Precision Optics (POCI) Lytham Partners Fall 2026 Investor Conference summary

Key financial and operational highlights

• Revenue grew 65% year-over-year, reaching $31.5 million for fiscal 2026, driven by two major programs.

• Achieved positive adjusted EBITDA for the third and fourth quarters after earlier losses.

• Gross margins are recovering, expected to reach 35%-40% as production scales.

• Strengthened leadership with new COO, senior director of operations, and VP of engineering.

• Balance sheet reinforced by an oversubscribed $10 million financing in March; low debt being paid down rapidly.

Technology and market focus

• Specializes in micro-optics, multichannel/ultra-high precision systems, and digital imaging, with vertical integration from design to mass manufacture.

• Serves three main markets: satellite communications (space), defense aerospace, and medical devices.

• Satellite communications now a distinct and rapidly growing segment, leveraging expertise in high-precision optical assemblies.

• Medical device work centers on minimally invasive and single-use endoscopes, with growing demand from robotics and next-gen surgical procedures.

• Diversification is increasing as space market growth supplements stable medical device revenues.

Production programs and growth outlook

• Two major programs—one in satellite communications and one in single-use cystoscopy—drove recent growth.

• Satellite program achieved a $15 million annual run rate, with a temporary pullback expected due to customer bottlenecks but strong rebound anticipated.

• Single-use cystoscopy program scaled from 1,000 to 50,000 units/year, with additional royalties from a customer-run production line.

• Over nine programs in the product development pipeline; 3-4 expected to enter production in fiscal 2027.

• Second satellite laser comms program added, expected to ramp up quickly within 6-12 months.