The financial performance, as represented by common-size income statements, exhibits considerable fluctuation over the analyzed period from March 2021 to December 2025. Revenue composition shifts between equipment and service sales, while profitability metrics demonstrate significant volatility, particularly in earlier periods. A notable trend emerges towards improved profitability in the latter half of the period.
Revenue Composition
Sales of equipment and services remain consistently at 100% of total revenue. However, the proportion between equipment and services varies. Initially, services contribute a larger percentage, peaking at 67.16% in December 2021. Subsequently, the contribution of equipment sales increases, with services stabilizing around 70-72% of revenue from mid-2023 through the end of the observed period. This suggests a potential shift in business focus or sales mix.
Cost of Goods Sold
The cost of equipment and services sold consistently represents a substantial portion of revenue, ranging between approximately -73.56% and -78.35% throughout most of the period. A noticeable decrease in this percentage is observed from 2023 onwards, reaching -70.50% by December 2025, indicating improved cost management or pricing strategies.
Gross Profit
Gross profit as a percentage of revenue fluctuates considerably. It initially hovers around 22-26% before experiencing a dip in late 2021 and early 2022. A clear upward trend is evident from 2023, with gross profit reaching approximately 29.50% to 33.39% by the end of the period. This improvement aligns with the observed decrease in the cost of goods sold percentage.
Operating Income
Operating income demonstrates the most significant volatility. It experiences a substantial loss in late 2021 (-17.79%) and remains relatively low in early 2022. A strong recovery begins in 2023, with operating income increasing to approximately 24.54% by December 2025. This improvement is driven by both increased gross profit and effective management of operating expenses.
Operating Expenses
Selling, general, and administrative expenses consistently represent a significant portion of revenue, generally between -13.15% and -17.74%. These expenses appear relatively stable, with a slight downward trend observed from 2023. Research and development expenses remain relatively consistent, around -3% of revenue. Separation costs and debt extinguishment costs are present in specific periods, impacting overall profitability, but diminish over time. Insurance losses, annuity benefits and other costs fluctuate, with a notable increase in 2024 before decreasing again.
Net Income
Net income exhibits similar trends to operating income, with substantial losses in late 2021 and early 2022. A significant turnaround occurs from 2023, culminating in net income reaching approximately 21.41% of revenue by December 2025. This improvement is attributable to the combined effects of increased gross profit, controlled operating expenses, and positive contributions from non-operating items. Net income attributable to common shareholders follows a similar pattern.
Other Income and Taxes
Other income (loss) and the provision for income taxes introduce further variability. Other income demonstrates significant fluctuations, with a particularly large positive impact in December 2022 (10.34%) and December 2023 (5.06%). The effective tax rate also varies, impacting the final net income figures. Non-operating benefit income (cost) generally contributes positively, while preferred stock dividends represent a consistent, though relatively small, deduction from net income.
In summary, the period under review demonstrates a recovery from initial losses to substantial profitability. This improvement is driven by a combination of factors, including enhanced cost management, a favorable shift in revenue composition, and positive contributions from non-operating items. The latter portion of the period indicates a more stable and profitable operating environment.
