Richardson Electronics Swings to $893,000 Profit in Q3 FY2026

Richardson Electronics, Ltd., a global distributor of engineered solutions and electronic components, reported net income of $893,000 for the three months ending February 28, 2026, a sharp reversal from a net loss of $2.06 million in the same quarter a year earlier. The company swung to an operating profit of $1.50 million from an operating loss of $2.74 million in the prior-year period. Read more earnings reports.

Revenue for the third quarter of fiscal 2026 rose 3.1% to $55.47 million from $53.80 million in the year-ago quarter. Gross profit climbed to $17.68 million from $16.67 million, reflecting improved margins as cost of goods sold rose at a slower pace than revenue.

For the nine months ending February 28, Richardson posted net income of $2.68 million, compared to a net loss of $2.22 million in the first nine months of fiscal 2025. Revenue for the nine-month period increased 3.4% to $162.37 million from $157.02 million.

Selling, general and administrative expenses for the third quarter climbed to $16.18 million from $14.50 million, reflecting higher operating costs. For the nine-month period, SG&A expenses totaled $48.08 million versus $46.61 million in the prior year.

Operating cash flow turned negative in the third quarter, with the company using $2.65 million in cash from operations compared to generating $4.60 million in the year-ago period. For the nine months, cash used in operations totaled $1.38 million, down from cash generated of $10.48 million a year earlier.

Richardson's balance sheet showed total assets of $199.80 million as of February 28, up from $195.84 million at the end of fiscal 2025. Cash and cash equivalents declined to $29.49 million from $35.90 million. Inventory increased to $107.62 million from $102.80 million, while accounts receivable rose to $27.04 million from $24.12 million.

The company paid dividends totaling $750,000 during the quarter and $2.24 million for the nine-month period. Total stockholders' equity stood at $160.15 million as of February 28, compared to $156.66 million at fiscal year-end.