Optex Systems (OPXS) investor relations material

Executive summary

• Q3 2026 revenue was $9.7 million, down 12.4% year-over-year, and nine-month revenue was $28.5 million, down 5.1%, mainly due to delayed deliveries and lower demand in key product lines.

• Gross margin improved to 34.2% for Q3 and 30.9% for the nine months, reflecting operational efficiencies, favorable product mix, and completion of low-margin contracts.

• Operating income for Q3 was $1.4 million, down from $1.9 million last year, and $3.2 million for the nine months, primarily due to higher general and administrative expenses.

• Net income for Q3 was $1.3 million ($0.18 per diluted share), down from $1.5 million ($0.22 per diluted share) year-over-year; nine-month net income was $2.9 million.

• Adjusted EBITDA for the nine months was $4.5 million, down from $5.7 million year-over-year; Q3 Adjusted EBITDA was $1.8 million.

Financial highlights

• Cash and cash equivalents stood at $6.2 million as of June 28, 2026, with no outstanding debt on the $3 million revolving credit facility.

• Working capital increased to $23.9 million from $21.1 million at the prior fiscal year-end.

• Backlog decreased 21.4% to $30.1 million, reflecting lower new orders and cancellations.

• No dividends were declared or paid, and no shares were repurchased during the period.

• Stockholders’ equity increased to $27.7 million from $24.3 million at prior year-end.

Outlook and guidance

• Full-year 2026 revenue guidance reiterated at $43–$45 million, up from $41.3 million in 2025.

• Full-year Adjusted EBITDA expected between $7.5 million and $8.5 million, compared to $8.0 million in 2025.

• Management anticipates stronger Q4 revenue due to funded backlog and delayed contract awards.

• Expects $4 million in laser filter orders and $10–$12.5 million in new product awards over the next six months.

• General and administrative expenses are expected to remain elevated as the company invests in R&D, compliance, and internal systems.