Do you know what happened in Q1 2026? I spotted decline in continuing-operations revenue from $2.335 million in Q1 2025 to $902,300 in Q1 2026. And my main question is why?
1. Did EESE lose, or experience a permanent material reduction in business from, any significant customer during or following Q1 2026?
2. Was the Q1 decline primarily caused by shipment timing, delayed customer orders or temporary industry conditions?
3. Were material orders originally expected in Q1 subsequently shipped or recognized after March 31?
Thanks, that’s helpful. One accounting point I wanted to clarify: in the Q1 2026 filing, the $2.335m Q1 2025 comparison is already presented as continuing-operations revenue, while Patriot’s $684.7k of Q1 2025 revenue is shown separately under discontinued operations. So the decline from $2.335m to $902k appears to be a decline in the retained business itself, rather than being roughly half explained by the Patriot sale.  
Also, based on the 2025 filings, Q1 2025 was actually the strongest quarter of the year for both revenue and operating profit, so I’m not yet able to confirm from EESE’s own history that Q1 is consistently the weakest quarter.  
I agree that timing or delayed orders remains plausible, especially because gross margin stayed high and the cost base remained intact. But given the historic customer concentration, I think the key question is whether the company lost or materially reduced business with a significant customer.
Do you have any company-specific information supporting the timing explanation, or is that mainly an inference from the lack of disclosure and industry seasonality?
For me, Q2 revenue around the previous quarterly run rate of roughly $2.2m would show normalization. A result materially above that would support a genuine catch-up of delayed Q1 orders, while another quarter near $1m would be concerning.
I don't have any specific information about this, It is just my assumption and I will ask management when I reach out to them. I agree it would be more of a concern if next quarter does not normalize.
Roughly half of the decline is attributable to the sale of the Patriot business, which was included in Q1 2025.
There was no disclosure of any major customer losses so I assume the decline in the core business is due to timing or delayed orders. Q1 is consistently the weakest quarter for this industry so it's not something I'm too concerned about for now. It is worth watching to see if revenue recovers next quarter.
Do you know what happened in Q1 2026? I spotted decline in continuing-operations revenue from $2.335 million in Q1 2025 to $902,300 in Q1 2026. And my main question is why?
1. Did EESE lose, or experience a permanent material reduction in business from, any significant customer during or following Q1 2026?
2. Was the Q1 decline primarily caused by shipment timing, delayed customer orders or temporary industry conditions?
3. Were material orders originally expected in Q1 subsequently shipped or recognized after March 31?
Thanks, that’s helpful. One accounting point I wanted to clarify: in the Q1 2026 filing, the $2.335m Q1 2025 comparison is already presented as continuing-operations revenue, while Patriot’s $684.7k of Q1 2025 revenue is shown separately under discontinued operations. So the decline from $2.335m to $902k appears to be a decline in the retained business itself, rather than being roughly half explained by the Patriot sale.  
Also, based on the 2025 filings, Q1 2025 was actually the strongest quarter of the year for both revenue and operating profit, so I’m not yet able to confirm from EESE’s own history that Q1 is consistently the weakest quarter.  
I agree that timing or delayed orders remains plausible, especially because gross margin stayed high and the cost base remained intact. But given the historic customer concentration, I think the key question is whether the company lost or materially reduced business with a significant customer.
Do you have any company-specific information supporting the timing explanation, or is that mainly an inference from the lack of disclosure and industry seasonality?
For me, Q2 revenue around the previous quarterly run rate of roughly $2.2m would show normalization. A result materially above that would support a genuine catch-up of delayed Q1 orders, while another quarter near $1m would be concerning.
I don't have any specific information about this, It is just my assumption and I will ask management when I reach out to them. I agree it would be more of a concern if next quarter does not normalize.
Roughly half of the decline is attributable to the sale of the Patriot business, which was included in Q1 2025.
There was no disclosure of any major customer losses so I assume the decline in the core business is due to timing or delayed orders. Q1 is consistently the weakest quarter for this industry so it's not something I'm too concerned about for now. It is worth watching to see if revenue recovers next quarter.