RICHARDSON ELEC LTD (NASDAQ:RELL) Reports Q2 Revenue Beat but Posts Net Loss, Stock Falls 4%

RICHARDSON ELEC LTD (NASDAQ:RELL) reported its fiscal second-quarter 2026 results, delivering a top-line beat against analyst expectations but posting a net loss. The market's immediate reaction was negative, with the stock declining over 4% in after-hours trading following the announcement.

Earnings Snapshot: Revenue Beat Meets Net Loss

The company’s performance for the quarter ended November 29, 2025, presented a mixed picture. While revenue growth continued, profitability remained elusive.

• Reported Revenue: $52.29 million, a 5.7% increase year-over-year.
• Analyst Revenue Estimate: $50.90 million.
• Reported EPS (Non-GAAP): A loss of $0.01 per share.
• Analyst EPS Estimate: A projected loss of $0.0102 per share.

Richardson Electronics successfully surpassed revenue forecasts by approximately 2.7%, marking its sixth consecutive quarter of year-over-year sales growth. The earnings per share figure, while a loss, was essentially in line with the narrow consensus estimate.

Market Reaction and Recent Performance

The financial results were met with investor skepticism. The stock fell 4.1% in after-hours trading following the earnings release. This decline contrasts with the stock's performance over recent weeks, which had been modestly positive.

• After-Hours Reaction (Post-Earnings): -4.1%
• Past Month Performance: +6.6%
• Past Two Weeks Performance: +8.6%

The negative after-market move suggests that investors may have been hoping for a clearer path to profitability or stronger forward-looking guidance, despite the revenue beat. It also potentially indicates a "sell the news" event after the stock's recent appreciation.

Key Highlights from the Quarterly Report

Beyond the headline numbers, the company’s press release highlighted several operational developments. The Board of Directors declared a quarterly cash dividend of $0.06 per share, signaling a commitment to returning capital to shareholders. A significant driver of the quarter’s growth was the Green Energy Solutions (GES) segment, which saw net sales surge 39% year-over-year. This aligns with broader industry trends toward energy storage and power management solutions. The company continues to position itself as a provider of engineered solutions across its Power and Microwave Technologies (PMT) and Canvys display segments.

Looking Ahead: Estimates for Q3 and FY2026

The company’s report did not provide specific quantitative financial guidance for the coming periods. However, current analyst estimates offer a benchmark for future performance.

• Q3 FY2026 Analyst Estimates:
  • Revenue: $55.18 million
  • EPS: $0.0612
• Full-Year FY2026 Analyst Estimates:
  • Revenue: $218.77 million
  • EPS: $0.2652

The analyst projections for the third quarter indicate an expectation for sequential revenue growth and a return to profitability. The full-year estimate also anticipates a net profit. Investors will likely monitor the company’s upcoming quarters closely to see if it can meet these profitability targets and sustain the momentum in its high-growth GES segment.

For a detailed breakdown of historical earnings, future estimates, and analyst ratings, you can review the data here: RELL Earnings & Estimates.

Disclaimer: This article is for informational purposes only and does not constitute financial advice, a recommendation, or an offer to buy or sell any securities. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.