Revenue: As of FY2026 Q3, the actual value is USD 16.89 M, missing the estimate of USD 19.06 M.EPS: As of FY2026 Q3, the actual value is USD 0.16.EBIT: As of FY2026 Q3, the actual value is USD 1.1 M.<h4>Segment Revenue</h4>Three Months Ended January 31, 2026 vs. 2025 (in thousands) FEI-NY revenues decreased from $14,463 in 2025 to $12,251 in 2026, a change of - $2,212 (-15.3%). FEI-Zyfer revenues increased from $5,027 in 2025 to $6,975 in 2026, a change of $1,948 (38.8%). Consolidated revenues decreased from $18,927 in 2025 to $16,890 in 2026, a change of - $2,037 (-10.8%).Nine Months Ended January 31, 2026 vs. 2025 (in thousands) FEI-NY revenues decreased from $36,984 in 2025 to $33,399 in 2026, a change of - $3,585 (-9.7%). FEI-Zyfer revenues increased from $13,858 in 2025 to $17,757 in 2026, a change of $3,899 (28.1%). Consolidated revenues decreased from $49,825 in 2025 to $47,829 in 2026, a change of - $1,996 (-4.0%).<h4>Operational Metrics</h4>Cost of Revenues (in thousands) For the three months ended January 31, consolidated cost of revenues was $10,264 in 2026 compared to $10,642 in 2025. For the nine months ended January 31, consolidated cost of revenues was $29,585 in 2026 compared to $27,222 in 2025.Gross Margin (in thousands) For the three months ended January 31, gross margin decreased from $8,285 to $6,626, a change of - $1,659 (-20.0%), with the gross margin rate decreasing from 43.8% to 39.2%. For the nine months ended January 31, gross margin decreased from $22,603 to $18,244, a change of - $4,359 (-19.3%), with the gross margin rate decreasing from 45.4% to 38.1%.Selling, General, and Administrative (SG&amp;A) Expenses (in thousands) For the three months ended January 31, SG&amp;A increased from $3,380 to $3,593, a change of $213 (6.3%), representing approximately 21% of consolidated revenues in 2026 versus 18% in 2025. For the nine months ended January 31, SG&amp;A increased from $9,614 to $10,800, a change of $1,186 (12.3%), representing approximately 23% of consolidated revenues in 2026 versus 19% in 2025. Segment SG&amp;A for the nine months ended January 31, 2026, was $7,800 for FEI-NY (up from $7,200 in 2025) and $2,500 for FEI-Zyfer (up from $1,900 in 2025).Research and Development (R&amp;D) Expenses (in thousands) For the three months ended January 31, consolidated R&amp;D increased from $1,436 to $1,763, a change of $327 (22.8%). For the nine months ended January 31, consolidated R&amp;D decreased from $4,536 to $4,095, a change of - $441 (-9.7%).Operating Income (Loss) (in thousands) For the three months ended January 31, FEI-NY operating income was $282 in 2026 (vs. $3,546 in 2025), and FEI-Zyfer operating income was $1,445 in 2026 (vs. $96 in 2025). Consolidated operating income for the three months decreased from $3,469 to $1,270, a change of - $2,199 (-63.4%). For the nine months ended January 31, FEI-NY operating income was $1,143 in 2026 (vs. $7,326 in 2025), and FEI-Zyfer operating income was $3,218 in 2026 (vs. $1,489 in 2025). Consolidated operating income for the nine months decreased from $8,453 to $3,349, a change of - $5,104 (60.4%).Net Income (in thousands) For the three months ended January 31, net income decreased from $15,405 to $1,567. For the nine months ended January 31, net income decreased from $20,489 to $4,002.Depreciation and Amortization (in thousands) Consolidated D&amp;A was $512 for the three months ended January 31, 2026, compared to $458 in 2025. Consolidated D&amp;A was $1,414 for the nine months ended January 31, 2026, compared to $1,469 in 2025.Identifiable Assets (in thousands) As of January 31, 2026, FEI-NY assets were $39,527 (vs. $39,125 as of April 30, 2025), and FEI-Zyfer assets were $27,953 (vs. $23,865 as of April 30, 2025). Consolidated identifiable assets were $94,192 as of January 31, 2026, compared to $93,737 as of April 30, 2025.<h4>Cash Flow</h4>Net Cash Used in Operating Activities (in thousands) For the nine months ended January 31, net cash used in operating activities was - $779 in 2026, an improvement from - $1,273 in 2025.Net Cash Used in Investing Activities (in thousands) For the nine months ended January 31, net cash used in investing activities increased to - $2,254 in 2026 from - $1,177 in 2025, primarily due to purchases of fixed assets.Net Cash Used in Financing Activities (in thousands) For the nine months ended January 31, net cash used in financing activities decreased significantly to - $1,574 in 2026 from - $9,944 in 2025, with the prior year including a $9,567 special cash dividend payment.<h4>Unique Metrics</h4>Revenues by Product Line (in thousands) For the three months ended January 31, satellite revenue decreased from $11,190 to $4,232, while government non-space revenue increased from $7,370 to $12,478. For the nine months ended January 31, satellite revenue decreased from $28,843 to $15,419, and government non-space revenue increased from $19,507 to $31,230.Contract Assets and Liabilities (in thousands) As of January 31, 2026, contract assets were $14,692 and contract liabilities were $9,889. As of April 30, 2025, contract assets were $17,914 and contract liabilities were $13,607.Backlog (in millions) As of January 31, 2026, the consolidated funded backlog was approximately $83 million, up from approximately $70 million at April 30, 2025. Approximately 69% of the backlog is expected to be realized within the next twelve months.Working Capital and Current Ratio (in millions) As of January 31, 2026, working capital was approximately $32.4 million with a current ratio of 2.6 to 1. As of April 30, 2025, working capital was approximately $29.7 million with a current ratio of 2.3 to 1.<h4>Future Outlook and Strategy</h4>Frequency Electronics, Inc. plans to continue investing in Research and Development (R&amp;D) to maintain product leadership and enhance future competitiveness, expecting internally generated cash to fund these efforts. The company anticipates securing additional customer funding for R&amp;D activities and may pursue acquisitions using internal cash and external funding. Increased Selling, General, and Administrative expenses, partly due to investments in Quantum sensing expansion, are expected to continue through the remainder of fiscal year 2026.

Frequency Electronics | 10-Q: FY2026 Q3 Revenue Misses Estimate at USD 16.89 M