Hurco Companies, Inc. (HURC) Income Statement

The 16.5% sequential-period growth in 2026Q2 reversed into a much softer 3.2% in 2026Q3, indicating the top line is oscillating rather than compounding. Without disclosed volume versus pricing or organic versus acquired breakdowns, it is difficult to judge whether recent gains reflect demand recovery or timing effects, so investors should monitor whether the 2026 quarters can hold above $45M.

The jump to 28.2% from a range of roughly 18% to 23% over the prior nine quarters is a large step change in a single period, which analytically suggests either a favorable one-time product or cost effect or a shift in revenue mix. Peer gross margins in the supplied set range from 26.5% at Astec to over 50% at Semtech, leaving HURC closer to the lower-margin industrial machinery group than to higher-margin technology names.

SG&A consumed roughly 23% of revenue in 2026Q3, which means the business requires gross margins well above 23% just to break even at the operating line. The swing from an operating loss of $3.5M in 2025Q4 to operating income of $2.5M in 2026Q3 shows operating leverage working in the upward direction, but it also shows how fragile profitability is to modest gross margin movements.