Red Flags Detected
- Material Weakness (worsened) — Cash flow control deficiency originally identified in FY2024 remained unremediated through FY2025, extending duration to two years with remediation now pushed to Oct 2026.
Quanex swings to loss as tariffs hammer Hardware margins; cash flow controls still broken
Filed June 5, 2026 · Period ending April 30, 2026 · Compared to 10-Q Jun 6, 2025 · ~1 min read
Key Changes
-
high
Hardware Solutions operating margin collapsed from +7% to -3% as tariff costs, unfavorable FX, and transport expenses drove $16.9M in cost overruns while revenue stayed flat.
MD&A: Hardware Solutions verify on EDGAR → -
high
Material weakness in cash flow statement controls persists for second year; remediation now pushed to Oct 2026 from Oct 2025, with confidence language removed.
Controls & Procedures verify on EDGAR → -
high
Six-month operating cash flow turned negative at -$1.3M vs. +$16M prior year, driven by lower earnings and unfavorable working capital swings.
MD&A: Liquidity verify on EDGAR →
2 more material changes behind this preview — plus the full narrative summary, section-by-section diffs against the prior filing, and verbatim quotes with EDGAR citations.
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Generated by AI · Jun 10, 2026 5:39 PM