Cemtrex Posts $20.6M Net Loss in Q1 FY2026 Despite 17% Revenue Gain

Cemtrex reported a net loss of $20.6 million for the three months ending December 31, 2025, compared to a net loss of $28.8 million in the same quarter a year earlier. Revenue climbed 17% to $16.1 million from $13.7 million in the prior-year period. Read more earnings reports.

The company's operating loss widened to $2.8 million from $2.3 million a year earlier, even as gross profit edged down to $5.6 million from $5.7 million. Operating expenses rose to $8.4 million from $8.0 million in the prior-year quarter.

Cost of revenue increased to $10.5 million from $8.0 million, while gross margin compressed to 34.9% from 41.5% in the year-ago quarter. Research and development spending declined to $501,000 from $890,000, while selling, general and administrative expenses climbed to $7.6 million from $6.8 million.

Cash from operations was negative $892,000 for the quarter, compared to negative $1.2 million in the prior-year period. The company generated $17.3 million from financing activities, a sharp increase from $2.4 million a year earlier.

Cash and cash equivalents surged to $20.5 million as of December 31, 2025, up from $5.0 million at September 30, 2025, and $4.2 million at December 31, 2024. Total assets increased to $60.3 million from $47.8 million at the end of the prior quarter.

Total liabilities declined to $31.2 million from $39.1 million at September 30, 2025. Current liabilities fell to $18.0 million from $23.8 million, while long-term debt rose to $8.0 million from $4.6 million.

Stockholders' equity jumped to $29.1 million as of December 31, 2025, compared to $8.7 million at September 30, 2025, and negative $1.6 million at December 31, 2024. The increase followed a significant expansion in additional paid-in capital to $147.3 million from $105.7 million.

The company's retained earnings deficit widened to $120.0 million from $99.4 million at the end of the prior quarter. Common shares outstanding increased sharply to 8.6 million from 831,000 shares at September 30, 2025.

Inventory rose to $7.4 million from $6.6 million at the end of the prior quarter. Accounts payable declined to $4.3 million from $4.5 million over the same period.