On this page of StockholderLetter.com we present the latest annual shareholder letter from AstroNova, Inc. — ticker symbol ALOT. Reading current and past ALOT letters to shareholders can bring important insights into the investment thesis.

 •  5/19/2025 Letter Continued (Full PDF)
 •  4/27/2023 ALOT Stockholder Letter
 •  4/29/2024 ALOT Stockholder Letter
 •  More "Computers" Category Stockholder Letters
 •  ALOT Benford's Law Stock Score = 83

ALOT Shareholder/Stockholder Letter Transcript:

ANN
RE
R
YEAR END
DI NG JAN U ARY 31
2025

CORPORATE PROFILE
Who We Are
AstroNova   is a global leader in data visualization technologies. We develop, manufacture,
and support a broad array of products that acquire, store, analyze, and transform data
into meaningful information that is presented in multiple formats. We have a broad global
presence, signiwcant market leadership in the aerospace industry for cockpit printers, a
growing presence in the commercial print industry,
r and a brand that represents quality and
reliability.
y Our large installed base of printers and quality products create sticky customers that
expand our supplies, part
r s and service business. Our strategy is to drive prowtable growth
through innovative new technologies, increasing our installed base to grow recurring revenue
while strategically acquiring additional products to expand our addressable markets.
Our Product Identiwcation segment includes QuickLabel, TrojanLabel, and GetLabels.
These brands provide a wide array of digital end-to-end product marking and identiwcation
solutions, including color labeling, direct-to-package, and mail printing solutions for OEMs,
commercial printers, and brand owners. From tabletop printers to larger scale industrial and
commercial printing and packaging solutions, our innovative products enable customers to
minimize their product identiwcation expenses and experience greater yexibility,
y improving
their ability to identify,
y track, and market their products.
Our T
Test & Measurement segment, which was renamed Aerospace in wscal 2026 to better
reyect the end markets served
r
, provides avionics equipment and systems for commercial,
regional, business, and military aircraft and data acquisition solutions that acquire, record,
and analyze electronic signals from local and networked sensors for the aerospace and
defense market. Customers include many of the world   s
    major aircraft
f manufacturers, defense
contractors, and airlines.
Implemented in 2013 and built upon our core values, the AstroNova Operating System
(AOS) provides the framework for systematically applying lean enterprise tools and business
management processes to drive operational excellence towards suppo
sup
su
upp
up
ppo
pp
porting
po
rtin
rtin
ting
ng ou
our stra
our
trategic
objectives for prowtable growth.
To
AO
S
s
ol
INNOVATION
gy
lo
AstroNova
Operating System
(AOS)
Data Vi
sual
iza
tio
nT
ec
hn
o
CONTINUOUS
IMPROVEMENT
CUSTOMER
CUST
CU
STO
TOMER
ME
ER
ER
FIRST
FI
RST
T
FIRST
FIR
RS
ST
M
ut
iv
d
er
an
y,
C
it y
os
gr
t&
In t e
Gro
w th
BUILDING
VALUE
ua
lR
es
pe
ONE GLOBAL
TEAM
ct
ri
Su p e
or
Qu
a
D
y,
li t
el
A passionate commitment to quality,
y inn
nnov
n
no
ovvat
ation
iion,
io
on,
n,, an
a d sustainability is fundamental to AstroNova   s
    values. AstroNova is certiwed to
ISO 9001:2015 and AS9100D Quality Manage
nag
na
age
geme
m nt System Standards. To support our global aerospace and defense customers,
AstroNova holds FAA
A and EASA Part 145 Repair Station approvals, along with certiwcations from the Civil Aviation Administration of
China (CAAC) and the UK Civil Aviation Authority. We are proud to be recognized by EcoVadis
V
for our responsible and sustainable
business practices and honored to have received the Intertek Achievement Award
r for Workplace Conditions Assessment.

LETTER TO SHAREHOLDERS
Dear Fellow Shareholders,
In wscal 2025, we continued to strengthen our position as a global leader in data visualization technologies and were
a leading partner of choice for high-performance, reliable and military-grade printing needs. Over this past year, we
made substantial investments in building the business for the future, expanding the global end markets we serve,
particularly in commercial printing, and advancing our technological capabilities while taking control of our ink supply
chain through acquisition.
This was a year of transition as we focused on operational issues within our control and took important strategic actions to
put ourselves on the path for accelerated growth and prowtability.
y We bolstered our global operational and sales leadership,
restructured our business, and implemented a new level of accountability and excellence. We entered wscal 2026 with a
renewed executional focus and conwdence in our long-term market position, technology, and growth opportunities.
Fiscal 2025 Performance
y built on
In wscal 2025, we delivered full year revenue of $151 million. Our high-quality and reliable products are sticky,
a large installed base, and, as a result, 71% of the year   s
    revenue was recurring. While revenue was impacted by Boeing
strikes and delays in large defense orders, we were buoyed by the strength of our customer relationships, as we remained
deeply embedded with the world   s
    leading aerospace and defense companies.
Our Test & Measurement segment, which was renamed Aerospace in wscal 2026, achieved record revenue of $48.9 million
for the year and a record operating prowt margin of 22.8%.
Within the segment now known as Aerospace, we continue to transition customers to our lighter weight, higher
performance, and highly reliable ToughWriter solutions. Our objective is to:
    Provide our customers with lightweight and efw
f cient products that provide higher resolution and lower
total life cycle cost;
    Improve our operational efw
f ciency by focusing our manufacturing resources on fewer but better
margin products;
    Decrease expenses, as royalty payments associated with legacy printers roll off
f based on the
original contract terms; and
    Increase our share of the aviation certiwed paper supply market as more of our installed base shifts to
our ToughWriter printers to replace legacy equipment.
We ended wscal 2025 with Tough
T
Writer shipments constituting 42% of all Aerospace printer shipments and expect to
more than double that proportion
r
by the end of wscal 2026.
In our Product Identiwcation segment, we made solid progress with the integration of the MTEX operations, yet there
remains more work to do and opportunit
r
ies to further improve. The complexities related to the MTEX integration
negatively impacted our operational and wnancial perfor
r mance for this segment, delivering wscal 2025 revenue of $102
million, which was not reyective of the full potential of our business. Even with these challenges, we remained encouraged
by our market positioning, the promise of our technology and the future opportu
r nities to support
r high-demand printing
needs across a wider set of industries.

Strategic Actions to Drive Improved Revenue Growth and Pro  tability
To address challenges in our Product Identiwcation segment, we took immediate and decisive actions, including:
    Implementing a restructuring plan expected to deliver $3 million in annualized cost savings;
    Accelerating the integration of MTEX by fully folding the product portfolio into ours, reorganizing and
realigning the business, right-sizing the product offeri
f ngs to focus on higher-m
r argin, higher-gr
r owth products,
and implementing a new level of accountability and discipline; and
    Overhauling wnance and accounting processes to meet U.S. GAAP requirements and implementing the
AstroNova Operating System to drive operational excellence.
We are conwdent these and ongoing efforts
r better position us to drive revenue growth and improve prowtability through
new product launches, tangible sales synergies, and attractive supply source opportunities in wscal 2026.
Enhanced Print-Engine Technology Unlocks Larger Serviceable Addressable Market
AstroNova   s
    core strength lies in our data visualization technology,
y which enables us to process analog and digital data
efw
f ciently and deliver highly diffe
f rentiated products. Our strategy is to capitalize on this expertise in a business with
signiwcant recurring revenue from consumables such as ink, labels, paper,r service
r
agreements, and repairs.
Our goal is to continue leveraging MTEX   s
    key technologies and impressive manufacturing facilities while ensuring we
have the right operating structure, product portfolio, and go-to-market strategies in place. Through MTEX and its printengine technology,
y by the end of wscal 2026, we plan to introduce at least wve next-generation products, three of which
have already been launched. These products offer
f users greater yexibility, live software updates, and real-time equipment
monitoring. They also open AstroNova to a new set of end markets that include even larger customers that require higher
performance machines with wider print widths and higher throughput speeds. We expect these next-generation
x
systems to
drive increased revenue from expanded sales of label media and supplies, supporting our consumables-driven growth model.
Looking Ahead
We believe our strategic actions and investments position AstroNova for a strong future. We are executing on our longterm strategy to reduce our dependence on sole source suppliers, replace legacy products with our own technology and
broaden our product off
f erings to expand our addressable market. We are conwdent in our ability to deliver long-term
shareholder value by expanding our application capabilities, strengthening our competitive position, and delivering
improved reliability and quality to our customers.
On behalf of our Team Members and Board
r of Directors, thank you for
f your ongoing support and conwdence in AstroNova.
Gregory A. Woods
Presid
r
ent and Chief Executive Ofw
f cer
May 19, 2025

FINANCIAL HIGHLIGHTS
Years Ended January 31,
($ in millions, except per share amounts)
2025
2024
2023
BOOKINGS
$145.1
$143.7
$138.6
REVENUE
$151.3
$148.1
$142.5
GROSS PROFIT
$52.7
$51.6
$48.2
GROSS PROFIT MARGIN
34.9%
34.9%
33.8%
OPERATING
A
INCOME (LOSS)
$(8.6)
$8.8
$5.4
OPERATING
A
MARGIN
(5.7)%
5.9%
3.8%
NET INCOME (LOSS)
$(14.5)
$4.7
$2.7
NET INCOME (LOSS) PER SHARE - DILUTED
$(1.93)
$0.63
$0.36
7,509,000
7,496,000
7,374,000
ADJUSTED EBITDA(2)
$12.3
$17.6
$11.0
ADJUSTED EBITDA MARGIN
8.1%
11.9%
7.7%
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING
T
- DILUTED (1)
For the year ended January 31, 2025, we had weighted average common stock equivalent shares
r outstanding of 45,908 that could
potentially dilute earnings per share
r in futur
f re periods. T
These shares were
r excluded from
r
the computation of diluted earnings per
share
r because their effect
f
would have been anti-dilutive given the net loss during the period.
(1)
See reconciliation of Net Income (Loss) to Adjusted EBITDA below.
(2)
Years
r Ended January
r 31,
2025
2024
2023
$ (14.5)
$4.7
$2.7
Interest Expense
3.2
2.7
1.7
Income Tax Expense
2.2
1.4
0.7
Depreciation/Amortization
4.8
4.3
3.9
Share-Based Compensation
1.4
1.3
1.3
Acquisition Transaction Costs
1.2

0.7
CFO Transition Costs
0.4


Inventory Step-Up
0.2


13.4


Restructuring Charges, net

2.6

Product Retro  t Costs, net

0.6

$12.3
$17.6
$11.0
Net Income (Loss)
Goodwill Impairment
Adjusted EBITDA
Use of Non-GAAP Financial Measures
Adjusted EBITDA is a non-GAAP measure and is de  ned as earnings before interest, taxes, depreciation, amortization, share-based compensation, acquisition costs, CFO transition costs,
inventory step-up, goodwill impairment, restructuring charges, and product retro  t costs. Adjusted EBITDA margin is also a non-GAAP measure and represents Adjusted EBITDA as a
percentage of revenue. AstroNova believes that the inclusion of these non-GAAP   nancial measures helps investors gain a meaningful understanding of changes in the Company   s core
operating results and also can help investors who wish to make comparisons between AstroNova and other companies on both a GAAP and a non-GAAP basis. AstroNova   s management
uses Adjusted EBITDA, in addition to other GAAP   nancial measures, as the basis for measuring its core operating performance and comparing such performance to that of prior periods
and to the performance of its competitors. Adjusted EBITDA also is used by the Company   s management to assist with their   nancial and operating decision-making.



 5/19/2025 Letter Continued (Full PDF)