“we hired it, I believe, it was eight people. Some of them did not work out, and we had -- and they have left the company since then. We're expecting the impact to start showing in the second half of this year.”
— Patrick Lynch
03Detailed Report
NTIC
Company NTIC
Period
Q2 2025
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 24, 2026
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Executive Summary
NTIC delivered a challenging Q2 FY2025 as consolidated net sales declined 8.5% year over year to $19.1 million, with gross margin compressing to 35.6% from 40.0% a year ago. The contraction was driven primarily by a weaker mix in Natur-Tec and softer Zerust Oil & Gas demand, alongside pricing pressures in Natur-Tec that pressured gross margin. Despite near-term headwinds, management signaled a trough-to-recovery dynamic in the second half of fiscal 2025, anchored by a growing sales pipeline in Zerust Oil & Gas and ongoing opportunities in Natur-Tec packaging solutions, as well as a stabilizing performance from NTIC China. Importantly, NTIC maintained a solid balance sheet and liquidity runway, with more than $5 million of cash and equivalents and a diversified asset-light model that supports deleveraging and strategic investments. Management also signaled discipline in capital allocation, including dividend adjustments to preserve cash and strengthen flexibility for growth in oil & gas and compostable plastics.
Key Performance Indicators
Revenue
Decreasing
19.07M
QoQ: -10.62% | YoY: -8.49%
Gross Profit
Decreasing
6.80M
35.63% margin
QoQ: -16.75% | YoY: -18.51%
Operating Income
Decreasing
-332.93K
QoQ: -130.08% | YoY: -21.16%
Net Income
Decreasing
434.32K
QoQ: -22.59% | YoY: -74.47%
EPS
Decreasing
0.05
QoQ: -15.54% | YoY: -72.22%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue: $19.07 million in Q2 2025, YoY -8.49%, QoQ -10.62% (per incomeMetrics). Gross Profit: $6.80 million, YoY -18.51%, QoQ -16.75%. Gross Margin: 35.63%, down from 40.00% YoY. Operating Income: -$0.33 million, YoY margin -1.75%, QoQ margin -130.08%. Net Income: $0.43 million, YoY -74.47%, QoQ -22.59%. EPS (GAAP): $0.05 basic, $0.04 diluted; YoY EPS -72.22%, QoQ -15.54%. EBITDA: $1.43 million. Cash Flow: Operating cash flow $0.80 million for the quarter (six months ended Feb 28, 2025: $0.804 million), Free Cash Flow: $1.31 million. Cash and cash equivalents: $5.09 million; Total debt: $8.40 million; Net debt: $3.31 million. Working capital: $21.4 million. Current ratio: 2.18; Quick ratio: 1.35; Cash conversion cycle: 138.25 days. Notable items: Dividend reduced to $0.01 per share (from $0.07); trailing 12-month Zerust Oil & Gas sales: $8.6 million, +7.2% YoY. NTIC China net sales: $3.7 million, +8.1% YoY. Joint venture sales (IR JV): $19.8 million, -15.7% YoY.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
19.07M
-8.49%
-10.62%
Gross Profit
6.80M
-18.51%
-16.75%
Operating Income
-332.93K
-21.16%
-130.08%
Net Income
434.32K
-74.47%
-22.59%
EPS
0.05
-72.22%
-15.54%
Key Financial Ratios
Gross Profit Margin
Fair
35.60%
Gross profit margin is moderate, room for improvement in cost management
Operating Profit Margin
Weak
-0.02%
Operating margin is below industry norms, profitability concerns
Net Profit Margin
Weak
2.28%
Net profit margin is below industry norms, profitability concerns
Return on Assets
Weak
0.46%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
0.62%
Return on equity suggests inefficient capital allocation
Current Ratio
Healthy
2.18
Current ratio shows adequate liquidity to meet short-term obligations
Debt to Equity
Conservative
0.12
Debt-to-equity shows conservative leverage and low financial risk
P/E Ratio
High Growth
61.87x
Very high P/E indicates aggressive growth expectations, higher risk
Price to Book
Fair Value
1.54x
Price-to-book ratio reasonable for profitable companies
Management Insights Available for Members
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