Q3 2026 Financial Highlights (3 Months Ended
- Revenue was
$8.7 million , a quarterly record, compared to$4.2 million in the same quarter of the previous fiscal year, representing growth of approximately 108%, and compared to$7.4 million in the most recent sequential quarter. - Production revenue, or total revenue net of engineering revenue, was
$7.6 million , a quarterly record, compared to$3.3 million in the same quarter of the previous fiscal year, representing growth of approximately 131%, and compared to$6.4 million in the most recent sequential quarter. - Engineering revenue was
$1.1 million compared to$0.9 million in the same quarter of the previous fiscal year, an increase of 22%, and compared to$1.0 million in the most recent sequential quarter. - Gross margins were 23.6% compared to 10.0% in the same quarter of the previous fiscal year and compared to 2.8% in the most recent sequential quarter.
- Net loss for the quarter was
$(0.1) million , compared to$(2.1) million in the same quarter of the previous fiscal year, and compared to$(1.8) million in the most recent sequential quarter. - Adjusted EBITDA was
$0.3 million for the quarter compared to$(1.3) million in the same quarter of the previous fiscal year and compared to$(1.5) million in the most recent sequential quarter.
Recent Additional Highlights:
- Increased production to a top-tier aerospace company. Third quarter fiscal 2026 revenue totaled
$3.6 million from this customer, a quarterly revenue record. - Increased production of cystoscopy surgery system. Third quarter fiscal 2026 revenue totaled
$2.2 million from this customer, a quarterly revenue record. - Received a
$3.5 million follow-on production order for single-use ophthalmic program, with shipments expected to commence during the fourth fiscal quarter. - The Company’s Ross Optical operations saw continued strong volume growth, driving a 65% year-over-year growth in the segment’s revenues.
- Completed an oversubscribed
$10 million public offering inMarch 2026 to support the growth plans of the Company.
FY 2026 Financial Guidance (Year Ended
- The Company is increasing its previously announced guidance for fiscal year 2026 revenue to be in a range of
$29 to$31 million , compared to previously announced guidance of$26 to$28 million . The newly increased revenue guidance represents 52% to 62% growth over the Company’s fiscal year 2025 revenue. - The Company is increasing its previously announced guidance for fiscal year 2026 Adjusted EBITDA to be in a range of
$(2.5) to$(2.7) million , compared to previously announced guidance of$(2.5) to$(3.0) million .
“Our third quarter results were highlighted by revenue of
“We expect production revenue to remain strong and so we are increasing our revenue and adjusted EBITDA guidance for the fiscal year.”
“Industry trends remain highly favorable and with the additional capital raised recently we are strategically investing in the ongoing capabilities expansion and acceleration of our go-to-market planning to accelerate overall growth,” Forkey concluded.
The following table summarizes the third quarter and year-to-date (unaudited) results for the periods ending
| Three Months | Nine Months | |||||||||||||
| Ended | Ended | |||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||
| Revenues | $ | 8,708,631 | $ | 4,185,968 | $ | 22,757,291 | $ | 12,909,928 | ||||||
| Gross Profit | 2,056,534 | 417,975 | 3,207,552 | 2,605,247 | ||||||||||
| Stock Compensation Expenses | 253,777 | 714,662 | 742,497 | 1,172,232 | ||||||||||
| Other | 1,867,219 | 1,741,598 | 5,867,101 | 5,628,262 | ||||||||||
| Total Operating Expenses | 2,120,996 | 2,456,260 | 6,609,598 | 6,800,494 | ||||||||||
| Operating Income (Loss) | (64,462 | ) | (2,038,285 | ) | (3,402,046 | ) | (4,195,247 | ) | ||||||
| Net Income (Loss) | (108,283 | ) | (2,096,761 | ) | (3,526,104 | ) | (4,377,689 | ) | ||||||
| Income (Loss) per Share | ||||||||||||||
| Basic & Fully Diluted | $ | (0.01 | ) | $ | (0.30 | ) | $ | (0.46 | ) | $ | (0.67 | ) | ||
| Weighted Average Common Shares Outstanding | ||||||||||||||
| Basic & Fully Diluted | 7,794,263 | 6,917,281 | 7,740,834 | 6,491,687 | ||||||||||
Conference Call Details
Date and Time:
Call-in Information: Interested parties can access the conference call by dialing (844) 735-3662 or (412) 317-5705.
Live Webcast Information: Interested parties can access the conference call via a live webcast, which is available at https://app.webinar.net/l90v4RE3K1N.
Replay: A teleconference replay of the call will be available for seven days, at (855) 669-9658 or (412) 317-0088, replay access code 3475317. A webcast replay will be available at https://app.webinar.net/l90v4RE3K1N.
About
Founded in 1982,
Non-GAAP Financial Measures
This non-GAAP financial measure assists
Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information calculated in accordance with GAAP. Investors are encouraged to review the reconciliation of non-GAAP measures to their most directly comparable GAAP financial measures. A reconciliation of the non-GAAP financial measure presented above to GAAP results has been provided in the financial tables included with this press release.
About Forward-Looking Statements
This press release contains forward-looking statements within the meaning of
Company Contact:
Telephone: 978-630-1800
Investor Contact:
Telephone: 602-889-9700
poci@lythampartners.com
BALANCE SHEETS (UNAUDITED) | ||||||||
| 2026 | 2025 | |||||||
| ASSETS | ||||||||
| Current Assets: | ||||||||
| Cash and cash equivalents | $ | 10,680,046 | $ | 1,773,735 | ||||
| Accounts receivable, net of allowance for credit losses of | 6,577,866 | 4,336,730 | ||||||
| Inventories, net | 3,702,461 | 3,562,112 | ||||||
| Prepaid expenses | 446,313 | 385,390 | ||||||
| Total current assets | 21,406,686 | 10,057,967 | ||||||
| Fixed Assets: | ||||||||
| Machinery and equipment | 3,415,589 | 3,385,958 | ||||||
| Leasehold improvements | 1,225,401 | 871,356 | ||||||
| Furniture and fixtures | 615,723 | 538,428 | ||||||
| 5,256,713 | 4,795,742 | |||||||
| Less—accumulated depreciation and amortization | 4,388,000 | 4,261,950 | ||||||
| Net fixed assets | 868,713 | 533,792 | ||||||
| Operating lease right-to-use asset | 2,371,091 | 141,825 | ||||||
| Patents, net | 215,507 | 232,493 | ||||||
| 8,824,210 | 8,824,210 | |||||||
| Total other assets | 11,410,808 | 9,198,528 | ||||||
| TOTAL ASSETS | $ | 33,686,207 | $ | 19,790,287 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current Liabilities: | ||||||||
| Current portion of capital lease obligation | $ | – | $ | 27,368 | ||||
| Current maturities of long-term debt | 577,898 | 577,898 | ||||||
| Accounts payable | 6,239,450 | 2,909,100 | ||||||
| Contract liabilities | 2,224,660 | 1,821,929 | ||||||
| Accrued compensation and other | 836,582 | 764,004 | ||||||
| Current portion of operating lease liability | 314,329 | 50,995 | ||||||
| Total current liabilities | 10,192,919 | 6,151,294 | ||||||
| Long-term debt, net of current maturities | 855,780 | 1,289,205 | ||||||
| Operating lease liability, net of current portion | 2,531,601 | 90,954 | ||||||
| Total liabilities | 13,580,300 | 7,531,453 | ||||||
| Stockholders’ Equity: | ||||||||
| Common stock, | 109,298 | 77,147 | ||||||
| Additional paid-in capital | 80,493,343 | 69,152,317 | ||||||
| Accumulated deficit | (60,496,734 | ) | (56,970,630 | ) | ||||
| Total stockholders’ equity | 20,105,907 | 12,258,834 | ||||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 33,686,207 | $ | 19,790,287 | ||||
| PRECISION OPTICS CORPORATION, INC. STATEMENTS OF OPERATIONS FOR THE THREE AND NINE MONTHS ENDED (UNAUDITED) | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Revenues | $ | 8,708,631 | $ | 4,185,968 | $ | 22,757,291 | $ | 12,909,928 | ||||||||
| Cost of Goods Sold | 6,652,097 | 3,767,993 | 19,549,739 | 10,304,681 | ||||||||||||
| Gross Profit | 2,056,534 | 417,975 | 3,207,552 | 2,605,247 | ||||||||||||
| Research and Development Expenses | 267,319 | 211,242 | 828,733 | 929,648 | ||||||||||||
| Selling, General and Administrative Expenses | 1,853,677 | 2,245,018 | 5,780,865 | 5,870,846 | ||||||||||||
| Total Operating Expenses | 2,120,996 | 2,456,260 | 6,609,598 | 6,800,494 | ||||||||||||
| Operating Income | (64,462 | ) | (2,038,285 | ) | (3,402,046 | ) | (4,195,247 | ) | ||||||||
| Interest Expense | (35,116 | ) | (58,476 | ) | (115,353 | ) | (182,442 | ) | ||||||||
| Income before provision for income taxes | (99,578 | ) | (2,096,761 | ) | (3,517,399 | ) | (4,377,689 | ) | ||||||||
| Provision for income taxes | 8,705 | – | 8,705 | – | ||||||||||||
| Net Income | $ | (108,283 | ) | $ | (2,096,761 | ) | $ | (3,526,104 | ) | $ | (4,377,689 | ) | ||||
| Loss Per Share: | ||||||||||||||||
| Basic and Fully Diluted | $ | (0.01 | ) | $ | (0.30 | ) | $ | (0.46 | ) | $ | (0.67 | ) | ||||
| Weighted Average Common Shares Outstanding: | ||||||||||||||||
| Basic and Fully Diluted | 7,794,263 | 6,917,281 | 7,740,834 | 6,491,687 | ||||||||||||
STATEMENTS OF STOCKHOLDERS’ EQUITY FOR THE THREE AND NINE MONTHS ENDED (UNAUDITED) | ||||||||||||||||||||
| Nine Month Period Ended | ||||||||||||||||||||
| Number of Shares | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Total Stockholders’ Equity | ||||||||||||||||
| Balance, | 7,714,701 | $ | 77,147 | $ | 69,152,317 | $ | (56,970,630 | ) | $ | 12,258,834 | ||||||||||
| Stock-based compensation | – | – | 301,639 | – | 301,639 | |||||||||||||||
| Net loss | – | – | – | (1,637,030 | ) | (1,637,030 | ) | |||||||||||||
| Balance, | 7,714,701 | 77,147 | 69,453,956 | (58,607,660 | ) | 10,923,443 | ||||||||||||||
| Stock-based compensation | – | – | 162,082 | – | 162,082 | |||||||||||||||
| Issuance of common stock for employee services | 5,528 | 55 | 24,945 | – | 25,000 | |||||||||||||||
| Net loss | – | – | – | (1,780,791 | ) | (1,780,791 | ) | |||||||||||||
| Balance, | 7,720,229 | 77,202 | 69,640,983 | (60,388,451 | ) | 9,329,734 | ||||||||||||||
| Issuance of common stock in public offering | 3,194,444 | 31,944 | 10,598,734 | – | 10,630,678 | |||||||||||||||
| Proceeds from exercise of stock option | 13,628 | 136 | (136 | ) | – | – | ||||||||||||||
| Stock-based compensation | – | – | 247,528 | – | 247,528 | |||||||||||||||
| Issuance of common stock for employee services | 1,568 | 16 | 6,234 | – | 6,250 | |||||||||||||||
| Net loss | – | – | – | (108,283 | ) | (108,283 | ) | |||||||||||||
| Balance, | 10,929,869 | $ | 109,298 | $ | 80,493,343 | $ | (60,496,734 | ) | $ | 20,105,907 | ||||||||||
| Nine Month Period Ended | ||||||||||||||||||||
| Number of Shares | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Total Stockholders’ Equity | ||||||||||||||||
| Balance, | 6,073,939 | $ | 60,739 | $ | 61,197,433 | $ | (51,190,384 | ) | $ | 10,067,788 | ||||||||||
| Issuance of common stock in registered direct offering | 265,868 | 2,659 | 1,201,883 | – | 1,204,542 | |||||||||||||||
| Proceeds from exercise of stock option | 10,363 | 104 | 26,896 | – | 27,000 | |||||||||||||||
| Stock-based compensation | – | – | 149,364 | – | 149,364 | |||||||||||||||
| Net loss | – | – | – | (1,311,247 | ) | (1,311,247 | ) | |||||||||||||
| Balance, | 6,350,170 | 63,502 | 62,575,576 | (52,501,631 | ) | 10,137,447 | ||||||||||||||
| Stock-based compensation | – | – | 278,206 | – | 278,206 | |||||||||||||||
| Issuance of common stock for consulting services | 5,364 | 53 | 29,947 | – | 30,000 | |||||||||||||||
| Net loss | – | – | – | (969,681 | ) | (969,681 | ) | |||||||||||||
| Balance, | 6,355,534 | 63,555 | 62,883,729 | (53,471,312 | ) | 9,475,972 | ||||||||||||||
| Issuance of common stock in registered direct offering | 1,272,500 | 12,725 | 5,052,869 | – | 5,065,594 | |||||||||||||||
| Proceeds from exercise of stock option | 13,162 | 132 | 18,118 | – | 18,250 | |||||||||||||||
| Stock-based compensation | – | – | 592,964 | – | 592,964 | |||||||||||||||
| Issuance of common stock for consulting services and employees | 25,051 | 250 | 121,448 | – | 121,698 | |||||||||||||||
| Net loss | – | – | – | (2,096,761 | ) | (2,096,761 | ) | |||||||||||||
| Balance, | 7,666,247 | $ | 76,662 | $ | 68,669,128 | $ | (55,568,073 | ) | $ | 13,177,717 | ||||||||||
STATEMENTS OF CASH FLOWS FOR THE NINE MONTHS ENDED (UNAUDITED) | ||||||||
| Nine Months Ended | ||||||||
| 2026 | 2025 | |||||||
| Cash Flows from Operating Activities: | ||||||||
| Net Loss | $ | (3,526,104 | ) | $ | (4,377,689 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities - | ||||||||
| Depreciation and amortization | 214,948 | 159,844 | ||||||
| Stock-based compensation expense | 742,499 | 1,020,534 | ||||||
| Non-cash interest expense | 13,825 | 8,918 | ||||||
| Non-cash operating lease expense | 255,965 | – | ||||||
| Loss on disposal of fixed assets | 34,506 | – | ||||||
| Changes in operating assets and liabilities - | ||||||||
| Accounts receivable, net | (2,241,136 | ) | 120,438 | |||||
| Inventories, net | (140,349 | ) | (803,301 | ) | ||||
| Prepaid expenses | (60,923 | ) | (27,160 | ) | ||||
| Accounts payable | 3,330,350 | 476,259 | ||||||
| Contract liabilities | 402,731 | 493,201 | ||||||
| Accrued compensation and other | 72,578 | (49,209 | ) | |||||
| Net cash used in operating activities | (901,110 | ) | (2,978,165 | ) | ||||
| Cash Flows from Investing Activities: | ||||||||
| Purchases of fixed assets | (349,750 | ) | (180,985 | ) | ||||
| Proceeds from sale of fixed assets | 3,000 | – | ||||||
| Additional/reclassification patent costs | (1,889 | ) | 31,148 | |||||
| Net cash used in investing activities | (348,639 | ) | (149,837 | ) | ||||
| Cash Flows from Financing Activities: | ||||||||
| Payments of capital lease obligations | (27,368 | ) | (32,257 | ) | ||||
| Payments of long-term debt | (447,250 | ) | (149,230 | ) | ||||
| Payment of debt modification costs | – | (15,000 | ) | |||||
| Payment on revolving line of credit | – | (1,000,000 | ) | |||||
| Proceeds from registered direct sale of common stock, net | – | 6,270,136 | ||||||
| Proceeds from public offering of common stock, net | 10,630,678 | – | ||||||
| Stock issued for services | – | 151,698 | ||||||
| Gross proceeds from the exercise of stock options | – | 45,250 | ||||||
| Net cash provided by (used in) financing activities | 10,156,060 | 5,270,597 | ||||||
| Net increase in cash and cash equivalents | 8,906,311 | 2,142,595 | ||||||
| Cash and cash equivalents, beginning of period | 1,773,735 | 405,278 | ||||||
| Cash and cash equivalents, end of period | $ | 10,680,046 | $ | 2,547,873 | ||||
| Supplemental disclosure of cash flow information: | ||||||||
| Operating right-of-use assets obtained in exchange for operating lease liabilities | $ | 2,632,584 | $ | – | ||||
| Lease improvements financed by landlord | $ | 218,750 | $ | – | ||||
| Issuance of common stock for employee services | $ | 31,250 | $ | – | ||||
| RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES | ||||||||||||||||||||
| ADJUSTED EBITDA | ||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||
| Net Income (loss) (GAAP) | $ | (108,283 | ) | $ | (2,096,761 | ) | $ | (3,526,104 | ) | $ | (4,377,689 | ) | ||||||||
| Stock based compensation | 253,778 | 714,662 | 742,499 | 1,172,232 | ||||||||||||||||
| Depreciation and amortization | 75,602 | 62,358 | 214,948 | 159,844 | ||||||||||||||||
| Income Taxes | 8,705 | 8,705 | ||||||||||||||||||
| Interest expense | 35,116 | 58,476 | 115,353 | 182,442 | ||||||||||||||||
| Adjusted EBITDA (non-GAAP) | $ | 264,918 | $ | (1,261,265 | ) | $ | (2,444,599 | ) | $ | (2,863,171 | ) | |||||||||
