ELECTRO SENSORS INC SEC 10-Q Report

Electro Sensors Inc., a leading provider of industrial monitoring and sensor solutions, has released its Form 10-Q report for the second quarter of 2025. The report highlights significant improvements in financial performance, driven by increased sales to international and OEM customers, as well as operational efficiencies. The company continues to navigate supply chain challenges and labor market constraints while exploring growth opportunities.

Financial Highlights

• Net Sales: $2.4 million for Q2 2025, an increase of 8.3% from $2.217 million in Q2 2024, driven by increased sales to international and OEM customers.
• Gross Profit: $1.228 million for Q2 2025, an increase of 17.3% from $1.047 million in Q2 2024, with gross margin improving to 51.2% from 47.2% due to higher average selling prices.
• Operating Loss: $(0.002) million for Q2 2025, compared to $(0.107) million in Q2 2024, reflecting higher net sales and gross margin, partially offset by increased operating expenses.
• Net Income: $0.059 million for Q2 2025, compared to a net loss of $(0.004) million in Q2 2024, primarily due to improved sales and gross profit.
• Net Income Per Share: $0.02 for Q2 2025, compared to $0.00 in Q2 2024, reflecting the increase in net income.

Business Highlights

• Revenue Segments: The increase in net sales during the three-month period was primarily driven by increased sales to international and OEM customers.
• Geographical Performance: The company markets its products to customers located throughout the United States, Canada, Latin America, Europe, and Asia, indicating a broad geographical reach.
• Operational Efficiency: The company is actively seeking additional sources for components and modifying product designs to accommodate new components that are more readily available at competitive prices, addressing supply chain challenges.
• Labor Market Challenges: The labor market for qualified employees is challenging and becoming more costly, which may result in delays in filling positions and negatively impact profit margins.
• Future Outlook: The company continues to seek growth opportunities both internally and externally, including technology partnerships or related-product or business acquisitions, and is exploring business development and other strategic alternatives.

SEC Filing: ELECTRO SENSORS INC [ ELSE ] - 10-Q - Aug. 12, 2025