Financial Performance - Total net sales for the nine months ended November 30, 2025, were $15,299,839, a slight decrease of 0.5% compared to $15,383,416 for the same period in 2024[13] - Gross profit for the nine months ended November 30, 2025, increased to $7,766,492, representing a gross margin of 50.8%, compared to $7,313,783 and a margin of 47.6% in 2024[13] - Operating income for the nine months ended November 30, 2025, was $1,223,494, up 69.5% from $721,923 in the same period last year[13] - Net income for the nine months ended November 30, 2025, was $1,248,637, an increase of 32.1% compared to $945,700 in 2024[13] - Basic earnings per share for the nine months ended November 30, 2025, were $0.08, compared to $0.06 for the same period in 2024[13] Cash and Liquidity - Cash and cash equivalents as of November 30, 2025, were $5,395,695, up from $5,202,361 as of February 28, 2025[11] - Total current assets increased to $20,093,512 as of November 30, 2025, compared to $18,988,465 as of February 28, 2025, reflecting a growth of 5.8%[11] - Cash and cash equivalents at the end of the period were $5,395,695, down from $8,098,750 at the end of the previous year, reflecting a decrease of approximately 33%[20] - The company generated net cash provided by operating activities of $109,661 for the nine months ended November 30, 2025, a significant decrease from $1,199,318 in the prior year[20] Assets and Liabilities - Total liabilities decreased to $4,798,194 as of November 30, 2025, from $5,619,441 as of February 28, 2025, a reduction of 14.6%[11] - Total stockholders' equity rose to $19,132,420 as of November 30, 2025, compared to $17,792,195 as of February 28, 2025, indicating an increase of 7.5%[11] - The company’s total assets increased from $16,278,998 on February 29, 2024, to $19,132,420 on November 30, 2025, indicating a growth of approximately 17%[18] Research and Development - Research and product development costs for the nine months ended November 30, 2025, were $1,934,109, a decrease of 5.8% from $2,054,846 in 2024[13] - Research and product development expenses for the nine months ended November 30, 2025, were $1,934,000, compared to $2,055,000 in 2024[67] Inventory and Receivables - The company’s inventory reserve increased to $45,927 from $32,524 year-over-year, representing a rise of approximately 41%[20] - The company’s accounts receivable increased significantly by $2,063,899 compared to $808,594 in the prior year, indicating a rise of approximately 155%[20] - The Company’s inventories totaled $3,656,898 as of November 30, 2025, down from $4,474,401 as of February 28, 2025, representing a decrease of approximately 18.3%[51] Sales and Revenue - Total sales revenue for the three months ended November 30, 2025, was $5,004,000, a decrease from $5,191,000 in the same period of 2024[50] - For the nine months ended November 30, 2025, total sales revenue was $15,300,000, compared to $15,383,000 for the same period in 2024[50] - Export sales to foreign customers for the nine months ended November 30, 2025, totaled $5,626,000, accounting for 37% of total revenues[63] Customer Concentration - One customer accounted for 38% of sales during the first nine months of fiscal 2026, indicating significant customer concentration risk[64] Stock and Compensation - The weighted average grant date fair value of stock options granted during the nine months ended November 30, 2025, was $3.26 per share[56] - The company reported stock-based compensation expenses of $232,097 for the nine months ended November 30, 2025, compared to $176,076 for the same period in 2024, marking a 32% increase[20] Tax and Regulatory - The company plans to leverage the changes introduced by the One Big Beautiful Bill Act to enhance its tax position and reduce current tax payable for capital expenditures in fiscal year 2026[33]

Seventh Consecutive Quarter of Revenue Over $5 Million Driven by Continued Strength in Medical Market and High-ASP Production Systems Gross Margin Expands to 50% in the Quarter and 51% Year-to-Date Exhibit 99.1 Sono-Tek Reports Fiscal Third Quarter and Nine-Month Fiscal 2026 Financial Results Third Quarter and Nine-Month Net Income Increased 24% and 32% Respectively Backlog Reaches Record $12.3 Million Reflecting Continued Order Momentum Reiterates Full Year FY 2026 Guidance Anticipating Modest Revenue Grow ...

Core Insights - Sono-Tek Corporation reported its fiscal third quarter and nine-month results for 2026, achieving its seventh consecutive quarter of revenue exceeding $5 million, driven by strong demand in the medical market and high-average selling price (ASP) production systems [1][2][3] - The company experienced a gross margin expansion to 50% for the quarter and 51% year-to-date, reflecting effective cost management and a focus on higher-ASP systems [2][3] - Net income for the third quarter increased by 24% to $340,000, while net income for the first nine months rose by 32% to $1.25 million [3][6] Financial Performance - Third quarter net sales were $5.0 million, a decrease of 4% from $5.2 million in the prior-year period [3][4] - Gross profit for the quarter increased by 7% year-over-year to $2.5 million, with gross margin improving from 45% to 50% [3][4] - Operating income surged by 61% to $319,000, indicating improved operational efficiency [3][4] - For the first nine months, net sales totaled $15.3 million, essentially flat compared to the previous year [3][6] Backlog and Guidance - The company's backlog reached a record $12.3 million, reflecting a 16% year-over-year increase, indicating strong customer confidence [1][3] - Sono-Tek reiterated its full-year guidance for FY 2026, anticipating modest revenue growth despite market adjustments related to clean energy initiatives [3][6] Product and Market Highlights - In-Line Coating Systems revenue increased by 126%, driven by shipments to a major solar energy customer [7] - Medical sales rose by 27%, supported by strong demand for balloon catheters, stents, and diagnostic devices [8] - Alternative Energy sales declined by 35% due to reduced U.S. electrolysis activity following policy changes [8][15] Geographic Performance - U.S. and Canada sales increased by 21% in the quarter, supported by high-ASP integrated coating systems [8][20] - Asia Pacific sales declined by 34% in the quarter, while Latin America sales dropped by 50% due to slower activity [8][20] - EMEA sales decreased by 26%, primarily due to softer demand in advanced energy markets [8][20]

Seventh Consecutive Quarter of Revenue Over $5 Million Driven by Continued Strength in Medical Market and High-ASP Production Systems Gross Margin Expands to 50% in the Quarter and 51% Year-to-Date Third Quarter and Nine-Month Net Income Increased 24% and 32% Respectively Backlog Reaches Record $12.3 Million Reflecting Continued Order Momentum Reiterates Full Year FY 2026 Guidance Anticipating Modest Revenue Growth MILTON, N.Y., Jan. 13, 2026 (GLOBE NEWSWIRE) -- Sono-Tek Corporation (Nasdaq: SOTK), the lead ...

Core Insights - Three stocks are highlighted with strong momentum characteristics and a buy rank as of October 21, including Verastem, Inc., Amer Sports, Inc., and Sono-Tek Corporation [1][2][3] Company Summaries - **Verastem, Inc. (VSTM)**: - Zacks Rank 1 - Current year earnings estimate increased by 21.5% over the last 60 days - Shares gained 52.2% over the last three months, outperforming the S&P 500's 5.7% increase - Momentum Score of A [1] - **Amer Sports, Inc. (AS)**: - Zacks Rank 1 - Current year earnings estimate increased by 9.1% over the last 60 days - Shares gained 38.7% over the past six months, compared to the S&P 500's 26.2% increase - Momentum Score of A [2] - **Sono-Tek Corporation (SOTK)**: - Zacks Rank 1 - Current year earnings estimate increased by 37.5% over the last 60 days - Shares gained 15.9% over the last three months, outperforming the S&P 500's 5.7% increase - Momentum Score of A [3]

Core Insights - Five stocks have been added to the Zacks Rank 1 (Strong Buy) List, indicating strong potential for investment returns Group 1: Company Earnings Estimates - Newmont Corporation (NEM) has seen a 6.9% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Royal Bank of Canada (RY) has experienced a 5.6% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Amer Sports, Inc. (AS) has seen a 9.1% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - Verastem, Inc. (VSTM) has experienced a significant 21.5% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - Sono-Tek Corporation (SOTK) has seen a remarkable 37.5% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [3]

Core Viewpoint - Sono-Tek Corporation (SOTK) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][4]. Earnings Estimates and Ratings - The Zacks rating system is primarily driven by changes in a company's earnings picture, with the Zacks Consensus Estimate reflecting EPS estimates from sell-side analysts [2][3]. - The recent upgrade for Sono-Tek suggests an improvement in its earnings outlook, likely leading to increased buying pressure and a rise in stock price [4][6]. Impact of Earnings Estimate Revisions - There is a strong correlation between earnings estimate revisions and near-term stock price movements, making it beneficial for investors to track these revisions [7]. - The Zacks Rank system effectively utilizes earnings estimate revisions to classify stocks, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [8]. Specifics on Sono-Tek's Earnings Estimates - Sono-Tek is projected to earn $0.08 per share for the fiscal year ending February 2026, with no year-over-year change expected [9]. - Over the past three months, the Zacks Consensus Estimate for Sono-Tek has increased by 100%, indicating a significant upward revision in earnings expectations [9]. Conclusion on Zacks Rating System - The Zacks rating system maintains a balanced distribution of "buy" and "sell" ratings across its universe of over 4,000 stocks, with only the top 5% receiving a "Strong Buy" rating [10]. - Sono-Tek's upgrade to Zacks Rank 1 places it in the top 5% of stocks based on estimate revisions, suggesting potential for market-beating returns in the near term [11].

Financial Data and Key Metrics Changes - For the second quarter, revenue increased slightly to $5,160,000 compared to $5,130,000 in the previous quarter, marking the sixth consecutive quarter of revenue over $5,000,000 [20][29] - Net income for the quarter increased 27% to $431,000 compared to $340,000 last year, reflecting higher gross profit and lower operating expenses [20][33] - For the first half of fiscal year 2026, total sales reached a record $10,300,000, up from $10,190,000 in the previous year, with net income increasing 36% to $917,000 [23][37] Business Line Data and Key Metrics Changes - Medical market sales increased by 150% year over year to $1,000,000, driven by balloon coating systems shipped to the U.S., Europe, and China [19][22] - Integrated Coatings Systems sales decreased by 24% to $1,530,000, primarily due to a customer-requested delivery delay [21] - OEM sales increased by 92% to $394,000, driven by strong shipments to Fluxer OEMs and new optics-related OEM wins [21] Market Data and Key Metrics Changes - U.S.-Canada sales decreased by 22% year over year, driven by slowing momentum in the clean energy industry [20] - Sales in Asia increased by 153% year over year, with major growth in China and other parts of Asia [20] - EMEA sales increased by 25%, while Latin America sales decreased by $74,000 [21] Company Strategy and Development Direction - The company has shifted to offering larger, more complex systems, which has broadened its addressable market and increased average unit selling prices [9][16] - The diversification strategy has shown momentum in the medical device industry, offsetting declines in clean energy orders [14][27] - Investments in R&D and application engineering are aimed at enhancing customer partnerships and driving long-term growth [64][66] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth, supported by a solid backlog of $11,200,000 and a strong balance sheet with $10,600,000 in cash and no debt [15][26] - The company anticipates modest revenue growth for the full fiscal year, balancing caution with expected demand from the medical device industry [15][27] - Management noted that the clean energy sector is expected to decline this year, but diversification efforts are expected to mitigate this impact [14][27] Other Important Information - The company reported a gross profit margin increase to 50% for the second quarter, attributed to a favorable product mix and reduced costs [29][30] - The company has invested $1,300,000 in R&D for the first half of fiscal year 2026, compared to $1,400,000 in the previous year [26][34] - The company maintains a strong cash position with no outstanding debt, allowing for continued investment in growth initiatives [37] Q&A Session Summary Question: Insights on medical device strength and Chinese exposure - Management noted that despite challenges in the Chinese market, significant orders have been captured due to superior quality compared to local competitors [42][45] Question: Details on new optics-related OEMs - Management indicated that these new partnerships are significant for long-term market entry, although immediate revenue impact may be limited [76] Question: Semiconductor market outlook - Management reported strong interest from customers at a recent trade show, indicating potential growth in the semiconductor sector [79] Question: Backlog revenue recognition timeframe - The majority of recent large orders will be recognized in FY 2027, with some expected to ship in the current fiscal year [87] Question: Projections for second half sales - Management expects Q3 to be slightly higher than Q4 due to a system shipment delay [90]

Core Insights - Sono-Tek Corporation (SOTK) reported quarterly earnings of $0.03 per share, exceeding the Zacks Consensus Estimate of $0.02 per share, marking a 50% earnings surprise [1][2] - The company posted revenues of $5.16 million for the quarter ended August 2025, which matched year-ago revenues but fell short of the Zacks Consensus Estimate by 0.71% [2] - Sono-Tek has surpassed consensus EPS estimates three times over the last four quarters and has topped revenue estimates twice in the same period [2] Earnings Outlook - The sustainability of the stock's price movement will largely depend on management's commentary during the earnings call and future earnings expectations [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.01 on revenues of $4.93 million, while for the current fiscal year, it is $0.08 on revenues of $20.33 million [7] Industry Context - The Electronics - Semiconductors industry, to which Sono-Tek belongs, is currently ranked in the top 33% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked using tools like the Zacks Rank [5][6]

Financial Performance - Total net sales for the six months ended August 31, 2025, were $10,295,469, a 1.0% increase from $10,192,820 in the same period of 2024[12] - Gross profit for the six months ended August 31, 2025, was $5,254,251, compared to $4,970,584 for the same period in 2024, reflecting a gross margin increase[12] - Operating income increased to $904,522 for the six months ended August 31, 2025, up from $524,286 in the prior year, representing a 72.2% increase[12] - Net income for the six months ended August 31, 2025, was $908,678, a 35.3% increase from $671,522 in the same period of 2024[12] - Total revenues for the six months ended August 31, 2025, were $10,295,000, a slight increase from $10,193,000 in the same period of 2024[60] - Net income for the six months ended August 31, 2025, was $908,000, compared to $672,000 for the same period in 2024, representing a 35% increase[60] Cash and Assets - Cash and cash equivalents decreased to $3,832,133 as of August 31, 2025, down from $5,202,361 at the end of February 2025[10] - Total current assets increased to $19,121,678 as of August 31, 2025, compared to $18,988,465 at the end of February 2025[10] - Total stockholders' equity rose to $18,695,669 as of August 31, 2025, up from $17,792,195 at the end of February 2025[10] - As of August 31, 2025, the Company reported cash and cash equivalents of $1,653,000 exceeding the insured limit by the Federal Deposit Insurance Corporation[22] - The fair value of marketable securities was $6,736,469 as of August 31, 2025, compared to $6,727,678 as of February 28, 2025, indicating a slight increase[28] Expenses and Costs - Research and product development costs for the six months ended August 31, 2025, were $1,295,748, a decrease from $1,427,303 in the same period of 2024[12] - The total cost of goods and services for the six months ended August 31, 2025, was $5,041,000, compared to $5,222,000 in the same period of 2024, showing a decrease of approximately 3.5%[60] - Total operating expenses for the six months ended August 31, 2025, were $4,350,000, compared to $4,446,000 for the same period in 2024[60] Inventory and Revenue Recognition - Inventories totaled $4,152,027 as of August 31, 2025, down from $4,474,401 as of February 28, 2025[44] - The Company recorded approximately $67,000 in additional allowances for slow-moving inventory during the six months ended August 31, 2025[46] - The Company recognized $1,859,000 in revenue from cash deposits during the six months ended August 31, 2025[42] - The Company’s performance obligations are primarily satisfied upon the transfer of control of manufactured equipment to customers[40] - As of August 31, 2025, the Company had contract liabilities of approximately $1,907,000 in cash deposits[42] Customer and Market Information - Sales to foreign customers accounted for approximately $4,033,000, or 39% of total revenues for the first half of fiscal 2026, compared to 35% in fiscal 2025[55] - The Company had one customer that accounted for 43% of total sales during the first half of fiscal 2026, indicating a high customer concentration risk[57] Stock Options and Compensation - The Company granted options to acquire 140,277 shares to employees and 35,088 shares to non-employee directors during the six months ended August 31, 2025, with exercise prices ranging from $3.25 to $3.77[49] - For the six months ended August 31, 2025, the Company recognized $146,000 in stock-based compensation expense, compared to $97,000 for the same period in 2024, reflecting a 50% increase[50] - The aggregate intrinsic value of the Company's vested and exercisable options at August 31, 2025, was approximately $30,000[51] - The weighted average Black-Scholes assumptions for options granted included a risk-free interest rate of 3.81% to 4.32% and expected volatility of 54.49% to 56.95%[50] Credit and Financing - The Company has a $1,500,000 revolving line of credit, with $106,000 utilized for Letters of Credit as of August 31, 2025, leaving an unused portion of $1,394,000[53] Legislative Impact - The One Big Beautiful Bill Act, signed into law on July 4, 2025, reinstated 100% bonus depreciation for qualified property, impacting future tax calculations[30] Company Operations - The company continues to focus on the design and manufacture of ultrasonic coating systems for various markets, including microelectronics and medical applications[20] - The company is a leader in designing and manufacturing ultrasonic coating systems for various markets, including microelectronics and medical sectors, focusing on custom-engineered solutions[20]