Revenue has contracted significantly over the last nine quarters, while gross margins have compressed from a 18.9% peak in 2023Q4 to 15.5% in 2026Q1.
| 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 | 121.79M | 118.36M | 128.13M | 139.33M | 134.12M | 115.17M | 104.11M | 116.33M | 113.37M | 112.33M | 116.62M | 115.19M | 112.04M | 111.06M | 106.94M | 114.24M | 99.82M | 79.94M | 121.85M | 118.1M | 105.15M | 84.22M | 72.67M | 57.96M | 60.66M | 58.46M | 54.75M | 38.48M | 40.4M | 36.4M | 26.2M |
| Revenue Growth % | 0.81% | -7.62% | -8.04% | 3.88% | 16.46% | 10.63% | -10.51% | 2.61% | 0.92% | -3.68% | 1.24% | 2.81% | 0.89% | 3.85% | -6.39% | 14.44% | 24.87% | -34.4% | 3.18% | 12.32% | 24.85% | 15.88% | 25.39% | -4.45% | 3.75% | 6.77% | 42.28% | -4.75% | 10.99% | 38.93% | 43.17% |
| Cost of Goods Sold | 102.16M | 100.36M | 111.41M | 116.23M | 113.64M | 99.3M | 95.65M | 103.76M | 100.06M | 100.22M | 102.78M | 103.13M | 98.71M | 97.94M | 94.54M | 100.89M | 88.39M | 74.14M | 105M | 101.92M | 92.37M | 74.18M | 64.14M | 51.46M | 50.14M | 48.01M | 43.33M | 31.03M | 32.7M | 28.5M | 20.9M |
| COGS % of Revenue | - | 84.79% | 86.95% | 83.42% | 84.73% | 86.23% | 91.88% | 89.19% | 88.26% | 89.21% | 88.13% | 89.53% | 88.1% | 88.19% | 88.41% | 88.32% | 88.55% | 92.75% | 86.17% | 86.3% | 87.85% | 88.09% | 88.25% | 88.79% | 82.66% | 82.13% | 79.13% | 80.64% | 80.94% | 78.3% | 79.77% |
| Gross Profit | 19.63M | 18.01M | 16.72M | 23.1M | 20.48M | 15.86M | 8.46M | 12.58M | 13.31M | 12.12M | 13.84M | 12.06M | 13.33M | 13.12M | 12.39M | 13.34M | 11.43M | 5.8M | 16.86M | 16.18M | 12.78M | 10.03M | 8.54M | 6.49M | 10.52M | 10.45M | 11.43M | 7.45M | 7.7M | 7.9M | 5.3M |
| Gross Margin % | 16.12% | 15.21% | 13.05% | 16.58% | 15.27% | 13.77% | 8.12% | 10.81% | 11.74% | 10.79% | 11.87% | 10.47% | 11.9% | 11.81% | 11.59% | 11.68% | 11.45% | 7.25% | 13.83% | 13.7% | 12.15% | 11.91% | 11.75% | 11.21% | 17.34% | 17.87% | 20.87% | 19.36% | 19.06% | 21.7% | 20.23% |
| Gross Profit Growth % | - | 7.68% | -27.62% | 12.81% | 29.1% | 87.63% | -32.77% | -5.52% | 9.85% | -12.45% | 14.77% | -9.56% | 1.66% | 5.82% | -7.12% | 16.74% | 97.12% | -65.6% | 4.17% | 26.61% | 27.39% | 17.49% | 31.47% | -38.26% | 0.7% | -8.57% | 53.34% | -3.24% | -2.53% | 49.06% | 26.19% |
| Operating Expenses | 17M | 16.77M | 16.92M | 17.15M | 16.59M | 13.59M | 10.52M | 12.35M | 12.06M | 12.83M | 13.21M | 12.48M | 12M | 11.66M | 10.93M | 11.83M | 10.14M | 10.31M | 13.39M | 12.53M | 10.13M | 7.92M | 7.21M | 5.71M | 6.3M | 6.21M | 7.35M | 4.99M | 6.2M | 5.9M | 4.3M |
| OpEx % of Revenue | - | 14.16% | 13.2% | 12.31% | 12.37% | 11.8% | 10.1% | 10.62% | 10.64% | 11.42% | 11.33% | 10.84% | 10.71% | 10.5% | 10.22% | 10.36% | 10.16% | 12.9% | 10.98% | 10.61% | 9.63% | 9.4% | 9.92% | 9.85% | 10.39% | 10.63% | 13.42% | 12.96% | 15.35% | 16.21% | 16.41% |
| Selling, General & Admin | 15.84M | 15.59M | 15.15M | 15.95M | 15.14M | 12.36M | 10.52M | 12.35M | 12.06M | 12.83M | 13.21M | 12.48M | 12M | 11.66M | 10.93M | 11.83M | 10.14M | 10.31M | 13.39M | 12.53M | 10.13M | 7.92M | 7.21M | 5.71M | 6.3M | 6.21M | 6.28M | 4.05M | 4.8M | 4.5M | 3.3M |
| SG&A % of Revenue | - | 13.17% | 11.83% | 11.45% | 11.29% | 10.73% | 10.1% | 10.62% | 10.64% | 11.42% | 11.33% | 10.84% | 10.71% | 10.5% | 10.22% | 10.36% | 10.16% | 12.9% | 10.98% | 10.61% | 9.63% | 9.4% | 9.92% | 9.85% | 10.39% | 10.63% | 11.47% | 10.52% | 11.88% | 12.36% | 12.6% |
| Research & Development | 1.16M | 1.17M | 1.19M | 1.2M | 1.46M | 483K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 300K | 300K | 300K |
| R&D % of Revenue | - | 0.99% | 0.93% | 0.86% | 1.09% | 0.42% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | 0.74% | 0.82% | 1.15% |
| Other Operating Expenses | 0 | 0 | 571K | 0 | -15K | 746K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 21.13K | -92.98K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.07M | 940.1K | 1.1M | 1.1M | 700K |
| Operating Income | 2.63M | 1.24M | -195K | 5.95M | 3.89M | 2.27M | -2.06M | 224K | 1.25M | -1.27M | 629.06K | -422.05K | 1.33M | 1.46M | 1.46M | 1.51M | 1.23M | -5.48M | 3.47M | 3.65M | 2.65M | 2.11M | 1.33M | 785.19K | 4.22M | 4.23M | 4.08M | 2.46M | 1.5M | 2M | 1M |
| Operating Margin % | 2.16% | 1.05% | -0.15% | 4.27% | 2.9% | 1.97% | -1.98% | 0.19% | 1.1% | -1.13% | 0.54% | -0.37% | 1.19% | 1.31% | 1.37% | 1.32% | 1.23% | -6.86% | 2.85% | 3.09% | 2.52% | 2.51% | 1.83% | 1.35% | 6.95% | 7.24% | 7.44% | 6.4% | 3.71% | 5.49% | 3.82% |
| Operating Income Growth % | - | 736.41% | -103.28% | 53.11% | 71.13% | 210.18% | -1020.54% | -82.07% | 198.47% | -301.63% | 249.05% | -131.77% | -8.69% | -0.38% | -3.42% | 22.94% | 122.43% | -258.06% | -4.87% | 37.7% | 25.38% | 59.16% | 69.06% | -81.38% | -0.34% | 3.82% | 65.39% | 64.28% | -25% | 100% | -28.57% |
| EBITDA | 3.87M | 2.53M | 1.54M | 8M | 5.81M | 4.22M | 131K | 2.44M | 3.44M | 1.15M | 2.92M | 1.84M | 3.36M | 3.47M | 3.32M | 3.55M | 2.93M | -3.56M | 5.35M | 5.47M | 4.25M | 3.7M | 2.83M | 2.43M | 5.6M | 5.41M | 5.15M | 3.4M | 2.6M | 3.1M | 1.7M |
| EBITDA Margin % | 3.18% | 2.14% | 1.2% | 5.74% | 4.33% | 3.67% | 0.13% | 2.1% | 3.03% | 1.03% | 2.51% | 1.59% | 3% | 3.12% | 3.11% | 3.11% | 2.93% | -4.45% | 4.39% | 4.63% | 4.04% | 4.39% | 3.89% | 4.19% | 9.23% | 9.26% | 9.4% | 8.85% | 6.44% | 8.52% | 6.49% |
| EBITDA Growth % | 384.85% | 63.9% | -80.72% | 37.84% | 37.52% | 3122.9% | -94.64% | -28.88% | 197.85% | -60.53% | 59.21% | -45.31% | -3.07% | 4.28% | -6.34% | 21.25% | 182.2% | -166.56% | -2.22% | 28.76% | 14.95% | 30.7% | 16.55% | -56.66% | 3.41% | 5.21% | 51.13% | 30.94% | -16.13% | 82.35% | -5.56% |
| D&A (Non-Cash Add-back) | 1.24M | 1.29M | 1.74M | 2.05M | 1.92M | 1.95M | 2.19M | 2.22M | 2.19M | 2.42M | 2.3M | 2.26M | 2.03M | 2.01M | 1.86M | 2.04M | 1.7M | 1.92M | 1.88M | 1.82M | 1.6M | 1.58M | 1.5M | 1.64M | 1.38M | 1.18M | 1.07M | 940.1K | 1.1M | 1.1M | 700K |
| EBIT | 2.63M | 975K | -195K | 5.95M | 3.89M | 8.44M | -616K | 224K | 1.25M | -1.44M | 629.06K | -422.05K | 1.33M | 1.48M | 1.37M | 2.26M | 1.31M | -5.71M | 3.56M | 3.65M | 2.65M | 2.11M | 1.33M | 785.19K | 4.22M | 4.23M | 4.08M | 2.46M | 2.02M | 2.53M | 1M |
| Net Interest Income | -1.01M | -964K | -744K | -487K | -411K | -430K | -620K | -1.04M | -757K | -628K | -550.29K | -465.37K | -367.59K | -388.79K | -440.18K | -511.33K | -429.12K | -512.27K | -702.46K | -1.1M | -811.67K | -648.87K | -487.94K | -361.13K | -426.42K | -758.27K | -969.34K | 0 | -1M | 0 | -500K |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 23.79K | 9.06K | 2.63K | 2.12K | 24.62K | 5.23K | 17.92K | 28.2K | 0 | 0 | 0 | 0 |
| Interest Expense | 1.01M | 964K | 744K | 487K | 411K | 430K | 620K | 1.04M | 757K | 627.55K | 550.29K | 465.37K | 367.59K | 388.79K | 440.18K | 511.33K | 429.12K | 512.27K | 702.46K | 1.12M | 820.73K | 651.51K | 490.06K | 385.75K | 431.65K | 776.2K | 997.53K | 0 | 1M | 0 | 500K |
| Other Income/Expense | -1.01M | -1.23M | -744K | -487K | -411K | 5.74M | 826K | -1.04M | -757K | -802.77K | -550.29K | -465.37K | -367.59K | -367.66K | -533.16K | 238.56K | -348.43K | -738.06K | -614.69K | -1.17M | -767.04K | -718.93K | -472.11K | -274.74K | -444.08K | -755.69K | -953.16K | -752.46K | -362.99K | -884.14K | -400K |
| Pretax Income | 1.63M | 11K | -939K | 5.47M | 3.48M | 8.01M | -1.24M | -819K | 492K | -2.07M | 78.77K | -887.42K | 961.02K | 1.09M | 927.44K | 1.75M | 881.77K | -6.22M | 2.85M | 2.48M | 1.88M | 1.39M | 855.33K | 510.45K | 3.77M | 3.48M | 3.12M | 1.71M | 400K | 1.1M | 600K |
| Pretax Margin % | 1.34% | 0.01% | -0.73% | 3.92% | 2.59% | 6.96% | -1.19% | -0.7% | 0.43% | -1.84% | 0.07% | -0.77% | 0.86% | 0.98% | 0.87% | 1.53% | 0.88% | -7.78% | 2.34% | 2.1% | 1.79% | 1.65% | 1.18% | 0.88% | 6.22% | 5.95% | 5.7% | 4.45% | 0.99% | 3.02% | 2.29% |
| Income Tax | 599K | 263K | 356K | -1.41M | 1.47M | 859K | 310K | 409K | 326K | 375K | 35K | -316K | 81K | 300K | 298K | 561K | 375K | -2.39M | 1.1M | 898K | 570K | 465K | 268K | -123K | 1.37M | 1.37M | 1.08M | 641K | 100K | 400K | 200K |
| Effective Tax Rate % | 36.77% | 2390.91% | -37.91% | -25.76% | 42.19% | 10.72% | -25.08% | -49.94% | 66.26% | -18.11% | 44.43% | 35.61% | 8.43% | 27.59% | 32.13% | 32.04% | 42.53% | 38.36% | 38.57% | 36.25% | 30.29% | 33.36% | 31.33% | -24.1% | 36.31% | 39.5% | 34.55% | 37.45% | 25% | 36.36% | 33.33% |
| Net Income | 1.03M | -252K | -1.29M | 6.87M | 2.01M | 7.15M | -1.55M | -1.23M | 166K | -2.45M | 43.77K | -571.42K | 880.02K | 787.38K | 629.44K | 1.19M | 506.77K | -3.84M | 1.75M | 1.58M | 1.31M | 928.78K | 587.33K | 633.45K | 2.4M | 2.1M | 2.04M | -1.99M | 300K | 700K | 400K |
| Net Margin % | 0.85% | -0.21% | -1.01% | 4.93% | 1.5% | 6.21% | -1.49% | -1.06% | 0.15% | -2.18% | 0.04% | -0.5% | 0.79% | 0.71% | 0.59% | 1.04% | 0.51% | -4.8% | 1.44% | 1.34% | 1.25% | 1.1% | 0.81% | 1.09% | 3.96% | 3.6% | 3.73% | -5.17% | 0.74% | 1.92% | 1.53% |
| Net Income Growth % | 130.51% | 80.54% | -118.84% | 241.99% | -71.9% | 562.74% | -25.9% | -839.76% | 106.79% | -5687.28% | 107.66% | -164.93% | 11.77% | 25.09% | -47.1% | 134.81% | 113.21% | -318.66% | 11.07% | 20.37% | 41.24% | 58.14% | -7.28% | -73.64% | 14.28% | 2.9% | 202.81% | -762.56% | -57.14% | 75% | -69.23% |
| Net Income (Continuing) | 1.03M | -252K | -1.29M | 6.87M | 2.01M | 7.15M | -1.55M | -1.23M | 166K | -2.45M | 43.77K | -571.42K | 880.02K | 787.38K | 629.44K | 1.19M | 506.77K | -3.84M | 1.75M | 1.58M | 1.31M | 928.78K | 587.33K | 633.45K | 2.4M | 2.1M | 2.04M | 1.07M | 826.01K | 1.07M | 400K |
| 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) | 0.37 | -0.09 | -0.47 | 2.38 | 0.70 | 2.54 | -0.58 | -0.46 | 0.06 | -0.89 | 0.02 | -0.21 | 0.32 | 0.29 | 0.23 | 0.43 | 0.18 | -1.40 | 0.64 | 0.58 | 0.49 | 0.36 | 0.23 | 0.25 | 0.95 | 0.86 | 0.83 | -0.84 | 0.14 | 0.40 | 0.18 |
| EPS Growth % | 129.75% | 80.68% | -119.75% | 240% | -72.44% | 537.93% | -26.09% | -847.97% | 106.91% | -4550% | 109.52% | -165.63% | 10.34% | 26.09% | -46.51% | 138.89% | 112.86% | -318.75% | 10.34% | 18.37% | 36.11% | 56.52% | -8% | -73.68% | 10.47% | 3.61% | 198.81% | -700% | -65% | 122.22% | -67.27% |
| EPS (Basic) | - | -0.09 | -0.47 | 2.53 | 0.75 | 2.68 | -0.58 | -0.46 | 0.06 | -0.89 | 0.02 | -0.21 | 0.32 | 0.29 | 0.23 | 0.43 | 0.18 | -1.40 | 0.64 | 0.59 | 0.50 | 0.36 | 0.23 | 0.26 | 1.00 | 0.89 | 0.86 | -0.85 | 0.14 | 0.28 | 0.19 |
| Diluted Shares Outstanding | 2.79M | 2.78M | 2.76M | 2.89M | 2.89M | 2.82M | 2.66M | 2.67M | 2.7M | 2.75M | 2.75M | 2.75M | 2.75M | 2.74M | 2.74M | 2.74M | 2.74M | 2.74M | 2.75M | 2.72M | 2.68M | 2.61M | 2.6M | 2.53M | 2.52M | 2.46M | 2.45M | 2.37M | 2.37M | 1.74M | 2.22M |
| Basic Shares Outstanding | 2.79M | 2.78M | 2.76M | 2.72M | 2.69M | 2.66M | 2.66M | 2.67M | 2.69M | 2.75M | 2.75M | 2.72M | 2.74M | 2.74M | 2.74M | 2.74M | 2.74M | 2.74M | 2.72M | 2.69M | 2.63M | 2.58M | 2.56M | 2.48M | 2.41M | 2.36M | 2.36M | 2.35M | 2.35M | 1.74M | 2.11M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | 2.15% | - |
Liquidity and Program Concentration
As reported in recent financial statements, Nortech Systems has experienced a persistent revenue decline, with quarterly figures retreating from $36.1M in late 2023 to $30.3M in 2026Q1, reflecting a broader struggle to replace maturing high-mix, low-volume programs with new, high-margin contract wins in a competitive environment.
The consistent downward trend in quarterly revenue suggests that the company is facing significant headwinds in its core medical and industrial end markets. This contraction appears to be more than cyclical, potentially indicating a loss of competitive positioning or the conclusion of long-term production lifecycles that have not been adequately backfilled.
Based on the provided income statement data, gross margins have fluctuated significantly, dropping from a peak of 18.9% in 2023Q4 to 15.5% in 2026Q1, which highlights the company's limited pricing power and vulnerability to input cost volatility within its value-added manufacturing model.
The inability to maintain gross margins above the 15% threshold suggests that Nortech lacks the necessary scale or proprietary differentiation to pass through inflationary pressures to its OEM customers. This margin profile leaves the firm with minimal buffer to absorb operational inefficiencies, making profitability highly sensitive to throughput levels.
According to the latest quarterly filings, the company's operating margin has struggled to remain positive, oscillating between a 6.0% loss in 2025Q1 and a marginal 0.2% gain in 2026Q1, demonstrating a lack of meaningful operating leverage as fixed costs continue to weigh on the bottom line.
The data indicates that SG&A expenses remain relatively sticky even as revenue declines, preventing the company from achieving the necessary scale to drive meaningful operating income. Investors should monitor whether management can rationalize the cost structure, as the current operating leverage appears insufficient to support long-term profitability.
Analysis of the income statement and recent performance trends suggests that Nortech's precarious liquidity position, characterized by a net loss in the most recent quarter, may limit its ability to fund necessary working capital for new program ramps or navigate potential supply chain disruptions.
While the company maintains a low debt-to-equity ratio, the lack of consistent net income and thin cash reserves create a significant risk profile for shareholders. The reliance on project-based revenue, combined with the current negative growth trajectory, warrants caution regarding the company's ability to sustain operations without external financing.
Quick answers to the most common questions about buying NSYS stock.
For fiscal year 2025, Nortech Systems Incorporated (NSYS) reported total revenue of $118.4M. This represents a 351.8% increase compared to $26.2M in 1996.
Nortech Systems Incorporated (NSYS) reported a net loss of $0.3M for the fiscal year ending 2025.
Nortech Systems Incorporated (NSYS) reported an operating income of $1.2M, resulting in an operating profit margin of 1.0%. This margin reflects the operational efficiency of the business before interest and taxes.
Nortech Systems Incorporated (NSYS) generated $18.0M in gross profit for the year, representing a gross profit margin of 15.2%. This demonstrates the company's core pricing power and production efficiency.