Despite a 15.2% year-over-year revenue increase in 2026Q1, the company struggles to achieve consistent profitability, with operating margins frequently dipping into negative territory, such as the -8.5% reported in the most recent quarter.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 10.48M | 10.14M | 9.37M | 8.55M | 9.03M | 8.61M | 7.62M | 8.26M | 7.5M | 7.84M | 7.09M | 7.64M | 7.04M | 6.54M | 6.5M | 6.12M | 6.2M | 5.9M | 6.73M | 7.09M | 5.76M | 4.9M | 4.8M | 4.36M | 4.48M | 4.63M | 6.01M | 5.68M | 6.4M | 6.4M | 6.1M |
| Revenue Growth % | 11.89% | 8.2% | 9.56% | -5.25% | 4.9% | 12.94% | -7.71% | 10.18% | -4.4% | 10.63% | -7.19% | 8.45% | 7.64% | 0.66% | 6.26% | -1.39% | 5.08% | -12.3% | -5.12% | 23.21% | 17.4% | 2.17% | 10.13% | -2.69% | -3.18% | -23.04% | 5.76% | -11.21% | 0% | 4.92% | -1.61% |
| Cost of Goods Sold | 5.09M | 4.99M | 4.79M | 4.31M | 4.19M | 3.93M | 3.69M | 3.89M | 3.45M | 3.54M | 3.2M | 3.41M | 2.96M | 2.8M | 2.86M | 2.61M | 2.49M | 2.44M | 2.55M | 2.57M | 2.06M | 1.91M | 1.82M | 1.7M | 1.86M | 1.91M | 2.27M | 2.36M | 2.6M | 2.6M | 2.5M |
| COGS % of Revenue | - | 49.15% | 51.11% | 50.38% | 46.38% | 45.66% | 48.43% | 47.13% | 46% | 45.17% | 45.2% | 44.66% | 41.97% | 42.78% | 43.98% | 42.73% | 40.15% | 41.28% | 37.84% | 36.22% | 35.77% | 39.02% | 37.95% | 39.01% | 41.49% | 41.33% | 37.76% | 41.46% | 40.63% | 40.63% | 40.98% |
| Gross Profit | 5.39M | 5.16M | 4.58M | 4.25M | 4.84M | 4.68M | 3.93M | 4.37M | 4.05M | 4.3M | 3.88M | 4.23M | 4.09M | 3.74M | 3.64M | 3.5M | 3.71M | 3.46M | 4.18M | 4.52M | 3.7M | 2.99M | 2.98M | 2.66M | 2.62M | 2.71M | 3.74M | 3.33M | 3.8M | 3.8M | 3.6M |
| Gross Margin % | 51.47% | 50.85% | 48.89% | 49.62% | 53.62% | 54.34% | 51.57% | 52.87% | 54% | 54.83% | 54.8% | 55.34% | 58.03% | 57.22% | 56.02% | 57.27% | 59.85% | 58.72% | 62.16% | 63.78% | 64.23% | 60.98% | 62.05% | 60.99% | 58.51% | 58.67% | 62.24% | 58.54% | 59.38% | 59.38% | 59.02% |
| Gross Profit Growth % | - | 12.55% | 7.94% | -12.31% | 3.51% | 19.01% | -9.99% | 7.88% | -5.86% | 10.68% | -8.09% | 3.43% | 9.16% | 2.83% | 3.94% | -5.63% | 7.1% | -17.16% | -7.52% | 22.34% | 23.65% | 0.4% | 12.06% | 1.42% | -3.44% | -27.45% | 12.43% | -12.46% | 0% | 5.56% | 0% |
| Operating Expenses | 5.44M | 5.16M | 4.59M | 4.27M | 4.88M | 4.24M | 4.13M | 4.4M | 4.19M | 3.89M | 3.71M | 3.94M | 3.69M | 3.35M | 2.81M | 2.76M | 3.01M | 3.05M | 3.27M | 3.17M | 3.02M | 2.99M | 3.04M | 3.01M | 3.21M | 2.92M | 3.26M | 3.39M | 3.4M | 3.1M | 3.1M |
| OpEx % of Revenue | - | 50.83% | 48.93% | 49.95% | 54.03% | 49.22% | 54.24% | 53.25% | 55.93% | 49.6% | 52.41% | 51.55% | 52.48% | 51.28% | 43.23% | 45.17% | 48.52% | 51.75% | 48.52% | 44.73% | 52.38% | 60.92% | 63.33% | 69.17% | 71.71% | 63.09% | 54.21% | 59.73% | 53.13% | 48.44% | 50.82% |
| Selling, General & Admin | 4.42M | 4.16M | 3.57M | 3.3M | 4.04M | 3.36M | 3.3M | 3.59M | 3.38M | 3.08M | 2.95M | 3.18M | 2.88M | 2.79M | 2.37M | 2.33M | 2.35M | 2.41M | 2.63M | 2.6M | 2.45M | 2.24M | 2.28M | 2.24M | 2.12M | 2.1M | 2.25M | 2.42M | 2.6M | 2.4M | 2.3M |
| SG&A % of Revenue | - | 41.06% | 38.12% | 38.57% | 44.77% | 39.04% | 43.28% | 43.42% | 45.08% | 39.25% | 41.58% | 41.68% | 40.97% | 42.72% | 36.41% | 38.02% | 37.95% | 40.86% | 39.16% | 36.66% | 42.53% | 45.69% | 47.45% | 51.45% | 47.36% | 45.38% | 37.42% | 42.66% | 40.63% | 37.5% | 37.7% |
| Research & Development | 1.02M | 991K | 1.01M | 973K | 836K | 876K | 836K | 811K | 813K | 812K | 767K | 753K | 810K | 560K | 443K | 437K | 656K | 643K | 630K | 572K | 567K | 747K | 762K | 772.39K | 1.09M | 819.39K | 862.5K | 830.13K | 700K | 600K | 700K |
| R&D % of Revenue | - | 9.77% | 10.81% | 11.37% | 9.26% | 10.18% | 10.97% | 9.82% | 10.85% | 10.36% | 10.82% | 9.86% | 11.5% | 8.56% | 6.82% | 7.15% | 10.58% | 10.9% | 9.36% | 8.07% | 9.85% | 15.24% | 15.88% | 17.73% | 24.35% | 17.72% | 14.35% | 14.61% | 10.94% | 9.38% | 11.48% |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 8K | 10K | 15K | 16K | 15K | 14K | 13K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 146.65K | 139.9K | 100K | 100K | 100K |
| Operating Income | -47K | 2K | -4K | -28K | -37K | 441K | -204K | -31K | -145K | 410K | 170K | 290K | 391K | 389K | 831K | 740K | 702K | 411K | 918K | 1.35M | 682K | 3K | -61K | -356.62K | -590.77K | -204.72K | 482.45K | -67.13K | 400K | 700K | 500K |
| Operating Margin % | -0.45% | 0.02% | -0.04% | -0.33% | -0.41% | 5.12% | -2.68% | -0.38% | -1.93% | 5.23% | 2.4% | 3.8% | 5.55% | 5.95% | 12.79% | 12.1% | 11.32% | 6.96% | 13.64% | 19.05% | 11.85% | 0.06% | -1.27% | -8.18% | -13.19% | -4.43% | 8.03% | -1.18% | 6.25% | 10.94% | 8.2% |
| Operating Income Growth % | - | 150% | 85.71% | 24.32% | -108.39% | 316.18% | -558.06% | 78.62% | -135.37% | 141.18% | -41.38% | -25.83% | 0.51% | -53.19% | 12.3% | 5.41% | 70.8% | -55.23% | -32.05% | 98.09% | 22633.33% | 104.92% | 82.89% | 39.63% | -188.58% | -142.43% | 818.68% | -116.78% | -42.86% | 40% | -50% |
| EBITDA | 40K | 91K | 88K | 66K | 108K | 736K | 156K | 289K | 176K | 718K | 483K | 638K | 600K | 499K | 902K | 797K | 794K | 522K | 1.04M | 1.43M | 758K | 100K | 22K | -257.99K | -493.17K | -51.36K | 629.09K | 72.77K | 500K | 800K | 600K |
| EBITDA Margin % | 0.38% | 0.9% | 0.94% | 0.77% | 1.2% | 8.55% | 2.05% | 3.5% | 2.35% | 9.16% | 6.82% | 8.36% | 8.52% | 7.63% | 13.88% | 13.03% | 12.8% | 8.85% | 15.46% | 20.21% | 13.17% | 2.04% | 0.46% | -5.92% | -11.01% | -1.11% | 10.47% | 1.28% | 7.81% | 12.5% | 9.84% |
| EBITDA Growth % | 122.22% | 3.41% | 33.33% | -38.89% | -85.33% | 371.79% | -46.02% | 64.2% | -75.49% | 48.65% | -24.29% | 6.33% | 20.24% | -44.68% | 13.17% | 0.38% | 52.11% | -49.81% | -27.43% | 89.05% | 658% | 354.55% | 108.53% | 47.69% | -860.15% | -108.16% | 764.48% | -85.45% | -37.5% | 33.33% | -45.45% |
| D&A (Non-Cash Add-back) | 87K | 89K | 92K | 94K | 145K | 295K | 360K | 320K | 321K | 308K | 313K | 348K | 209K | 110K | 71K | 57K | 92K | 111K | 122K | 82K | 76K | 97K | 83K | 98.63K | 97.6K | 153.35K | 146.65K | 139.9K | 100K | 100K | 100K |
| EBIT | 216K | 353K | 436K | 379K | 73K | 460K | -169K | 188K | -17K | 458K | 205K | 273K | 391K | 389K | 1.64M | 740K | 719K | 411K | 918K | 1.35M | 682K | 3K | -61K | -356.62K | -590.77K | -204.72K | 482.45K | -67.13K | 400K | 700K | 500K |
| Net Interest Income | 331K | 345K | 440K | 406K | 109K | 4K | 33K | 207K | 119K | 38K | 19K | -11K | -15K | 5K | 4K | 6K | 2K | 11K | 94K | 240K | 292K | 200K | 86K | 61.69K | 222.68K | 119.19K | 130.84K | 0 | 0 | 0 | 0 |
| Interest Income | 337K | 351K | 440K | 407K | 110K | 5K | 36K | 209K | 120K | 38K | 20K | 0 | 2K | 5K | 4K | 6K | 2K | 11K | 94K | 240K | 292K | 200K | 86K | 61.69K | 222.68K | 119.19K | 130.84K | 0 | 0 | 0 | 0 |
| Interest Expense | 6K | 6K | 0 | 1K | 1K | 1K | 3K | 2K | 1K | 0 | 1K | 11K | 17K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 328K | 345K | 440K | 406K | 109K | 18K | 32K | 217K | 127K | 48K | 34K | 1.45M | 1.16M | 549K | 811K | 69K | 11K | 24K | 72K | 250K | 2.07M | 1.19M | 355K | 532.54K | 1.88M | 5.36M | 552.29K | -10.38K | -100K | 0 | 300K |
| Pretax Income | 281K | 347K | 436K | 378K | 72K | 459K | -172K | 186K | -18K | 458K | 204K | 1.74M | 1.55M | 938K | 1.64M | 809K | 713K | 435K | 990K | 1.6M | 2.75M | 1.19M | 294K | 175.92K | 1.29M | 5.45M | 1.03M | -77.51K | 300K | 700K | 800K |
| Pretax Margin % | 2.68% | 3.42% | 4.65% | 4.42% | 0.8% | 5.33% | -2.26% | 2.25% | -0.24% | 5.84% | 2.88% | 22.84% | 22.07% | 14.34% | 25.27% | 13.23% | 11.5% | 7.37% | 14.71% | 22.57% | 47.86% | 24.25% | 6.13% | 4.04% | 28.73% | 117.93% | 17.22% | -1.36% | 4.69% | 10.94% | 13.11% |
| Income Tax | 27K | 41K | -10K | 103K | -28K | 49K | -48K | -1K | -8K | 163K | 2K | 530K | 460K | 232K | 556K | 211K | 186K | 101K | 384K | 405K | 1.03M | 428K | 122K | 320K | 640.7K | 1.87M | 353K | -55.1K | 100K | 200K | 300K |
| Effective Tax Rate % | 9.61% | 11.82% | -2.29% | 27.25% | -38.89% | 10.68% | 27.91% | -0.54% | 44.44% | 35.59% | 0.98% | 30.39% | 29.6% | 24.73% | 33.86% | 26.08% | 26.09% | 23.22% | 38.79% | 25.3% | 37.42% | 36% | 41.5% | 181.9% | 49.79% | 34.2% | 34.11% | 71.08% | 33.33% | 28.57% | 37.5% |
| Net Income | 254K | 306K | 446K | 275K | 100K | 410K | -124K | 187K | -10K | 295K | 202K | 1.21M | 1.09M | 706K | 1.09M | 548K | 527K | 334K | 606K | 1.2M | 1.72M | 761K | 172K | -144.08K | 646.02K | 3.52M | 681.74K | -22.41K | 200K | 500K | 500K |
| Net Margin % | 2.42% | 3.02% | 4.76% | 3.21% | 1.11% | 4.76% | -1.63% | 2.26% | -0.13% | 3.76% | 2.85% | 15.9% | 15.54% | 10.79% | 16.71% | 8.96% | 8.5% | 5.66% | 9.01% | 16.86% | 29.95% | 15.52% | 3.58% | -3.31% | 14.43% | 76.02% | 11.34% | -0.39% | 3.13% | 7.81% | 8.2% |
| Net Income Growth % | -31.54% | -31.39% | 62.18% | 175% | -75.61% | 430.65% | -166.31% | 1970% | -103.39% | 46.04% | -83.36% | 10.97% | 54.96% | -34.99% | 98.18% | 3.98% | 57.78% | -44.88% | -49.33% | -30.63% | 126.54% | 342.44% | 219.38% | -122.3% | -81.63% | 415.78% | 3141.72% | -111.21% | -60% | 0% | -37.5% |
| Net Income (Continuing) | 254K | 306K | 446K | 275K | 100K | 410K | -124K | 187K | -10K | 295K | 202K | 1.21M | 1.09M | 706K | 1.09M | 598K | 540K | 334K | 606K | 1.2M | 1.72M | 761K | 172K | -144.08K | 646.02K | 3.29M | 681.74K | -22.41K | 200K | 500K | 500K |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.07 | 0.09 | 0.13 | 0.08 | 0.03 | 0.12 | -0.04 | 0.06 | -0.00 | 0.09 | 0.06 | 0.36 | 0.30 | 0.20 | 0.31 | 0.16 | 0.15 | 0.10 | 0.18 | 0.35 | 0.51 | 0.23 | 0.05 | -0.05 | 0.20 | 1.00 | 0.22 | -0.01 | 0.08 | 0.15 | 0.16 |
| EPS Growth % | -31.54% | -32% | 62.09% | 175.6% | -75.75% | 428.77% | -166.36% | - | -103.22% | 50% | -83.33% | 20% | 50% | -35.48% | 93.75% | 6.67% | 50% | -44.44% | -48.57% | -31.37% | 121.74% | 360% | 209.89% | -122.75% | -80% | 354.55% | - | -109.5% | -46.67% | -6.25% | -40.74% |
| EPS (Basic) | - | 0.09 | 0.13 | 0.08 | 0.03 | 0.12 | -0.04 | 0.06 | -0.00 | 0.09 | 0.06 | 0.36 | 0.32 | 0.20 | 0.32 | 0.16 | 0.16 | 0.10 | 0.18 | 0.36 | 0.52 | 0.24 | 0.05 | -0.05 | 0.21 | 1.03 | 0.23 | -0.01 | 0.08 | 0.15 | 0.16 |
| Diluted Shares Outstanding | 3.51M | 3.46M | 3.44M | 3.43M | 3.43M | 3.44M | 3.4M | 3.4M | 3.4M | 3.4M | 3.4M | 3.4M | 3.65M | 3.5M | 3.41M | 3.41M | 3.4M | 3.4M | 3.4M | 3.4M | 3.36M | 3.33M | 3.32M | 3.17M | 3.25M | 3.21M | 3.04M | 2.97M | 2.96M | 3.33M | 3.08M |
| Basic Shares Outstanding | 3.51M | 3.46M | 3.44M | 3.43M | 3.4M | 3.4M | 3.4M | 3.4M | 3.4M | 3.4M | 3.4M | 3.4M | 3.4M | 3.39M | 3.39M | 3.39M | 3.38M | 3.37M | 3.37M | 3.36M | 3.31M | 3.23M | 3.21M | 3.17M | 3.15M | 3.12M | 3M | 2.97M | 2.95M | 3.33M | 2.95M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | 38.53% | 50% | 99.09% | 102.47% | 161.38% | 88.94% | 44.98% | 224.71% | 67.94% | 298.26% | - | 58.45% | 10.65% | 35.18% | - | 100% | 40% | 240% |
Operating leverage scale deficiency
As reported in recent financial filings, Electro-Sensors achieved a 15.2% year-over-year revenue increase in 2026Q1, yet this growth remains inconsistent across the trailing ten quarters, suggesting that the company's top-line performance is highly sensitive to the timing of project-based industrial capital expenditure cycles.
The recent uptick in revenue growth appears to reflect successful market penetration of the HazardPRO wireless ecosystem, though the lack of consistent sequential acceleration warrants caution. Investors should monitor whether this growth represents a sustainable shift toward system-based sales or merely a temporary recovery in legacy sensor demand.
Based on the provided income statement data, Electro-Sensors maintains a robust gross margin profile, consistently hovering around the 50% threshold, which indicates significant pricing power within its specialized niche despite the inherent volatility of its hardware-centric business model and fluctuating input costs for electronic components.
The ability to sustain gross margins above 50% suggests that the company's proprietary wireless monitoring technology commands a premium in hazardous-location environments. However, the stability of these margins may be tested if the company fails to pass through inflationary pressures in specialized sensor housing and semiconductor materials.
According to the latest quarterly figures, the company's operating margin remains near zero, demonstrating that despite healthy gross profits, the firm struggles to scale its operating income due to a high fixed-cost base relative to its current revenue volume of approximately $2.6 million per quarter.
The persistent burden of SG&A and R&D expenses suggests that Electro-Sensors has yet to achieve the necessary operational scale to translate gross profit into meaningful bottom-line growth. This structural limitation implies that any minor increase in operating expenditures could quickly push the company into sustained net losses.
As evidenced by the company's $10.5 million cash balance relative to its modest revenue, the market appears to value Electro-Sensors primarily as a cash-heavy asset play, potentially ignoring the risk that the core business may be fundamentally stagnant and unable to generate consistent, scalable operating income.
Short-term observers might argue that the company's inability to deploy its significant cash reserves for growth initiatives suggests a lack of strategic vision or viable investment opportunities. Investors should consider whether the current valuation is supported by the underlying business performance or if it is merely a reflection of the company's net cash position.
Quick answers to the most common questions about buying ELSE stock.
For fiscal year 2025, Electro-Sensors, Inc. (ELSE) reported total revenue of $10.1M. This represents a 66.3% increase compared to $6.1M in 1996.
Electro-Sensors, Inc. (ELSE) is profitable, generating $0.3M in net income for the fiscal year ending 2025 with a net profit margin of 3.0%.
Electro-Sensors, Inc. (ELSE) reported an operating income of $0.0M, resulting in an operating profit margin of 0.0%. This margin reflects the operational efficiency of the business before interest and taxes.
Electro-Sensors, Inc. (ELSE) generated $5.2M in gross profit for the year, representing a gross profit margin of 50.8%. This demonstrates the company's core pricing power and production efficiency.