Revenue growth reaccelerated to 18.9% in 2027Q1 on a $64.9M base with gross margin expanding to 34.6% and operating margin reaching 7.9%—a ten-quarter high—supported by SG&A rising just 9% while gross profit grew roughly 47%, though non-operating swings continue to distort net income (e.g., a $2.2M operating profit became a $2.1M net loss in 2025Q3).
Richardson Electronics, Ltd. (RELL) annual income statement — 30-year revenue, gross profit & net income history
| Metric | TTM | May'26 | May'25 | Jun'24 | May'23 | May'22 | May'21 | May'20 | May'19 | May'18 | May'17 | May'16 | May'15 | May'14 | May'13 | May'12 | May'11 | May'10 | May'09 | May'08 | May'07 | May'06 | May'05 | May'04 | May'03 | May'02 | May'01 | May'00 | May'99 | May'98 | May'97 |
|---|
| Sales/Revenue | 238.88M | 228.56M | 208.91M | 196.46M | 262.66M | 224.62M | 176.94M | 155.9M | 166.65M | 163.21M | 136.87M | 142.02M | 136.96M | 137.96M | 141.07M | 157.84M | 158.87M | 491.85M | 496.38M | 568.41M | 557.29M | 529.1M | 578.72M | 520.07M | 464.52M | 443.49M | 502.37M | 407.18M | 320.9M | 304.2M | 255.1M |
| Revenue Growth % | 13.87% | 9.41% | 6.34% | -25.2% | 16.93% | 26.95% | 13.5% | -6.45% | 2.11% | 19.24% | -3.62% | 3.69% | -0.73% | -2.2% | -10.63% | -0.65% | -67.7% | -0.91% | -12.67% | 1.99% | 5.33% | -8.58% | 11.28% | 11.96% | 4.74% | -11.72% | 23.38% | 26.89% | 5.49% | 19.25% | 6.42% |
| Cost of Goods Sold | 161.97M | 157.22M | 144.11M | 140.8M | 178.97M | 152.92M | 118.11M | 106.22M | 114.92M | 108.13M | 92.99M | 97.18M | 95.82M | 96.95M | 99.52M | 111.06M | 112.75M | 377.74M | 381.55M | 432.81M | 424.89M | 400.61M | 442.73M | 392.12M | 365.43M | 349.33M | 370.82M | 294.09M | 227.1M | 213.4M | 183.8M |
| COGS % of Revenue | - | 68.78% | 68.98% | 71.67% | 68.14% | 68.08% | 66.75% | 68.14% | 68.96% | 66.25% | 67.94% | 68.43% | 69.96% | 70.27% | 70.55% | 70.36% | 70.97% | 76.8% | 76.87% | 76.14% | 76.24% | 75.72% | 76.5% | 75.4% | 78.67% | 78.77% | 73.81% | 72.23% | 70.77% | 70.15% | 72.05% |
| Gross Profit | 76.91M | 71.35M | 64.8M | 55.66M | 83.69M | 71.7M | 58.83M | 49.67M | 51.73M | 55.08M | 43.88M | 44.84M | 41.14M | 41.01M | 41.55M | 46.78M | 46.11M | 114.11M | 114.83M | 135.6M | 132.4M | 128.49M | 135.99M | 127.95M | 99.09M | 94.17M | 131.55M | 113.09M | 93.8M | 90.8M | 71.3M |
| Gross Margin % | 32.2% | 31.22% | 31.02% | 28.33% | 31.86% | 31.92% | 33.25% | 31.86% | 31.04% | 33.75% | 32.06% | 31.57% | 30.04% | 29.73% | 29.45% | 29.64% | 29.03% | 23.2% | 23.13% | 23.86% | 23.76% | 24.28% | 23.5% | 24.6% | 21.33% | 21.23% | 26.19% | 27.77% | 29.23% | 29.85% | 27.95% |
| Gross Profit Growth % | - | 10.1% | 16.42% | -33.49% | 16.72% | 21.89% | 18.42% | -3.99% | -6.08% | 25.52% | -2.12% | 8.99% | 0.3% | -1.28% | -11.19% | 1.45% | -59.59% | -0.63% | -15.32% | 2.41% | 3.05% | -5.52% | 6.29% | 29.13% | 5.23% | -28.42% | 16.32% | 20.57% | 3.3% | 27.35% | -3.26% |
| Operating Expenses | 66.3M | 64.88M | 67.26M | 55.24M | 58.71M | 55.72M | 55.92M | 51.33M | 52.16M | 51.73M | 49.85M | 51.63M | 49.23M | 43.5M | 40.34M | 40.6M | 43.26M | 88.94M | 100.85M | 125.33M | 124.67M | 116.23M | 127.55M | 108.55M | 100.75M | 94.52M | 94.44M | 86.65M | 75.1M | 69.5M | 66.2M |
| OpEx % of Revenue | - | 28.39% | 32.2% | 28.12% | 22.35% | 24.81% | 31.61% | 32.92% | 31.3% | 31.69% | 36.42% | 36.36% | 35.94% | 31.53% | 28.59% | 25.72% | 27.23% | 18.08% | 20.32% | 22.05% | 22.37% | 21.97% | 22.04% | 20.87% | 21.69% | 21.31% | 18.8% | 21.28% | 23.4% | 22.85% | 25.95% |
| Selling, General & Admin | 67.13M | 65.72M | 62.17M | 55.24M | 58.71M | 55.72M | 55.92M | 51.33M | 52.16M | 51.73M | 49.85M | 51.63M | 49.23M | 43.5M | 40.34M | 40.6M | 43.26M | 85.04M | 96.55M | 125.33M | 124.67M | 116.23M | 127.55M | 108.55M | 100.75M | 94.52M | 94.44M | 81.49M | 70.9M | 65.4M | 62.3M |
| SG&A % of Revenue | - | 28.75% | 29.76% | 28.12% | 22.35% | 24.81% | 31.61% | 32.92% | 31.3% | 31.69% | 36.42% | 36.36% | 35.94% | 31.53% | 28.59% | 25.72% | 27.23% | 17.29% | 19.45% | 22.05% | 22.37% | 21.97% | 22.04% | 20.87% | 21.69% | 21.31% | 18.8% | 20.01% | 22.09% | 21.5% | 24.42% |
| Research & Development | 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 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | -834K | -834K | 5.09M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 3.9M | 4.3M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 5.16M | 4.2M | 4.1M | 3.9M |
| Operating Income | 10.61M | 6.46M | -2.46M | 418K | 24.98M | 15.98M | 2.9M | -1.65M | -421K | 3.35M | -5.97M | -6.8M | -8.09M | -2.48M | 1.21M | 6.18M | 2.86M | 25.17M | 13.98M | 10.27M | 7.73M | 12.26M | 8.45M | 19.41M | -1.66M | -353K | 37.11M | 26.44M | 18.7M | 21.3M | 5.1M |
| Operating Margin % | 4.44% | 2.83% | -1.18% | 0.21% | 9.51% | 7.11% | 1.64% | -1.06% | -0.25% | 2.05% | -4.36% | -4.79% | -5.91% | -1.8% | 0.86% | 3.91% | 1.8% | 5.12% | 2.82% | 1.81% | 1.39% | 2.32% | 1.46% | 3.73% | -0.36% | -0.08% | 7.39% | 6.49% | 5.83% | 7% | 2% |
| Operating Income Growth % | - | 362.44% | -689.23% | -98.33% | 56.37% | 450.93% | 275.33% | -292.87% | -112.56% | 156.15% | 12.15% | 15.99% | -225.99% | -305.29% | -80.43% | 116.17% | -88.65% | 80.02% | 36.16% | 32.88% | -36.95% | 45.1% | -56.47% | 1269.8% | -369.97% | -100.95% | 40.32% | 41.41% | -12.21% | 317.65% | -71.02% |
| EBITDA | 14.34M | 10.25M | 1.54M | 4.72M | 28.65M | 19.4M | 6.32M | 1.73M | 2.75M | 6.35M | -3.23M | -4.42M | -6.38M | -1.39M | 2.27M | 7.29M | 4.82M | 29.22M | 18.53M | 15.53M | 13.85M | 18.5M | 13.74M | 24.64M | 3.71M | 5.52M | 42.88M | 31.6M | 22.9M | 25.4M | 9M |
| EBITDA Margin % | 6% | 4.49% | 0.74% | 2.41% | 10.91% | 8.64% | 3.57% | 1.11% | 1.65% | 3.89% | -2.36% | -3.11% | -4.66% | -1.01% | 1.61% | 4.62% | 3.04% | 5.94% | 3.73% | 2.73% | 2.49% | 3.5% | 2.38% | 4.74% | 0.8% | 1.25% | 8.54% | 7.76% | 7.14% | 8.35% | 3.53% |
| EBITDA Growth % | 103.81% | 566.21% | -67.43% | -83.51% | 47.7% | 206.77% | 265.13% | -37.06% | -56.63% | 296.41% | 26.83% | 30.83% | -359.94% | -161.25% | -68.92% | 51.18% | -83.5% | 57.72% | 19.34% | 12.07% | -25.1% | 34.57% | -44.21% | 564.97% | -32.9% | -87.12% | 35.69% | 38% | -9.84% | 182.22% | -56.52% |
| D&A (Non-Cash Add-back) | 3.73M | 3.79M | 4M | 4.31M | 3.67M | 3.42M | 3.42M | 3.39M | 3.17M | 2.99M | 2.74M | 2.38M | 1.71M | 1.09M | 1.06M | 1.11M | 1.96M | 4.05M | 4.55M | 5.26M | 6.13M | 6.24M | 5.3M | 5.23M | 5.36M | 5.88M | 5.78M | 5.16M | 4.2M | 4.1M | 3.9M |
| EBIT | 9.72M | 7.48M | 2.63M | 157K | 25.03M | 15.76M | 2.31M | -1.21M | -6.31M | 3.86M | -6.12M | -6.22M | -6.99M | -652K | 642K | 7.66M | 2.59M | 21.07M | -5.81M | -1.83M | 7.47M | 7.81M | 17.53M | 18.17M | -1.66M | -353K | 37.11M | 26.44M | 18.74M | 21.3M | 5.1M |
| Net Interest Income | 496K | 544K | 392K | 284K | 295K | 80K | 76K | 377K | 540K | 432K | 234K | 562K | 999K | 1.02M | 1.31M | 1.39M | 228K | -1.14M | -4.27M | -6.85M | -5.29M | -6.28M | -6.13M | -10.26M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 496K | 544K | 392K | 284K | 295K | 80K | 76K | 377K | 540K | 432K | 234K | 562K | 999K | 1.02M | 1.31M | 1.39M | 369K | 113K | 329K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1K | 141K | 3.97M | 4.6M | 6.85M | 5.29M | 9.81M | 6.13M | 10.84M | 11.05M | 17.26M | 10.72M | 7.84M | 6.8M | 7.4M | 7.8M |
| Other Income/Expense | -416K | 1.01M | 932K | -261K | 47K | -218K | -592K | 440K | -5.89M | 507K | -145K | 577K | 1.1M | 1.83M | -567K | 1.48M | -408K | -8.07M | -24.4M | -18.96M | -5.55M | -10.73M | 136K | -10.84M | -11.05M | -17.26M | -10.72M | -7.84M | -6.89M | -7.4M | -7.8M |
| Pretax Income | 10.2M | 7.48M | -1.53M | 157K | 25.03M | 15.76M | 2.31M | -1.21M | -6.31M | 3.86M | -6.12M | -6.22M | -6.99M | -652K | 642K | 7.66M | 2.45M | 17.1M | -10.41M | -8.69M | 2.18M | 1.53M | 8.58M | 8.57M | -12.71M | -17.61M | 26.39M | 18.6M | 11.9M | 13.9M | -2.7M |
| Pretax Margin % | 4.27% | 3.27% | -0.73% | 0.08% | 9.53% | 7.02% | 1.3% | -0.78% | -3.79% | 2.37% | -4.47% | -4.38% | -5.11% | -0.47% | 0.46% | 4.85% | 1.54% | 3.48% | -2.1% | -1.53% | 0.39% | 0.29% | 1.48% | 1.65% | -2.74% | -3.97% | 5.25% | 4.57% | 3.71% | 4.57% | -1.06% |
| Income Tax | 1.66M | 1.09M | -388K | 96K | 2.7M | -2.17M | 653K | 624K | 1.02M | 1.53M | 812K | 546K | -1.47M | -307K | 160K | -334K | 468K | -166K | 1.75M | -218K | 634K | 5.54M | 24.6M | 2.54M | -3.01M | -6.34M | 8.66M | 5.5M | 3.5M | 4.2M | -1.7M |
| Effective Tax Rate % | 16.3% | 14.64% | 25.34% | 61.15% | 10.78% | -13.76% | 28.29% | -51.4% | -16.11% | 39.74% | -13.28% | -8.78% | 20.96% | 47.09% | 24.92% | -4.36% | 19.1% | -0.97% | -16.8% | 2.51% | 29.06% | 362.78% | 286.61% | 29.6% | 23.7% | 36% | 32.8% | 29.56% | 29.41% | 30.22% | 62.96% |
| Net Income | 8.53M | 6.38M | -1.14M | 61K | 22.33M | 17.93M | 1.66M | -1.84M | -7.33M | 3.82M | -6.93M | -6.77M | -5.56M | -515K | 1.25M | 8.53M | 90.07M | 16.09M | -12.16M | -8.43M | 40.68M | -2.64M | -11.31M | 6.03M | -27.56M | -11.27M | 17.73M | 13.1M | 8.4M | 9.7M | -1.5M |
| Net Margin % | 3.57% | 2.79% | -0.55% | 0.03% | 8.5% | 7.98% | 0.94% | -1.18% | -4.4% | 2.34% | -5.06% | -4.76% | -4.06% | -0.37% | 0.88% | 5.4% | 56.7% | 3.27% | -2.45% | -1.48% | 7.3% | -0.5% | -1.95% | 1.16% | -5.93% | -2.54% | 3.53% | 3.22% | 2.62% | 3.19% | -0.59% |
| Net Income Growth % | 4748.3% | 658.44% | -1973.77% | -99.73% | 24.58% | 983.2% | 190.04% | 74.92% | -291.73% | 155.17% | -2.39% | -21.71% | -979.42% | -141.27% | -85.36% | -90.53% | 459.64% | 232.32% | -44.36% | -120.71% | 1639.7% | 76.64% | -287.49% | 121.89% | -144.53% | -163.55% | 35.33% | 56% | -13.4% | 746.67% | -118.52% |
| Net Income (Continuing) | 8.53M | 6.38M | -1.14M | 61K | 22.33M | 17.93M | 1.66M | -1.84M | -7.33M | 2.33M | -6.93M | -6.77M | -5.53M | -345K | 482K | 7.99M | 1.98M | 17.27M | -12.16M | -8.47M | 1.55M | -4.01M | -16.02M | 5.53M | -8.99M | -11.27M | 17.73M | 13.1M | 8.35M | 9.7M | -1M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.5M | 0 | 0 | 0 | 0 | 766K | 536K | 0 | -1.17M | 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) | 0.66 | 0.44 | -0.09 | 0.00 | 1.32 | 1.31 | 0.13 | -0.14 | -0.57 | 0.29 | -0.54 | -0.52 | -0.40 | -0.04 | 0.08 | 0.50 | 4.83 | 0.90 | -0.68 | -0.47 | 2.30 | -0.15 | -0.67 | 0.38 | -2.60 | -0.83 | 1.12 | 1.00 | 0.60 | 0.77 | -0.13 |
| EPS Growth % | 3118.42% | 573.63% | - | -99.68% | 0.76% | 907.69% | 192.86% | 75.44% | -296.55% | 153.7% | -3.85% | -30% | -998.9% | -145.5% | -84% | -89.65% | 436.67% | 232.35% | -44.68% | -120.43% | 1633.33% | 77.61% | -276.32% | 114.62% | -213.25% | -174.11% | 12% | 66.67% | -22.08% | 692.31% | -119.12% |
| EPS (Basic) | - | 0.45 | -0.09 | 0.00 | 1.38 | 1.35 | 0.13 | -0.14 | -0.57 | 0.30 | -0.55 | -0.53 | -0.41 | -0.04 | 0.08 | 0.51 | 4.98 | 0.90 | -0.68 | -0.47 | 2.36 | -0.15 | -0.67 | 0.40 | -2.60 | -0.83 | 1.22 | 1.03 | 0.60 | 0.79 | -0.13 |
| Diluted Shares Outstanding | 13.02M | 12.69M | 12.3M | 14.52M | 14.39M | 13.7M | 13.05M | 12.91M | 12.82M | 12.96M | 12.85M | 13.05M | 13.83M | 14.16M | 15.37M | 17.12M | 18.2M | 17.81M | 17.91M | 17.84M | 20.71M | 17.41M | 16.94M | 14.42M | 10.6M | 13.58M | 17.57M | 16.58M | 13.92M | 12.69M | 11.89M |
| Basic Shares Outstanding | 12.67M | 12.49M | 12.3M | 14.27M | 13.79M | 13.27M | 12.99M | 12.91M | 12.82M | 12.9M | 12.63M | 12.83M | 13.48M | 14.16M | 15.24M | 16.97M | 17.95M | 17.81M | 17.91M | 17.84M | 17.57M | 17.41M | 16.94M | 10.88M | 10.6M | 13.58M | 13.33M | 12.68M | 13.92M | 12.26M | 11.89M |
| Dividend Payout Ratio | - | 53.88% | - | 5534.43% | 14.87% | 17.81% | 188.64% | - | - | 79.75% | - | - | - | - | 286.14% | 38.88% | 2.16% | 8.69% | - | - | 6.79% | - | - | 36.57% | - | - | 11.75% | 14.99% | 26.19% | 20.62% | - |
Quick answers to the most common questions about buying RELL stock.
For fiscal year 2026, Richardson Electronics, Ltd. (RELL) reported total revenue of $228.6M. This represents a 10.4% decline compared to $255.1M in 1997.
Richardson Electronics, Ltd. (RELL) is profitable, generating $6.4M in net income for the fiscal year ending 2026 with a net profit margin of 2.8%.
Richardson Electronics, Ltd. (RELL) reported an operating income of $6.5M, resulting in an operating profit margin of 2.8%. This margin reflects the operational efficiency of the business before interest and taxes.
Richardson Electronics, Ltd. (RELL) generated $71.3M in gross profit for the year, representing a gross profit margin of 31.2%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Non-operating swings distort net income
Metrics are mathematically derived from official filings.
Growth Reacceleration After Lull
RELL's revenue growth reaccelerated sharply from just 3.1% in 2026Q3 to 27.6% in 2026Q4 and 18.9% in 2027Q1, lifting quarterly revenue to $64.9M from the $47-54M range seen through most of 2025. As reported in the quarterly income statements, this marks a clear break from the sub-13% growth regime.
The step-change appears concentrated in the two most recent quarters rather than a steady organic ramp, which raises the question of whether it reflects a durable end-market recovery, share gains, or an inorganic contribution — the supplied data does not disaggregate these drivers. Investors should monitor whether 2027Q2 sustains high-teens growth; a fade back toward the 2025 baseline of low single digits would suggest the acceleration was episodic rather than a new trajectory.
Gross Margin Breakout Above 34%
RELL's gross margin expanded to 34.6% in 2027Q1, the highest in the ten-quarter history, versus a tight 30.6-31.9% band held through 2025 and much of 2026. This places the company's margin profile near Hubbell's 35.5% and well above Daktronics' 27.3% in the peer set.
The inflection from roughly 31% to 34.6% appears to be mix or pricing driven rather than cost-deflation, since COGS grew to $42.4M on higher volume — implying the incremental revenue is carrying better unit economics than the legacy base. If sustained, this margin structure would narrow the profitability gap versus Hubbell, though RELL still lacks Vicor's 52.6% gross margin, which reflects a fundamentally different, higher-value product mix rather than an execution shortfall.
SG&A Discipline Drives Operating Leverage
Operating income swung from a $667K loss in 2025Q2 to $5.1M in 2027Q1 as SG&A rose only to $17.4M from $16.0M over the same span, a 9% increase against gross profit growth of roughly 47%. Per the reported figures, RELL's 7.9% operating margin is its best in the observed period.
The operating leverage is the clearest positive in the income statement: SG&A has been remarkably range-bound at $14.5-17.6M for two years while gross profit expanded by $7.2M from the 2025Q2 trough, meaning nearly all incremental gross profit flowed to operating income. The concern is that this leverage cuts both ways — at $50M quarterly revenue the model produced operating losses, so the company's cost structure remains sensitive to any revenue reversal, and the fixed-cost cushion appears thinner than the recent margin improvement implies.
Net Income Volatility Beyond Operations
Reported net income diverged materially from operating income in several quarters — a $2.2M operating profit turned into a $2.1M net loss in 2025Q3, while a $968K operating profit produced $1.9M of net income in 2026Q1. These swings, per the income statement detail, exceed the modest stock-based compensation charge of roughly $0.3-0.7M per quarter.
The pattern suggests non-operating items — likely interest income, FX, or other below-the-line effects not itemized in the supplied data — are doing significant work in reported EPS, with the 138-187% EPS growth figures amplified by very low prior-year comparables (EPS of $-0.01 to $0.13). Analysts should treat the operating line, not the bottom line, as the more reliable signal of underlying performance until the source of these swings is clarified, as the headline earnings growth overstates the operating improvement.
Low Base and Fixed-Cost Sensitivity
The most aggressive counter-case focuses on RELL's operating leverage: the company posted operating losses as recently as 2025Q2 and 2024Q4, and at flat 2025-level revenue of roughly $50-54M per quarter, SG&A of $15-16M consumed nearly all gross profit. The recent $5.1M operating profit rests on a revenue base that has not been tested through a downturn.
Additionally, the margin breakout to 34.6% gross margin is a single-quarter high that reverses years of stability near 31%, warranting investigation into whether it reflects a favorable product mix that may not persist. If revenue growth normalizes toward the historical low-single-digit trend while SG&A continues its gradual upward drift — from $14.8M in 2024Q4 to $17.4M in 2027Q1 — operating margins could compress back toward breakeven faster than the current earnings trajectory suggests.