Electro-Sensors, Inc. Announces Third Quarter 2025 Financial Results

Electro-Sensors, Inc. (NASDAQ: ELSE), a leading global provider of machine monitoring sensors and hazard monitoring systems, today announced financial results for the third quarter ended September 30, 2025.

— Record quarterly revenue of $2,748,000, up 9.4% from the prior-year period

— Gross margin of 53.1%

— Cash and investments of approximately $10.6 million

Selected Financial Information (unaudited, in thousands, except per share data)

Q3 2025 Q3 2024 ChangeNet Sales $ 2,748 $ 2,512 9.4 %Gross Margin 53.1 % 50.4 % 270 bpsOperating Income $ 181 $ 173 4.6 %Operating Income Margin 6.6 % 6.9 % (30) bpsIncome Before Income Taxes $ 272 $ 290 (6.2) %Earnings Per Share (diluted) $ 0.06 $ 0.07 (14.3) %

Net sales in the third quarter increased 9.4% to $2,748,000 from $2,512,000 in the prior-year quarter. For the first nine months of 2025, net sales increased 5.9% to $7,387,000 from $6,973,000 in the comparable prior-year period. Gross margin for the 2025 third quarter was 53.1%, up from 50.4% in the corresponding quarter in 2024.

“We are pleased to report record quarterly revenue during the 2025 third quarter, driven by improved sales through our industrial automation distribution channels and higher OEM sales,” said David L. Klenk, Electro-Sensors' president. “Furthermore, gross margin increased during the quarter as we continue to carefully manage our supply chain, while also benefiting from sales price adjustments implemented earlier in the year.”

A full analysis of results for the period ended September 30, 2025 is available in the Company's Form 10-Q, which is available on the Company's website at www.electro-sensors.com or through the Securities and Exchange Commission's Edgar database at www.sec.gov.

Electro-Sensors, Inc.Statements of IncomeFor the Three and Nine Months Ended September 30, 2025 and 2024 (unaudited)(in thousands except share and per share amounts) Three Months Ended September 30, 2025 2024Sales $ 2,748 $ 2,512Cost of goods sold 1,290 1,247Gross profit 1,458 1,265Operating expenses 1,277 1,092Operating income 181 173Non-operating income, net 91 117Income before income taxes 272 290Provision for income taxes 64 52Net income $ 208 $ 238Earnings per share – diluted $ 0.06 $ 0.07Average shares outstanding – diluted 3,473,921 3,434,417 Nine Months Ended September 30, 2025 2024Sales $ 7,387 $ 6,973Cost of goods sold 3,617 3,581Gross profit 3,770 3,392Operating expenses 3,760 3,426Operating income (loss) 10 (34)Non-operating income, net 261 342Income before income taxes 271 308Provision for income taxes 68 63Net income $ 203 $ 245Earnings per share – diluted $ 0.06 $ 0.07Average shares outstanding – diluted 3,453,585 3,440,382Electro-Sensors, Inc.Balance SheetsSeptember 30, 2025 and December 31, 2024(in thousands) September 30, December 31, 2025 2024Assets (unaudited)Current AssetsCash and investments $ 10,627 $ 10,004Trade receivables, net 1,425 1,309Inventories 2,070 1,964Other current assets 318 197Total current assets 14,440 13,474Deferred income tax asset, long-term 437 501Property and equipment, net 860 910Total assets $ 15,737 $ 14,885Liabilities and Stockholders' EquityCurrent LiabilitiesAccounts payable and accrued expenses $ 1,049 $ 552Total current liabilities 1,049 552Stockholders' equityCommon stock 348 344Additional paid-in capital 2,508 2,360Retained earnings 11,832 11,629Total stockholders' equity 14,688 14,333Total liabilities and stockholders' equity $ 15,737 $ 14,885

About Electro-Sensors

Electro-Sensors, Inc. is an industry leading designer and manufacturer of rugged and reliable machine monitoring sensors and wireless/wired hazard monitoring systems applied across multiple industries and applications. These products improve processes by protecting people, safeguarding systems, reducing downtime, and preventing waste. Electro-Sensors is proud to be an ISO9001:2015 quality certified company and is committed to providing excellent customer service and technical support. Founded in 1968 and located in Minnetonka, Minnesota, Electro-Sensors provides its loyal customers with reliable products that improve safety and help plants operate with greater efficiency, productivity and control.

Cautionary Statement Regarding Forward Looking Statements

This press release may include statements about possible or anticipated future financial performance, business activities, plans, or opportunities. These forward-looking statements may include the words “will,” “should,” “believes,” “expects,” “anticipates,” “intends” or similar expressions. For these forward-looking statements, the Company claims the protection of the safe harbor for forward-looking statements contained in federal securities laws. Forward-looking statements reflect the company's current views with respect to future events and financial performance and include any statement that does not directly relate to a current or historical fact. These forward-looking statements are subject to a number of factors, risks and uncertainties, including those disclosed in our periodic filings with the SEC that could cause actual performance, activities, plans, or opportunities after the date the statements are made to differ significantly from those indicated in the forward-looking statements.

For more information please visit our website at:www.electro-sensors.com. Also look us up on:LinkedIn: linkedin.com/company/electro-sensors-inc-X: x.com/ESIsensorsFacebook: facebook.com/ElectroSensors

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SOURCE Electro-Sensors, Inc.

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