We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Autoscope Technologies Posts Q3 Loss, Sharp Y/Y Revenue Drop
Read MoreHide Full Article
Shares of Autoscope Technologies Corporation (AATC - Free Report) have declined 3.6% since releasing third-quarter 2025 results, lagging the S&P 500 index’s 0.8% growth over the same period. Over the past month, the stock has fallen 4.2%, while the S&P 500 has climbed 3.6%, reflecting investor disappointment following a sharp year-over-year revenue downturn and a swing to a quarterly loss.
In the third quarter, revenues from operations totaled $1.9 million, down 45% from $3.4 million a year earlier, while royalty revenues, historically the company’s largest contributor, also fell 44% to $1.9 million. The company reported a net loss of $0.2 million, or 4 cents per share, against net income of $1.3 million, or 25 cents per share, a year ago.
Management attributed the earnings deterioration to sharply lower revenues and a one-time non-cash foreign currency adjustment from the closure of foreign subsidiaries. Excluding this item, net income would have been $0.2 million.
Autoscope Technologies Corporation Price, Consensus and EPS Surprise
The company’s revenue contraction stemmed largely from high inventory levels at channel partners and customer transitions to the new Autoscope OptiVu platform. Product sales fell sharply, totaling just $15,000 in the quarter versus $50,000 a year ago. Gross profit dropped accordingly, landing at $1.8 million compared with $3.2 million in the prior-year period. Operating expenses held steady at $1.6 million, reflecting stable spending despite the significant decrease in revenues.
Non-GAAP income from operations, which excludes amortization and depreciation, was $0.3 million, far below the $1.8 million recorded in the prior-year quarter. This measure continues to track declines in revenues, as operating costs have not adjusted meaningfully in the short term.
Cash and liquid investments totaled $2.7 million at the quarter-end, rising from $2.6 million at the end of the second quarter but down substantially from $7.4 million at the end of 2024. The decline primarily reflects the $5.8-million special dividend paid out in February 2025.
Management Commentary
Interim CEO Andy Markese emphasized that the quarter’s weaker results reflect a transitional phase as customers migrate from the legacy Autoscope Vision platform to the OptiVu product line. He noted that inventory levels at distributors have normalized and that agency evaluations and procurement processes for OptiVu are progressing. Management expects these dynamics to support a return to “more typical royalty performance” in the fourth quarter.
The commentary underscores management’s belief that recent revenue weakness is primarily cyclical and linked to product transition rather than structural deterioration in demand. Still, the extent of the revenue decline suggests that normalization will be crucial to improving profitability in the coming quarters.
Factors Influencing the Headline Numbers
Inventory Drawdowns & Product Transition: Revenues from operations and royalty revenues dropped 45% and 44% year over year, respectively. This decrease stemmed from channel partners reducing elevated inventory levels and customers shifting to the OptiVu platform. These factors reduced throughput in the company’s licensing arrangement and contributed heavily to the swing to a quarterly net loss.
One-Time Foreign Currency Loss: The company’s decision to close its Canada and Spain subsidiaries triggered a $0.6-million reclassification of foreign currency translation losses from Accumulated Other Comprehensive Loss to earnings. This non-cash charge pushed the company into a quarterly loss. There was no comparable item in the prior year. Excluding these charges, AATC would have reported a net income of $0.2 million.
View
Management’s commentary suggested expectations for improved royalty performance in the fourth quarter as distributor inventories reach more normalized levels and as adoption of the OptiVu platform accelerates. While not quantified, this qualitative signal indicates management’s view that revenue trends may stabilize in the near term.
Other Developments
In the quarter, Autoscope initiated the closure of its subsidiaries in Canada and Spain. This move resulted in the aforementioned $0.6-million non-cash loss due to the reclassification of cumulative translation losses. The company did not report acquisitions or divestitures beyond these closures. Additionally, the board declared a quarterly dividend of 15 cents per share, payable Nov. 24, 2025, to shareholders of record as of Nov. 17.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Autoscope Technologies Posts Q3 Loss, Sharp Y/Y Revenue Drop
Shares of Autoscope Technologies Corporation (AATC - Free Report) have declined 3.6% since releasing third-quarter 2025 results, lagging the S&P 500 index’s 0.8% growth over the same period. Over the past month, the stock has fallen 4.2%, while the S&P 500 has climbed 3.6%, reflecting investor disappointment following a sharp year-over-year revenue downturn and a swing to a quarterly loss.
In the third quarter, revenues from operations totaled $1.9 million, down 45% from $3.4 million a year earlier, while royalty revenues, historically the company’s largest contributor, also fell 44% to $1.9 million. The company reported a net loss of $0.2 million, or 4 cents per share, against net income of $1.3 million, or 25 cents per share, a year ago.
Management attributed the earnings deterioration to sharply lower revenues and a one-time non-cash foreign currency adjustment from the closure of foreign subsidiaries. Excluding this item, net income would have been $0.2 million.
Autoscope Technologies Corporation Price, Consensus and EPS Surprise
Autoscope Technologies Corporation price-consensus-eps-surprise-chart | Autoscope Technologies Corporation Quote
Other Key Business Metrics
The company’s revenue contraction stemmed largely from high inventory levels at channel partners and customer transitions to the new Autoscope OptiVu platform. Product sales fell sharply, totaling just $15,000 in the quarter versus $50,000 a year ago. Gross profit dropped accordingly, landing at $1.8 million compared with $3.2 million in the prior-year period. Operating expenses held steady at $1.6 million, reflecting stable spending despite the significant decrease in revenues.
Non-GAAP income from operations, which excludes amortization and depreciation, was $0.3 million, far below the $1.8 million recorded in the prior-year quarter. This measure continues to track declines in revenues, as operating costs have not adjusted meaningfully in the short term.
Cash and liquid investments totaled $2.7 million at the quarter-end, rising from $2.6 million at the end of the second quarter but down substantially from $7.4 million at the end of 2024. The decline primarily reflects the $5.8-million special dividend paid out in February 2025.
Management Commentary
Interim CEO Andy Markese emphasized that the quarter’s weaker results reflect a transitional phase as customers migrate from the legacy Autoscope Vision platform to the OptiVu product line. He noted that inventory levels at distributors have normalized and that agency evaluations and procurement processes for OptiVu are progressing. Management expects these dynamics to support a return to “more typical royalty performance” in the fourth quarter.
The commentary underscores management’s belief that recent revenue weakness is primarily cyclical and linked to product transition rather than structural deterioration in demand. Still, the extent of the revenue decline suggests that normalization will be crucial to improving profitability in the coming quarters.
Factors Influencing the Headline Numbers
Inventory Drawdowns & Product Transition: Revenues from operations and royalty revenues dropped 45% and 44% year over year, respectively. This decrease stemmed from channel partners reducing elevated inventory levels and customers shifting to the OptiVu platform. These factors reduced throughput in the company’s licensing arrangement and contributed heavily to the swing to a quarterly net loss.
One-Time Foreign Currency Loss: The company’s decision to close its Canada and Spain subsidiaries triggered a $0.6-million reclassification of foreign currency translation losses from Accumulated Other Comprehensive Loss to earnings. This non-cash charge pushed the company into a quarterly loss. There was no comparable item in the prior year. Excluding these charges, AATC would have reported a net income of $0.2 million.
View
Management’s commentary suggested expectations for improved royalty performance in the fourth quarter as distributor inventories reach more normalized levels and as adoption of the OptiVu platform accelerates. While not quantified, this qualitative signal indicates management’s view that revenue trends may stabilize in the near term.
Other Developments
In the quarter, Autoscope initiated the closure of its subsidiaries in Canada and Spain. This move resulted in the aforementioned $0.6-million non-cash loss due to the reclassification of cumulative translation losses. The company did not report acquisitions or divestitures beyond these closures. Additionally, the board declared a quarterly dividend of 15 cents per share, payable Nov. 24, 2025, to shareholders of record as of Nov. 17.