Recent News
On December 2, 2025 the company made its 2025 Analyst Day webcast and presentation available and reaffirmed prior annual revenue growth guidance of 21–23% for the year. The announcement accompanied User Conference activity in Santa Clara and emphasized strategic product positioning for manufacturing analytics and equipment connectivity.
Technical Analysis
ADX at 17.35 signals no strong trend; directional indicators present a mixed picture. DI+ underwent a peak and reversal (bearish signal) while DI- also shows a peak and reversal (bullish signal), leaving directional pressure unresolved and consistent with consolidation around the current price level.
MACD sits at 0.41 with the MACD line below the signal line (0.53) and the MACD trend decreasing, indicating waning bullish momentum. No bullish MACD crossover exists to suggest an immediate acceleration in upside.
MRO at 11.58 reads positive, indicating the market price sits above the model target and implying pressure for mean reversion. The recent MRO peak and reversal strengthens the near-term probability of a pullback toward the model target rather than continued rapid gains.
RSI at 54.95 with a peak-and-reversal trend shows momentum softening from recent highs but not yet in oversold territory; the indicator supports the case for range-bound trading rather than a decisive breakout.
Price sits at $28.53, below the 20-day average ($29.13) and the 12-day EMA (price12dayEMA trend: peak & reversal), but above the 50-day ($27.97) and 200-day ($22.74) averages. Short-term moving averages suggest near-term weakness while medium- and long-term averages remain supportive of the broader uptrend.
Bollinger bands place the 1x lower band at $27.82 and upper band at $30.43; current price trades inside the bands and nearer the lower band, consistent with consolidation and limited intraday volatility. SuperTrend upper resistance sits near $30.54.
Volume (177,539) trails 10-, 50- and 200-day averages, signaling lower trading participation during the recent pullback and reducing conviction behind short-term moves. Short-term volatility measures (42-day beta 2.43; 52-week beta 1.61) remain elevated versus large-cap norms, implying sensitivity to market swings.
Fundamental Analysis
Revenue dynamics show overall revenue growth of 10.41%; sequential momentum looks strong with revenue growth QoQ at +25.97% while revenue growth YoY registers -8.63%, indicating recent acceleration after weaker year-over-year comparatives.
Profitability: gross margin sits at 72.27%, up ~1.46 percentage points QoQ and down ~1.14 percentage points YoY; gross margin exceeds the industry peer mean of 52.71% and the peer median of 51.63%. Operating margin registers 8.45% with an improvement of approximately 2.91 percentage points QoQ and roughly 0.85 percentage points YoY. EBIT margin equals 8.27%; EBIT margin improved about 2.26 percentage points QoQ and about 0.81 percentage points YoY but remains below the industry peer mean of 34.52% and below the peer median of 35.72%.
Earnings and cash flow: GAAP net income stands at $1,294,000 and reported EPS of $0.64 beat the estimate of $0.22 by $0.42, a 191% upside to consensus. EBITDA equals $7,940,000 and EBIT equals $4,725,000. Operating cash flow reached $3,287,000 while free cash flow finished negative at -$3,038,000, producing a free cash flow yield of -0.31% and indicating a current gap between accounting earnings and cash conversion.
Balance sheet and leverage: cash and short-term investments total $35,880,000 against total debt of $73,784,000 and net debt of $31,678,000. Current ratio stands at 2.21, mildly above the industry peer mean of 2.14, supporting near-term liquidity. Debt to assets equals 18.16% (slightly above the industry peer mean of 16.40%) and debt to equity equals 27.91% (a touch above the peer mean of 25.21%), both consistent with modest leverage rather than aggressive funding risk. Interest coverage near 3.82x provides a buffer but reflects limited headroom versus higher-coverage peers.
Efficiency and returns: asset turnover runs at 0.143 (below the industry peer mean of 0.1936), receivables turnover at 0.79 lags the peer mean of 1.41, and return on assets and return on equity remain low at 0.33% and 0.49% respectively versus peer means of 5.46% and 12.91%. These metrics point to high margin profiles but restrained asset efficiency and limited capital returns so far.
Valuation context: price closed at $28.53 with analyst price target mean near $30.01 and a WMDST valuation of fair-valued. Reported PE stands near 39.12 and forward PE near 85.91; enterprise value approximates $1,018,483,251. Taken together, valuation metrics reflect a market pricing that embeds growth expectations while earnings and cash conversion indicate mixed operational leverage.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-09-30 |
| REPORT DATE: | 2025-11-06 |
| NEXT REPORT DATE: | 2026-02-05 |
| CASH FLOW | Begin Period Cash Flow | $ 37.4 M |
| Operating Cash Flow | $ 3.3 M | |
| Capital Expenditures | $ -6.33 M | |
| Change In Working Capital | $ -9.55 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ -1.53 M | |
| End Period Cash Flow | $ 35.9 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 57.1 M | |
| Forward Revenue | $ 116.9 M | |
| COSTS | ||
| Cost Of Revenue | $ 15.8 M | |
| Depreciation | $ 1.1 M | |
| Depreciation and Amortization | $ 3.2 M | |
| Research and Development | $ 15.4 M | |
| Total Operating Expenses | $ 52.3 M | |
| PROFITABILITY | ||
| Gross Profit | $ 41.3 M | |
| EBITDA | $ 7.9 M | |
| EBIT | $ 4.7 M | |
| Operating Income | $ 4.8 M | |
| Interest Income | — | |
| Interest Expense | $ 1.2 M | |
| Net Interest Income | $ -1.24 M | |
| Income Before Tax | $ 3.5 M | |
| Tax Provision | $ 2.2 M | |
| Tax Rate | 21.0 % | |
| Net Income | $ 1.3 M | |
| Net Income From Continuing Operations | $ 1.3 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.22 | |
| EPS Actual | $ 0.64 | |
| EPS Difference | $ 0.42 | |
| EPS Surprise | 190.909 % | |
| Forward EPS | $ 0.27 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 406.4 M | |
| Intangible Assets | $ 151.0 M | |
| Net Tangible Assets | $ 113.4 M | |
| Total Current Assets | $ 146.1 M | |
| Cash and Short-Term Investments | $ 35.9 M | |
| Cash | $ 35.9 M | |
| Net Receivables | $ 74.9 M | |
| Inventory | — | |
| Long-Term Investments | $ 1.9 M | |
| LIABILITIES | ||
| Accounts Payable | $ 14.7 M | |
| Short-Term Debt | $ 2.2 M | |
| Total Current Liabilities | $ 66.1 M | |
| Net Debt | $ 31.7 M | |
| Total Debt | $ 73.8 M | |
| Total Liabilities | $ 142.0 M | |
| EQUITY | ||
| Total Equity | $ 264.4 M | |
| Retained Earnings | $ -94.58 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 6.75 | |
| Shares Outstanding | 39.507 M | |
| Revenue Per-Share | $ 1.46 | |
| VALUATION | Market Capitalization | $ 980.6 M |
| Enterprise Value | $ 1.0 B | |
| Enterprise Multiple | 128.272 | |
| Enterprise Multiple QoQ | -39.525 % | |
| Enterprise Multiple YoY | -55.851 % | |
| Enterprise Multiple IPRWA | high: 178.043 PDFS: 128.272 mean: 93.938 median: 91.699 low: -238.397 |
|
| EV/R | 17.832 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 1.537 | |
| Asset To Liability | 2.862 | |
| Debt To Capital | 0.218 | |
| Debt To Assets | 0.182 | |
| Debt To Assets QoQ | -4.094 % | |
| Debt To Assets YoY | 3171.351 % | |
| Debt To Assets IPRWA | high: 0.464 median: 0.198 PDFS: 0.182 mean: 0.164 low: 0.006 |
|
| Debt To Equity | 0.279 | |
| Debt To Equity QoQ | -2.939 % | |
| Debt To Equity YoY | 3836.248 % | |
| Debt To Equity IPRWA | high: 0.755 PDFS: 0.279 mean: 0.252 median: 0.142 low: -0.024 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 3.709 | |
| Price To Book QoQ | 11.893 % | |
| Price To Book YoY | -24.628 % | |
| Price To Book IPRWA | high: 17.585 median: 14.913 mean: 13.813 PDFS: 3.709 low: -3.904 |
|
| Price To Earnings (P/E) | 39.123 | |
| Price To Earnings QoQ | -65.896 % | |
| Price To Earnings YoY | -67.96 % | |
| Price To Earnings IPRWA | high: 286.125 mean: 122.201 median: 115.727 PDFS: 39.123 low: -396.798 |
|
| PE/G Ratio | 0.165 | |
| Price To Sales (P/S) | 17.169 | |
| Price To Sales QoQ | 4.04 % | |
| Price To Sales YoY | -32.664 % | |
| Price To Sales IPRWA | high: 64.674 median: 41.776 mean: 35.535 PDFS: 17.169 low: 1.791 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 85.911 | |
| Forward PE/G | 0.363 | |
| Forward P/S | 9.076 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 24.953 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.143 | |
| Asset Turnover Ratio QoQ | 8.139 % | |
| Asset Turnover Ratio YoY | -6.587 % | |
| Asset Turnover Ratio IPRWA | high: 0.351 median: 0.198 mean: 0.194 PDFS: 0.143 low: 0.0 |
|
| Receivables Turnover | 0.792 | |
| Receivables Turnover Ratio QoQ | 1.782 % | |
| Receivables Turnover Ratio YoY | -12.035 % | |
| Receivables Turnover Ratio IPRWA | high: 2.339 median: 1.451 mean: 1.41 PDFS: 0.792 low: 0.591 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 115.201 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 50.2 | |
| Cash Conversion Cycle Days QoQ | — | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | high: 563.683 median: 276.99 mean: 269.021 PDFS: 50.2 low: 49.763 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 0.714 | |
| CapEx To Revenue | -0.111 | |
| CapEx To Depreciation | -5.51 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 329.7 M | |
| Net Invested Capital | $ 331.9 M | |
| Invested Capital | $ 331.9 M | |
| Net Tangible Assets | $ 113.4 M | |
| Net Working Capital | $ 80.0 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.543 | |
| Current Ratio | 2.211 | |
| Current Ratio QoQ | -6.55 % | |
| Current Ratio YoY | -33.302 % | |
| Current Ratio IPRWA | high: 9.548 PDFS: 2.211 median: 2.207 mean: 2.144 low: 0.914 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 9.293 | |
| Cost Of Debt | 1.323 % | |
| Interest Coverage Ratio | 3.817 | |
| Interest Coverage Ratio QoQ | 261.024 % | |
| Interest Coverage Ratio YoY | 172.154 % | |
| Interest Coverage Ratio IPRWA | high: 192.143 median: 39.833 mean: 37.678 PDFS: 3.817 low: -164.857 |
|
| Operating Cash Flow Ratio | 0.105 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 65.002 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 3.903 % | |
| Revenue Growth | 10.414 % | |
| Revenue Growth QoQ | 25.971 % | |
| Revenue Growth YoY | -8.625 % | |
| Revenue Growth IPRWA | high: 45.385 % PDFS: 10.414 % median: 1.101 % mean: 0.638 % low: -45.156 % |
|
| Earnings Growth | 236.842 % | |
| Earnings Growth QoQ | -2586.791 % | |
| Earnings Growth YoY | 509.021 % | |
| Earnings Growth IPRWA | PDFS: 236.842 % high: 133.333 % mean: -3.624 % median: -6.077 % low: -200.0 % |
|
| MARGINS | ||
| Gross Margin | 72.266 % | |
| Gross Margin QoQ | 1.464 % | |
| Gross Margin YoY | -1.141 % | |
| Gross Margin IPRWA | high: 89.855 % PDFS: 72.266 % mean: 52.705 % median: 51.627 % low: 4.626 % |
|
| EBIT Margin | 8.273 % | |
| EBIT Margin QoQ | 225.965 % | |
| EBIT Margin YoY | 81.187 % | |
| EBIT Margin IPRWA | high: 43.012 % median: 35.717 % mean: 34.522 % PDFS: 8.273 % low: -46.404 % |
|
| Return On Sales (ROS) | 8.451 % | |
| Return On Sales QoQ | 291.431 % | |
| Return On Sales YoY | 85.085 % | |
| Return On Sales IPRWA | high: 41.661 % mean: 33.093 % median: 32.842 % PDFS: 8.451 % low: -50.057 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ -3.04 M | |
| Free Cash Flow Yield | -0.31 % | |
| Free Cash Flow Yield QoQ | -80.745 % | |
| Free Cash Flow Yield YoY | -178.283 % | |
| Free Cash Flow Yield IPRWA | high: 3.193 % median: 0.795 % mean: 0.645 % PDFS: -0.31 % low: -2.559 % |
|
| Free Cash Growth | -77.891 % | |
| Free Cash Growth QoQ | -97.599 % | |
| Free Cash Growth YoY | -61.238 % | |
| Free Cash Growth IPRWA | high: 137.837 % mean: -4.723 % median: -31.87 % PDFS: -77.891 % low: -368.087 % |
|
| Free Cash To Net Income | -2.348 | |
| Cash Flow Margin | 12.119 % | |
| Cash Flow To Earnings | 5.349 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 0.325 % | |
| Return On Assets QoQ | 10.922 % | |
| Return On Assets YoY | -55.418 % | |
| Return On Assets IPRWA | high: 7.255 % mean: 5.461 % median: 5.244 % PDFS: 0.325 % low: -8.379 % |
|
| Return On Capital Employed (ROCE) | 1.388 % | |
| Return On Equity (ROE) | 0.005 | |
| Return On Equity QoQ | 9.888 % | |
| Return On Equity YoY | -46.674 % | |
| Return On Equity IPRWA | high: 0.225 mean: 0.129 median: 0.112 PDFS: 0.005 low: -0.18 |
|
| DuPont ROE | 0.496 % | |
| Return On Invested Capital (ROIC) | 1.125 % | |
| Return On Invested Capital QoQ | 252.665 % | |
| Return On Invested Capital YoY | -203.496 % | |
| Return On Invested Capital IPRWA | high: 10.936 % median: 10.871 % mean: 8.912 % PDFS: 1.125 % low: -2.31 % |
|