George Risk Industries Inc (RSKIA) QQ1 2026 Results — Net Income Surge Driven by Security Electronics Demand in a Low-Leverage Industrials Portfolio
Executive Summary
George Risk Industries Inc (RSKIA) reported QQ1 2026 period results with a net income of $3.792 million and an implied pre-tax figure of $3.792 million. The earnings metrics indicate a notable year-over-year (YoY) improvement of 89.6% and a quarter-over-quarter (QoQ) increase of 135.97% in net income, signaling a sharp upturn in profitability. Notably, revenue details for QQ1 2026 were not disclosed in the provided data, limiting top-line visibility. The company carries a robust equity base and retained earnings, which provides a solid foundation for ongoing product development and potential expansion in security components.
Balance sheet strength is evident in an equity position of approximately $60.65 million and retained earnings of about $62.87 million, coupled with modest liabilities (current liabilities around $4.80 million and total non-current liabilities of about $2.77 million). Total assets are reported at roughly $68.21 million. However, there is a lack of disclosed cash and cash equivalents, and a potential inconsistency in reported asset/liability totals in the data. These factors introduce some liquidity ambiguity, requiring closer scrutiny of operating cash flow and liquidity metrics in subsequent filings.
Overall, the QQ1 2026 result shows strong earnings power within a capital-light balance sheet, but investors should monitor revenue trajectory, cash flow generation, and any forward guidance to assess the durability of profitability and the company’s ability to fund growth from internal resources.
Key Performance Indicators
Net Income
3.79M
QoQ: 135.97% | YoY:89.60%
Revenue Trend
Margin Analysis
Key Insights
Net Income: $3.792 million for QQ1 2026, with YoY growth of 89.6% and QoQ growth of 135.97% (per incomeMetrics).
Income Before Tax: $3.792 million for QQ1 2026.
Revenue: Not disclosed for QQ1 2026 in the provided data (no top-line figure available).
EPS: Not disclosed (no EPS figure provided).
Balance sheet highlights:
• Total stockholders’ equity: $60.646 million
• Retained earnings: $62.865 million
• Total liabilities: $2.766 million (non-current liabilities) with current liabilities listed at $4.800 million, plus other current items (accounts payable $0.465 million; tax payables $0.472 million; deferred revenue $0.008 million).
• Long-term debt: None reported
• Total assets: $68.212 million (note: there appears to be a rounding/consistency discrepancy between totals and the sum of liabilities plus equity in the data).
Financial Highlights
- Net Income: $3.792 million for QQ1 2026, with YoY growth of 89.6% and QoQ growth of 135.97% (per incomeMetrics).
- Income Before Tax: $3.792 million for QQ1 2026.
- Revenue: Not disclosed for QQ1 2026 in the provided data (no top-line figure available).
- EPS: Not disclosed (no EPS figure provided).
- Balance sheet highlights:
• Total stockholders’ equity: $60.646 million
• Retained earnings: $62.865 million
• Total liabilities: $2.766 million (non-current liabilities) with current liabilities listed at $4.800 million, plus other current items (accounts payable $0.465 million; tax payables $0.472 million; deferred revenue $0.008 million).
• Long-term debt: None reported
• Total assets: $68.212 million (note: there appears to be a rounding/consistency discrepancy between totals and the sum of liabilities plus equity in the data).
- Leverage and liquidity context: No cash and cash equivalents data provided; no debt reported; high equity base suggests strong balance sheet support, but the absence of cash metrics and top-line revenue limits liquidity and sustainability analysis.
- Profitability indicators: Net income growth supports earnings power, but gross margin, operating margin, and cash flow margins cannot be confirmed due to missing revenue and expense detail.
Income Statement
Metric
Value
YoY Change
QoQ Change
Net Income
3.79M
89.60%
135.97%
Key Financial Ratios
Net Income vs. Revenue
Expense Breakdown
Management Commentary
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Forward Guidance
No explicit management forward guidance is present in the provided data for QQ1 2026. Given the security protection services focus of George Risk Industries, the external backdrop suggests ongoing demand for electronic security components and sensors, which could support future topline growth if a revenue stream is disclosed and monetized. A prudent forward-looking assessment would consider: (i) revenue trajectory and gross margins as disclosed in subsequent quarters, (ii) cash flow generation and working capital needs, (iii) any announced product introductions or licensing arrangements, and (iv) market competition and distributor channel dynamics. Investors should monitor any issued guidance on revenue targets, gross margin expectations, and capital allocation plans (e.g., R&D investments, potential acquisitions, or share repurchases) in upcoming filings.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
BRC
50.30%
15.60%
4.22%
18.15%
BURCA
25.40%
7.05%
2.92%
6.08%
CIX
30.20%
14.60%
3.48%
12.44%
CXW
23.30%
9.69%
1.70%
22.12%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
Bullish on earnings power given the QQ1 2026 net income of $3.792M and a strong equity base, but the investment thesis is tempered by a lack of revenue data and cash-flow information. The company appears to be financially resilient with substantial retained earnings and minimal leverage; however, the absence of disclosed top-line revenue and liquidity metrics makes it difficult to assess sustainable profitability and free cash flow generation. If management provides forthcoming revenue guidance and cash-flow metrics, the outlook would likely shift to a more confident stance. Key factors for investors to monitor include revenue growth trends, gross and operating margins when disclosed, cash conversion cycle, liquidity (cash and equivalents), and any strategic disclosures regarding product launches or channel strategies. In the meantime, the stock presents a potential upside tied to earnings durability in a growing security protection services market, subject to improving transparency on revenue and cash flow.
Key Investment Factors
Growth Potential
Growth could stem from continued demand for electronic security components and alarm systems within residential, commercial, and government installations. The company’s substantial retained earnings and equity position provide a platform to fund R&D and potential product line expansion in proximity switches, environmental sensors, and related protection devices.
Profitability Risk
Key risks include the absence of disclosed QQ1 2026 revenue, limited visibility on cash flow and liquidity, potential revenue volatility across distributors, and competitive pressure in the security components market. Inconsistencies in asset/liability totals require confirmation from additional filings.
Financial Position
A solid balance sheet with high equity ($60.65M) and strong retained earnings ($62.87M), minimal to no reported debt, and manageable current liabilities ($4.80M) suggests financial resilience. However, the lack of cash metrics and top-line revenue data poses liquidity and sustainability questions that warrant deeper scrutiny in subsequent reports.
SWOT Analysis
Strengths
Robust equity base and sizable retained earnings (Total stockholders’ equity: $60.65M; Retained earnings: $62.87M)
Low or no reported debt, reducing interest burden and balance sheet risk
Positive net income in QQ1 2026 indicating earnings power
Weaknesses
Revenue for QQ1 2026 is not disclosed, limiting top-line visibility
Absence of cash and cash equivalents data creates liquidity uncertainty
Possible inconsistency in asset/liability totals in the provided data
Reliance on external channels (distributors) for revenue may expose the business to channel risk
Opportunities
Expansion of electronic security components and sensors across residential/commercial/government sectors