ZTEST Electronics Inc. (CSE: ZTE) (OTCID: ZTSTF) reported higher annual revenue, net income and gross margin for fiscal 2026, supported by stronger sales during the second half of the year.
The Canadian electronics manufacturer reported audited revenue of C$9.20 million for the year ended June 30, 2026, up 10.6% from C$8.32 million in fiscal 2025.
Net income increased 6.8% to C$1.16 million, or C$0.032 per share, compared with C$1.09 million, or C$0.030 per share, one year earlier.
Gross profit rose 14.8% to C$3.97 million. ZTEST’s gross margin improved to 43.1% from 41.6%, indicating that gross profit grew faster than revenue during the year.
Annual EBITDA increased 7.8% to C$1.98 million. EBITDA is a non-IFRS financial measure and may not be directly comparable with similarly named figures reported by other companies.
Operating cash flow before changes in non-cash working capital remained relatively stable at C$1.66 million, compared with C$1.66 million in fiscal 2025.
Revenue growth strengthened toward the end of the year. Fourth-quarter revenue increased 18.1% to C$2.50 million, marking ZTEST’s third consecutive quarter of year-over-year growth and its highest quarterly revenue since the fourth quarter of fiscal 2024.
Fourth-quarter gross profit rose 22.4% to C$1.07 million, while the quarterly gross margin improved to 42.7% from 41.2%.
However, higher revenue did not translate into higher quarterly earnings. Fourth-quarter net income declined to C$123,096 from C$299,569, while EBITDA fell to C$298,404 from C$493,928.
The quarter included a one-time C$260,000 retiring allowance for former CEO Steve Smith, who resigned in June. Dave Barnett was appointed president and CEO in August following the leadership transition.
ZTEST ended the fiscal year with C$5.46 million in cash, an increase of 33.1%. Working capital reached C$6.49 million, compared with C$5.01 million one year earlier. The company repaid its equipment term loan in April, while its C$1 million operating line remained undrawn.
Through its Permatech Electronics subsidiary, ZTEST provides printed-circuit-board assembly, materials management and testing services. Its customers operate across medical, industrial, telecommunications, computing, trucking, wireless, wearable technology and consumer-electronics markets.
Upcoming Catalysts
Future quarterly reports will show whether ZTEST can sustain its recent revenue momentum while restoring earnings growth following the one-time leadership-transition expense.
Investors may also watch how the company deploys its cash. Management said ZTEST could support organic growth at Permatech and evaluate strategic growth opportunities, although it has not announced a specific acquisition or transaction.
Sources
- ZTEST Electronics fiscal 2026 results
- ZTEST Electronics corporate website
- ZTEST Electronics stock information
- SEDAR+ regulatory filings
Editorial Disclosure
This article is based entirely on publicly available information, including company announcements and regulatory filings. Next Gen Tech Stocks was not compensated by ZTEST Electronics Inc. for this article, and the author holds no position in the securities mentioned. Company-reported financial figures have not been independently verified by Next Gen Tech Stocks. EBITDA is a non-IFRS financial measure. ZTEST remains a small-cap company exposed to risks including customer demand, manufacturing conditions, leadership execution and limited trading liquidity. Information is current as of October 7, 2026. This article is for informational purposes only and does not constitute financial advice or a recommendation to buy or sell any security. Read our full disclaimer.
