Coda Octopus Group Q1 Revenue Rises 29% to $6.7M as Profits Hold Steady
Coda Octopus Group, a provider of underwater imaging technology, reported revenue of $6.71 million for the three months ending January 31, 2026, up from $5.21 million a year earlier. Net income held near prior-year levels at $930,723.
Coda Octopus Group, Inc. (NASDAQ: CODA), a provider of underwater imaging and sonar technology, reported revenue of $6.71 million for the three months ending January 31, 2026, up 29% from $5.21 million in the same period a year earlier. Net income came in at $930,723 compared to $912,975 in the prior-year quarter. Read more earnings reports.
The company operates two main business segments: marine technology products and marine engineering services. Products revenue climbed to $3.36 million from $2.28 million, while engineering services revenue grew to $1.58 million from $1.31 million. Subscription and support revenue reached $1.77 million compared to $1.62 million in the prior period.
Margins Expand as Operating Income Climbs
Gross profit increased to $4.37 million from $3.43 million, reflecting a gross margin improvement to 65% from 66% in the prior year. Cost of revenue rose to $2.34 million from $1.78 million, tracking the higher sales volume.
Operating expenses increased to $3.36 million from $2.77 million, driven by higher selling, general and administrative costs of $2.75 million versus $2.22 million a year earlier. Research and development spending rose to $606,102 from $543,126. Operating income came in at $1.01 million compared to $662,022 in the prior-year quarter.
Cash Position Strengthens
The company reported operating cash flow of $1.48 million for the quarter, up sharply from $641,511 in the year-ago period. Cash and cash equivalents stood at $30.45 million as of January 31, 2026, compared to $28.68 million at October 31, 2025.
Total assets increased to $65.62 million from $64.49 million at the end of the prior quarter. Stockholders' equity rose to $60.19 million from $58.12 million. Inventory climbed to $14.20 million from $13.64 million.
Tax and Per-Share Results
Income tax expense jumped to $256,050 from $21,885 in the prior-year quarter, a significant increase that affected bottom-line comparability. The company recorded earnings of $0.08 per diluted share, unchanged from the year-earlier period.
Total liabilities declined to $5.44 million from $6.38 million at October 31, 2025. Current liabilities fell to $4.69 million from $5.64 million. Accounts payable dropped to $957,766 from $1.41 million.
| Metric | Q1 FY2026 | Q1 FY2025 | Change |
|---|---|---|---|
| Revenue | $6,710,112 | $5,209,715 | +28.8% |
| Gross Profit | $4,367,034 | $3,428,470 | +27.4% |
| Operating Income | $1,010,070 | $662,022 | +52.6% |
| Net Income | $930,723 | $912,975 | +1.9% |
| EPS (Diluted) | $0.08 | $0.08 | — |
| Cash from Operations | $1,476,907 | $641,511 | +130.2% |
The Delaware-incorporated company had 11.27 million shares outstanding as of January 31, 2026. Coda Octopus Group is classified as a non-accelerated filer and qualifies as a small business under securities regulations.