Precision Optics (POCI) Q4 2026 earnings summary

Executive summary

• Fiscal 2026 ended with record revenue of $31.5 million and two consecutive quarters of positive adjusted EBITDA, driven by higher production volumes and improved manufacturing efficiency.

• Operational improvements, leadership additions, and a focus on scaling production positioned the business for long-term growth, especially in satellite communications and single-use medical devices.

• Production revenue doubled year-over-year to $28.1 million for FY 2026.

• Net loss narrowed to $3.6 million for the year, with adjusted EBITDA turning positive in Q4.

• The company anticipates a temporary slowdown in satellite customer orders due to external launch constraints, but expects this to be offset by new programs and a stronger team.

Financial highlights

• Q4 2026 revenue reached a record $8.8 million, up 42% year-over-year; full-year revenue rose 65% to $31.5 million, exceeding guidance.

• Q4 gross margin improved to 25.3% from 13.0% a year ago; full-year gross margin was 17.2%.

• Adjusted EBITDA was +$355,000 in Q4 and -$2.1 million for the year, outperforming guidance.

• Net loss narrowed to $3.6 million ($0.43/share) from $5.8 million ($0.85/share) in the prior year.

• Cash equivalents were $9.8 million at year-end, up from $1.8 million a year earlier, bolstered by a public offering.

Outlook and guidance

• Fiscal 2027 revenue expected between $30 million and $33 million, similar to 2026, with adjusted EBITDA loss improving to -$1.2 million to -$1.7 million.

• Anticipated 40% revenue reduction from the main satellite customer in H1 2027, with recovery expected by year-end and a stronger H2 driven by new programs.

• No plans to raise equity in fiscal 2027 unless an unusual event occurs.