What is the revenue and EPS growth rate for Precision Optics year over year?

What does Precision Optics do and what are its main business segments?

What guidance did Precision Optics's management provide for the next earnings period?

What were the key takeaways from Precision Optics’s earnings call?

Did Precision Optics beat or miss consensus estimates last quarter?

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What were the key takeaways from Precision Optics's earnings call?

- **Revenue Record**: Q1 $6.7M (+46% YoY, ex-tariffs), driven by 800% growth in aerospace program and 180% cystoscope expansion.
- **Margin Recovery**: Gross margin expected to improve sequentially as production scales; FY26 EBITDA target: $0.5M positive.
- **Strategic Wins**: $1.4M defense/aerospace contracts for AR systems and jet engine borescopes, broadening market reach.
- **Hiring Surge**: 20 new hires in 3 months, with similar pace planned to support production ramp.
- **Long-Term Growth**: Medical devices with >5-year lifespans and defense programs up to 10+ years ensure sustained revenue streams.

**CEO Summary Section**
- **Record Q1 Revenue**: $6.7 million, up 46% YoY (excluding tariffs), driven by aerospace and single-use cystoscope programs.
- **Aerospace Program Growth**: $2.5 million net revenue, 800% YoY increase, with $9 million backlog and 50% production capacity expansion.
- **Cystoscope Program Momentum**: $1.5 million net revenue, 180% YoY growth, with yield improvements and pricing renegotiations to enhance margins.
- **New Development Contracts**: $1.4 million in AR and jet engine borescope programs, expanding defense/aerospace exposure.
- **Gross Margin Outlook**: Expecting sequential improvements as production scales and fixed costs absorb.

**CFO Financial Commentary**
- **Revenue Breakdown**: $6 million (production) + $656k (engineering), vs. $4.2 million YoY.
- **Gross Margin**: 14.4% (vs. 26.6% YoY), impacted by under-absorbed engineering costs and delayed defense reorder.
- **Operating Expenses**: $2.5 million (flat YoY), with $184k severance and higher stock-based comp.
- **Financial Targets**: FY26 guidance of >$25 million revenue and $0.5 million positive adjusted EBITDA.

**Q&A Highlights**
- **Defense/Aerospace Pivot**: No pivot from medical; 2 new defense programs reflect market recognition, but medical pipeline remains strong.
- **Capacity Utilization**: Final facility update in next 6-12 months, enabling potential doubling of current revenue.
- **COGS Breakdown**: Manufacturing (materials-heavy), Micro-optics (labor-heavy), Ross Optical (variable margin).
- **Hiring**: 20 new hires in last 3 months (15 direct labor), similar pace expected for next 3-6 months.
- **Program Lifespans**: Medical devices >5 years (e.g., 25+ year legacy product), defense/aerospace programs 5-10+ years.


Precision Optics Corporation, Inc. (POCI) Q1 2026 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

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Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

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Operating Income

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Other Non-Operating Income (Loss)

Net Interest Expense

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Net Income

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Preferred Stock Dividends

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Total Comprehensive Income Attributable to Owners of the Company

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Diluted EPS from Discontinued Operations

POCI

POCI fundamentals

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