Q4 2025 Precision Optics Corporation Inc Earnings Call Transcript
Key Points
- Precision Optics Corp Inc (POCI) achieved the highest quarterly revenue in its history, reaching $6.2 million in Q4 2025.
- The company has transitioned two major programs from development to production, providing a strong foundation for future growth.
- POCI has long-term contracts with minimum annual commitments from a top-tier aerospace company and a surgical robotics company, ensuring revenue stability.
- Investments in new facilities in Littleton, Massachusetts, and South Portland, Maine, are expected to support long-term growth and access to a broader engineering talent pool.
- The company anticipates a 75% growth in its systems manufacturing business in fiscal 2026, driven by increased production demand.
- POCI faced gross margin challenges in Q3 and Q4 of fiscal 2025, with margins dropping to 13% in Q4.
- The single-use cystoscope program operated at zero gross margin or a slight loss in Q4 2025 due to production yield issues and higher labor costs.
- Tariff costs significantly impacted gross margins, with Q4 2025 tariffs alone reducing margins by approximately 3%.
- The transition of the single-use cystoscope to production led to a reduction in product development revenue, affecting overall gross margins.
- The company reported a net loss of $1.4 million for Q4 2025, consistent with the same quarter last year, and a net loss of $5.8 million for the year.
Good day, and welcome to the Precision Optics reports fourth quarter and fiscal-year 2025 financial results conference call. (Operator Instructions) Please note that this event is being recorded. I would now like to turn the conference over to Mr. Robert Blum with Lytham Partners. Please go ahead.
All right. Thank you very much, operator, and thank you to everyone joining the call today. As the operator mentioned, on today's call, we will discuss Precision Optics' fourth quarter and fiscal-year 2025 financial results for the period ended June 30, 2025.
With us on the call representing the company today is Dr. Joe Forkey, Precision Optics' Chief Executive Officer; and Mr. Wayne Coll, the company's Chief Financial Officer. At the conclusion of today's prepared remarks, we will open the call for a question-and-answer session. (Event Instructions) Before we begin with prepared remarks, we submit for the record the following statement.
Statements made by the management team of Precision Optics
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