Universal Safety Products Revenue Collapses 99.6% to $22,549 in Q3 FY2026

Universal Safety Products, Inc., a manufacturer of safety and protective equipment, reported revenue of $22,549 for the quarter ending December 31, 2025, down 99.6% from $5.5 million in the same quarter a year earlier. The company's nine-month revenue for fiscal 2026 totaled $4.6 million, down 73.4% from $17.3 million in the prior-year period. Read more earnings reports.

The company posted a net loss of $2.3 million for the December quarter, compared with a net loss of $936,639 in the year-earlier period. For the nine months ending December 31, 2025, the net loss totaled $1.5 million versus a loss of $801,867 in the prior-year period.

The quarter's gross profit was negative $277,000, compared with gross profit of $1.0 million a year earlier. Cost of goods sold for the quarter was $299,547, while revenue was only $22,549, indicating the company incurred production costs that far exceeded sales.

Operating expenses remained elevated despite the revenue collapse. Selling, general, and administrative expenses for the December quarter totaled $1.9 million, up 7.6% from $1.8 million in the prior-year quarter. For the nine-month period, SG&A expenses declined 1.1% to $4.3 million from $4.4 million.

The operating loss for the quarter was $2.2 million, compared with an operating loss of $870,830 in the prior-year quarter. For the nine months, the operating loss widened to $3.6 million from $589,928.

Balance Sheet and Cash Position

Total assets declined to $5.5 million as of December 31, 2025, down 44.0% from $9.8 million at the end of the prior fiscal year on March 31, 2025. The decrease was driven primarily by a $2.3 million reduction in inventory to $753,509 and a $303,000 decline in accounts receivable to $277,292.

Cash and cash equivalents surged to $4.3 million as of December 31, 2025, up from $348,074 at the end of the prior fiscal year. The company reported cash from operations of $1.3 million for the nine-month period, a reversal from cash used in operations of $737,000 in the prior-year period. Cash from investing activities totaled $4.5 million, while cash used in financing activities was $1.9 million.

Current liabilities dropped to $3.2 million from $4.7 million at the prior fiscal year-end. Stockholders' equity declined to $2.3 million as of December 31, 2025, down 56.0% from $5.2 million at March 31, 2025, reflecting the accumulated losses. Retained deficit expanded to negative $11.5 million from negative $7.7 million.

Per-Share Results

The company reported a loss per share of $0.99 for the December quarter, compared with a loss of $0.40 in the prior-year quarter. For the nine months, the loss per share was $0.64 versus $0.35 in the prior-year period. Weighted average shares outstanding remained flat at 2.3 million for all periods.