FEIM FREQUENCY ELECTRONICS INC

Overview and Growth

FREQUENCY ELECTRONICS INC generated $63.23M of revenue in fiscal 2026, with net loss of $903.00K and an operating cash inflow of $1.28M. The $63.23M revenue base provides substantial context for the company’s earnings, cash generation, and capital requirements. The top line contracted 9.4% from $69.81M in fiscal 2025; this top-line contraction left the company with a smaller revenue base. The company reported diluted EPS of -$0.09, adding a shareholder-level measure to the absolute income figures considered below. Against diluted EPS of $2.46 in fiscal 2025, the current result was 103.7% lower. Total assets stood at $90.71M, showing the scale of resources supporting revenue, earnings, liquidity, and financing. Asset turnover was 0.7x, relating the company’s annual revenue directly to the total assets reported at the period end.

Profitability

The first profit layer was $18.40M of gross profit, the amount available after reported direct revenue costs to absorb operating expenses. Gross profit represented 29.1% of revenue, showing how much of the top line remained after direct costs. The company recorded an operating loss of $3.00M after the reported operating expense base. An operating margin of -4.7% reflected costs exceeding revenue-level gross profit by 4.7% of sales. The company ended the period with a net loss of $903.00K, extending the operating result through all remaining items. Measured against revenue, the bottom-line deficit represented 1.4% after all recognized items. Before income taxes, the company recorded a loss of $2.91M, bridging the operating result to the final net loss. The pretax loss equaled 4.6% of revenue, measuring the pre-tax deficit against sales. The company recognized an income-tax benefit of $2.00M, increasing after-tax earnings relative to the pretax result. The net loss equaled 1.6% of period-end equity, showing the deficit relative to book capital. The net loss equaled 1.0% of period-end assets, showing the deficit relative to the asset base. A $903.00K net loss replaced fiscal 2025 net income of $23.69M.

Liquidity and Capital Structure

At period end, the $90.71M asset base was financed through $34.30M of liabilities and $56.40M of equity. Current assets were $47.98M against $20.98M of current liabilities, framing the resources and obligations classified within the near-term balance-sheet horizon. The current ratio was 2.29x, with current assets exceeding current liabilities and providing a short-term liquidity cushion. The company held $1.60M in cash and equivalents, a narrower liquidity measure than total current assets. Measured only with cash and equivalents, coverage of current liabilities was 7.6%, excluding receivables and other current assets. The liabilities-to-assets relationship was 37.8%, placing reported obligations against the full positive asset balance. Cash and equivalents equaled 1.8% of total assets, showing the liquid cash component within the company’s broader resource base. Compared with $93.74M in fiscal 2025, the current asset base moved 3.2% and finished lower. Book equity was 1.4% higher than fiscal 2025 equity of $55.62M, showing how shareholder capital changed year over year. Cash and equivalents were 66.0% lower than fiscal 2025 cash of $4.72M, showing the year-over-year change in liquid resources.

Cash Flow and Earnings Quality

The company reported $1.28M of operating cash flow, a cash inflow that shows the cash generated by operations. Capital spending was $2.86M, absorbing part of the cash generated from operations before free cash flow. Capital expenditures represented 223.0% of operating cash flow, leaving the remainder available as free cash flow. Operating cash flow and capital spending combined to leave a $1.58M cash deficit after capital spending. Relative to revenue, the post-investment cash deficit represented 2.5%. Relative to total assets, the post-investment cash deficit measured 1.7%.

Based on the annual report for the fiscal year ending Apr 30, 2026. Analysis generated Oct 21, 2026.