POCI earnings analysis
What we found in POCI's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Precision Optics Corporation reported a strong performance for Q3 2026, with revenues soaring to $8.7 million, reflecting an impressive 108% increase year-over-year. Despite increased revenues, the company faced mixed gross margins, increasing slightly to 23.6%, while operating margins remained negative, indicating ongoing profitability challenges with a diluted EPS of -0.23.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Growth Surges 108%
- Total revenues reached $8,708,631 in Q3 2026, up from $4,185,968 in Q3 2025, marking an increase of $4,522,663.
- Strong Demand in Systems Manufacturing
- Revenue from Systems Manufacturing jumped by 206.4% year-over-year, contributing significantly to the overall revenue growth.
- Improvement in Gross Margin
- Gross margin improved to 23.6% from 10.0% YoY, with gross profit increasing to $2,056,534 compared to $417,975.
- Reduced Cash Flow Utilization
- Net cash used in operating activities fell significantly to $901,110 from $2,978,165 in the prior year's comparable period.
- SG&A Expenses Decline
- Selling, general and administrative expenses decreased by 16.7% to $1,853,677, reflecting improved cost management.
- Positive Outlook on Liquidity
- Management expressed confidence that available cash and operations can sustain working capital needs over the next 12 months.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Increased Operating Losses Persist
- Operating losses continue, with a gross margin of just 14.1% for the nine months ending March 31, 2026.
- Cash Flow Challenges Remain
- Despite reduced utilization, net cash flow remains negative, implying ongoing cash generation issues.
- Potential Loan Covenant Issues
- The company may not meet its debt service coverage ratio for fiscal 2026, posing a risk to debt management.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $-0.23
- Gross margin
- 23.6%
- Segment
- Systems Manufacturing: $6,188,594
- Segment
- Engineering Design Services: $1,059,671
- Segment
- Ross Optical Industries: $1,322,866
- Segment
- MicroOptics Lab: $137,500
What they said about what is next.
Outlook deferred to earnings press release / call.
The filing reads better than the one before it.
What came before.
- 10-Q · February 17, 2026
- Precision Optics Corporation reported a substantial revenue increase of 62.8% year-over-year in Q2 2026, totaling $7.37 million; however, EPS declined to -0.23, reflecting ongoing operational challenges. The firm…
- 10-Q · November 13, 2025
- Precision Optics Corporation reported a significant increase in revenue for Q4 2025, totaling $6.68 million, up 59.2% year-over-year from $4.20 million. However, the company continues to face profitability challenges,…
- 10-K · September 29, 2025
- Precision Optics Corporation (POCI) reported a slight year-over-year revenue drop to $19.09 million for FY 2025, down 0.1% from FY 2024 while grappling with a substantial net loss of $5.78 million. The company…
- 10-Q · May 15, 2025
- POCI reported a 20.2% decrease in revenue year-over-year, with total revenue of $4.19 million for Q3 2025 compared to $5.24 million in Q3 2024. The gross margin sharply declined to 10.0% from 35.5%, contributing to an…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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