Precision Optics Corporation, Inc.

Third-quarter fiscal 2026 revenue was $8.7 million, up from $4.2 million in the year-ago quarter and $7.4 million in the prior sequential quarter. Gross margin was 23.6% versus 10% a year ago and 2.8% in Q2; gross profit was $2.1 million versus $418,000 a year ago. Net loss narrowed to $108,000 from $2.1 million a year ago, and adjusted EBITDA was positive $300,000 versus negative $1.3 million a year ago and negative $1.5 million sequentially. Revenue guidance for fiscal 2026 was raised to $29 million-$31 million from $26 million-$28 million, and adjusted EBITDA guidance was tightened to negative $2.5 million to negative $2.7 million from negative $2.5 million to negative $3.0 million.

Joe Forkey framed the quarter as an inflection point driven by manufacturing improvements, record production revenue, and stronger operating leverage. He highlighted the COO-led operational reset, higher yields, and the growing contribution from Ross Optical and newer programs such as Unity and the single-use ophthalmic endoscope. His tone was upbeat but still measured, emphasizing that there is more work to do while expressing confidence that the business is now positioned for continued profitable growth.

Wayne Coll focused on the hard financial improvements: revenue of $8.7 million, gross margin of 23.6%, gross profit of $2.1 million, net loss of $108,000, and adjusted EBITDA of positive $300,000. He noted that cash rose to $10.7 million at March 31, 2026 from about $900,000 at December 31, 2025, helped by an oversubscribed $10 million public offering, while bank debt was about $1.5 million. He also said tariffs are being passed through in some customer agreements, that additional refundable Massachusetts EDIP credits are expected, and that the company is in discussions with banks to improve loan facilities as it scales.

Analysts asked about the expected Q4 and Q1 revenue path for aerospace and cystoscope, and management said both should stay near Q3 levels overall, though aerospace may see a 15%-20% pullback in Q1 and Q2 FY2027 because the customer has excess inventory and slower deployment timing. Questions on the cystoscope licensing model were answered by explaining that royalties can apply if the customer builds its own line, and management said that arrangement is financially favorable because Precision Optics still benefits whether production happens in-house or at the customer site. Management also said Unity is shortening time to production, but adoption has been slower than expected with only one program in the pipeline so far; on Ross Optical, they said the recent step-up may be sustainable but could reflect a mix of tariff-related restocking and new customer activity.