Hurco Companies Inc 10-Q for FY2026 Q2

Hurco Companies Inc (HURC)

10-Q 2026-06-05 For: 2026-04-30

Added on June 05, 2026

About this 10-Q

Hurco Companies Inc filed this 10-Q on June 5, 2026, covering the quarter ended April 30, 2026 (FY2026 Q2).

Headline figures

Quarter ended April 30, 2026, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $47.62M; up 16.5% from $40.87M a year earlier
Net loss: $2.37M; compared with a net loss of $4.06M a year earlier
Diluted EPS: -$0.37; compared with -$0.62 a year earlier

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Indiana		35-1150732
(State or other jurisdiction of		(I.R.S. Employer Identification Number)
incorporation or organization)

One Technology Way
Indianapolis, Indiana		46268
(Address of principal executive offices)		(Zip code)

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, no par value	HURC	The Nasdaq Stock Market LLC

Large accelerated filer ◻	Accelerated filer ⌧
Non-accelerated filer ◻	Smaller reporting company ⌧
Emerging growth company ◻

Part I - Financial Information

Item 1.	Financial Statements

	Condensed Consolidated Statements of Operations Three and Six Months Ended April 30, 2026 and 2025	3

	Condensed Consolidated Statements of Comprehensive Income (Loss) Three and Six Months Ended April 30, 2026 and 2025	4

	Condensed Consolidated Balance Sheets as of April 30, 2026 and October 31, 2025	5

	Condensed Consolidated Statements of Cash Flows Three and Six Months Ended April 30, 2026 and 2025	6

	Condensed Consolidated Statements of Changes in Shareholders’ Equity Three and Six Months Ended April 30, 2026 and 2025	7

	Notes to Condensed Consolidated Financial Statements	8

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	21

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	31

Item 4.	Controls and Procedures	32

Part II - Other Information

Item 1.	Legal Proceedings	33

Item 1A.	Risk Factors	33

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	33

Item 5.	Other Information	33

Item 6.	Exhibits	34

Signatures		35


	Three Months Ended				Six Months Ended
	April 30,				April 30,
	2026		2025		2026		2025

		(unaudited)				(unaudited)
Sales and service fees	$	47,618	$	40,867	$	90,486	$	87,281

Cost of sales and service		37,287		33,038		72,217		71,162

Gross profit		10,331		7,829		18,269		16,119

Selling, general and administrative expenses		11,130		10,897		22,238		21,279

Operating (loss) income		(799)		(3,068)		(3,969)		(5,160)

Interest expense		30		4		36		62

Interest income		71		87		113		181

Investment income, net		4		12		109		173

Other expense, net		(843)		(572)		(821)		(956)

(Loss) income before income taxes		(1,597)		(3,545)		(4,604)		(5,824)

Provision (benefit) for income taxes		775		518		1,236		2,559

Net (loss) income	$	(2,372)	$	(4,063)	$	(5,840)	$	(8,383)

(Loss) income per common share

Basic	$	(0.37)	$	(0.62)	$	(0.91)	$	(1.29)
Diluted	$	(0.37)	$	(0.62)	$	(0.91)	$	(1.29)

Weighted average common shares outstanding

Basic		6,473		6,500		6,449		6,479
Diluted		6,473		6,500		6,449		6,479


	April 30,		October 31,
	2026		2025
ASSETS	(unaudited)
Current assets:
Cash and cash equivalents	$	50,055	$	48,713
Accounts receivable, net		27,552		27,928
Inventories		137,180		142,931
Derivative assets		132		263
Prepaid and other assets		6,450		5,243
Total current assets		221,369		225,078
Property and equipment:
Land		1,046		1,046
Building		7,381		7,381
Machinery and equipment		24,261		26,061
Leasehold improvements		4,269		4,569
		36,957		39,057
Less accumulated depreciation and amortization		(29,601)		(31,083)
Total property and equipment, net		7,356		7,974
Non–current assets:
Software development costs, less accumulated amortization		8,827		8,090
Intangible assets, net		379		627
Operating lease - right of use assets, net		10,353		11,560
Deferred income taxes		816		794
Investments		9,170		9,005
Other assets		1,217		1,170
Total non–current assets		30,762		31,246
Total assets	$	259,487	$	264,298
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	26,632	$	26,074
Customer deposits		7,801		4,788
Derivative liabilities		2,707		3,084
Operating lease liabilities		4,281		4,374
Accrued payroll and employee benefits		7,309		7,474
Accrued income taxes		1,048		1,472
Accrued expenses		3,664		3,790
Accrued warranty expenses		984		967
Total current liabilities		54,426		52,023
Non–current liabilities:
Deferred income taxes		27		38
Accrued tax liability		—		—
Operating lease liabilities		6,460		7,560
Deferred credits and other		6,155		5,890
Total non–current liabilities		12,642		13,488
Commitment and contingencies		—		—
Shareholders’ equity:
Preferred stock: no par value per share, 1,000,000 shares authorized; no shares issued		—		—
Common stock: no par value, $.10 stated value per share, 12,500,000 shares authorized; 6,675,629 and 6,569,224 shares issued and 6,484,478 and 6,402,396 shares outstanding, as of April 30, 2026 and October 31, 2025, respectively		648		640
Additional paid-in capital		61,637		60,850
Retained earnings		140,465		146,305
Accumulated other comprehensive loss		(10,331)		(9,008)
Total shareholders’ equity		192,419		198,787
Total liabilities and shareholders’ equity	$	259,487	$	264,298


	Three Months Ended April 30, 2026 and 2025
	(unaudited)
								Accumulated
	Common Stock			Additional				Other
	Shares			Paid–in		Retained		Comprehensive
(unaudited)	Outstanding	Amount		Capital		Earnings		Income (Loss)		Total
Balances, January 31, 2025	6,483,990	$	648	$	61,728	$	157,102	$	(21,335)	$	198,143
Net income (loss)	—		—		—		(4,063)		—		(4,063)
Other comprehensive income (loss)	—		—		—		—		7,935		7,935
Deferred income tax valuation allowances	—		—		—		—		(202)		(202)
Stock–based compensation expense, net of taxes withheld for vested restricted shares	22,878		3		464		—		—		467
Balances, April 30, 2025	6,506,868	$	651	$	62,192	$	153,039	$	(13,602)	$	202,280

Balances, January 31, 2026	6,446,454	$	645	$	61,165	$	142,837	$	(9,616)	$	195,031
Net income (loss)	—		—		—		(2,372)		—		(2,372)
Other comprehensive income (loss)	—		—		—		—		(728)		(728)
Deferred income tax valuation allowances	—		—		—		—		13		13
Stock–based compensation expense, net of taxes withheld for vested restricted shares	38,024		3		472		—		—		475
Balances, April 30, 2026	6,484,478	$	648	$	61,637	$	140,465	$	(10,331)	$	192,419


	Six Months Ended April 30, 2026 and 2025
	(unaudited)
								Accumulated
	Common Stock			Additional				Other
	Shares			Paid–in		Retained		Comprehensive
	Outstanding	Amount		Capital		Earnings		Income (Loss)		Total
Balances, October 31, 2024	6,435,624	$	644	$	61,500	$	161,422	$	(16,394)	$	207,172
Net income (loss)	—		—		—		(8,383)		—		(8,383)
Other comprehensive income (loss)	—		—		—		—		2,967		2,967
Deferred income tax valuation allowances	—		—		—		—		(175)		(175)
Stock–based compensation expense, net of taxes withheld for vested restricted shares	71,244		7		692		—		—		699
Balances, April 30, 2025	6,506,868	$	651	$	62,192	$	153,039	$	(13,602)	$	202,280

Balances, October 31, 2025	6,402,396	$	640	$	60,850	$	146,305	$	(9,008)	$	198,787
Net income (loss)	—		—		—		(5,840)		—		(5,840)
Other comprehensive income (loss)	—		—		—		—		(1,139)		(1,139)
Deferred income tax valuation allowances	—		—		—		—		(184)		(184)
Stock–based compensation expense, net of taxes withheld for vested restricted shares	82,082		8		787		—		—		795
Balances, April 30, 2026	6,484,478	$	648	$	61,637	$	140,465	$	(10,331)	$	192,419


	April 30, 2026			October 31, 2025
	Balance Sheet	Fair		Balance Sheet	Fair
Derivatives	Location	Value		Location	Value
Designated as Hedging Instruments:
Foreign exchange forward contracts	Derivative assets	$	43	Derivative assets	$	215
Foreign exchange forward contracts	Derivative liabilities	$	1,124	Derivative liabilities	$	945

Not Designated as Hedging Instruments:
Foreign exchange forward contracts	Derivative assets	$	89	Derivative assets	$	48
Foreign exchange forward contracts	Derivative liabilities	$	1,583	Derivative liabilities	$	2,139


	Location of Gain
	(Loss) Recognized	Amount of Gain (Loss)
Derivatives	in Operations	Recognized in Operations
		Three Months Ended
		April 30,
		2026		2025
Not Designated as Hedging Instruments:
Foreign exchange forward contracts	Other expense, net	$	(762)	$	(684)


	Foreign Currency		Cash Flow
	Translation		Hedges		Total
Balance, January 31, 2026	$	(8,056)	$	(1,560)	$	(9,616)
Other comprehensive income (loss) before reclassifications		(725)		(189)		(914)
Reclassifications		—		186		186
Deferred income tax valuation allowances		—		13		13
Balance, April 30, 2026	$	(8,781)	$	(1,550)	$	(10,331)


		Weighted Average Grant
	Number of Shares	Date Fair Value
Unvested at October 31, 2025	456,496	$	21.58
Shares or units granted	206,042		16.04
Shares or units vested	(73,926)		19.39
Shares or units cancelled	(89,983)		26.24
Shares withheld	(16,516)		21.70
Unvested at April 30, 2026	482,113	$	18.67


		Three Months Ended April 30,				Six Months Ended April 30,
		2026		2025		2026		2025
Operating cash flow information:
Cash paid for amounts included in the measurement of lease liabilities	$	1,239	$	1,323	$	2,501	$	2,533
Non-cash information:
Right-of-use assets obtained in exchange for new operating lease liabilities	$	362	$	373	$	1,397	$	2,282


Remainder of 2026	$	2,409
2027		4,111
2028		2,913
2029		905
2030		477
2031 and thereafter		559
Total		11,374
Less: Imputed interest		(633)
Present value of operating lease liabilities	$	10,741


	Assets				Liabilities
	April 30, 2026		October 31, 2025		April 30, 2026		October 31, 2025
Level 1
Mutual Funds	$	3,692	$	3,489	$	—	$	—

Level 2
Derivatives	$	132	$	263	$	2,707	$	3,084


	Three Months Ended				Six Months Ended
	April 30,				April 30,
	2026		2025		2026		2025

		(unaudited)			(unaudited)
Cash flows from operating activities:
Net (loss) income	$	(2,372)	$	(4,063)	$	(5,840)	$	(8,383)
Adjustments to reconcile net (loss) income to net cash provided by (used for) operating activities:
Provision for doubtful accounts		90		—		19		(9)
Deferred income taxes		(1,018)		(1,287)		(2,186)		(2,377)
Deferred income tax valuation allowance		980		1,270		2,122		3,655
Equity in (income) loss of affiliates		(20)		(44)		(130)		(131)
Foreign currency (gain) loss		32		(348)		(1,592)		(547)
Unrealized (gain) loss on derivatives		(288)		(1,155)		(604)		(101)
Depreciation and amortization		517		648		1,086		1,358
Stock–based compensation		475		467		1,066		1,051
Change in assets and liabilities:				—
(Increase) decrease in accounts receivable		(1,937)		3,855		(279)		11,392
(Increase) decrease in inventories		3,133		371		6,194		9,632
(Increase) decrease in prepaid and other assets		520		269		(1,485)		(1,367)
Increase (decrease) in accounts payable		(966)		509		929		(1,385)
Increase (decrease) in customer deposits		2,375		219		3,081		(740)
Increase (decrease) in accrued expenses		(79)		(257)		(202)		(173)
Increase (decrease) in accrued payroll and employee benefits		1,044		698		(160)		(822)
Increase (decrease) in accrued income tax		(632)		365		(421)		970
Net change in deferred tax assets and liabilities		142		47		266		125
Net change in derivative assets and liabilities		(119)		(272)		(280)		(234)
Other		261		(295)		(62)		(580)
Net cash provided by (used for) operating activities		2,138		997		1,522		11,334

Cash flows from investing activities:
Proceeds from sale of property and equipment		151		—		151		176
Purchase of property and equipment		(178)		(308)		(249)		(401)
Software development costs		(550)		(492)		(1,089)		(955)
Cash received from sale of a business		—				1,165		—
Net cash provided by (used for) investing activities		(577)		(800)		(22)		(1,180)

Cash flows from financing activities:
Taxes paid related to net settlement of restricted shares		—		—		(271)		(352)


	April 30,		October 31,
	2026		2025
Purchased parts and sub–assemblies	$	35,322	$	35,346
Work–in–process		11,271		11,172
Finished goods		90,587		96,413
Inventories	$	137,180	$	142,931


	Three Months Ended April 30,				Six Months Ended April 30,
	2026		2025		2026		2025
Computerized Machine Tools	$	38,546	$	31,656	$	72,086	$	69,458
Computer Control Systems and Software ^†		516		657		968		1,313
Service Parts		6,246		6,231		13,109		12,095
Service Fees		2,310		2,323		4,323		4,415
Total	$	47,618	$	40,867	$	90,486	$	87,281


		Three Months Ended
		April 30,
		2026					2025					$ Change			% Change
Americas		$	20,740		43	%	$	15,361		38	%	$	5,379		35	%
Europe			19,814		42	%		21,608		53	%		(1,794)		(8)	%
Asia Pacific			7,064		15	%		3,898		9	%		3,166		81	%
Total		$	47,618		100	%	$	40,867		100	%	$	6,751		17	%


				Contract Amount at
	Notional	Weighted		Forward Rates in
	Amount	Avg.		U.S. Dollars
Forward	in Foreign	Forward		Contract	April 30,
Contracts	Currency	Rate		Date	2026	Maturity Dates
Sale Contracts:
Euro	7,200	1.1732		8,447	8,491	May 2026 - Apr 2027
Sterling	4,350	1.3416		5,836	5,897	May 2026 - Apr 2027

Purchase Contracts:
New Taiwan Dollar	690,000	30.4793	*	22,638	21,688	May 2026 - Apr 2027



		Notional		Weighted		Contract Amount at Forward Rates in
		Amount		Avg.		U.S. Dollars
Forward		in Foreign		Forward		Contract		April 30,		Maturity
Contracts		Currency		Rate		Date		2026		Date
Sale Contracts:
Euro		3,000		1.1723		3,517		3,542		Nov 2026

3.1		Amended and Restated Articles of Incorporation of the Registrant, as amended effective March 15, 2024, incorporated by reference to Exhibit 3.1 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended April 30, 2024.

3.2		Amended and Restated By-Laws of the Registrant, as amended through March 15, 2024, incorporated by reference to Exhibit 3.2 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended April 30, 2024.

31.1		Certification by the Chief Executive Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934, as amended.

31.2		Certification by the Chief Financial Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934, as amended.

32.1		Certification by the Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

32.2		Certification by the Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101		The following information from the Registrant’s Quarterly Report on Form 10-Q for the quarter ended April 30, 2026, formatted in Inline XBRL: (i) Condensed Consolidated Statements of Operations; (ii) Condensed Consolidated Statements of Comprehensive Income (Loss); (iii) Condensed Consolidated Balance Sheets; (iv) Condensed Consolidated Statements of Cash Flows; (v) Condensed Consolidated Statements of Changes in Shareholders’ Equity; (vi) Notes to Condensed Consolidated Financial Statements; and (vii) information regarding trading arrangements set forth in Part II, Item 5.

104		Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

	HURCO COMPANIES, INC.


	By:	/s/ Sonja K. McClelland
		Sonja K. McClelland
		Executive Vice President, Treasurer & Chief Financial Officer
		June 5, 2026

Arch
/s/ Gregory Volovic
Gregory Volovic
Chief Executive Officer
June 5, 2026