In its latest quarter ended May 31, 2026, Sono-Tek Corporation reported a modest revenue decline of 3.6% but delivered a significant gross margin expansion to 50%, driven by favorable product mix and reduced warranty costs. The company achieved record backlog growth of 16% year-over-year, reflecting robust order momentum in medical devices and electronics, partially offsetting softness in alternative energy markets due to shifting U.S. policy. Sono-Tek’s business model centers on patented ultrasonic nozzle technology applied via custom-engineered coating systems sold through direct sales and distributors worldwide, serving a diversified set of end markets including medical, microelectronics, industrial, and alternative energy with about one-third of sales outside North America. Customer concentration remains a risk factor, with one customer accounting for approximately 38% of sales during the first nine months of fiscal 2026. Strong balance sheet and ongoing R&D investment underpin the company’s strategic shift toward higher-value subsystems and complete machines.