Frequency Electronics

FEIM · Nasdaq · Information Technology · Financials, fiscal 2017 to 2026

FEIM · Last close · November 6, 2026

$60.22

Frequency Electronics' revenue fell 9.4% to $63 million in fiscal 2026. Its operating margin was −4.8%, down from 16.8% a year earlier. Free cash flow was −$2 million. It paid out $2 million in dividends and buybacks. The diluted share count rose 1.8%.

FREQUENCY ELECTRONICS, INC. Latest fiscal year ended April 30, 2026 10-K filed July 17, 2026 · 0001185185-26-002997 Updated November 7, 2026

Revenue

$63M

9.4%

Operating margin

−4.8%

21.6 pts

Net income

−$1M

$24M a year earlier

Free cash flow

−$2M

Return on equity

−1.6%

51.2 pts

Market cap

$614M

Nov 6 close

P/E

—

Over 200x

Operating margin is operating income as a share of revenue. Free cash flow is cash from operations minus capital spending. Return on equity is net income as a share of shareholders' equity. Market cap is the last closing share price times the latest diluted share count, so it is approximate. P/E is the last close divided by diluted earnings per share over the last four quarters, or the latest fiscal year where the quarters aren't available; there is none when the company made a loss.

Charts show fiscal years, from the 10-K filings.

What Frequency Electronics does

Frequency Electronics makes precision clocks and timing equipment. Its technology keeps time and generates stable radio frequencies, and it ends up in satellites, military communications and command systems, and electronic warfare equipment. Founded in 1961 as a research firm working mainly on U.S. government contracts, it now designs and builds products for both government and commercial use.

It has two main markets. For satellites, it supplies master timing systems, power converters and frequency equipment for satellite payloads. For secure ground, sea and air communications, it supplies clocks and software that support military command and control systems. It points to threats such as jamming or faking GPS signals as a reason for demand. It reports two segments: FEI-NY, which includes its government systems and communications subsidiaries, and FEI-Zyfer.

The company relies heavily on U.S. government programs, as a prime contractor or subcontractor. It derived approximately 91% of its sales from them in fiscal 2026. It has 242 employees, almost all in the United States.

Its biggest risks, as it describes them

Relying heavily on U.S. government programs, whose funding can be delayed, cut or ended.
Government shutdowns or budget fights could delay payments or cancel contracts.
Contracts typically are funded only in stages, so more funding must keep coming.
It may not win new work on programs where it competes.

From Frequency Electronics's annual report on Form 10-K, filed July 17, 2026, in our words; the 10-K has the full description and every risk factor. Updated with each new annual report.

Income statement

Revenue and net income

US$ billions, fiscal years; net losses in red. Revenue on the left axis, net income on the right; zero is the same line on both.

Revenue (left axis)Net income (right axis)

Gross profit, R&D and operating income

US$ billions, fiscal years. Gross profit is revenue minus the cost of what was sold; research and development is one of the costs paid from it; what remains after all operating costs is operating income. Losses in red.

Gross profitResearch and developmentOperating income

Margins

Percent of revenue

GrossOperatingNetFree cash flow

From fiscal 2021 to 2025, earnings per share grew 143.5% a year and net income 141.2% a year, as new shares raised the share count by 4% and diluted each share's earnings. Frequency Electronics then lost money in fiscal 2026.

Diluted earnings per share

US$ per share, fiscal years, restated for any stock splits; loss years in red. Where the filings' structured data doesn't give a year's earnings per share, the column is blank.

Returns on capital

Return on capital and on equity

Percent. Return on capital is after-tax operating income over the money invested in the business (debt plus equity, minus cash); return on equity is net income over shareholders' equity. Both use the average of opening and closing balances.

Return on capitalReturn on equity

Balance sheet

Cash and debt

US$ billions, at each fiscal year end. Debt includes finance leases.

Cash and short-term investmentsDebt

Assets, liabilities and equity

US$ billions, at each fiscal year end. Assets equal liabilities plus equity; negative equity in red.

Total assetsTotal liabilitiesShareholders' equity

Debt and liquidity ratios

Times. Debt to equity, current assets over current liabilities, and net debt over EBITDA (a full year's).

Debt to equityCurrent ratioNet debt to EBITDA

Five years at a glance

Fiscal year end	FY22	FY23	FY24	FY25	FY26
Cash and short-term investments	22	12	18	5	2
Debt incl. finance leases	—	—	—	—	—
Net debt (negative means net cash)	—	—	—	—	—
Net debt to EBITDA	—	—	—	—	—
Debt to equity	—	—	—	—	—
Interest coverage	−104.4x	−29.9x	46.0x	112.8x	−34.5x
Current ratio	2.6x	1.8x	1.9x	2.3x	2.3x
Quick ratio	1.6x	1.0x	1.1x	1.3x	1.2x

US$ millions unless stated, at each fiscal year end. Net debt to EBITDA is debt minus cash, divided by operating income before depreciation and amortization: roughly how many years of those earnings the net debt equals. Debt to equity is debt as a multiple of shareholders' equity. Interest coverage is operating income divided by interest expense. The current ratio is current assets over current liabilities; the quick ratio leaves out inventory.

Cash flow

Cash from operations, capital spending and free cash flow

US$ billions, fiscal years. Free cash flow is cash from operations minus capital spending; negative years in red.

Cash from operationsCapital spendingFree cash flow

Stock-based compensation and buybacks

US$ billions, fiscal years. Shares paid to employees (stock-based compensation, a cost that uses no cash) against cash spent buying shares back. Buybacks that only match it leave the share count roughly where it was.

Stock-based compensationShare buybacks

Dividends and buybacks

US$ billions, cash paid in each fiscal year

DividendsShare buybacks

Diluted share count

Weighted-average diluted shares, millions

Projections

Project Frequency Electronics' revenue, net income and earnings per share five years ahead in a bull, a base and a bear case with your own figures, and see the share prices your P/E estimates give them, or value it with a discounted cash flow model. Every projected figure is yours: it is not a forecast of ours.

Open Frequency Electronics' projections

Insider trades

Over the 12 months between November 7, 2025 and November 6, 2026, no insider bought Frequency Electronics shares on the open market, and 1 insider sold $37.5 million.

Buys and sells by month

US$ millions, open-market purchases (up) and sales (down) by officers, directors and 10% owners in each month.

BoughtSold

Date	Insider	Trade	Shares	Price	Value	Filing
Jul 28, 2026	Edenbrook Long Only Value Fund LpDirector, 10% owner	Sold	652,174	$57.50	$37.5 million	Form 4

Open-market purchases and sales by officers, directors and 10% owners, from their Form 4 filings with the SEC: one row per person, day and filing, at the day's average price. Grants, option exercises and shares withheld for tax aren't counted. Insiders buy and sell for many reasons, such as taxes, spreading their savings or a plan set up months earlier, so a trade on its own says little about where a company is heading. For information only, not investment advice. Insider trades at all companies

Indicators

Four widely used measures, worked out from the company's filings. The cutoffs are the ones their authors or users go by, not a verdict of ours.

Indicator	FY24	FY25	FY26
Piotroski F-score	—	—	—
Rule of 40	48.6%	21.7%	−11.9%
Altman Z''	2.74	4.58	3.56
Accruals ratio	−4.0%	28.4%	−2.4%

Piotroski F-score: how many of nine simple tests of profitability, funding and efficiency the company passed in the year (Piotroski, 2000); 8 or 9 is strong, 0 to 2 weak. Rule of 40: revenue growth plus free cash flow margin; software investors treat 40% or more as the bar. Altman Z'': working capital, retained earnings, operating income and equity weighed against assets and liabilities (Altman, 1995); Altman puts above 2.6 in the safe zone and below 1.1 in the distress zone. Accruals ratio: net income minus cash from operations, over average total assets; lower means profit is backed by cash.

The nine F-score tests

Test	FY24	FY25	FY26
Net income is positive	Pass	Pass	Fail
Cash from operations is positive	Pass	Fail	Pass
Return on assets rose	Pass	Pass	Fail
Cash from operations exceeds net income	Pass	Fail	Pass
Debt fell relative to assets	—	—	—
Current ratio rose	Pass	Pass	Pass
Share count didn't rise	Fail	Fail	Fail
Gross margin rose	Pass	Pass	Fail
Revenue rose relative to assets	Pass	Pass	Fail
F-score	—	—	—

Companies that report no gross profit are scored on the other eight.

Compare

Put Frequency Electronics side by side with any other company we cover: revenue, growth, margins, cash flow and returns, with ten years of charts.

Similar companies

Company	Year	Revenue growth	Operating margin	Free cash flow margin	Return on capital	Net debt to EBITDA	F-score	Compare
Frequency Electronics	FY26	−9.4%	−4.8%	−2.5%	—	—	—
908 Devices	FY25	17.7%	−70.2%	−43.9%	—	—	—	Compare
Evolv Technologies	FY25	40.5%	−33.2%	8.9%	−52.9%	—	4	Compare
Ouster	FY25	52.5%	−43.7%	−38.3%	—	—	5	Compare
Napco Security Technologies	FY26	11.4%	22.6%	29.3%	—	—	—	Compare

Each company's latest fiscal year. Fiscal years end in different months, so the periods don't line up exactly. Free cash flow margin is free cash flow as a share of revenue. Net debt to EBITDA is explained under the balance sheet, and the F-score under Indicators.

10 years of figures

Fiscal year	FY17	FY18	FY19	FY20	FY21	FY22	FY23	FY24	FY25	FY26
Income statement
Revenue	50	39	50	42	54	48	41	55	70	63
Revenue growth	−9.1%	−21.7%	25.6%	−16.2%	30.7%	−11.0%	−15.6%	35.5%	26.3%	−9.4%
Gross profit	11	5	16	6	17	9	8	19	30	18
Research and development	7	7	6	5	5	5	3	3	6	6
Operating income	−8	−12	−3	−11	−1	−8	−5	5	12	−3
Net income	−5	−24	−2	−10	1	−9	−6	6	24	−1
Diluted EPS (US$)	−0.55	−2.69	−0.28	−1.10	0.07	—	—	0.59	2.46	−0.09
Diluted shares (millions)	9	9	9	9	9	9	9	9	10	10
Cash flow
Cash from operations	4	4	−0	−1	12	4	1	9	−1	1
Capital expenditure	5	1	3	2	1	2	1	2	2	3
Free cash flow	−1	3	−3	−3	11	2	0	7	−3	−2
Dividends paid	0	0	0	0	0	0	9	0	10	0
Share buybacks	0	0	0	0	0	0	0	0	0	2
Acquisitions	0	0	0	0	0	0	0	0	0	0
Stock-based compensation	1	0	0	0	0	0	0	1	1	2
Balance sheet at fiscal year end
Cash and short-term investments	10	14	12	14	20	22	12	18	5	2
Debt incl. finance leases	—	—	—	—	—	—	—	—	—	—
Total assets	113	84	87	91	98	85	74	83	94	91
Total liabilities	24	20	24	37	43	38	42	43	38	34
Shareholders' equity	89	63	63	54	55	47	33	40	56	56
Margins and ratios
Gross margin	22.3%	13.1%	31.9%	13.8%	31.2%	17.8%	19.2%	33.6%	43.1%	29.1%
Operating margin	−14.9%	−31.4%	−5.7%	−26.3%	−1.8%	−16.6%	−11.5%	9.1%	16.8%	−4.8%
Net margin	−9.6%	−60.3%	−5.1%	−24.1%	1.2%	−17.9%	−13.5%	10.1%	33.9%	−1.4%
Free cash flow margin	−2.7%	7.9%	−5.8%	−7.0%	20.1%	4.5%	0.6%	13.1%	−4.6%	−2.5%
Rule of 40 (growth + FCF margin)	−11.8%	−13.8%	19.9%	−23.1%	50.8%	−6.5%	−14.9%	48.6%	21.7%	−11.9%
Return on capital	—	—	—	—	—	—	—	—	—	—
Return on equity	−5.3%	−31.2%	−4.0%	−17.1%	1.2%	−17.0%	−13.8%	15.4%	49.6%	−1.6%
Return on assets	−4.1%	−24.1%	−3.0%	−11.3%	0.7%	−9.4%	−6.9%	7.1%	26.8%	−1.0%
Net debt to EBITDA	—	—	—	—	—	—	—	—	—	—

US$ millions unless stated. Where a later 10-K restated a year, the latest filed figure is shown. Download all figures (CSV, US$ millions)

Source: Frequency Electronics' Form 10-K filings, from SEC EDGAR. For information only, not investment advice. The Filing Desk is not affiliated with Frequency Electronics.