AstroNova reported Q2 FY2026 revenue of $36.1 million, down 10.9% year over year and 4.2% sequentially, with 70% of revenue categorized as recurring. Gross profit was $11.6 million (gross margin of 32.2%), while GAAP net loss was $1.23 million ($0.16 per share). Adjusted EBITDA came in at $2.1 million, for an EBITDA margin of 5.7%. The quarter reflected continued execution challenges in Product Identification (PI) and a tougher compare in Aerospace, but management highlighted a meaningful turnaround plan anchored by cost reductions, sales reorganization, and product launches. The company ended the period with liquidity of approximately $10.4 million in total liquidity, and debt leverage stood at about 3.5x funded debt to Adjusted EBITDA, with debt restructuring discussions ongoing and a planned completion within the next ~60 days. Backlog stood at $25.3 million, representing roughly 30% of the mid-point of the year guidance for shipments in H2. Management emphasized a multi-pronged path to profitability, including (1) commercial execution improvements in PI via two dedicated sales teams (customer acquisition and retention), (2) production and supply chain adjustments in mail-in sheet printers, (3) the ongoing ToughRider transition in aerospace to broaden hardware sales aligned with rising aircraft build rates, and (4) a ~$3 million annualized cost-reduction program to improve margins in H2 2026. While the near-term backdrop remains challenging, the management narrative centers on stabilizing cash flow, enhancing customer responsiveness, and leveraging new printer launches (QL 425/435, 800 direct-to-package) to drive hardware sales and long-term profitability.