SOTK Sono Tek Corp - 8-K

EX-99.1
2
ex99-1.htm
SONO-TEK REPORTS FISCAL FOURTH QUARTER AND FULL YEAR 2026 FINANCIAL RESULTS

Exhibit 99.1

Sono-Tek Reports Fiscal Fourth Quarter and Full
Year 2026

Financial Results

Reports Second Consecutive Year of
over $20 Million in Revenue and Eighth Consecutive Quarter above $5 Million

Significant Profitability Expansion
with 51% Gross Margin for FY 2026

FY 2026 Operating Income Increased
81% and Net Income Increased 42% Year-Over-Year

Backlog Remains Strong at $9.1 Million

Anticipating Continued Revenue Growth
in 1H 2027 Driven by Strong Medical Sector and High-ASP Systems

Conference call scheduled for 10:30
AM ET Today

MILTON, N.Y., May 28, 2026 - Sono-Tek
Corporation (Nasdaq: SOTK), the leading developer and manufacturer of ultrasonic coating systems, today reported financial results for
the fiscal fourth quarter and full fiscal year 2026, ended February 28, 2026.

Steve Harshbarger, CEO & President of Sono-Tek,
stated:

“We are greatly encouraged by our fiscal 2026
results, highlighted by strong profitability expansion and uninterrupted revenue consistency. We achieved our second consecutive year
of revenue over $20 million and eighth consecutive quarter of revenue above $5 million, reflecting the durability and stability of our
business. Additionally for FY 2026, our gross margin increased to 51%, operating income increased 81%, and net income grew by 42%, demonstrating
the strength of our business model and the continuing success of our strategy focused on higher-value, high-ASP production systems.”

“Margin expansion in the year was driven primarily
by favorable product mix, including a higher concentration of high-ASP production systems, as well as a greater percentage of sales in
the U.S. market, where we benefit from stronger margins by bypassing international-business costs.”

“We are seeing strong momentum in the medical
sector, with growing demand across applications such as stent coating, balloon catheter systems, and diagnostic devices. In addition,
our electronics business continues to expand, particularly in electrically active coatings for diagnostic-related applications that leverage
our core coating technologies. While clean energy remains an important long-term opportunity, near-term orders for electrolysis-related
systems have declined, mirroring softening demand that has resulted from government policy changes and elimination of incentives. This
was partially offset by solar system shipments earlier in the fiscal year.”

“Looking ahead, we anticipate continued
revenue growth in the first half of FY 2027 and profitability driven by the medical sector and sustained demand for high-ASP production
systems. For FY 2027, we anticipate relatively flat to modestly higher year over year revenue, with continued uncertainty in certain clean
energy sectors and the timing of high ASP customer orders, that are more complex and typically involve longer lead times.

We believe our strategy is succeeding, and we remain
confident in our ability to deliver long-term revenue growth and profitability.”

Dr. Christopher L. Coccio, Executive Chairman, added:

“We are pleased with the Company’s continued
execution and improving financial performance. We are proud to report that FY 2026 marks our third consecutive year of annual revenue
growth and sixteenth year in a row of profitability. Our strong backlog, supported by demand for complex, production-oriented systems,
provides a solid foundation as we move forward. Sono-Tek’s ability to adapt to changing market conditions, while maintaining focus
on high-value opportunities, continues to differentiate the Company. We remain confident in our long-term strategy and growth trajectory.”

Fiscal Year 2026 Highlights

Net Sales: $20.9 million, up 2% from
$20.5 million in FY 2025, reflecting continued demand for high-ASP production systems and growth in medical and electronics markets.

Gross Profit: $10.56 million, up 8%
from $9.74 million in the prior year. Gross margin increased to 51% from 47.5%, driven by favorable product mix and increased U.S.-based
system sales.

Operating Income: $1.82 million, up
81% from $1.01 million in FY 2025, reflecting improved operating leverage and higher-margin system shipments.

Net Income: Approximately $1.8 million,
up 42% from $1.27 million in FY 2025, reflecting strong margin expansion and improved profitability.

Fiscal 2026 Review

(Results compared with fiscal 2025)

($ in thousands)

Change

FY 2026

FY 2025

$

%

Net Sales

$

20,909

$

20,504

405

2%

Gross Profit

$

10,560

$

9,739

821

8%

Gross Profit

51%

48%

3%

Operating Income

$

1,825

$

1,010

815

81%

Operating Margin

9%

5%

4%

Net Income

$

1,806

$

1,273

533

42%

Net Margin

9%

6%

2%

Fourth Quarter Fiscal 2026 Highlights

Net Sales: $5.6 million, up 10% from
$5.12 million in Q4 FY 2025.

Gross Profit: $2.79 million, up 15%
from $2.43 million in the prior-year period, with gross margin increasing to 49.8%.

Net Income: $557,043, up 70% from
$327,714 in Q4 FY 2025.

Fourth Quarter Fiscal 2026 Review

(Results compared with the fourth quarter of

fiscal 2025)

($ in thousands)

Change

FY 2026

FY 2025

$

%

Net Sales

$

5,609

$

5,121

488

10%

Gross Profit

$

2,793

$

2,425

368

15%

Gross Profit

50%

47%

3%

Operating Income (Loss)

$

601

$

288

313

109%

Operating Margin

11%

6%

5%

Net Income

$

557

$

328

229

70%

Net Margin

10%

6%

4%

Balance Sheet, Backlog and Outlook

Balance Sheet : The Company ended the fiscal year
with $14.8 million in cash, cash equivalents and marketable securities and no outstanding debt.

Backlog: Equipment and service-related
backlog remained strong at approximately $9.12 million at fiscal year-end, an increase of 5% compared to $8.67 million at the end of FY
2025, and near record levels.

Outlook: Sono-Tek anticipates
continued revenue growth and profitability in the first half of fiscal year 2027 compared to the first half of FY 2026, driven by expanding
demand in the medical sector and continued adoption of high-ASP, production-scale coating systems across multiple end markets. Total FY
2027 revenue is currently projected to be relatively flat to modestly higher compared to FY 2026 as visibility beyond the first half remains
limited due to continued uncertainty in certain clean energy sectors and the timing of high ASP customer orders, which can create significant
shifts in quarterly delivery timing.

Fiscal Year 2026 Product and Market Highlights

End Markets:

·

Medical: Increased 54%, driven by strong demand for
balloon catheter coating systems, specialty stent applications, and expanding activity in new medical applications.

·

Electronics: Increased 16%, supported by strong demand
for electrically active coatings in diagnostic-related applications.

·

Alternative/Clean Energy: Declined 19% due to reduced
electrolysis demand driven by government policy shifts, partially offset by solar system shipments earlier in the fiscal year.

Product Categories:

·

In-Line Coating Systems (formerly referred to as Integrated
Coating Systems): Increased 91%, driven by shipments of eight high-ASP systems to a solar customer.

·

Fluxing Systems: Increased 53%, supported by strong
sales in Asia.

·

Multi-Axis Systems: Declined due to reduced demand
in electrolysis-related applications.

Conference Call Dial-in Information

To participate, please call 1-844-481-2752 or 1-412-317-0668
for international callers at least 10 minutes prior to the start of the call and ask to join the Sono-Tek call.

A simultaneous webcast of the call may be accessed through the Company's
website, Events & Presentations | Sono-Tek or at:

https://event.choruscall.com/mediaframe/webcast.html?webcastid=6cEJqpHo

A replay of the call will be available at 1-855-669-9658
or 1-412-317-0088 for international callers , access code 7754993 ,
through June 4, 2026. A replay of the call will also be available on the Company’s website for one year at www.sono-tek.com .

About Sono-Tek

Sono-Tek Corporation is a global leader in the design
and manufacture of ultrasonic coating systems that are shaping industries and driving innovation worldwide. Our ultrasonic coating systems
are used to apply thin films onto parts used in diverse industries including microelectronics, alternative energy, medical devices, advanced
industrial manufacturing, and research and development sectors worldwide. Sono-Tek's inroads into the clean energy sector have shown transformative
results in next-gen solar cells, fuel cells, green hydrogen generation, and carbon capture applications.

Our product line is rapidly evolving, transitioning
from R&D to high-volume production machines with significantly higher average selling prices, showcasing our market leadership and
adaptability. Our comprehensive suite of thin film coating solutions and application consulting services are expected to generate unparalleled
results for our clients and help some of the world's most promising companies achieve technological breakthroughs and bring them to the
market. We strategically deliver our products to customers through a network of direct sales personnel, carefully chosen independent
distributors, and experienced sales representatives, ensuring efficient market reach across diverse sectors around the globe.

Our solutions are environmentally friendly, efficient
and highly reliable, and enable dramatic reductions in overspray, savings in raw material, water and energy usage and provide improved
process repeatability, transfer efficiency, high uniformity and reduced emissions.

Our growth strategy is focused on leveraging
our innovative technologies, proprietary know-how, unique talent and experience, and global reach to further develop thin film coating
technologies that enable better outcomes for our customers’ products and processes. For further information, visit www.sono-tek.com

Safe Harbor Statement

This news release contains forward looking statements regarding future
events and the future performance of Sono-Tek Corporation that involve risks and uncertainties that could cause actual results to differ
materially. These “forward-looking statements’ are based on currently available competitive, financial and economic data and
our operating plans. They are inherently uncertain, and investors must recognize that events could turn out to be significantly different
from our expectations and could cause actual results to differ materially. These factors include, among other considerations, general
economic and business conditions, including political, regulatory, tax, competitive and technological developments affecting our operations
or the demand for our products; inflationary and supply chain pressures; continued strength of sales to the medical device and electronics
markets; continued private and public funding for the clean energy sector; continued strong demand for Sono-Tek’s suite of thin
film coating solutions and application consulting services in the clean energy and other markets; maintenance of order backlog; evolving
tariff policies; timely development and market acceptance of new products and continued customer validation of our coating technologies;
adequacy of financing; capacity additions, the ability to enforce patents; maintenance of operating leverage; consummation of order proposals;
timing of large orders and completion on schedule and on budget; successful transition from primarily selling ultrasonic nozzles and components
to a more complex business providing complete machine solutions and higher value subsystems; and realization of first half and annual
revenues and profitability within the forecasted ranges of guidance. We undertake no obligation to update any forward-looking statement.

For more information:

Sono-Tek Corp.

Stephen J. Bagley

Chief Financial Officer

Ph: (845) 795-2020

[email protected]

Investor Relations

Kirin Smith, President

PCG Advisory, Inc.

[email protected]

- Financial Tables to follow -

SONO-TEK CORPORATION

CONSOLIDATED BALANCE SHEETS

February 28,

2026

February 28,

2025

ASSETS

Current Assets:

Cash and cash equivalents

$

7,339,403

$

5,202,361

Marketable securities

7,469,649

6,727,678

Accounts receivable (less allowance for credit losses of $12,225, respectively)

3,350,953

2,347,764

Inventories

3,923,350

4,474,401

Prepaid expenses and other current assets

743,295

236,261

Total current assets

22,826,650

18,988,465

Land

250,000

250,000

Buildings, equipment, furnishings and leasehold improvements, net

2,173,443

2,610,600

Intangible assets, net

29,791

37,386

Deferred tax asset

1,141,611

1,525,185

TOTAL ASSETS

$

26,421,495

$

23,411,636

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current Liabilities:

Accounts payable

$

1,038,885

$

859,483

Accrued expenses

2,227,401

1,718,574

Customer deposits

3,069,743

2,413,195

Income taxes payable

255,398

496,055

Total current liabilities

6,591,427

5,487,307

Deferred tax liability

55,909

132,134

Total Liabilities

6,647,336

5,619,441

Commitments and Contingencies (Note 13)

Stockholders’ Equity

Common stock, $.01 par value; 25,000,000 shares authorized, 15,751,153 issued and 15,749,037 outstanding as of February 28, 2025, and 15,750,880 issued and outstanding as of February 29, 2024

157,104

157,512

Additional paid-in capital

10,186,858

10,018,034

Accumulated earnings

9,430,197

7,624,516

Treasury stock, at cost, 2,116 shares

-

(7,867

)

Total stockholders’ equity

19,774,159

17,792,195

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

$

26,421,495

$

23,411,636

SONO-TEK CORPORATION

CONSOLIDATED STATEMENTS OF INCOME

February 28,

2026

February 28,

2025

Net Sales

$

20,909,315

$

20,504,381

Cost of Goods Sold

10,349,373

10,765,362

Gross Profit

10,559,942

9,739,019

Operating Expenses

Research and product development

2,553,898

2,724,482

Marketing and selling

3,525,239

3,677,915

General and administrative

2,655,836

2,326,582

Total Operating Expenses

8,734,973

8,728,979

Operating Income

1,824,969

1,010,040

Other Income:

Interest and dividend income

443,588

488,504

Net unrealized gain on marketable securities

(1,498

)

35,548

Income before Income Taxes

2,267,059

1,534,092

Income Tax Expense

461,378

260,678

Net Income

$

1,805,681

$

1,273,414

Basic Earnings Per Share

$

0.11

$

0.08

Diluted Earnings Per Share

$

0.11

$

0.08

Weighted Average Shares - Basic

15,718,796

15,750,997

Weighted Average Shares - Diluted

15,733,825

15,770,102

SONO-TEK CORPORATION

PRODUCT, MARKET, AND GEOGRAPHIC SALES

(Unaudited)

Product Sales:

Twelve Months Ended

February 28,

% of

February 28,

% of

Change

2026

Total

2025

total

$

%

Fluxing Systems

$

713,000

3%

$

467,000

2%

$

246,000

53%

In-Line Coating Systems

7,070,000

34%

3,703,000

18%

3,367,000

91%

Multi-Axis Coating Systems

8,055,000

39%

10,678,000

52%

(2,623,000

)

(25%

)

OEM Systems

1,210,000

6%

1,484,000

7%

(274,000

)

(18%

)

Other

3,861,000

18%

4,172,000

21%

(311,000

)

(7%

)

TOTAL

$

20,909,000

$

20,504,000

$

405,000

2%

Market Sales:

Twelve Months Ended

February 28,

% of

February 29,

% of

Change

2026

Total

2025

total

$

%

Electronics/Microelectronics

$

6,290,000

30%

$

5,426,000

27%

$

864,000

16%

Medical

5,004,000

24%

3,250,000

16%

1,754,000

54%

Alternative Energy

7,974,000

38%

9,838,000

48%

(1,864,000

)

(19%

)

Emerging R&D and Other

66,000

0%

67,000

0%

(1,000

)

(1%

)

Industrial

1,575,000

8%

1,923,000

9%

(348,000

)

(18%

)

TOTAL

$

20,909,000

$

20,504,000

$

405,000

2%

Geographic Sales:

Twelve Months Ended

February 28,

February 28,

Change

2026

2026

$

%

U.S. & Canada

$

13,946,000

$

12,506,000

$

1,440,000

12%

Asia Pacific (APAC)

2,630,000

2,758,000

(128,000

)

(5%

)

Europe, Middle East, Africa (EMEA)

3,742,000

4,431,000

(689,000

)

(16%

)

Latin America

591,000

809,000

(218,000

)

(27%

)

TOTAL

$

20,909,000

$

20,504,000

$

405,000

2%