ELTK Q2 2026 - Preliminary Earnings Alert
Verdict
- Eltek swung to a gross loss of $1.0m from a $3.0m gross profit (24% of revenues) a year ago -- the quarter broke at the gross line, not below it.
- Cost of revenues rose to $12.5m from $9.5m while revenues fell to $11.5m from $12.5m, so the company spent 31% more to produce 8% less.
- Net loss of $2.7m, or $0.41 per fully diluted share, against net income of $0.4m and $0.05 a year ago; EBITDA swung to a $1.9m loss from $2.0m positive.
Consensus scorecard
Scorecard suppressed: no API Ninjas consensus estimate for this event.
Key metrics
| Metric | Reported | Prior year | Change |
|---|---|---|---|
| Revenues | $11.5m | $12.5m | -7.9% |
| Gross profit (loss) | $(1.0)m | $3.0m | swing to loss |
| Operating loss | $(2.5)m | $1.5m | swing to loss |
| Net loss | $(2.7)m | $0.4m | swing to loss |
| EBITDA (non-GAAP) | $(1.9)m | $2.0m | swing to loss |
| Net cash provided by operating activities | $0.7m | $(2.9)m | swing to inflow |
Guidance changes
No financial guidance change disclosed.
Quality of earnings
- The $2.7m net loss is flattered by a $0.5m tax benefit; pre-tax loss was $3.2m against $0.4m of pre-tax income a year ago.
- Operating cash flow of $0.7m turned positive against a $2.7m net loss, with a $2.7m increase in trade payables and a $0.5m fall in receivables carrying the swing.
Gotchas & watch items
- Cash of $9.4m is up from $2.5m at December 31, but short-term deposits fell to $2.1m from $9.6m -- combined liquidity of $11.5m is roughly flat, not rebuilt.
- Capex of $0.9m in the quarter and $1.7m across six months continues while the plating line is still in acceptance testing, with qualification only starting in Q3.
- Accumulated deficit widened to $6.7m from $1.1m at December 31, consuming most of the retained-earnings cushion in two quarters.