Frequency Electronics Inc
FEIM
$31.32 4.71%
Exchange: NASDAQ | Sector: Technology | Industry: Communication Equipment
Q3 2025
Published: Mar 17, 2025

Earnings Highlights

  • Revenue of $18.93M up 38% year-over-year
  • EPS of $1.60 increased by 11% from previous year
  • Gross margin of 43.8%
  • Net income of 15.41M
  • "The magnetometer is a device to measure the magnetic field. And that is getting a lot of interest at this point in time because it can be used in GPS‑denied environments to perform navigation... Another major use of magnetometers is in so‑called Magnetic Anomaly Detection, or MAD. And one of the main purposes for this is detection of submarines. The other quantum sensor that we're interested in is so‑called Rydberg sensor... the size of the antenna is completely decoupled from the wavelength. And so, we can use a small cell, maybe one centimeter cube to detect the signals." - Thomas McClelland
FEIM
Company FEIM

Executive Summary

Frequency Electronics (FEIM) delivered a robust QQ3 2025 quarter with revenue of $18.9 million, marking the highest quarterly revenue for FEI in a decade, supported by an historically high backlog of approximately $73 million. Gross margin remained strong at 43.8%, and operating income stood at $3.47 million, contributing to a nine‑month revenue run rate of $49.8 million and an improving profitability trajectory, aided by a significant space program milestone and mix shifts toward higher‑margin, government and space related work. Notably, net income for the quarter was $15.4 million, aided by a discrete tax benefit related to the utilization of net operating losses; the nine‑month period ended January 31, 2025 shows a consolidated net income of $20.5 million. FEIM is also advancing its strategic agenda in quantum sensing and proliferated satellite initiatives, including magnetometer and Rydberg sensor developments, though no standalone product has yet been commercialized and revenue in calendar 2025 from these programs is not yet assured. The company remains debt‑free with a healthy current ratio (~2.2x) and a cautious stance on Washington policy timing, expecting some programs to be pushed or reprioritized, but maintaining conviction in a longer‑term growth runway tied to larger addressable markets. Management emphasized a disciplined investment approach, ongoing R&D, and a workforce that is highly engaged in meeting ambitious milestones.

Key Performance Indicators

Revenue
Increasing
18.93M
QoQ: 19.64% | YoY: 38.01%
Gross Profit
Increasing
8.29M
43.77% margin
QoQ: 8.74% | YoY: 166.91%
Operating Income
Increasing
3.47M
QoQ: 32.51% | YoY: 833.40%
Net Income
Increasing
15.41M
QoQ: 480.44% | YoY: 11 750.00%
EPS
Increasing
1.60
QoQ: 471.43% | YoY: 11 494.20%

Revenue Trend

Margin Analysis

Historical Earnings Comparison

PeriodRevenue ($M)EPS ($)YoY GrowthReport
Q1 2026 13.81 0.07 -11.3% View
Q3 2025 18.93 1.60 +38.0% View
Q2 2025 15.82 0.28 +16.5% View
Q1 2025 15.08 0.25 +21.5% View
Q4 2024 15.58 0.28 +19.8% View