MIND Technology, Inc. — Fiscal 2027 Second Quarter Earnings Summary

Financial Performance

• Q2 FY2027 revenue was approximately $5.6 million, down from $9.7 million in Q1 FY2027 and $13.6 million in Q2 FY2026.
• Q2 FY2027 operating loss was approximately $1.8 million, compared to operating income of $14,000 in Q1 FY2027 and $2.7 million in Q2 FY2026.
• Q2 FY2027 net loss was approximately $1.7 million ($0.19 per share), compared to a net loss of $411,000 ($0.05 per share) in Q1 FY2027 and net income of $1.9 million ($0.24 per share) in Q2 FY2026.
• Adjusted EBITDA for Q2 FY2027 was a loss of approximately $949,000, compared to $811,000 in Q1 FY2027 and $3.1 million in Q2 FY2026.
• For the six months ended July 31, 2026, net loss was $2.1 million, compared to net income of $959,000 for the same period in 2025.
• Cash and cash equivalents ended the quarter at $15.8 million, down from $19.1 million at January 31, 2026.
• The company reported no debt.
• Deferred revenue was $373,000 as of July 31, 2026, compared to $320,000 at January 31, 2026.
• Net cash used in operating activities for the six months ended July 31, 2026, was $3.1 million, compared to net cash provided of $2.9 million in the same period in 2025.

Business Segments and Product Lines

• The after-market business contributed approximately 87% of total revenue in Q2 FY2027.
• Backlog for the Seamap segment (Marine Technology Product orders) was approximately $4.8 million as of July 31, 2026, down from $7.6 million at April 30, 2026, and $12.8 million at July 31, 2025.
• Sales of marine technology products for Q2 FY2027 were $5.6 million, compared to $13.6 million in Q2 FY2026.

Market and Competitive Landscape

• The company cited ongoing market softness and macro uncertainty limiting near-term visibility and impacting order flow.
• The marine exploration and survey market outlook is viewed as favorable long-term, driven by energy security needs and the replenishment of lost production.
• Customers have expressed interest in sizable projects, though timing remains uncertain and dependent on a resolution to the conflict in the Middle East.
• Demand has not disappeared despite the current lull in order activity.

Risks and Challenges

• Macro uncertainty and market softness are impacting order flow and results.
• Timing of new system orders is difficult to predict.
• Future results are subject to risks including reductions in customer capital budgets, limitations on capital availability, higher costs of capital, and volatility in oil and natural gas commodity prices.

Management Commentary and Tone

• President and CEO Rob Capps described the environment as challenging but noted the resilience of the after-market business provides a durable base.
• Management stated they are remaining patient and opportunistic rather than reactive due to the difficulty in timing new system orders.
• Capps expressed confidence in the long-term direction of the market and the company's ability to navigate near-term challenges.
• The company is focused on capital allocation to earn the greatest return, including potential product line additions, transformative transactions, or share repurchases in response to market dislocation.

Other Key Points

• The company is debt-free.
• Management indicated a potential strategy to repurchase shares in response to market dislocation.
• The company has a global presence with operating locations in the United States, Singapore, Malaysia, and the United Kingdom.
• Shares outstanding were 9,089,000 for Q2 FY2027 and Q1 FY2027, compared to 7,969,000 for Q2 FY2026.