Mind Technology Inc Q2 2026 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Tyson Bauer - Kansas City Capital Associates - Analyst : Good morning, gentlemen. Just a couple of clarifications on some of the numbers. The parts and services revenue, given you're 68% for the full year, so that was roughly about $7 million in the quarter.

Question: Tyson Bauer - Kansas City Capital Associates - Analyst : No, that's how the math works on. Does that include any catch-up from Huntsville, where you had kind of the delays until you got that capital project done? Or is that $7 million from what we've seen in the first quarter, second quarter, a fairly good run rate as we go through the second half of the year?

Question: Tyson Bauer - Kansas City Capital Associates - Analyst : And should we see a boost given the expansion in Huntsville at some point going forward?

Question: Tyson Bauer - Kansas City Capital Associates - Analyst : Okay. You had a $4.5 million delayed order in Q1 that hit in Q2, at least that was what was related to us on the last conference call. Given the $7 million, it leaves about $2 million in new activity in the quarter to hit your revenue level, which I find interesting with your backlog because you ended April with $21.1 million, you had a $4 million order on June 10, a GunLink system. So if you deliver that $4.5 million, you had $2 million in new activity backlog looks like it should be closer to $18 million, ended up $12.8 million. Were there a cancellation. Were there a reclassification. Just kind of where is that variance of $6 million. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 10, 2025 / 1:00PM, MIND.OQ - Q2 2026 Mind Technology Inc Earnings Call

Question: Tyson Bauer - Kansas City Capital Associates - Analyst : Okay. As we go forward, you made a comment that fiscal '26 should be now similar to fiscal '25, which is a little different. We are almost like the Fed speak here. Previously, you said that fiscal '25. So you have a little bit of an adjustment there. The implication is with your expectation of parts and services, that's about one -- basically two or three more full systems delivered before year-end to hit those numbers. Does that sound about right. And if we're going to get $10 million immediately on new orders, it almost seems like we need to get another $10 million just to feel comfortable that if that's achievable for the second half of the year.

Question: Tyson Bauer - Kansas City Capital Associates - Analyst : Okay. This is the time of the year where you typically have received a large annual order from our Scandinavian friends, companies over there. Are they still in that time schedule? Or have -- are they cautious also.

Question: Tyson Bauer - Kansas City Capital Associates - Analyst : Okay. And last one for me, and I'll let others ask questions about your capital stuff. The -- what we hear from the rhetoric from the administration was play a little what's real, what's just headlines, moratorium and offshore wind projects, having an adverse look at wind energy, especially the REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 10, 2025 / 1:00PM, MIND.OQ - Q2 2026 Mind Technology Inc Earnings Call offshore stuff. But wanting more rare earth and deep sea mapping, those kind of things, which we say may be off in the future, may be more of a commentary of what they want to do as opposed to what will be done. What's true? What's falls between these headlines regarding those two things that do affect your business?

Question: Ross Taylor - ARS Investment Partners - Analyst : Thank you, first, great quarter. I will admit I was one of those people who was somewhat surprised. I think I've been in this business for a little over 40 years, and I've never seen an ATM and a buyback announced on the same press release, but it's always good to learn. Along that line, I'd love for you to talk to me or us a little bit more about your acquisition strategy from what you've said and the like -- what makes the most sense as you'd use the ATM if you were looking at you had a very interesting acquisition that fell in. What is your -- what are you looking for. Are you looking for products that you see fit into your current structure? What would be additive? Also what's your thinking of dilution and the like. You've talked a lot about wanting to do the right thing by shareholders in driving and concerns about share price. I'm curious about have you given thought about what parameters you would put on any acquisition you would make.

Question: Ross Taylor - ARS Investment Partners - Analyst : Okay. So products or small divisions of other companies, things of that nature is what you'd be looking to do?

Question: Ross Taylor - ARS Investment Partners - Analyst : Okay. Last quarter, we talked about a deal with a company that innovative newcomer into the mapping space and the like. Has there been any progress with that?

Question: Ross Taylor - ARS Investment Partners - Analyst : And what kind of opportunities do you think if we come back -- looking back a year in the future, two years or three years in the future, what kind of opportunity are you looking at from that?

Question: Ross Taylor - ARS Investment Partners - Analyst : Yeah.

Question: Ross Taylor - ARS Investment Partners - Analyst : I might have missed it, but did you mention what cash was at the end of the quarter? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 10, 2025 / 1:00PM, MIND.OQ - Q2 2026 Mind Technology Inc Earnings Call

Question: Ross Taylor - ARS Investment Partners - Analyst : Okay. Also, can you talk about the opportunity -- you've mentioned, and Tyson asked about Huntsville, can you talk about the opportunities? What is Huntsville going to do? And what kind of opportunities do you see coming out of it business-wise? Will this be something that's meaningful -- meaning do you see it being able to add around 10% or more to annual revenues? Or is it something less meaningful than that?

Question: Ross Taylor - ARS Investment Partners - Analyst : And also for tax and cash flow reasons then right as well, right?

Question: Ross Taylor - ARS Investment Partners - Analyst : So that would be meaningful as well. With regard to your comments about this year, last year, last year, top line grew at about 29%. So far this year, it's been growing at about a 9% rate. Listening to you and Tyson talk, leaves me feeling that you're probably -- you might not want to commit to it, but you're probably shooting for that kind of a continuation of the first half growth over -- year over year to see in the second half. Would something in that high single digits, low double digits type range, am I wrong in that interpretation?

Question: Ross Taylor - ARS Investment Partners - Analyst : Yeah. So it's lumpy, but the trends are there. And if it's not made, it's likely it's going to be seen in the backlog if you're not able to get it because -- right?

Question: Ross Taylor - ARS Investment Partners - Analyst : Okay. So basically, we're looking at this thing, so we can still trust Tyson in his numbers. I don't usually drink early in the morning, but sometimes I. So -- but yeah, it's great. Good job. I think you continue to push forward with it. Thank you for giving us some explanation on the overlapping ATM and share buyback that did leave me somewhat scratching my rather thinning hair. But other than that, keep it up.