MIND Technology 2026 Q3 Earnings Net Income Plummets 95.2% Despite 64% Aftermarket Revenue Share

MIND Technology (MIND) reported fiscal 2026 Q3 earnings that fell short of expectations, with revenue declining 20% year-over-year to $9.69 million and net income contracting 95.2% to $62,000. The company provided cautious optimism for Q4, citing $9.5 million in post-quarter orders and a strategic focus on expanding manufacturing capacity.

Revenue

MIND Technology’s total revenue for Q3 2026 declined 20.0% year-over-year to $9.69 million, driven by a 27.3% drop in its marine technology segment to $9.69 million. The segment accounted for 100% of total revenue, with no other business lines reported. The decline followed a strong Q2 performance, as Seamap revenues moderated amid macroeconomic uncertainties.

Earnings/Net Income

The company’s EPS plummeted 99.7% to $0.01 in Q3 2026 from $2.87 in Q3 2025, while net income fell to $62,000, a 95.2% decline. The sharp contraction reflects reduced profitability despite cost optimization efforts. The earnings result is a significant underperformance relative to the prior year.

Post-Earnings Price Action Review

The strategy of buying MIND when earnings beat and holding for 30 days resulted in a significant loss. The strategy returned -85.98%, underperforming the benchmark by 224.63%. With a maximum drawdown of 0.00% and a Sharpe ratio of -0.25, the strategy indicated a high risk and poor performance relative to the market.

Post-earnings, MIND’s stock price surged 7.79% in the latest trading day but fell 14.43% over the subsequent week, reflecting mixed investor sentiment. Month-to-date, the stock has declined 36.54%, underscoring market skepticism about near-term recovery.

CEO Commentary

CEO Robert Capps emphasized cost efficiencies and a robust $7.2 million backlog as stabilizing factors, while noting temporary order delays due to geopolitical risks. He highlighted the aftermarket business as a 64% YTD revenue contributor, with margins outperforming system sales. Strategic investments in Huntsville facility expansion and next-generation marine tech were outlined as growth drivers.

Guidance

Capps guided to improved Q4 results, citing $9.5 million in post-quarter orders and confidence in delivering them before year-end. He reiterated fiscal 2026 profitability through favorable product mix and cost discipline, though acknowledged near-term order uncertainty.

Additional News

MIND Technology announced a $9.5 million post-quarter order influx, expected to boost Q4 revenue beyond Q3’s $9.69 million. The company is expanding its Huntsville facility to enhance manufacturing capacity and pursuing M&A opportunities to scale operations. Additionally, management highlighted a $35.8 million working capital position, including $19.4 million in cash, to support strategic initiatives and shareholder value creation.