RELL RICHARDSON ELECTRONICS, LTD.

Overview and Growth

In fiscal 2026, RICHARDSON ELECTRONICS, LTD. recorded $228.56M of revenue, net income of $6.38M, and an operating cash inflow of $762.00K. Revenue of $228.56M sets the scale for evaluating how effectively sales translated into profit and cash during the year. Compared with $208.91M in fiscal 2025, revenue recorded a 9.4% year-over-year increase. At period end, total assets were $202.02M, framing the scale of the company’s operating and financing commitments. Asset turnover was 1.13x, relating the company’s annual revenue directly to the total assets reported at the period end.

Profitability

After reported cost of revenue, the company retained $71.35M as gross profit before recognizing operating expenses and other items. The gross-profit relationship equaled 31.2% of revenue, quantifying the portion retained before operating expenses were recognized. Operating income was $6.46M, the earnings remaining from reported operations after the company’s recognized operating cost structure. The operating result equaled 2.8% of revenue, placing the absolute operating-income figure in the context of the company’s sales base. After all reported below-operating-line items, the company recorded net income of $6.38M for the fiscal year. The final earnings result represented 2.8% of revenue, connecting the absolute net income figure with the company’s top-line scale. The earnings statement records $7.48M of pretax income, the profit base against which the reported tax provision can be assessed. The pretax margin was 3.3%, relating income before taxes directly to revenue. Income tax expense totaled $1.09M, providing the reported tax component that separates pretax and after-tax earnings. The effective relationship between income tax and positive pretax income was 14.6%, without assuming a statutory-rate comparison. Net income equaled 3.9% of period-end equity, showing the earnings generated on shareholders’ book capital. Return on period-end assets was 3.2%, connecting net income with the company’s total asset base. Net income of $6.38M replaced the $1.14M loss reported in fiscal 2025.

Liquidity and Capital Structure

At period end, the $202.02M asset base was financed through $38.32M of liabilities and $163.70M of equity. Current assets were $172.73M against $36.37M of current liabilities, framing the resources and obligations classified within the near-term balance-sheet horizon. Current assets covered current liabilities by 4.75x, leaving a positive buffer for near-term obligations. Cash and equivalents totaled $31.78M, identifying the most liquid reported component available within the broader current-asset balance. Measured only with cash and equivalents, coverage of current liabilities was 87.4%, excluding receivables and other current assets. The liabilities-to-assets relationship was 19.0%, placing reported obligations against the full positive asset balance. The cash-to-assets relationship was 15.7%, comparing reported cash and equivalents with the full positive asset balance. Total assets were 3.2% higher than fiscal 2025 assets of $195.84M, measuring the company’s own balance-sheet change. Book equity was 4.5% higher than fiscal 2025 equity of $156.66M, showing how shareholder capital changed year over year. The reported cash balance changed 11.5% from $35.90M in fiscal 2025, ending lower year over year.

Cash Flow and Earnings Quality

Cash flow from operations was $762.00K, a reported cash inflow that can be compared directly with net income and capital spending. The operating-cash-flow-to-net-income relationship was 0.12x, comparing cash generated by operations with the bottom-line earnings result. Capital expenditures used $4.38M, identifying the reported investment outflow deducted from operating cash flow in the free-cash-flow calculation. Relative to operating cash flow, capital expenditures measured 575.2%, connecting investment intensity with the company’s cash-generation base. Negative free cash flow was $3.62M, leaving a cash deficit after capital spending and reducing financial flexibility. Relative to revenue, the post-investment cash deficit represented 1.6%. Relative to total assets, the post-investment cash deficit measured 1.8%.

Based on the annual report for the fiscal year ending May 30, 2026. Analysis generated Oct 21, 2026.