Product Development and Innovation - Astrotech's TRACER 1000™ is the world's first mass spectrometry-based explosives trace detector certified by ECAC and approved by TSA for air cargo, currently deployed in approximately 35 locations across 16 countries[92][93]. - The TRACER 1000 has been approved for the Air Cargo Security Technology List, advancing it to Stage II testing with TSA, which includes field trials to ensure readiness for certification[94]. - AgLAB's 1000-D2™ mass spectrometer has demonstrated the ability to improve THC and CBD oil yields by approximately 15% to 30% during distillation processes[106]. - Pro-Control has introduced the Pro-Control Maximum Value Processing and Pro-Control 1000-D2™ mass spectrometer to enhance efficiency in industrial chemical distillation processes[112]. - EN-SCAN, a new subsidiary, is focused on environmental testing instruments for real-time air, water, and soil analysis, utilizing proprietary ATi Gas Chromatograph and AMS Technology[113]. - The TRACER 1000 Narcotic Trace Detector was launched to address the global drug crisis by screening for synthetic opiates and novel psychoactive substances[98]. Market Opportunities - In fiscal year 2023, the U.S. federal government budgeted over 6,000 ETD units for checkpoint and baggage screening, indicating a significant market opportunity for the TRACER 1000[95]. - AgLAB is targeting the rapidly growing CBD and hemp market, which is expected to expand due to increasing acceptance of medicinal cannabis and regulatory changes[103][104]. - Astrotech has secured a $429,000 purchase order for TRACER 1000 ETDs from a TSA-approved contractor, marking its first TSA-approved sale[99]. Financial Performance - Total revenue for the three months ended December 31, 2025, decreased by $113 thousand to $148 thousand compared to $261 thousand in the same period in 2024, primarily due to lower instrument and grant revenue[116]. - Gross profit for the three months ended December 31, 2025, was $8 thousand, resulting in a gross margin of 5%, a decline of 54% from 59% in the same period in 2024[117]. - Operating expenses decreased by $567 thousand, or 12.7%, during the three months ended December 31, 2025, compared to the same period in 2024[118]. - Research and development expenses decreased by $605 thousand, or 24.8%, during the three months ended December 31, 2025, compared to the same period in 2024[119]. - Total revenue for the six months ended December 31, 2025, increased by $150 thousand to $445 thousand compared to $295 thousand in the same period in 2024, driven by a $220 thousand increase in grant revenue[120]. - Gross profit for the six months ended December 31, 2025, was $196 thousand, with a gross margin of 44%, down from 56% in the same period in 2024[121]. - Cash used in operating activities increased by approximately $749 thousand to $7,479 thousand for the six months ended December 31, 2025, compared to $6,730 thousand in 2024[124]. - Cash provided by investing activities increased by approximately $8 million, primarily from $8.4 million of proceeds from short investments[127]. - As of December 31, 2025, cash and cash equivalents were approximately $3.1 million, down from $3.2 million as of December 30, 2024[125]. - The Company expects its effective tax rate for the full fiscal year 2026 to remain at 0% due to cumulative losses and expected future losses[132]. Research and Future Directions - The company is exploring advancements from BreathTech's research to apply in other business units, although commercialization in breath analysis may require significant investment and time[110].

Exhibit 99.1 Astrotech Reports Second Quarter of Fiscal Year 2026 Financial Results AUSTIN, Texas, Feb. 13, 2026 (GLOBE NEWSWIRE) -- Astrotech Corporation (Nasdaq: ASTC) (the "Company" or "Astrotech") reported its financial results for the second quarter of fiscal year 2026, which ended December 31, 2025. About Astrotech Corporation Astrotech Corporation (Nasdaq: ASTC) is an instrumentation company that creates, operates, and scales innovative businesses through its wholly owned subsidiaries. Each subsidiar ...

Core Insights - Astrotech Corporation reported positive momentum in its sales pipeline for fiscal year 2026, particularly in mass spectrometry and gas chromatography solutions, which are increasingly valued in the explosives and narcotics trace detection markets [2][4] - The company has appointed new leadership, including an Interim Chief Financial Officer and a Director of Global Sales, to support sustained revenue growth and global expansion [2] Financial Performance - For the second quarter of fiscal year 2026, revenue was $148 million, a decrease from $261 million in the same quarter of the previous year [8] - Gross profit for the quarter was $8 million, down from $155 million year-over-year [8] - Research and development expenses decreased by 25% to $1,832 thousand compared to the second quarter of fiscal year 2025 [4][8] - The net loss for the quarter was $3,927 thousand, compared to a net loss of $4,009 thousand in the same quarter of the previous year [8] Operational Highlights - The TRACER 1000 trace detection system has been deployed in approximately 35 locations across 16 countries, enhancing the company's global footprint [4] - Astrotech's subsidiaries focus on specialized markets, including security and narcotics screening, agricultural product processing, industrial manufacturing, and health condition detection [5] Balance Sheet Overview - As of December 31, 2025, total assets were $19,696 thousand, a decrease from $26,989 thousand as of June 30, 2025 [11][12] - Current liabilities totaled $1,898 thousand, down from $2,451 thousand at the end of the previous fiscal period [11][12] - Stockholders' equity was reported at $15,518 thousand, a decline from $22,100 thousand [12]

Core Insights - Astrotech Corporation's subsidiary, 1st Detect, has appointed David Spada as Director of Global Sales to enhance its commercial leadership and accelerate the deployment of the TRACER 1000 mass spectrometry-based trace detection technology in global security markets [1][2][3] Company Overview - 1st Detect specializes in developing, manufacturing, and selling trace detection systems for security and narcotics screening, with its TRACER 1000 ETD and TRACER 1000 NTD systems offering laboratory-grade performance in portable designs [4][5] - Astrotech Corporation operates through its subsidiaries, leveraging core technology to serve specialized markets, and is headquartered in Austin, Texas [5] Industry Context - The TRACER 1000 technology utilizes mass spectrometry for accurate molecular identification of threat substances, aiming to reduce false alarms and enhance security screening processes as global agencies modernize their technology [3][4] - David Spada's extensive experience in trace detection and his previous roles in product management and business development are expected to contribute significantly to the commercialization of high-grossing global trace detectors [2][3]

Core Insights - Astrotech Corporation supports the DHS initiative to modernize aviation security screening with a $1 billion investment to upgrade TSA equipment and screening technology [1][3][7] - The TRACER 1000 detection systems utilize mass spectrometry for laboratory-grade trace detection, currently operational at international airports and U.S. cargo facilities, but not yet at U.S. passenger checkpoints [2][4] - The DHS modernization initiative aims to address the challenges of managing record passenger volumes and sophisticated threats while reducing false alarm rates that hinder operational efficiency [3][5] Company Capabilities - 1st Detect's TRACER 1000 systems are designed to significantly reduce false alarm rates compared to traditional screening technologies, thus improving operational efficiency and passenger experience [5][6] - The company has the infrastructure to scale production immediately to meet the anticipated demand from the DHS modernization program, with its facility in Austin, Texas, ready for rapid deployment [6][7] - The technology is already tested and certified, operational in some of the world's busiest airports, and the company is prepared to meet the timeline set by DHS Secretary Kristi Noem [7][8] Industry Context - The DHS aviation security modernization plan represents a substantial investment in screening infrastructure, highlighting the importance of advanced detection technologies in enhancing national security [1][7] - As airports face increasing passenger volumes and sophisticated threats, the need for more effective screening solutions becomes critical [3][4]

Core Viewpoint - Astrotech Corporation has initiated a review of strategic alternatives to maximize shareholder value, which may include raising equity capital, reverse mergers, combination transactions, and potential sales of parts of the business [1][3]. Group 1: Strategic Review - The Board of Directors is exploring various strategic options to enhance shareholder value without a set deadline for completion [3]. - Potential actions under consideration include raising equity capital, reverse mergers, and the sale of all or part of the Company's business [1]. Group 2: Business Confidence - The Company expresses confidence in its mass spectrometry and gas chromatography technologies, targeting large end markets such as explosives trace detection and environmental testing [2]. - Astrotech is advancing its strategic sales plans and customer relationships globally while considering options to scale the business effectively [2]. Group 3: Subsidiaries Overview - Astrotech operates through subsidiaries that focus on specialized markets: - 1st Detect develops trace detection systems for security and narcotics screening [5]. - AgLAB designs process analyzers for the agriculture industry [5]. - Pro-Control provides solutions for chemical process control in industrial manufacturing [5]. - EN-SCAN, Inc. offers portable environmental testing solutions integrating gas chromatography and mass spectrometry [5].

Product Deployment and Sales - The TRACER 1000™ has been deployed in approximately 34 locations across 16 countries, including the USA, Europe, and Asia as of September 30, 2025[94]. - In April 2025, the company fulfilled a $429,000 purchase order for six TRACER 1000 explosive trace detectors, marking the first TSA-approved sale of this product[100]. - The TRACER 1000 Narcotic Trace Detector was launched on March 10, 2025, specifically designed to screen for synthetic opiates and novel psychoactive substances[99]. - The company has received ECAC certification for the TRACER 1000 in 2019, allowing sales to airport and cargo security customers in the European Union[94]. - The U.S. federal government had a budget for over 6,000 ETD units at checkpoint and baggage screening points for fiscal year 2023, indicating a significant market opportunity for the TRACER 1000[96]. - The TRACER 1000 is now listed in the United States General Services Administration IT Schedule 70, facilitating sales to the federal government[97]. Financial Performance - Total revenue for the three months ended September 30, 2025, increased by $260 thousand, reaching $297 thousand, compared to $34 thousand in the same period of 2024[117]. - Gross profit rose to $188 thousand with a gross margin of 63%, up from 26% in the prior year, reflecting a shift towards higher margin grant revenue and consumables[118]. - Operating expenses increased by $87 thousand, or 2.4%, totaling $3,724 thousand, driven by higher selling, general and administrative expenses[119]. - Net cash used in operating activities was $3,936 thousand, an increase of $250 thousand compared to $3,686 thousand in the same period of 2024[121]. - Cash provided by investing activities significantly increased by $3,325 thousand, totaling $3,518 thousand, primarily due to selling short-term time deposit investments[124]. - As of September 30, 2025, cash and cash equivalents were $2.7 million, down from $3.1 million as of June 30, 2025[122]. - The company reported a net loss of $3,465 thousand for the three months ended September 30, 2025, compared to a net loss of $3,278 thousand in the same period of 2024[117]. - Other income and expense, net decreased by $279 thousand, primarily due to lower dividend income and a realized loss on securities[119]. - The effective tax rate for the company is 0% for the three months ended September 30, 2025, with expectations of remaining at 0% for the full fiscal year 2026[128]. - The company has approximately $763 thousand of uncertain tax positions as of September 30, 2025, all accounted as contra-deferred tax assets[131]. Product Development and Market Strategy - The AgLAB 1000-D2™ has demonstrated the potential to improve THC and CBD oil yields by approximately 15% to 30% during field trials[107]. - AgLAB is targeting the rapidly growing CBD and hemp market, which is expected to expand due to increasing acceptance of medicinal cannabis products and legislative changes[104]. - The company has entered into a master lease agreement with SC Laboratories for joint marketing of the AgLAB 1000-D2™ mass spectrometer[108]. - The formation of EN-SCAN, a new subsidiary, aims to manufacture instruments for environmental testing, focusing on real-time air, water, and soil analysis[114].

Revenue Growth - Revenue increased to $297 thousand, representing a 35% growth compared to the fourth quarter of fiscal year 2025[5]. - Gross profit for the first quarter of fiscal year 2026 was $188 thousand, up from $9 thousand in the same quarter of the previous year[10]. - Astrotech's subsidiary, 1st Detect, contributed to increased grant revenue and sales of consumables, driving overall revenue growth[5]. Financial Performance - The net loss for the first quarter of fiscal year 2026 was $3.465 million, compared to a net loss of $3.278 million in the same quarter of the previous year[10]. - Total operating expenses were $3.724 million, slightly higher than $3.637 million in the prior year[10]. - Cash and cash equivalents totaled $2.646 million, with total assets amounting to $23.240 million as of September 30, 2025[11]. - The weighted average common shares outstanding increased to 1.673 million from 1.631 million year-over-year[10]. Strategic Initiatives - The company aims to commence revenue growth and global scaling in 2026, focusing on expanding its market presence in the Americas, Europe, and Asia[4]. - The company anticipates its cash reserves will support research and development, organic growth, and potential acquisition targets[5]. Deployment and Operations - The company has deployed the TRACER 1000 in approximately 34 locations across 16 countries as of September 30, 2025[5].

Core Insights - Astrotech Corporation reported a revenue increase of 35% to $297 thousand in the first quarter of fiscal year 2026 compared to the previous quarter, driven by higher grant revenue and increased sales of consumables from its subsidiary, 1st Detect [6][10]. Financial Performance - The gross profit for the first quarter was $188 thousand, with a cost of revenue of $109 thousand [10]. - Total operating expenses amounted to $3.724 million, with selling, general, and administrative expenses at $1.780 million and research and development expenses at $1.944 million [10]. - The net loss for the quarter was $3.465 million, resulting in a net loss per share of $2.07 [10][11]. Company Developments - The company has deployed the TRACER 1000 in approximately 34 locations across 16 countries, enhancing its global presence [6]. - A new Chief Operating Officer, Mr. Nihanth Badugu, was appointed effective August 13, 2025, indicating a strategic move to strengthen leadership [6]. Market Opportunities - Astrotech is focusing on expanding its market reach in transportation, cargo screening, narcotics and explosives detection, environmental testing, and industrial controls [3][4]. - The company is experiencing strong traction with its EN-SCAN environmental testing solutions, which are expected to help customers reduce operating costs and improve response times [4]. Financial Position - As of September 30, 2025, Astrotech had $13.9 million in cash and cash equivalents and liquid investments, which is anticipated to support research and development, organic growth, and potential acquisitions [6].

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]