Free cash flow remains structurally negative, highlighted by a -47.7% FCF margin in 2025Q3 and a $1.0 million outflow in working capital during 2026Q3.
| Metric | TTM | Jun'25 | Jun'24 | Jun'23 | Jun'22 | Jun'21 | Jun'20 | Jun'19 | Jun'18 | Jun'17 | Jun'16 | Jun'15 | Jun'14 | Jun'13 | Jun'12 | Jun'11 | Jun'10 | Jun'09 | Jun'08 | Jun'07 | Jun'06 | Jun'05 | Jun'04 | Jun'03 | Jun'02 | Jun'01 | Jun'00 | Jun'99 | Jun'98 | Jun'97 | Jun'96 |
|---|
| Cash from Operations | -1.47M | -3.55M | -2.68M | -81.09K | -933.37K | 46.55K | -592.49K | -1.03M | 100.66K | -667.43K | -876.3K | -773.79K | -886.03K | -1.29M | -1.59M | -413.52K | 52.28K | -532.65K | -696.87K | -3.33M | -2.27M | -3.13M | -3.07M | -2.77M | -4.51M | -3.45M | -2.1M | -1.1M | -1M | 300K | 800K |
| Operating CF Margin % | - | -18.58% | -14.04% | -0.39% | -5.95% | 0.44% | -5.97% | -15.16% | 2.49% | -21.16% | -22.37% | -19.78% | -24.27% | -51.33% | -73.66% | -18.42% | 1.69% | -15.1% | -24.01% | -134.61% | -99.45% | -231.71% | -209.81% | -115.25% | -254.37% | -81.17% | -69.94% | -36.67% | -24.39% | 4.05% | 9.88% |
| Operating CF Growth % | 295.06% | -32.22% | -3208.68% | 91.31% | -2105.09% | 107.86% | 42.57% | -1124.96% | 115.08% | 23.83% | -13.25% | 12.67% | 31.5% | 18.42% | -283.41% | -890.94% | 109.82% | 23.56% | 79.1% | -46.77% | 27.35% | -1.76% | -11.16% | 38.73% | -30.89% | -63.81% | -91.36% | -10% | -433.33% | -62.5% | 0% |
| Net Income | -4.93M | -5.78M | -2.95M | -144.61K | -928.42K | -102.83K | -1.43M | -614.87K | -351.39K | -1.01M | -1.03M | -1.18M | -1.16M | -1.79M | 960.97K | -1.05M | -660.88K | -992.13K | -1.62M | -2.89M | -2.27M | -3.69M | -3.68M | -2.93M | -9.97M | -3.74M | -2.16M | -1.7M | -2M | -400K | 400K |
| Depreciation & Amortization | 267.54K | 212.44K | 212.38K | 210.74K | 190.22K | 146.8K | 112.22K | 38.55K | 27.22K | 33.66K | 25.86K | 21.27K | 20.02K | 20.97K | 23.37K | 57.6K | 79.04K | 62.2K | 161.17K | 120.4K | 130.11K | 241.97K | 240.85K | 265.1K | 593.49K | 730.5K | 481.57K | 400K | 400K | 400K | 300K |
| Stock-Based Compensation | 928.6K | 1.46M | 959.78K | 919.03K | 915.49K | 733.93K | 502.35K | 473.33K | 52.34K | 201.61K | 241.39K | 125.67K | 141.03K | 108.42K | 78.34K | 22.7K | 14.32K | 72.35K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 1.5K | 0 | 227.5K | -1.51K | -32.71K | -27.07K | -14.03K | -61.31K | -3.25M | 1.02M | -20.83K | -57.5K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 100K | 0 | 0 | -100K |
| Other Non-Cash Items | 595.72K | 46.57K | 17.5K | -701.8K | -687.07K | -806.03K | 45K | 8.08K | 2.4K | 33.9K | 40.95K | 31.58K | 64.51K | 630.25K | 1.01M | -1M | 336.82K | 499.22K | -52.94K | 222.03K | -133.7K | 401.9K | 500K | 188.94K | 4.56M | 32.22K | 0 | 0 | -200K | -100K | -100K |
| Working Capital Changes | 1.67M | 513.43K | -921.3K | -364.44K | -423.6K | 74.69K | 172.6K | -936.78K | 142.59K | 71.37K | -117.02K | 253.55K | 63.08K | -204.04K | -405.93K | 545.11K | 303.81K | -116.78K | 818.26K | -787.52K | 3.89K | -83.16K | -130.38K | -291.38K | 309.06K | -468.88K | -430.68K | 100K | 800K | 400K | 300K |
| Change in Receivables | -3.15M | -791.24K | 361.92K | -1.24M | -108.14K | -400.25K | 682.17K | -723.37K | -555.88K | 281.83K | -162.34K | -56.99K | -252.35K | 63.2K | -193.08K | 356.38K | 6.61K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 300K | 0 | 0 | 0 |
| Change in Inventory | -31.06K | -694.01K | -91.88K | 245.93K | -680.74K | 311.85K | -462.64K | 137.51K | -88.62K | 78K | -60.2K | -84.38K | -92.7K | -232.61K | -30.65K | 28.4K | -55.25K | -146.14K | 237.14K | -490.03K | 121.82K | -83.52K | -160.71K | -248.28K | -24.89K | -414.61K | -130.23K | 0 | 600K | 300K | -400K |
| Change in Payables | 4.37M | 1.51M | -1.03M | 193.09K | 819.28K | 139.14K | -108.26K | 69.36K | 48.58K | -457.6K | 261.46K | 210.96K | 425.94K | -44.91K | -129.08K | 260.5K | 20.61K | 63.87K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -432.27K | -233.47K | -293.88K | -52.5K | -407.8K | -289.06K | -1.6M | -40.3K | -21.64K | -33.42K | 24.11K | -46.31K | 3.82K | -6.56K | 2.47M | 17.52K | -20.84K | 31.26K | 142.68K | -231.55K | 68.14K | -96.48K | -65.14K | 476.69K | -147.62K | -3.65M | -2.03M | -400K | -200K | -500K | -700K |
| Capital Expenditures | -397.81K | -227.21K | -272.44K | -52.5K | -152.74K | -122.4K | -160.29K | -146.85K | -21.64K | -34.93K | -8.6K | -73.39K | -10.2K | -11.06K | -1.72K | -18.45K | -41.66K | 0 | -58.72K | -139.67K | -31.73K | -32.14K | -33.6K | -27.72K | -90.82K | -3.62M | -1.99M | -400K | -300K | -400K | -600K |
| CapEx % of Revenue | 1.37% | 1.19% | 1.43% | 0.25% | 0.97% | 1.15% | 1.62% | 2.16% | 0.54% | 1.11% | 0.22% | 1.88% | 0.28% | 0.44% | 0.08% | 0.82% | 1.35% | - | 2.02% | 5.64% | 1.39% | 2.38% | 2.29% | 1.16% | 5.12% | 85.15% | 66.14% | 13.33% | 7.32% | 5.41% | 7.41% |
| Acquisitions | 3K | 0 | 0 | 0 | -255.06K | -166.67K | -1.44M | 106.55K | 0 | 1.51K | 32.71K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -37.47K | -6.26K | -21.45K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 27.07K | 14.03K | 4.5K | 2.47M | 35.97K | 20.83K | 17.04K | 201.4K | -91.88K | 99.87K | -64.34K | -31.54K | 504.4K | -56.8K | -27.88K | -36.63K | 0 | -100K | -100K | -100K |
| Cash from Financing | 10.03M | 5.15M | 456.32K | 2.45M | 1.09M | -30.53K | 1.04M | 2.96M | 205.31K | 769.2K | 661.2K | 858.78K | 50K | 2.19M | -759.79K | -474 | 0 | 0 | 600K | 2.38M | 2.06M | 5.05M | -22.4K | -32.78K | -43.8K | 2.49M | 18.78M | -100K | 900K | 100K | -100K |
| Debt Issued (Net) | -614.68K | -1.32M | 443.53K | 341.95K | -285.35K | -58.8K | 768.72K | -8.96K | -8.39K | -7.86K | -4.16K | 0 | 0 | -52.5K | -759.79K | 0 | 0 | 0 | 600K | 0 | 0 | 0 | -3.83K | -32.78K | -43.8K | -95.92K | -143.59K | -100K | -100K | -100K | -100K |
| Equity Issued (Net) | 10.67M | 6.36M | 0 | 2.29M | 1.5M | 28.27K | 265K | 2.92M | 210K | 780K | 700K | 980.29K | 50K | 2.5M | 0 | -474 | 0 | 0 | 0 | 2.5M | 2.11M | 5.26M | 0 | 0 | 0 | 222.16K | 18.92M | 0 | 1M | 100K | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -474 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -16.92K | 0 | -100K | 0 | 0 | 0 |
| Other Financing | -25K | 111.7K | 12.79K | -176.54K | -129.38K | 0 | 8.68K | 41.65K | 3.71K | -2.95K | -34.64K | -121.51K | 0 | -258.9K | 0 | 0 | 0 | 0 | 0 | -123.78K | -49.73K | -203.6K | -18.58K | 0 | 0 | 2.37M | 0 | 0 | 0 | 100K | 0 |
| Net Change in Cash | 8.13M | 1.37M | -2.52M | 2.32M | -255.9K | -273.05K | -1.15M | 1.89M | 284.33K | 68.35K | -190.99K | 38.67K | -832.21K | 888.66K | 126.37K | -396.48K | 31.45K | -501.39K | 45.81K | -1.19M | -141.26K | 1.83M | -3.16M | -2.32M | -4.7M | -4.6M | 14.65M | -1.6M | -300K | -300K | 100K |
| Free Cash Flow | -1.87M | -3.77M | -2.98M | -133.59K | -1.09M | -75.85K | -752.78K | -1.18M | 79.02K | -702.37K | -884.9K | -847.18K | -896.24K | -1.3M | -1.59M | -431.98K | 10.62K | -532.65K | -755.59K | -3.47M | -2.3M | -3.16M | -3.11M | -2.79M | -4.6M | -7.07M | -4.1M | -1.5M | -1.3M | -100K | 200K |
| FCF Margin % | -6.47% | -19.77% | -15.58% | -0.63% | -6.93% | -0.71% | -7.59% | -17.32% | 1.96% | -22.27% | -22.59% | -21.66% | -24.55% | -51.77% | -73.74% | -19.24% | 0.34% | -15.1% | -26.03% | -140.25% | -100.84% | -234.09% | -212.1% | -116.41% | -259.49% | -166.33% | -136.08% | -50% | -31.71% | -1.35% | 2.47% |
| FCF Growth % | 54.84% | -26.8% | -2128.43% | 87.7% | -1331.98% | 89.92% | 36.13% | -1591.45% | 111.25% | 20.63% | -4.45% | 5.47% | 31.29% | 17.82% | -267.44% | -4167.2% | 101.99% | 29.5% | 78.25% | -50.81% | 27.09% | -1.69% | -11.26% | 39.34% | 34.84% | -72.51% | -173.04% | -15.38% | -1200% | -150% | -71.43% |
| FCF per Share | -0.24 | -0.56 | -0.49 | -0.02 | -0.21 | -0.02 | -0.17 | -0.31 | 0.02 | -0.25 | -0.37 | -0.41 | -0.60 | -1.11 | -3.73 | -1.30 | 0.03 | -1.57 | -2.23 | -13.28 | -19.71 | -35.11 | -133.01 | -119.56 | -197.09 | -303.52 | -219.91 | -101.18 | -95.90 | -7.52 | 14.71 |
| FCF Conversion (FCF/Net Income) | 0.38x | 0.61x | 0.91x | 0.56x | 1.01x | -0.45x | 0.42x | 1.68x | -0.29x | 0.66x | 0.85x | 0.66x | 0.76x | 0.72x | -1.65x | 0.39x | -0.08x | 0.54x | 0.43x | 1.15x | 1.00x | 0.85x | 0.83x | 0.94x | 0.45x | 0.92x | 0.98x | 0.65x | 0.50x | -0.75x | 2.00x |
| Interest Paid | 0 | 216.46K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 1.94K | 1.94K | 1.94K | 912 | 2.17K | 912 | 912 | 912 | 912 | 912 | 912 | 912 | 912 | 912 | 912 | 912 | 912 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Persistent cash burn risk
According to the provided quarterly data, POCI consistently reports negative net income alongside operating cash flow deficits, with the OCF/NI ratio frequently failing to provide a positive signal, indicating that the company's accounting losses are mirrored by actual cash outflows rather than non-cash accounting adjustments.
The persistent gap between net income and operating cash flow suggests that the company's core business model is not currently self-funding. Investors should monitor whether the inability to achieve positive operating cash flow reflects structural inefficiencies in manufacturing or an unsustainable reliance on external capital to cover ongoing operational deficits.
As reported in financial statements, POCI's free cash flow remains consistently negative, with margins reaching as low as -47.7% in 2025Q3, highlighting a structural inability to generate surplus cash even during periods of revenue activity or project-based milestones within the medical instrumentation segment.
The consistent negative free cash flow trajectory suggests that the company's capital requirements for maintaining its specialized cleanroom facilities and engineering talent exceed its current revenue generation. This trend implies that the business remains in a cash-burning phase, necessitating careful scrutiny of its long-term viability without external financing.
Based on reported figures, working capital changes have been highly erratic, swinging from a $1.3 million inflow in 2026Q1 to a $1.0 million outflow in 2026Q3, which suggests significant lumpiness in customer collections and inventory management inherent to the company's project-based revenue model.
These fluctuations in working capital appear to be a primary driver of the company's inconsistent cash flow performance. The volatility may indicate challenges in aligning production schedules with customer payment terms, which complicates cash flow forecasting and increases the risk of liquidity crunches during project delays.
Financial records indicate that POCI consistently utilizes stock-based compensation, reaching as high as $563,000 in 2025Q3, which effectively obscures the true economic cost of operations by substituting equity for cash expenses in a business already struggling with significant negative operating cash flow.
While stock-based compensation preserves immediate cash, it represents a real economic cost that dilutes existing shareholders without addressing the underlying operational losses. Analysts should interpret these figures as a sign that the company is relying on equity-based incentives to retain talent while its core business remains unable to generate sufficient cash.
Quick answers to the most common questions about buying POCI stock.
Precision Optics Corporation, Inc. (POCI) generated $-3.5M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Precision Optics Corporation, Inc. (POCI) reported negative free cash flow of $3.8M in 2025, indicating capital requirements exceeded cash from operations.
Precision Optics Corporation, Inc. (POCI) spent $0.2M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.