POET Technologies Reports Q2 Earnings Below Expectations, Wall Street Maintains Optimistic Outlook

POET Technologies reported Q2 earnings that fell short of expectations, with a significant EPS miss and negative cash flow from operating activities. Despite a "Outperform" rating, GuruFocus estimates suggest a potential downside of 86.92%. Wall Street analysts have set a high estimate of $7.40 and a low estimate of $5.50, with an average target price of $6.63 for a potential upside of 20.46%.

POET Technologies Inc. (POET) reported its second-quarter 2025 financial results, which fell short of market expectations. The company reported a GAAP EPS of -$0.21, missing estimates by $0.10, and revenue of $0.27 million, which was $0.01 million below expectations. Additionally, the company reported a negative cash flow from operating activities of ($7.7) million in Q2 2025, compared to ($4.5) million in the same quarter last year and ($8.9) million in Q1 2025 [2].

Despite these disappointing results, GuruFocus estimates suggest a potential downside of 86.92% for POET Technologies, while Wall Street analysts have set a high estimate of $7.40 and a low estimate of $5.50, with an average target price of $6.63, indicating a potential upside of 20.46% [2].

In its Q2 2025 earnings report, POET Technologies highlighted significant progress in its manufacturing capabilities and customer engagements. The company completed the installation of equipment for volume production of optical engines at Globetronics and expanded its manufacturing footprint in Malaysia through a partnership with NationGate Solutions. Additionally, POET secured a $30 million private placement, marking the largest financing in its history [1].

However, the company also faced challenges, including a non-recurring engineering and product revenue of $268,469, a net loss of $17.3 million, and research and development costs of $3.2 million. The company also faced a non-cash loss of $7.5 million related to derivative warrant liability [1].

Looking ahead, POET Technologies remains focused on achieving its growth objectives through strategic partnerships, expanded production capabilities, and continued innovation in photonic integration solutions. The company’s management expresses confidence in meeting near-term growth targets, supported by recent financings and increased customer engagements [1].

References:
[1] https://www.tipranks.com/news/company-announcements/poet-technologies-reports-q2-2025-financial-results
[2] https://seekingalpha.com/news/4483643-poet-technologies-gaap-eps-of--021-misses-by-010-revenue-of-027m-misses-by-001m