Moving iMage shares surge 12.26% premarket after Q1 revenue rises 6.2% to $5.6M, gross margin improves to 30%, and acquisition of DCS cinema loudspeaker line.

Moving iMage Technologies (MITQ) surged 12.26% in premarket trading following the release of Q1 fiscal 2026 results, which showed a 6.2% revenue increase to $5.6 million, a 22.0% rise in gross profit to $1.7 million, and a transition from a $68K operating loss to $350K operating income. The company attributed the revenue growth to a custom cinema project and highlighted a 30.0% gross margin (up from 26.1%) driven by higher-margin opportunities. Additionally, MITQ acquired the DCS cinema loudspeaker line for $1.5 million, bolstering its product portfolio and international expansion prospects. Management emphasized improved capital efficiency, reduced operating expenses, and a strengthened balance sheet, with $5.5 million in cash. The CEO noted the DCS acquisition as a strategic move to enhance competitive positioning and unlock overseas sales opportunities, aligning with the stock’s bullish premarket reaction.