Encision Inc. Reports Fiscal 2026 Q3 Results

Medical device company sees revenue decline due to rise of surgical robots

Published on Feb. 4, 2026

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Encision Inc., a medical device company that owns patented Active Electrode Monitoring (AEM) technology to prevent burns in minimally invasive surgery, reported its financial results for the third quarter of fiscal 2026. The company's revenue has continued to decline, primarily due to procedures being performed by surgical robots that have replaced Encision's surgical instruments. Gross profit margin also decreased significantly due to a large increase in the inventory reserve. Encision is currently undergoing a restructuring and has reduced operating expenses substantially.

Why it matters

Encision's AEM technology is designed to improve patient safety during minimally invasive procedures, but the rise of surgical robots has impacted the company's revenue and profitability. This highlights the challenges medical device companies face in adapting to evolving surgical technologies and practices.

The details

In the third quarter of fiscal 2026, Encision reported net sales of $1.413 million, down 7.5% from the prior quarter. Gross profit margin decreased from 45.6% to 38.4% due to a large increase in the inventory reserve. Operating expenses were reduced by 11.9%, but the company still reported an operating loss of $299,000 and a net loss of $314,000.

  • Encision reported its financial results for the third quarter of fiscal 2026, which ended on December 31, 2025.
  • The company's previous quarter, the second quarter of fiscal 2026, ended on September 30, 2025.

The players

Encision Inc.

A medical device company that owns patented Active Electrode Monitoring (AEM) technology to prevent dangerous radiant energy burns in minimally invasive surgery.

Robert Fries

The CEO of Encision Inc.

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What they’re saying

“The Company's revenue has continued to decline principally because of procedures that were performed by surgical robots that have replaced our surgical procedures.”

— Robert Fries, CEO

What’s next

Encision is currently performing a restructuring and has reduced operating expenses substantially, which will be recognized in the fourth quarter.

The takeaway

Encision's challenges highlight the need for medical device companies to adapt to evolving surgical technologies and practices. The rise of surgical robots has disrupted Encision's business model, and the company is now focused on reducing costs and finding new ways to leverage its AEM technology in the changing healthcare landscape.