MINNEAPOLIS, March 12, 2026 (GLOBE NEWSWIRE) -- Autoscope Technologies Corporation (“AATC” or the “Company”) (OTCQX: AATC) today announced results for the quarter and year ended December 31, 2025.

Fourth Quarter 2025 Financial Summary

• Royalties decreased 32 percent to $2.1 million in the fourth quarter of 2025, compared to $3.0 million in the same period in the prior year, due to a drawdown of high inventory levels at our channel partners and as our customers transition to our new Autoscope OptiVu platform.
• Operating expenses in the fourth quarter of 2025 decreased 10 percent to $1.5 million compared to $1.7 million in the same period in the prior year period.
• The Company recorded net income of $471,000 in the fourth quarter of 2025, compared to $761,000 in the same prior year period.
  
  

2025 Full Year Financial Summary

• Royalties decreased 33 percent to $8.9 million, compared to $13.2 million in the prior year, due to a drawdown of high inventory levels at our channel partners and as our customers transition to our new Autoscope OptiVu platform.
• Operating expenses decreased 6 percent to $6.4 million compared to $6.8 million in the prior year.
• The Company reclassified $561,000 from Accumulated Other Comprehensive Income/Loss to Loss on Closure of Foreign Subsidiaries. This amount is non-cash and represents accumulated foreign currency adjustments related to closed foreign subsidiaries.
• The Company recorded net income of $1.4 million for 2025 compared to $4.5 million in the prior year. The one-time non-cash foreign currency adjustment mentioned above, along with the decline in revenue, accounted for the decline in net income. Excluding the one-time adjustment, net income was $2.0 million.
• Total cash and cash equivalents, coupled with available investments in debt and equity securities, decreased to $2.7 million from $7.4 million at the end of the prior year. The decline is mainly attributable to a special dividend of $5.8 million paid in February 2025.
  
  

Fourth-Quarter Results

Revenue from operations for the Company, which includes the results of Image Sensing Systems, Inc., a wholly owned subsidiary of AATC (“ISNS”), was $2.1 million in the fourth quarter of 2025, a 37 percent decrease from $3.3 million in the same period of 2024. Revenue from royalties was $2.1 million in the fourth quarter of 2025, a 32 percent decrease from $3.0 million in the fourth quarter of 2024. The decline in revenue is mainly attributable to a drawdown of high inventory levels at our channel partners and as our customers transition to our new Autoscope OptiVu platform.

Operating expenses were $1.5 million compared to $1.7 million in the prior year period. The decrease in operating expenses is primarily due to decreased incentive pay and consulting fees, partially offset by increased salaries due to merit increases that occurred earlier in the year and additional headcount.

The Company reported net income for the fourth quarter of 2025 of $471,000 or $ 0.09 per basic and diluted share, compared to a net income of $761,000 or $0.14 per basic and diluted share in the prior year period. This decrease is primarily due to decreased royalty revenues in the fourth quarter of 2025 compared to the same period in 2024, offset by a lower tax expense resulting from changes in the utilization of deferred tax assets that occurred in the fourth quarter of 2024.

Full Year Results

AATC’s revenue in 2025 was $9.0 million, a 34 percent decrease from revenue of $13.6 million in 2024. Revenue from royalties decreased 33 percent to $8.9 million in 2025 compared to $13.2 million in 2024. Sales of Autoscope Vision, which drive royalty revenues, decreased in 2025 compared to 2024 due to lower volumes and lower average sales prices as the market transitions to adoption of Autoscope OptiVu and our channel partners drew down high inventory levels. Product sales were $129,000 in 2025, a 70 percent decrease from $429,000 in 2024. The decrease in product sales was primarily due to decreased sales of Wrong Way detection products and decreased sales in the Europe, the Middle East, and Africa (“EMEA”) markets. The decline in royalty revenue is mainly attributable to a drawdown of high inventory levels at our channel partners and as our customers transition to our new Autoscope OptiVu platform.

Operating expenses decreased 6 percent to $6.4 million in 2025 compared to $6.8 million in 2024. Operating expenses decreased primarily due to decreased incentive pay and decreased consulting fees, partially offset by increased salaries primarily due to merit increases and increased depreciation expenses due to the ERP system that was implemented in the fourth quarter of 2024.

In 2025, the Company initiated the closure of its subsidiaries in Canada and Spain. The cumulative translation loss of $561,000 previously recorded in Accumulated Other Comprehensive Loss was reclassified to earnings as part of the loss on disposal. There was no comparable reclassification in 2024.

The Company’s net income was $1.4 million, or $0.25 per basic and diluted share in 2025, compared to net income of $4.5 million, or $0.82 per basic and diluted share in 2024. The one-time non-cash foreign currency adjustment mentioned above, along with the decline in revenue, accounted for the decline in net income. Excluding the one-time adjustment, net of tax, net income was $2 million.

The cash balance decreased to $0.7 million at December 31, 2025, compared to a cash balance of $4.4 million at December 31, 2024. Total cash and cash equivalents, coupled with available investments in debt and equity securities, decreased to $2.7 million at December 31, 2025, compared to $7.4 at December 31, 2024. The decline is mainly attributable to the special dividend of $5.8 million paid in February 2025.

On a non-GAAP basis, excluding the amortization of intangible assets and depreciation for the applicable periods, operating income for the fourth quarter of 2025 was $0.6 million compared to $2.7 million in the prior year period and $1.6 million for 2025 compared to $6.7 million in 2024.

“Our 2025 results reflect the continued transition from Autoscope Vision to our new OptiVu platform, along with the impact of distributor inventory normalization,” said Andy Markese, CEO of Autoscope Technologies and President and CEO of Image Sensing Systems. “As customer qualification efforts convert to procurement and channel inventory levels rebalance, we expect royalty performance to stabilize. We remain focused on disciplined expense management, advancing our AI-driven product portfolio, and positioning the Company for improved operating leverage as we return to normalized operating cadence,” concluded Mr. Markese.

About Autoscope Technologies Corporation

Autoscope Technologies Corporation is a global company dedicated to helping improve safety and efficiency for cities and highways by developing and delivering above-ground detection technology, applications and solutions. We give Intelligent Transportation Systems (ITS) professionals more precise and accurate information – including real-time reaction capabilities and in-depth analytics – to make more confident and proactive decisions. We are headquartered in Minneapolis, Minnesota. Visit us on the web at www.autoscope.com.

Forward-Looking Statements

Certain statements and information included in this press release constitute “forward-looking statements.” Forward-looking statements represent our expectations or beliefs concerning future events and can be identified by the use of forward-looking words such as “believes,” “may,” “will,” “should,” “intends,” “plans,” “estimates,” “expects,” “anticipates” or other comparable terminology. Forward-looking statements are subject to risks and uncertainties that may cause our actual results to differ materially from the results discussed in the forward-looking statements. These risks and uncertainties include, but are not limited to, the factors listed below. New risks and uncertainties that may materially affect our operating results may emerge from time to time. It is not possible to predict all of these risks and uncertainties, nor can we assess the effect that each such risk or uncertainty, or a combination of them, may have on our business.

Those risks and uncertainties may include, but are not limited to: our ability to declare, fund and pay dividends in the future and to comply with applicable notice and processing requirements for corporate actions under the OTCQX Rules for U.S. Companies, including Rule 10b-17 under the Securities Exchange Act of 1934, as amended, and Financial Industry Regulatory Authority Rule 6490, as well as the discretion of our board to modify, suspend or cancel any dividend program; our historical dependence on a single product for most of our revenue; competition; potential changes in government spending on transportation technology; acceptance of our product offerings and designs; budget constraints by governmental entities that purchase our products, including constraints caused by declining tax revenue; the continuing ability of Econolite Control Products, Inc. to sell our products and pay royalties owed to us; the mix of and margins on the products we sell; our dependence on third parties for manufacturing and marketing our products; our dependence on single-source suppliers to meet manufacturing needs; our failure to secure adequate protection for our intellectual property rights; our inability to develop new applications and product enhancements; the potential disruptive effect on the markets we serve of new and emerging technologies and applications, including vehicle-to-vehicle communications and autonomous vehicles; unanticipated delays, costs and expenses inherent in the development and marketing of new products; our inability to respond to low-cost local competitors; our inability to properly manage any growth in revenue and/or production requirements; the influence over our voting stock by affiliates; our inability to hire and retain key scientific and technical personnel; the effects of legal matters in which we may become involved; our inability to achieve and maintain effective internal controls; our inability to successfully integrate any acquisitions; tariffs and other trade barriers; our operating costs tend to be fixed, while our revenue tends to be seasonal, thereby resulting in operating results that fluctuate from quarter to quarter; any significant variations between actual amounts and the amounts estimated for those matters identified as our critical accounting estimates and other significant accounting estimates made in the preparation of our financial statements; political and economic instability, including geopolitical conflicts, regional hostilities, wars, and other international disruptions; our inability to comply with international regulatory restrictions over hazardous substances and electronic waste; the impact of international supply chain disruptions and delays; the impact of changes in U.S. federal and state income tax regulations; the impact of inflation and our ability to pass on rising prices to its customers; and conditions beyond our control such as war, terrorist attacks, health epidemics (including the COVID-19 pandemic caused by the coronavirus) and economic recession. 

You should carefully consider the above trends, risks and uncertainties before making any investment decision with respect to our securities. If any of them continues or occurs, our business, financial condition or operating results could be materially and adversely affected, the trading prices of our securities could decline, and you could lose part or all of your investment. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by this cautionary statement. We further caution you not to unduly rely on any forward-looking statements because they reflect our views only as of the date the statements were made. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.

Autoscope Technologies Corporation
Non-GAAP Income from Continuing Operations
(in thousands)
(unaudited)

We define non-GAAP income from operations as income from operations before amortization of intangible assets, depreciation, and restructuring charges for the applicable periods. Management believes non-GAAP income from operations is a useful indicator of our financial performance and our ability to generate cash flows from operations. Our definition of non-GAAP income from operations may not be comparable to similarly titled definitions used by other companies. The table below reconciles non-GAAP income from operations, which is a non-GAAP financial measure, to comparable GAAP financial measures:

Note – Our calculation of non-GAAP income from operations is considered a non-GAAP financial measure and is not in accordance with, or preferable to, “as reported”, or GAAP financial data. However, we are providing this information, as we believe it facilitates analysis of the Company’s financial performance by investors and financial analysts.