Earnings ShortfallAdjusted EBITDA came in below expectations due to foreign exchange impacts and other factors.
Margin PressureGross margin of 33.5% was down from 40.1% sequentially and 44.6% in F1Q25 - driven by purchase accounting and slower orders from higher margin regions, likely as a result of tariff uncertainty.
Tariff ImpactsResults were impacted by tariff uncertainty, slow orders from higher-margin regions, and the continued multi-quarter delay of a large order from Italy that is expected to ship in FY26.