Encision Inc., a Boulder-based medical device company known for its patented Active Electrode Monitoring (AEM®) Technology, has released its financial results for the second quarter of fiscal year 2026. The period ended on September 30, 2025, revealing a total net revenue of $1.52 million. This figure reflects a decline from the previous year, when the company reported total net revenue of $1.76 million.
During this quarter, Encision generated $1.48 million from product sales and $46 thousand from services. Despite this revenue, the company experienced a quarterly net loss of $268 thousand, translating to a loss of $(0.02) per diluted share. In comparison, the same quarter in the prior fiscal year saw a net loss of $170 thousand, or $(0.01) per diluted share.
Performance Analysis
The results indicate a slight decrease in product net revenue, which was $1.65 million in the year-ago quarter. Service net revenue also fell from $102 thousand in the previous year. The gross margin on product net revenue stood at 46% for the second quarter of fiscal 2026, down from 47% in the same period of fiscal 2025.
According to the company, the decline in revenue can be attributed to various factors affecting the medical device market, including increased competition and pricing pressures. Encision continues to focus on enhancing its technology and expanding its market presence to drive future growth.
Encision’s AEM® Technology is designed to prevent dangerous radiant energy burns during minimally invasive surgical procedures, positioning the company as a key player in the medical device industry. As the company moves forward, it aims to leverage its patented technology to capture a larger share of the market.
The medical device sector is under continuous evolution, and Encision’s commitment to innovation will be crucial in navigating the challenges ahead. Investors and stakeholders will be closely monitoring the company’s strategies and performance in the coming quarters.
