AstroNova amends credit agreement to support business turnaround

WEST WARWICK, R.I. - AstroNova, Inc. (NASDAQ:ALOT) has executed an amendment to its existing credit agreement with Bank of America, according to a press release issued by the company. The small-cap technology firm, with a market capitalization of approximately $69 million, has seen its stock decline by 25% year-to-date.

The amendment, completed on October 31, 2025, temporarily increases the company's revolving credit facility to $27.5 million from $25 million and extends its maturity until August 2028. The agreement also refinances previous term loans into a new $10 million term loan due in August 2028 and a $9.7 million term A-2 loan due in August 2035. This restructuring affects the company's total debt position, which stood at $46.24 million as of the most recent quarter.

Key features of the amended credit facility include reduced quarterly debt service payments and greater covenant flexibility. The company's obligations continue to be secured by a mortgage on its Rhode Island headquarters, with the addition of a security interest in its Astro Machine facility in Illinois. InvestingPro data shows AstroNova maintains a current ratio of 1.71, indicating its liquid assets exceed short-term obligations – a positive sign for debt management capabilities.

Thomas DeByle, Chief Financial Officer of AstroNova, noted that the new structure improves the company's cash position through lower principal payments and replaces "unpredictable Euro payments with fixed USD payments." The agreement allows for up to $1.5 million in add-backs to the company's Consolidated EBITDA for cash restructuring charges when determining financial covenants. The company reported EBITDA of $11.3 million for the last twelve months, though it has not been profitable during this period.

The company currently has $17.9 million drawn on the amended revolver.

AstroNova designs, manufactures and distributes specialized print technology solutions through two segments: Product Identification, which provides digital marking and identification solutions, and Aerospace, which offers airborne printing solutions and avionics.

The information in this article is based on a press release statement from AstroNova.

In other recent news, AstroNova reported a net loss of $1.2 million for the second quarter of 2026. The company's revenue fell to $36.1 million, marking a 10.9% decline compared to the same period last year. During the earnings call, AstroNova discussed challenges in its Product Identification segment and outlined ongoing efforts to restructure operations and improve cash flow. These developments come amidst broader strategies to stabilize the company's financial health. Analysts have taken note of the company's current situation, but there have been no recent upgrades or downgrades reported from major firms. Investors are closely watching AstroNova's efforts to navigate these challenges. The company's management remains focused on enhancing cash generation as part of its strategic initiatives.

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