Revenue growth reached 3.1% in 2026Q3, yet operating margins remain fragile, fluctuating to as low as 0.3% in 2026Q2 due to persistent SG&A overhead.
| Metric | TTM | 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 | May'96 |
|---|
| Sales/Revenue | 214.26M | 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 | 239.7M |
| Revenue Growth % | 4.83% | 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% | 15.19% |
| Cost of Goods Sold | 147.19M | 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 | 166M |
| COGS % of Revenue | - | 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% | 69.25% |
| Gross Profit | 67.06M | 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 | 73.7M |
| Gross Margin % | 31.3% | 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% | 30.75% |
| Gross Profit Growth % | - | 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% | 16.8% |
| Operating Expenses | 63.82M | 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 | 56.1M |
| OpEx % of Revenue | - | 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% | 23.4% |
| Selling, General & Admin | 63.65M | 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 | 53M |
| SG&A % of Revenue | - | 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% | 22.11% |
| 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 | 178K | 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 | 3.1M |
| Operating Income | 3.24M | -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 | 17.6M |
| Operating Margin % | 1.51% | -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% | 7.34% |
| Operating Income Growth % | - | -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% | 166.67% |
| EBITDA | 7.1M | 1.54M | 4.72M | 28.65M | 19.4M | 6.32M | 1.73M | 2.75M | 6.35M | -3.17M | -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 | 20.7M |
| EBITDA Margin % | 3.31% | 0.74% | 2.41% | 10.91% | 8.64% | 3.57% | 1.11% | 1.65% | 3.89% | -2.32% | -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% | 8.64% |
| EBITDA Growth % | 21.7% | -67.43% | -83.51% | 47.7% | 206.77% | 265.13% | -37.06% | -56.63% | 300.13% | 28.19% | 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% | 113.4% |
| D&A (Non-Cash Add-back) | 3.86M | 4M | 4.31M | 3.67M | 3.42M | 3.42M | 3.39M | 3.17M | 2.99M | 2.8M | 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 | 3.1M |
| EBIT | 4.14M | 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 | 17.6M |
| Net Interest Income | 641K | 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 | 0 |
| Interest Income | 641K | 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 | 0 |
| Interest Expense | 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 | 5.6M |
| Other Income/Expense | 2.06M | 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 | -5.6M |
| Pretax Income | 5.29M | -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 | 12M |
| Pretax Margin % | 2.47% | -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% | 5.01% |
| Income Tax | 1.54M | -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 | 3.9M |
| Effective Tax Rate % | 29.04% | 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% | 32.5% |
| Net Income | 3.76M | -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 | 8.1M |
| Net Margin % | 1.75% | -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% | 3.38% |
| Net Income Growth % | 260.72% | -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% | 170% |
| Net Income (Continuing) | 3.76M | -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 | 8.1M |
| Discontinued Operations | 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 | 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) | 0.30 | -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 | 0.68 |
| EPS Growth % | 261.9% | - | -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% | 161.54% |
| EPS (Basic) | - | -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 | 0.68 |
| Diluted Shares Outstanding | 12.63M | 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 | 12M |
| Basic Shares Outstanding | 12.46M | 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 | 12M |
| Dividend Payout Ratio | - | - | 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% | - | 22.22% |
Operating margin volatility
According to the latest quarterly financial data, RELL achieved a 3.1% year-over-year revenue growth in 2026Q3, signaling a stabilization after the significant contraction observed in 2024, though the company continues to navigate volatile demand cycles across its core power and microwave technology segments.
The recent revenue trajectory suggests a recovery from the sharp declines seen in 2024, where quarterly growth plummeted by as much as 33%. While the current growth rate is positive, it remains modest, reflecting the company's sensitivity to industrial CAPEX cycles and the lumpy nature of project-based revenue in the green energy sector.
As reported in recent income statements, RELL maintains a gross margin hovering near 31%, a figure that appears structurally capped by the high proportion of lower-margin third-party distribution revenue relative to its proprietary manufactured components within the Power and Microwave Technologies segment.
The consistency of the 31% gross margin suggests that the company has successfully managed input cost volatility, yet it also highlights a lack of significant pricing power. Investors should monitor whether the shift toward proprietary products like the ALTA 750 CT tube can eventually drive a meaningful expansion beyond this current plateau.
Based on the provided income statement data, RELL's operating income has struggled to scale consistently with revenue, as evidenced by the 2026Q3 operating margin of 2.7% which remains vulnerable to fluctuations in SG&A expenses despite the company's efforts to optimize its cost structure.
The inability to consistently expand operating margins suggests that the company's fixed-cost base, particularly regarding specialized manufacturing and technical labor, is currently absorbing most of the incremental gross profit. This indicates that the business has yet to achieve the necessary scale to leverage its overhead effectively.
Analysis of the historical income statements reveals that RELL has frequently dipped into negative operating territory, with the 2026Q2 operating margin of 0.3% highlighting the fragility of its current profitability model when faced with even minor shifts in quarterly revenue volume.
Short-term observers may point to the recurring periods of negative net income as evidence of a business model that lacks a durable competitive advantage in its distribution segments. The reliance on legacy vacuum technology creates a risk that the cost of maintaining specialized infrastructure will continue to outpace the revenue growth of newer, higher-margin initiatives.
Quick answers to the most common questions about buying RELL stock.
For fiscal year 2025, Richardson Electronics, Ltd. (RELL) reported total revenue of $208.9M. This represents a 12.8% decline compared to $239.7M in 1996.
Richardson Electronics, Ltd. (RELL) reported a net loss of $1.1M for the fiscal year ending 2025.
Richardson Electronics, Ltd. (RELL) reported an operating income of $-2.5M, resulting in an operating profit margin of -1.2%. This margin reflects the operational efficiency of the business before interest and taxes.
Richardson Electronics, Ltd. (RELL) generated $64.8M in gross profit for the year, representing a gross profit margin of 31.0%. This demonstrates the company's core pricing power and production efficiency.