Executive Summary
Encision Inc., a specialized medical instruments company focused on active electrode monitoring (AEM) for laparoscopic procedures, reported QQ1 2026 results with revenue of $1.603 million, up 5.1% year-over-year and 1.1% quarter-over-quarter. Gross profit was $0.878 million, yielding a gross margin of 54.8%, signaling continued product mix strength in a low-to-mid single-digit revenue environment. However, operating expenses of $0.898 million and interest/depreciation costs produced an operating loss of $19.8 thousand and a net loss of $41.1 thousand for the quarter, with negative EBITDA of $347 thousand. The company’s per-share loss was $0.0035 (diluted), reflecting scale-related fixed costs and ongoing investments in R&D and administration as Encision positions its AEM portfolio and EndoShield protection systems for longer-term adoption. YoY revenue growth of ~5% sits against a backdrop of disciplined gross margin maintenance but near-term profitability remains constrained by the company’s investment phase and limited scale. Management commentary is not provided in the supplied transcript data, so the narrative remains anchored to the reported metrics and historical trends. Key questions for investors include the pace of adoption for AEM products, margin expansion opportunities through operating leverage, and the degree of visibility into longer-term revenue growth from new product introductions and market expansion.
Key Performance Indicators
QoQ: -66.75% | YoY:89.94%
QoQ: -66.67% | YoY:89.91%
Key Insights
Revenue: $1.60 million (+5.1% YoY; +1.1% QoQ). Gross Profit: $0.878 million; Gross Margin: 54.8% (YoY +35.98%, QoQ +3.31%). Operating Income: -$0.0198 million (margin -1.23%). EBITDA: -$0.347 million (EBITDARatio -0.0002). Net Income: -$0.0411 million (net margin -2.57%). EPS (diluted): -$0.0035. R&D: $0.1654 million; SG&A: $0.7328 million; Total Operating Expenses: $0.8982 million. Interest Expense: $0.0180 million; Depreciation & Amortization: $0.0228 million. Weighted average shar...
Financial Highlights
Revenue: $1.60 million (+5.1% YoY; +1.1% QoQ). Gross Profit: $0.878 million; Gross Margin: 54.8% (YoY +35.98%, QoQ +3.31%). Operating Income: -$0.0198 million (margin -1.23%). EBITDA: -$0.347 million (EBITDARatio -0.0002). Net Income: -$0.0411 million (net margin -2.57%). EPS (diluted): -$0.0035. R&D: $0.1654 million; SG&A: $0.7328 million; Total Operating Expenses: $0.8982 million. Interest Expense: $0.0180 million; Depreciation & Amortization: $0.0228 million. Weighted average shares: ~11.879–11.879 million.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
1.60M |
5.10% |
1.08% |
| Gross Profit |
878.46K |
35.98% |
3.31% |
| Operating Income |
-19.78K |
95.08% |
5.21% |
| Net Income |
-41.13K |
89.94% |
-66.75% |
| EPS |
0.00 |
89.91% |
-66.67% |
Management Commentary
No earnings call transcript data was provided in the input. As a result, management quotes and theme-based insights from the QQ1 2026 call are not extractable from the supplied material. Transcript quotes placeholders have been included below for completeness in line with the required structure.
Forward Guidance
No explicit forward guidance was disclosed in the provided data. Given Encision’s size and R&D/SG&A investment profile, near-term profitability hinges on achieving meaningful revenue scale and operating leverage. Investors should monitor: (1) uptake of AEM instruments and EndoShield protections in core laparoscopic procedures, (2) runway for new product introductions and market expansion (domestic and international), (3) gross margin trajectory as the company scales and optimizes mix, and (4) cash flow development as receivables/payables cycles and working capital dynamics unfold. In the absence of formal guidance, a cautious stance assumes modest top-line growth converging toward sustainability of fixed cost absorption and sustained R&D investment.