MIND C.T.I. Ltd. reported third‑quarter 2025 results that showed a 7.7 % drop in revenue to $4.8 million, compared with $5.2 million in the same quarter last year. Net income fell to $0.7 million from $0.9 million, and earnings per share slipped to $0.03 from $0.05. Operating cash flow improved to $1.2 million, up from $1.0 million, and the board approved a share‑repurchase program of up to $2.4 million, marking a shift from the company’s previous annual dividend policy.
The revenue decline was driven largely by a weaker billing segment, which the company cited as a result of market shrinkage and increased competition. Europe remained the largest revenue contributor at 59 %, followed by the Americas at 35 % and other markets at 6 %. Maintenance and additional services accounted for 96 % of total revenue, amounting to $4.7 million, while license sales represented the remaining 4 %. Other product lines—customer‑care and billing software ($2.3 million), enterprise messaging ($1.7 million), and enterprise call‑accounting ($0.8 million)—also saw modest declines.
The earnings miss can be traced to the combined effect of lower top‑line growth and margin compression. While operating cash flow rose, the company’s profit margin contracted, reflecting higher cost pressures and a shift toward lower‑margin service contracts. Management noted that the company’s focus on technology roadmap investments, including the recent acquisition of Aurenz GmbH, has increased operating expenses in the short term, contributing to the earnings dip.
The share‑repurchase program signals management’s confidence in the company’s cash‑flow generation and a desire to enhance shareholder value without compromising growth initiatives. CEO Ariel Glassner emphasized that the quarter “successfully delivered a significant extension of our solution to an existing customer, demonstrating our ability to execute on time and within budget,” and reiterated the firm’s commitment to advancing its technology roadmap, particularly in 5G and AI domains.
No forward guidance was disclosed, and analyst consensus estimates for Q3 2025 EPS or revenue were not available. The company’s results, however, represent a clear decline from the prior year, underscoring the need for continued focus on cost discipline and market‑share retention as it navigates a challenging environment.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.