FREQUENCY ELECTRONICS INC (FEIM) FY2026 10-K Annual Report
FREQUENCY ELECTRONICS INC (FEIM) 10-K annual report for fiscal year 2026, filed with SEC EDGAR on Jul 17, 2026. This page provides AI-powered analysis including business overview, management discussion & analysis (MD&A), risk factors, and key financial data such as revenue, net income, gross margin, operating margin, and return on equity (ROE) extracted from XBRL.
FREQUENCY ELECTRONICS INC FY2026 10-K Analysis
Business Overview
- • Core business model: Precision time and frequency generation technology for commercial and U.S. Government satellite and secure communications systems
- • New emphasis on quantum sensing products (magnetometers, Rydberg sensors) leveraging atomic clock physics, targeting a growing market segment
- • Strategic focus shift: Prioritizing satellite payloads, C4ISR, and Electronic Warfare markets for significant revenue growth opportunities
- • Backlog increased to $111M from $70M prior year, with 73% expected to be filled in fiscal 2027
- • Revenue contribution shift: FEI-NY segment revenue 72% in 2026 (down from 76% in 2025), FEI-Zyfer up to 34% from 27%, reflecting expanded GPS tech integration
Management Discussion & Analysis
- • Revenue $63.2M, down 9.4% YoY from $69.8M; FEI-NY down 14.3% to $45.7M, FEI-Zyfer up 16.5% to $21.7M
- • Gross margin 29.1% vs 43.1%, operating loss $(3.0)M vs $11.7M income, SG&A 24.4% vs 17.6%, R&D 9.5% vs 8.7%
- • Best segment: FEI-Zyfer revenues $21.7M up 16.5%; Worst segment: FEI-NY revenues $45.7M down 14.3%
- • Operating cash flow $1.3M positive vs $(1.4)M prior year; Capex $2.9M vs $1.8M; $1.6M spent on share repurchases; $9.6M special dividend paid in prior year
- • Management outlook: focus on ALT-PNT, quantum sensing, space defense, satellite programs growth; expects operating leverage as revenue increases; risks include reliance on key customers, inflation impact, and integration of new credit facility
Risk Factors
- • Regulatory risk: OFAC sanctions on Morion, a subsidiary of Russian Gazprombank, designated Specially Designated National on Oct 30, 2024, blocking all commercial ties
- • Geopolitical risk: 91% of sales depend on U.S. Government programs, subject to funding cuts, continuing resolutions, and debt ceiling risks impacting contract funding
- • Supply chain risk: Dependence on space-qualified suppliers for key materials like circuit boards, risking delays, increased costs, and redesign needs due to supplier quality or consolidation issues
- • Competitive risk: LEO commercial satellite systems with lower life requirements threaten demand for Frequency’s high-performance, longer-lived geosynchronous orbit products
- • Financial risk: $10 million senior secured revolving credit facility covenants on leverage and fixed charge coverage risk default and acceleration of debt repayments
FREQUENCY ELECTRONICS INC FY2026 Key Financial MetricsXBRL
Revenue
$63M
▼ -9.4% YoY
Net Income
-$903,000
▼ -103.8% YoY
Gross Margin
29.1%
▼ -1402bp YoY
Operating Margin
-4.7%
▼ -2155bp YoY
Net Margin
-1.4%
▼ -3536bp YoY
ROE
-1.6%
▼ -4419bp YoY
Total Assets
$91M
▼ -3.2% YoY
EPS (Diluted)
$-0.09
▼ -103.7% YoY
Operating Cash Flow
$1M
▲ +189.8% YoY
Source: XBRL data from FREQUENCY ELECTRONICS INC FY2026 10-K filing on SEC EDGAR. All figures in USD.
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