Optex Systems Holdings (OPXS) investor relations material

Executive summary

• Revenue for the nine months ended June 29, 2025, increased 22.3% year-over-year to $30.0 million, driven by higher periscope production and customer demand, with record-breaking quarterly results and strong operational momentum in both domestic and international markets.

• Net income for the nine months rose to $4.1 million, up from $2.8 million, and adjusted EBITDA increased 34.9% to $5.7 million.

• Gross margin for the nine months was 28.8%, nearly flat year-over-year, as higher revenue offset product mix shifts.

• Backlog as of June 29, 2025, was $38.3 million, down 16% year-over-year, but increased to $45.0 million as of August 5, 2025, after new contract awards.

• Significant new program wins included a $2.8 million XM30 order, a $10.2 million five-year contract, and a $1.6 million laser filter order.

Financial highlights

• Three-month revenue increased 22.6% year-over-year to $11.1 million; nine-month revenue up 22.3% to $30.0 million.

• Gross profit for the quarter rose 10% to $3.2 million; nine-month gross profit up 21.6% to $8.7 million.

• Operating income for the quarter up 18.3% to $1.9 million; nine-month operating income up 43.8% to $5.1 million.

• Net income for the quarter increased to $1.5 million, up 19.7% year-over-year; nine-month net income up to $4.1 million, up 49.7%.

• Adjusted EBITDA for the quarter rose to $2.1 million; nine-month adjusted EBITDA up to $5.7 million.

• Working capital increased to $19.4 million from $15.1 million at prior year-end.

• Cash and cash equivalents stood at $4.9 million as of June 29, 2025, with $6 million as of the day before the call.

• Operating cash flow for nine months was $5.4 million, up from $1 million prior year.

• Capital spending was $0.5 million for nine months, down from $1.5 million prior year.

Segment performance

• Optex Richardson segment revenue up 46% for the quarter and 34.3% for nine months year-over-year, driven by a 74% increase in periscope production.

• Applied Optics Center revenue down 2.6% for the quarter but up 10.3% for nine months year-over-year, with growth in military filters and day windows offsetting declines in commercial optical assemblies.

• Periscope revenue at Optex Richardson up 76% ($6 million); military laser filter demand at Applied Optics Center up 32% ($2.3 million) for nine months.

• Optex Richardson accounted for 55% and Applied Optics Center 45% of consolidated revenue for the nine months.