Shares of MIND Technology, Inc. (MIND Quick QuoteMIND - Free Report) have declined 19.8% since the company reported its earnings for the quarter ended Oct. 31, 2025. This compares to the S&P 500 index’s 0.4% decline over the same time frame. Over the past month, the stock has declined 23.4% compared with the S&P 500’s 2.8% growth.

MIND Technology reported a fiscal third-quarter 2026 net income of 1 cent per share, a steep decline from $2.87 in the prior-year quarter, which had included a significant effect from the conversion of preferred stock to common shares.

The company posted revenues of approximately $9.7 million, down 20% from $12.1 million in the third quarter of fiscal 2025. Net income for the quarter fell sharply to $0.06 million compared to $1.3 million in the year-ago period. 

Adjusted EBITDA came in at $1.3 million for the quarter, representing a 34.9% decline from $2 million in the third quarter of fiscal 2025. Gross profit also fell to $4.5 million from $5.4 million, while total operating expenses rose to $3.7 million from $3.5 million. These trends point to both top-line weakness and some operational cost pressures.

MIND Technology, Inc. Price, Consensus and EPS Surprise

MIND Technology, Inc. price-consensus-eps-surprise-chart | MIND Technology, Inc. Quote

Other Key Business Metrics

Operating Income and Cash Flow:

Operating income declined to $0.8 million from $1.9 million in the prior-year quarter. Cash flow from operating activities for the nine-month period turned positive at $3.8 million compared to a $1.4 million outflow in the same period of fiscal 2025. This improvement in cash generation was helped by working capital gains. 

Balance Sheet Strength:

As of Oct. 31, 2025, the company had $19.4 million in cash and $36 million in working capital, up substantially from $5.3 million in cash and $32.1 million in working capital at the start of the fiscal year. Importantly, MIND remains debt-free, which management emphasizes as a strategic advantage in terms of financial flexibility.

Order Backlog:

The Marine Technology Product backlog, primarily from the Seamap segment, stood at $7.2 million at the end of the quarter, significantly lower than the $26.2 million backlog recorded a year ago. However, subsequent to the quarter’s end, MIND received additional orders worth $9.5 million, which may help boost revenues in the coming quarters.

Management Commentary

Rob Capps, president and CEO, remarked that the fiscal third-quarter results were in line with expectations despite the dip in Seamap revenues. He emphasized that higher-margin aftermarket activity remained strong, accounting for approximately 64% of revenues during the first nine months of fiscal 2026. Management expressed confidence in a stronger fourth quarter based on the timing of backlog deliveries and recent orders.

Capps also highlighted the company’s continued focus on liquidity and capital structure simplification. During the quarter, MIND raised $11 million via its At-The-Market (ATM) equity program, bolstering its cash position and supporting strategic flexibility for growth initiatives.

Factors Influencing Performance

The decline in quarterly revenues was largely attributable to lower Seamap product sales. Cost of sales also decreased year over year, but not enough to fully offset the revenue drop. Meanwhile, operating expenses increased modestly, driven primarily by higher selling, general and administrative costs, which rose from $2.8 million to $3 million. The company also reported a tax provision of $0.7 million compared to $0.4 million in the year-ago period, further compressing net income margins

Guidance

Management signaled optimism for the fiscal fourth quarter. Capps stated that expected deliveries from the current backlog and new orders should support quarter-over-quarter revenue and profitability improvement.