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Precision Optics Corporation (POCI)
NASDAQ:POCI
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Precision Optics Corporation
(NASDAQ:POCI)
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Rating:41Neutral
Price Target:
$4.00
▼(-6.98% Downside)
Precision Optics Corporation's overall stock score reflects significant financial and valuation challenges, with ongoing losses and liquidity issues. Technical analysis indicates weak momentum, further weighing on the stock's attractiveness. Despite positive future guidance, current operational inefficiencies and financial instability are major concerns.
Precision Optics Corporation (POCI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$33.17M
Dividend YieldN/A
Average Volume (3M)20.67K
Price to Earnings (P/E)―
Beta (1Y)0.50
Revenue Growth-0.07%
EPS Growth-74.60%
CountryUS
Employees83
SectorHealthcare
Sector Strength45
IndustryMedical - Instruments & Supplies
Share Statistics
EPS (TTM)-0.18
Shares Outstanding7,714,701
10 Day Avg. Volume21,445
30 Day Avg. Volume20,674
Financial Highlights & Ratios
PEG Ratio-0.08
Price to Book (P/B)2.71
Price to Sales (P/S)1.74
P/FCF Ratio-8.82
Enterprise Value/Market Cap1.14
Enterprise Value/Revenue1.99
Enterprise Value/Gross Profit11.15
Enterprise Value/Ebitda-7.03
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering0
Precision Optics Corporation Business Overview & Revenue Model
Company DescriptionPrecision Optics Corporation, Inc. designs, develops, manufactures, and sells specialized optical and illumination systems and related components primarily in the United States and the European Economic Area. It offers medical instrumentation products, including endoscopes and endocouplers, as well as other custom imaging and illumination products, such as Microprecision lenses and micro medical cameras, and 3D endoscopes for use in minimally invasive surgical procedures by hospitals and physicians. The company also provides components and assemblies for industrial and military use. It markets its products to medical device companies. The company was incorporated in 1982 and is based in Gardner, Massachusetts.
How the Company Makes MoneyPOCI generates revenue primarily through the sale of its optical components and systems to clients in the medical, defense, and industrial sectors. The company employs a business model that includes direct sales to end-users, long-term contracts with government agencies, and partnerships with other technology firms for co-development projects. Key revenue streams include custom optical solutions tailored to specific client needs, standard optical components sold in bulk, and maintenance and support services for installed systems. Significant partnerships with major players in the medical and defense industries enhance POCI's market reach and contribute to stable earnings through recurring contracts and collaborative development projects.
Precision Optics Corporation Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down revenue by different business segments, highlighting which parts of the company are driving growth and profitability, and where there might be challenges or opportunities for expansion.
Breaks down revenue by different business segments, highlighting which parts of the company are driving growth and profitability, and where there might be challenges or opportunities for expansion.
Data provided by:
Main Street Data
Main Street DataPrecision Optics Corporation Earnings Call Summary
Earnings Call Date:Sep 29, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:Nov 13, 2025
Earnings Call Sentiment Neutral
While Precision Optics achieved record revenue and secured significant long-term contracts, the company faced notable challenges with gross margins, production issues, and increased costs. Despite these challenges, the outlook for fiscal 2026 is positive with expected revenue and margin growth.Q4-2025 Updates
Positive Updates
Record-Breaking Quarterly Revenue
Precision Optics achieved its highest quarterly revenue in company history at $6.2 million, leading to an annualized run rate of approximately $25 million.
Major Production Contracts
The company secured long-term contracts with a top-tier aerospace company and a surgical robotics company, providing increased visibility and confidence in future revenue growth.
Facility Expansion and Relocation
Precision Optics expanded its facilities by relocating its headquarters to Littleton, Massachusetts, and opening a new facility in South Portland, Maine, to support long-term growth.
Revenue and Margin Growth Forecast
For fiscal 2026, the company expects revenue to grow over 30% to $25 million and gross margins to recover to approximately 30% compared to 18% in 2025.
Increased Production Capacity
The company reported increasing production capacity for its aerospace program, with quarterly revenue growing from $300,000 in Q1 to just under $2 million in Q4.
Negative Updates
Gross Margin Challenges
The company faced gross margin challenges in Q3 and Q4 of fiscal 2025, primarily due to production yield issues, increased labor costs, and tariffs, resulting in margins of 13% in Q4.
Single-Use Cystoscope Production Issues
Production of the single-use cystoscope faced challenges, including zero gross margin in Q4, due to yield issues, labor costs, and tariffs.
Increased Net Loss
The company reported a net loss of $1.4 million for the quarter and $5.8 million for the year, compared to $3 million in the prior year.
Tariff Costs Impact
Tariff costs in Q4 alone were approximately $180,000, representing about 3% gross margin, significantly impacting overall profitability.
Company Guidance
During the Precision Optics Fourth Quarter and Fiscal Year 2025 Financial Results Conference Call, the company provided guidance for fiscal 2026, projecting revenues of approximately $25 million, marking a 30% increase from fiscal 2025. This growth is mainly attributed to a 75% increase in the systems manufacturing business, driven by expansions in aerospace and single-use cystoscope programs. Gross margins are expected to improve to around 30%, up from 18% in fiscal 2025, due to better manufacturing yields, tariff reimbursements, and elimination of low-margin revenues. The company aims to achieve positive adjusted EBITDA of $0.5 million for fiscal 2026. Additionally, Precision Optics is addressing operational challenges by hiring key personnel, including a new Chief Operating Officer, to support its growth and enhance manufacturing efficiency.Precision Optics Corporation Financial Statement Overview
Summary
Precision Optics Corporation faces significant financial challenges. The income statement shows declining revenues and negative margins, while the balance sheet reflects a stable capital structure but poor profitability. Cash flow issues further exacerbate the company's financial instability, indicating a need for strategic restructuring.Income Statement
The income statement reveals significant challenges, with a complete revenue drop in the TTM period. Historical data shows negative profit margins and declining revenue growth, indicating financial instability and operational inefficiencies.20
Very Negative
Balance Sheet
The balance sheet shows a low debt-to-equity ratio, suggesting conservative leverage. However, the return on equity is negative, reflecting poor profitability. The equity ratio is stable, indicating a solid capital structure despite operational losses.45
Neutral
Cash Flow
Cash flow analysis highlights negative operating and free cash flows, with a declining trend in free cash flow growth. The ratios indicate that cash flows are insufficient to cover net income, pointing to liquidity issues.30
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 19.09M | 19.09M | 19.10M | 21.04M | 15.68M | 10.67M |
| Gross Profit | 3.40M | 3.40M | 5.80M | 7.73M | 4.93M | 3.43M |
| EBITDA | -5.40M | -5.34M | -2.51M | 286.99K | -526.57K | 50.18K |
| Net Income | -5.78M | -5.78M | -2.95M | -144.61K | -928.42K | -102.83K |
Balance Sheet | ||||||
| Total Assets | 19.79M | 19.79M | 16.91M | 19.74M | 16.70M | 6.26M |
| Cash, Cash Equivalents and Short-Term Investments | 1.77M | 1.77M | 405.28K | 2.93M | 605.75K | 861.65K |
| Total Debt | 2.04M | 2.04M | 3.43M | 3.16M | 3.00M | 251.99K |
| Total Liabilities | 7.53M | 7.53M | 6.84M | 7.69M | 7.73M | 2.83M |
| Stockholders Equity | 12.26M | 12.26M | 10.07M | 12.05M | 8.97M | 3.43M |
Cash Flow | ||||||
| Free Cash Flow | -3.77M | -3.77M | -2.98M | -133.59K | -1.09M | -75.85K |
| Operating Cash Flow | -3.55M | -3.55M | -2.68M | -81.09K | -933.37K | 46.55K |
| Investing Cash Flow | -233.47K | -233.47K | -293.88K | -52.50K | -407.80K | -289.06K |
| Financing Cash Flow | 5.15M | 5.15M | 456.32K | 2.45M | 1.09M | -30.53K |
Precision Optics Corporation Technical Analysis
Negative
4.30
Price Trends
4.41
Negative
4.58
Negative
4.55
Negative
Market Momentum
-0.04
Negative
49.19
Neutral
85.75
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For POCI, the sentiment is Negative. The current price of 4.3 is above the 20-day moving average (MA) of 4.27, below the 50-day MA of 4.41, and below the 200-day MA of 4.55, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 49.19 is Neutral, neither overbought nor oversold. The STOCH value of 85.75 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for POCI.
Precision Optics Corporation Risk Analysis
Precision Optics Corporation disclosed 32 risk factors in its most recent earnings report. Precision Optics Corporation reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Precision Optics Corporation Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| ― | $7.10M | 0.72 | 5.90% | ― | -4.99% | -19.11% | |
| ― | $26.28M | -2.93 | -10.80% | ― | -0.24% | 50.45% | |
| ― | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
| ― | $27.40M | ― | -329.45% | ― | 98.61% | -1.98% | |
| ― | $27.70M | ― | -66.08% | ― | 133.00% | 29.69% | |
| ― | $33.17M | -5.06 | -51.78% | ― | -0.07% | -74.60% | |
| ― | $32.96M | -4.83 | -123.50% | ― | 7.84% | -43.00% |
* Healthcare Sector Average
POCI
Precision Optics Corporation
4.30
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Precision Optics Corporation Corporate Events
Precision Optics’ Earnings Call: Record Revenue Amid Challenges
Oct 10, 2025
Precision Optics Corporation, Inc. recently held its earnings call, revealing a mix of achievements and challenges. The company celebrated record-breaking revenue and secured significant contracts, yet faced hurdles with gross margins and production issues. Despite these obstacles, the sentiment remained optimistic, with positive projections for fiscal 2026.
Business Operations and StrategyExecutive/Board Changes
Precision Optics Appoints New Chief Operating Officer
Neutral
Oct 3, 2025
Precision Optics Corporation announced changes in its executive team, with Mr. Mahesh Lawande transitioning to an advisory role before his departure on October 31, 2025, and Mr. Joseph Traut being appointed as the new Chief Operating Officer effective October 1, 2025. These leadership changes are part of the company’s strategic realignment, with Mr. Traut bringing extensive experience in operations and manufacturing to his new role, potentially impacting the company’s operational efficiency and market positioning.
The most recent analyst rating on (POCI) stock is a Hold with a $4.00 price target. To see the full list of analyst forecasts on Precision Optics Corporation stock, see the POCI Stock Forecast page.
Precision Optics Corporation Faces Financial Risks Amid Potential U.S. Tariff Changes
Oct 2, 2025
Precision Optics Corporation, Inc. faces significant risks due to potential changes in U.S. tariff policies and related trade actions. These changes could disrupt their international supply chain, increase costs, and weaken their competitive position. The reliance on overseas suppliers for specialized optical components makes them vulnerable to new tariffs or trade restrictions, particularly from countries like China. Such developments could lead to higher prices, reduced demand, and operational inefficiencies, ultimately impacting their financial condition and market share.
Precision Optics Corporation Reports Strategic Growth and Innovation
Sep 30, 2025
Precision Optics Corporation, Inc. is a Massachusetts-based company specializing in the development and manufacturing of advanced optical instruments, primarily serving the medical devices and defense/aerospace sectors. The company is known for its proprietary optical and imaging technology, which includes the production of endoscopes, micro medical cameras, and other custom imaging products.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.