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Precision Optics Posts $3.4M Net Loss as Revenue Jumps 61% in H1 FY2026

The Massachusetts optical components maker reported a net loss of $3.4 million for the six months ending December 31, 2025, widening from a $2.3 million loss in the prior-year period. Revenue climbed to $14.0 million from $8.7 million.

Precision Optics Corporation reported a net loss of $3.4 million for the six months ending December 31, 2025, compared to a loss of $2.3 million in the same period a year earlier. The Massachusetts-based optical components manufacturer posted revenue of $14.0 million for the half, up 61% from $8.7 million a year ago. Read more earnings reports.

The company recorded a loss of $1.8 million in the December quarter, compared to a loss of $970,000 in the year-earlier quarter. Revenue for the three months ending December 31 rose 63% to $7.4 million from $4.5 million.

Gross profit for the six-month period narrowed sharply to $1.2 million from $2.2 million despite the revenue increase. Cost of goods sold surged to $12.9 million from $6.5 million, outpacing revenue growth. Operating expenses rose to $4.5 million from $4.3 million.

The company burned through $178,000 in cash from operations during the first half, an improvement from the $1.1 million outflow in the prior-year period. Cash on hand fell to $881,000 at December 31 from $1.8 million at the fiscal-year start on June 30, 2025.

Balance Sheet Expansion

Total assets grew to $22.9 million at December 31 from $19.8 million six months earlier. Accounts receivable climbed to $4.9 million from $4.3 million. Inventory rose to $4.3 million from $3.6 million. Property, plant, and equipment jumped to $989,000 from $534,000.

Total liabilities increased to $13.6 million from $7.5 million, driven by a surge in accounts payable to $6.0 million from $2.9 million. Long-term debt stood at $1.0 million, down from $1.3 million. Total stockholders' equity declined to $9.3 million from $12.3 million at June 30.

The company reported a loss per share of $0.44 for the first half on 7.7 million weighted average shares outstanding, compared to a loss of $0.36 per share on 6.3 million shares in the year-ago period.

Key Financial Data

MetricH1 FY2026H1 FY2025Change
Revenue$14.0M$8.7M+61%
Net Loss($3.4M)($2.3M)
Gross Profit$1.2M$2.2M-47%
Operating Loss($3.3M)($2.2M)
Cash from Operations($178K)($1.1M)
EPS (Basic)($0.44)($0.36)

Total assets at December 31 reached $22.9 million, with stockholders' equity of $9.3 million and total liabilities of $13.6 million. The company had 7.7 million shares outstanding at period end.