How did Richardson Electronics' revenue and expenses shift in Q2 2025 compared to previous quarters?

Richardson Electronics Ltd. (RELL) experienced a notable increase in revenue and positive shifts in expenses in Q3 2025 compared to Q2 2024, reflecting strategic growth initiatives and operational improvements:

1. Revenue Growth: The company's revenue rose by 2.7% to $53.8 million in Q3 FY25, up from $52.4 million in Q3 FY24. This growth was driven by strong sales in key segments such as semiconductor and Canvys.
2. Segmental Performance: Within the semiconductor segment, wafer fab sales surged by 139%, and Canvys sales increased by 39.5%. The Green Energy Solutions (GES) segment also contributed positively, with sales growing to $9.3 million, a 55% increase over Q2 FY25, although there was a year-over-year decline of 19%.
3. Profitability Improvement: Gross margin improved to 31.0% in Q3 FY25, up from 29.5% in Q3 FY24, due to a favorable product mix across key segments. Non-GAAP operating profit rose to $2.2 million from $1 million, and adjusted EBITDA was $2.8 million, indicating enhanced operational efficiency.
4. Cash Flow and Dividends: Operating cash flow remained positive for the fourth consecutive quarter, ending with $36.7 million in cash and equivalents. The company paid a dividend of $0.9 million in Q3 FY25, reflecting a commitment to shareholder value.
5. Strategic Asset Sales: The company's strategic asset sales contributed to a stronger balance sheet, which ended with no debt and substantial cash reserves.

In conclusion, Richardson Electronics demonstrated robust growth in key segments, improved profitability, and effective cash management in Q3 2025, positioning the company for future capitalization of manufacturing backshift policies and further expansion in the renewable energy sector.