenges it faces in a highly cyclical and competitive market. This summary highlights the key aspects of the report, offering insights into Hurco's current state and future outlook. Financial Highlights Hurco Companies Inc. reported the following key financial metrics for fiscal year 2025:<ul><li>Sales and service fees: $178.6 million, a decrease of 4% compared to fiscal year 2024, with a favorable currency impact of $2.0 million.</li><li>Gross profit: $33.0 million, or 18% of sales, down from 20% in fiscal year 2024, primarily due to lower sales volume and increased tariffs.</li><li>Operating (loss) income: $(10.3) million, or (6)% of sales, compared to an operating loss of $(8.3) million, or (4)% of sales, in fiscal year 2024.</li><li>Net (loss) income: $(15.1) million, or $(2.34) per diluted share, compared to a net loss of $(16.6) million, or $(2.56) per diluted share, in fiscal year 2024.</li><li>Net (loss) income per common share: $(2.34) per diluted share, reflecting a decrease in net loss primarily due to a lower valuation allowance recorded against U.S. deferred tax assets.</li></ul> Business Highlights Hurco's business performance for fiscal year 2025 included the following key operational metrics:<ul><li>Revenue Segments: The company's core products include computerized machine tools, computer control systems and software, service parts, and service fees. Computerized machine tools accounted for 80% of total revenues, while computer control systems and software contributed 1%, service parts 14%, and service fees 5%.</li><li>Geographical Performance: In fiscal year 2025, 51% of revenues were from Europe, 38% from the Americas, and 11% from the Asia Pacific region. Sales in the Americas decreased by 5% due to a change in the mix of machine model shipments. European sales decreased by 4%, with a favorable currency impact of 2%, while Asia Pacific sales decreased by 1%, with an unfavorable currency impact of less than 1%.</li><li>Sales Units: The overall volume of machine shipments in the Americas increased from fiscal 2024 to fiscal 2025, despite a decrease in sales dollars. The decrease in sales was primarily due to decreased shipments of Hurco 5-axis vertical machines and entry-level Hurco and Milltronics 3-axis machines.</li><li>New Product Launches: In fiscal year 2025, Hurco completed the design of the BM 500U, a new 5-axis machine model, and made enhancements to the WinMax® software. Milltronics introduced the INSPIRE+ control console and two new product lines, the TRL toolroom flatbed lathes and the X5 five-axis integrated machines. Takumi introduced the UVC600 five-axis machine and the UA400 five-axis model.</li><li>Future Outlook: The company plans to launch the next generation VC 500 5-axis machine in early 2026, with improved automation integration and ergonomics. The company is also focusing on product innovation, acquisitions, and targeted penetration of developing markets to drive future growth.</li></ul> Strategic Initiatives Hurco Companies Inc. has undertaken several strategic initiatives to navigate global uncertainty and lower sales volumes:<ul><li>Cost Management: The company has focused on adjusting overhead and operating expenses, suspending regular quarterly cash dividends, and reallocating cash flow towards new technologies, product development, and capital expenditures.</li><li>Share Repurchase Program: Hurco has implemented a share repurchase program with an aggregate amount of up to $25.0 million, extending through November 10, 2026. As of October 31, 2025, Hurco repurchased $5.3 million worth of shares, leaving $19.7 million available for future repurchases.</li><li>Credit Agreement: Hurco entered into a new secured revolving credit agreement with Bank of America, N.A., for a maximum aggregate amount of $20.0 million, effective January 5, 2026.</li><li>Future Outlook: Hurco plans to continue its disciplined approach to capital allocation, focusing on product innovation, acquisitions, and targeted market penetration. The company expects capital spending in fiscal year 2026 to be approximately $4.5 million, funded by cash on hand and cash generated from operations. Hurco is also evaluating a longer-term global credit solution to align with its strategic interests and believes its current liquidity position is adequate to support global operations and strategic initiatives over the next twelve months and beyond.</li></ul> Challenges and Risks Hurco Companies Inc. faces several challenges and risks in its operations:<ul><li>Economic and Market Risks: The company operates in a highly cyclical machine tool industry, which is sensitive to economic conditions and business confidence. Global economic uncertainties, geopolitical tensions, and fluctuating demand for capital equipment pose significant risks.</li><li>Currency Exchange Risks: Reliance on foreign manufacturing and sales exposes Hurco to currency exchange risks, which can impact financial results. The company uses forward exchange contracts to hedge a portion of its foreign currency exposure.</li><li>Competitive Risks: Hurco competes with larger firms with greater financial resources, which could impact its market position.</li><li>Operational Risks: The need to develop and introduce new products, protect intellectual property, and manage disruptions in manufacturing or supply chains are critical operational challenges. Fluctuations in raw material prices, particularly steel and energy, also pose risks.</li><li>Regulatory and Compliance Risks: Compliance with data privacy and security laws is critical, with potential legal and financial exposure from breaches. The company also faces risks from international operations, including trade barriers, regulatory changes, and political instability.</li><li>Management Strategies: Management has focused on adjusting overhead and operating expenses to mitigate the impact of lower sales volumes. The company has implemented cost reductions and suspended dividends to manage cash flow and invest in new technologies and product development.</li></ul>SEC Filing: HURCO COMPANIES INC [ HURC ] - 10-K - Jan. 09, 2026</div></div>

HURC

Hurco Companies Inc. has released its Form 10-K report for fiscal year 2025, revealing a 4% decrease in sales to $178.6 million and a gross profit of $33.0 million, down from 20% to 18% of sales. The company reported an operating loss of $(10.3) million and a net loss of $(15.1) million. Key operational highlights include a focus on product innovation and strategic initiatives such as a share repurchase program and a new credit agreement. Challenges include economic risks, currency exchange risks, and competition in the machine tool industry.

HURCO COMPANIES INC SEC 10-K Report