A maker of CNC (computer numerical control) machine tools and software, Hurco helps small metal shops program and cut precision parts right at the machine instead of typing complex code by hand. Founded in 1968 in Indianapolis by Gerald Roch and Edward Humston, its name is an acronym of the founders' surnames—Humston, Roch—and "Company." In 1976 Roch patented "conversational programming," a method where machinists answer simple on-screen prompts to create programs, an idea that still powers the company's WinMax control software today.
Orders rose 41% in Q2, the strongest quarter in over two years, but Hurco remains unprofitable.
Orders rose to $61.6 million, the highest quarterly total in over two years, signaling a potential demand turn. rose 17% to $47.6 million and widened 2.5 points to 21.7% on higher machine volume and a richer product mix, though the company still posted a $0.8 million operating loss. The order book is rebuilding, but the company cannot access its new credit line until it returns to positive .
Key takeaways
Orders rose 41% to $61.6 million, driven by demand for Hurco and Takumi 5-axis and vertical milling machines across all three regions, marking the highest quarterly order total in over two years.
rose 17% to $47.6 million, with the Americas up 35% and Asia Pacific up 81%, while Europe fell 8%.
widened 2.5 points to 21.7%, which management attributed to higher machine volume and a richer mix of higher-performance machines.
Section summaries
Management's Discussion and Analysis
Q2 FY2026 sales rose 17% to $47.6M and orders rose 41% to $61.6M, driven by Hurco and Takumi milling machines.
⌄
Q2 FY2026 sales and service fees rose 17% to $47.6M, with a 3% favorable currency impact; Americas sales rose 35% and Asia Pacific rose 81%, while Europe fell 8%.
The operating loss narrowed to $0.8 million from $3.1 million a year ago, as the $2.5 million increase in more than offset a rise in SG&A from unfavorable currency translation.
Cash and equivalents rose to $50.1 million with no debt outstanding, but the new $20.0 million Bank of America remains undrawn because borrowing requires positive consolidated .
The company recorded a full against its Italian, U.S., and Chinese deferred tax assets, and the quarterly cash remains suspended since June 2024.
What changed
The 41% order increase in Q2 far exceeded the 5% rise in Q1, suggesting the demand recovery flagged as tentative last quarter is accelerating rather than fading.
returned to growth after the 8% decline in Q1, as the order improvement that did not translate into shipments last quarter now began flowing through to the top line.
rose to 21.7% from 19% in Q1, extending the recovery that management has attributed to a richer machine mix and better fixed-cost , and reaching its highest level in over two years.
The operating loss narrowed for the third consecutive quarter, from $3.2 million in Q1 to $0.8 million in Q2, putting the company closer to the positive consolidated required to draw on its new .
What to watch
Whether the 41% order increase in Q2 translates into sustained growth in Q3, or whether the order increase reflects a single large deal or restocking rather than a durable demand recovery.
Whether can hold above 21% if the richer machine mix that management cited proves durable, or whether it retreats as production volumes and mix normalize.
Whether the company can return to positive consolidated , which is required to draw on the new $20.0 million Bank of America , and what alternative liquidity sources exist if operating losses persist.
Whether the full against U.S., Italian, and Chinese deferred tax assets signals that management does not expect near-term profitability in those jurisdictions, and what a recovery would mean for the .
Six-month sales rose 4% to $90.5M, with a 4% favorable currency impact; Americas rose 12% and Asia Pacific rose 20%, while Europe fell 7%.
Q2 orders rose 41% to $61.6M and six-month orders rose 24% to $103.6M, driven by demand for Hurco and Takumi 5-axis and vertical milling machines across all three regions.
Q2 rose to $10.3M (22% of sales) from $7.8M (19%), and six-month gross profit rose to $18.3M (20%) from $16.1M (18%), helped by higher machine volume and a richer mix of higher-performance machines.
Q2 narrowed to $0.8M from $3.1M, and six-month operating loss narrowed to $4.0M from $5.2M; SG&A rose mainly on unfavorable currency translation.
Cash and equivalents were $50.1M at April 30, 2026, with no debt outstanding; the 2018 credit agreement and Taiwan/China facilities terminated, and a new $20.0M secured 2026 Credit Agreement was entered into on January 5, 2026.
A full was recorded against Italian, U.S., and Chinese as of April 30, 2026; the regular quarterly cash remains suspended.
Quantitative and Qualitative Disclosures About Market Risk
Company hedges foreign-currency exposure from non-Americas revenue and foreign-sourced costs, with no credit-facility borrowings outstanding.
⌄
About 59% of first-half FY2026 came from customers outside the Americas, invoiced and received in several foreign currencies.
The predominant exchange-rate risk on product purchases relates to the New Taiwan Dollar and the Euro, with some supplier arrangements including currency risk-sharing agreements.
The company uses foreign currency forward contracts to hedge forecasted inter-company sales and purchases, primarily in Euro, Pound Sterling, and New Taiwan Dollar, and states it does not speculate.
As of April 30, 2026, designated cash-flow hedge forwards included Euro sale contracts of €7.2 million, Sterling sale contracts of £4.35 million, and New Taiwan Dollar purchase contracts of NT$690.0 million.
Non-designated forwards used to protect and included Euro sale contracts of €7.5 million, a net Sterling sale position of £(4.55) million, and New Taiwan Dollar purchase contracts of NT$1.68 billion.
A €3.0 million forward designated as a of Euro-denominated assets matures in November 2026, with a realized gain of $1.0 million and an unrealized loss of less than $0.1 million, net of tax.
At April 30, 2026, the company had no borrowings outstanding under any of its credit facilities, so interest-rate exposure on borrowings was minimal.
From time to time, we are involved in various claims and lawsuits arising in the normal course of business. Pursuant to applicable accounting rules, we accrue the minimum liability for each known claim when the estimated outcome is a range of possible loss and no one amount wi…
⌄
From time to time, we are involved in various claims and lawsuits arising in the normal course of business. Pursuant to applicable accounting rules, we accrue the minimum liability for each known claim when the estimated outcome is a range of possible loss and no one amount within that range is more likely than another. We maintain insurance policies for such matters, and we record insurance recoveries when we determine such recovery to be probable. We do not expect any of these claims, individually or in the aggregate, to have a material adverse effect on our consolidated financial position or results of operations. We believe that the ultimate resolution of claims for any losses will not exceed our insurance policy coverages.
There have been no material changes from the risk factors disclosed in Part I, Item 1A – Risk Factors in our Annual Report on Form 10-K for the year ended October 31, 2025.
⌄
There have been no material changes from the risk factors disclosed in Part I, Item 1A – Risk Factors in our Annual Report on Form 10-K for the year ended October 31, 2025.