Taylor Devices reported QQ1 2025 results that demonstrate robust profitability metrics alongside meaningful working-capital-driven cash flow headwinds. Revenue of $11.62 million represented a 17.1% year-over-year increase but a 3.7% quarter-over-quarter decline. Gross profit rose 25.5% year over year to $5.50 million, delivering a gross margin of 47.37%, while operating income expanded 51.3% year over year to $2.90 million (operating margin ~25.0%). Net income reached $2.67 million, up 44.3% year over year, with earnings per share of $0.85, up 63.5% from the prior year period. Despite strong profitability, operating cash flow was negative at $(3.59) million and free cash flow was $(3.84) million due largely to a substantial working capital unwind: a large negative change in working capital totaling $(6.64) million, including sizable receivables and other working capital outflows. The balance sheet remains liquidity-rich with no debt, cash and short-term investments of approximately $27.1 million, and total stockholders’ equity of about $53.9 million. The company carries a solid liquidity profile (current ratio ~6.0, quick ratio ~5.0) but faces near-term cash-flow headwinds that may need operating-cash-flow normalization or working-capital management to sustain dividend and capex plans. The company’s earnings quality is supported by a strong gross and operating margin, but investors should monitor the pace of working-capital improvements and any incremental capex needs as Taylor continues to scale its shock-absorption and energy-storage product lines.