Optical Cable (OCC) Q3 2025 earnings summary

Executive summary

• Net sales for Q3 2025 increased 22.8% year-over-year to $19.9 million, with gross profit up 61.2% to $6.3 million and net income of $302,000, reversing a $1.6 million loss in Q3 2024.

• For the nine months ended July 31, 2025, net sales rose 12.8% to $53.2 million, gross profit increased 39.5% to $16.3 million, and net loss narrowed to $1.5 million from $4.6 million in the prior year.

• Achieved strong net sales growth and gross profit expansion, reflecting increased demand and effective execution of growth strategy.

• Entered a strategic collaboration and $2.0 million equity investment from Lightera, LLC, with 642,199 redeemable restricted shares issued and Lightera acquiring a 7.24% equity stake.

Financial highlights

• Gross profit margin improved to 31.7% in Q3 2025 from 24.2% in Q3 2024; nine-month margin rose to 30.6% from 24.7%.

• SG&A expenses increased to $5.7 million in Q3, but as a percentage of sales, declined to 28.8% from 32.3% year-over-year.

• Net income for Q3 2025 was $302,000 ($0.04/share) versus a net loss of $1.6 million ($0.20/share) in Q3 2024.

• Net loss for the nine months was $1.5 million ($0.19/share), a significant improvement from $4.6 million ($0.59/share) in the prior year.

• Cash at July 31, 2025 was $421,000, up from $244,000 at October 31, 2024.

Outlook and guidance

• Management remains optimistic for the remainder of fiscal 2025 and into 2026, citing industry recovery, strong market position, and the Lightera partnership as drivers.

• Management expects future cash flow from operations, cash on hand, and the existing revolver to be adequate to fund operations for at least the next twelve months.

• No specific quantitative guidance provided, but expectations are for continued growth and value creation.

• No material commitments for capital expenditures as of July 31, 2025; $1.0 million budgeted for FY2025.