Precision Optics Corporation (POCI)
NASDAQ:POCI
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Precision Optics Corporation
(NASDAQ:POCI)
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Rating:45Neutral
Price Target:
$4.50
▲(6.89% Upside)
Action:ReiteratedDate:03/21/26
The score is held down primarily by weak financial performance (severe margin compression, widening losses, and ongoing cash burn). Technicals add modest pressure with the stock below key longer-term moving averages and negative MACD, while valuation is constrained by losses (negative P/E). The earnings call provides some offset via raised revenue guidance and operational improvements, but EBITDA guidance deterioration and near-term liquidity/financing risk temper the upside.
Positive Factors
Revenue Growth & Program Ramps
Sustained top-line growth and a record quarter show durable demand and successful commercialization of key programs. Higher volume provides a path to absorb fixed costs, supports scale advantages, and underpins management’s timeline for margin recovery if yields and throughput remain on track.
Negative Factors
Severe Margin Compression
Sharp, persistent margin deterioration materially weakens cash generation and the economics of core products. Unless cost, yield, or price dynamics improve sustainably, low margins will constrain reinvestment and make the business structurally loss-making despite revenue growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth & Program Ramps
Sustained top-line growth and a record quarter show durable demand and successful commercialization of key programs. Higher volume provides a path to absorb fixed costs, supports scale advantages, and underpins management’s timeline for margin recovery if yields and throughput remain on track.
Read all positive factors
Precision Optics Corporation (POCI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$45.57M
Dividend YieldN/A
Average Volume (3M)22.99K
Price to Earnings (P/E)―
Beta (1Y)0.36
Revenue Growth13.67%
EPS Growth-37.01%
CountryUS
Employees83
SectorHealthcare
Sector Strength45
IndustryMedical - Instruments & Supplies
Share Statistics
EPS (TTM)-0.23
Shares Outstanding10,928,301
10 Day Avg. Volume30,022
30 Day Avg. Volume22,992
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 Cap0.79
Enterprise Value/Revenue1.47
Enterprise Value/Gross Profit15.11
Enterprise Value/Ebitda-5.52
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Precision Optics Corporation Business Overview & Revenue Model
Company Description
Precision 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 prod...
How the Company Makes Money
null...
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:
The Fly
The FlyPrecision Optics Corporation Earnings Call Summary
Earnings Call Date:Feb 17, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:May 14, 2026
Earnings Call Sentiment Neutral
The call presents a mixed but constructive picture: strong top-line momentum and multiple operational improvements (record revenue, program ramps, yield improvements, higher backlog and bookings) are offset by severe near-term margin pressure, negative adjusted EBITDA, low cash, and a one-quarter delay in margin recovery. Management expects margin and EBITDA improvement in H2 and has raised full-year revenue guidance, but financing and execution risks remain.Positive Updates
Record Quarterly Revenue
Q2 revenue reached a record $7.4M, up from $4.5M year-over-year and up from $6.7M sequentially.
Negative Updates
Sharp Gross Margin Decline
Q2 gross margin fell to 2.8% from 14.2% sequentially and 23.6% year-over-year, driven by high scrap, yield shortfalls, tariff passthrough impacts, and underutilized engineering capacity.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Quarterly Revenue
Q2 revenue reached a record $7.4M, up from $4.5M year-over-year and up from $6.7M sequentially.
Read all positive updates
Company Guidance
Precision Optics raised FY26 revenue guidance to $26–28M (from $25M) while revising full‑year adjusted EBITDA to a loss of $2.5–3.0M (prior guide +$0.5M); Q2 results included a record $7.4M revenue (production $6.0M net of tariffs, +92% YoY, +9% sequentially; engineering $1.0M, −29% YoY, +47% sequentially), gross margin of 2.8% (vs. 14.2% in Q1 and 23.6% a year ago) and adjusted EBITDA of −$1.5M (YTD adjusted EBITDA −$2.7M, implying roughly break‑even for the remainder of the year), cash ≈$900k and bank debt $1.6M with an expanded loan facility expected in Q3; operationally the aerospace program generated $2.7M in Q2 (net $2.5M) and is forecast to exceed $3.5M by Q4 with line throughput >50% higher vs. end of Q1 and the potential for ≈$1M incremental quarterly revenue with minimal added headcount, the single‑use cystoscope was $2.0M in Q2 (up from $1.5M in Q1) with expected $150k–$200k quarterly gross profit lift from planned design/supply changes, an ophthalmic program expects its next order of 10k–15k units to support $2–3M in calendar‑year revenue at >30% gross margin (yields up from ~60% in Nov to >90% and output from ~6/day to 20–25/day targeting 35/day), product development bookings are at the highest level in over a year and Ross Optical has >$1M revenue for two quarters and its strongest backlog in over three years; management expects continued improvement in Q3 and positive adjusted EBITDA in Q4, but margin recovery timing shifted about one quarter.Precision Optics Corporation Financial Statement Overview
Summary
Income Statement
24
Negative
Balance Sheet
56
Neutral
Cash Flow
22
Negative
| Breakdown | TTM | Jun 2025 | Sep 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 24.42M | 19.09M | 19.10M | 21.04M | 15.68M | 10.67M |
| Gross Profit | 2.37M | 3.40M | 5.80M | 7.73M | 4.93M | 3.43M |
| EBITDA | -6.48M | -5.34M | -2.51M | 286.99K | -526.57K | 50.18K |
| Net Income | -6.92M | -5.78M | -2.95M | -144.61K | -928.42K | -102.83K |
Balance Sheet | ||||||
| Total Assets | 22.90M | 19.79M | 16.91M | 19.74M | 16.70M | 6.26M |
| Cash, Cash Equivalents and Short-Term Investments | 881.49K | 1.77M | 405.28K | 2.93M | 605.75K | 861.65K |
| Total Debt | 4.42M | 2.04M | 3.43M | 3.16M | 3.00M | 251.99K |
| Total Liabilities | 13.57M | 7.53M | 6.84M | 7.69M | 7.73M | 2.83M |
| Stockholders Equity | 9.33M | 12.26M | 10.07M | 12.05M | 8.97M | 3.43M |
Cash Flow | ||||||
| Free Cash Flow | -3.19M | -3.77M | -2.98M | -133.59K | -1.09M | -75.85K |
| Operating Cash Flow | -2.62M | -3.55M | -2.68M | -81.09K | -933.37K | 46.55K |
| Investing Cash Flow | -571.52K | -233.47K | -293.88K | -52.50K | -407.80K | -289.06K |
| Financing Cash Flow | 3.86M | 5.15M | 456.32K | 2.45M | 1.09M | -30.53K |
Precision Optics Corporation Technical Analysis
Neutral
4.21
Price Trends
4.52
Negative
4.46
Negative
4.51
Negative
Market Momentum
-0.11
Positive
47.92
Neutral
46.09
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For POCI, the sentiment is Neutral. The current price of 4.21 is above the 20-day moving average (MA) of 4.19, below the 50-day MA of 4.52, and below the 200-day MA of 4.51, indicating a bearish trend. The MACD of -0.11 indicates Positive momentum. The RSI at 47.92 is Neutral, neither overbought nor oversold. The STOCH value of 46.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
46 Neutral | $22.13M | -5.14 | -164.78% | ― | 0.59% | -39.76% | |
45 Neutral | $45.57M | -4.53 | -60.56% | ― | 13.67% | -37.01% | |
45 Neutral | $20.06M | -1.84 | -8.13% | ― | -0.95% | 58.17% | |
45 Neutral | $6.33M | -3.26 | -55.33% | ― | 73.38% | 34.87% | |
42 Neutral | $23.98M | -1.44 | -534.91% | ― | 63.53% | 12.49% |
* Healthcare Sector Average
POCI
Precision Optics Corporation
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Precision Optics Corporation Corporate Events
Executive/Board ChangesShareholder Meetings
Precision Optics Stockholders Back Board, Pay and Auditor
Positive
Mar 20, 2026
On March 19, 2026, Precision Optics Corporation, Inc. held its annual meeting of stockholders, with 5,950,539 shares voting, representing about 77.07% of shares outstanding as of the January 29, 2026 record date. Stockholders elected directors Pet...
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.