Revenue growth reached 108% year-over-year in 2026Q3, yet the company continues to struggle with profitability as evidenced by a negative 0.7% operating margin.
| 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 |
|---|
| Sales/Revenue | 28.94M | 19.09M | 19.1M | 21.04M | 15.68M | 10.67M | 9.92M | 6.8M | 4.04M | 3.15M | 3.92M | 3.91M | 3.65M | 2.52M | 2.15M | 2.25M | 3.09M | 3.53M | 2.9M | 2.48M | 2.28M | 1.35M | 1.46M | 2.4M | 1.77M | 4.25M | 3.01M | 3M | 4.1M | 7.4M | 8.1M |
| Revenue Growth % | 64.18% | -0.07% | -9.22% | 34.23% | 46.87% | 7.57% | 45.84% | 68.5% | 28.01% | -19.46% | 0.12% | 7.15% | 44.9% | 17.07% | -4.13% | -27.45% | -12.3% | 21.58% | 17.14% | 8.44% | 69.26% | -7.86% | -38.94% | 35.22% | -58.23% | 41.14% | 0.32% | -26.83% | -44.59% | -8.64% | 6.58% |
| Cost of Goods Sold | 24.93M | 15.69M | 13.31M | 13.31M | 10.75M | 7.24M | 6.56M | 4.68M | 2.56M | 2.38M | 2.97M | 3.11M | 2.85M | 1.87M | 1.59M | 1.49M | 1.8M | 1.93M | 2.11M | 2M | 2.28M | 2M | 2.06M | 2.07M | 3.12M | 3.44M | 1.48M | 1.8M | 3.2M | 5.2M | 5.3M |
| COGS % of Revenue | - | 82.17% | 69.65% | 63.25% | 68.57% | 67.84% | 66.11% | 68.81% | 63.3% | 75.47% | 75.95% | 79.59% | 78.07% | 74.03% | 74.1% | 66.5% | 58.08% | 54.78% | 72.71% | 80.82% | 99.82% | 147.99% | 140.82% | 86.37% | 176.03% | 80.95% | 49.32% | 60% | 78.05% | 70.27% | 65.43% |
| Gross Profit | 4.01M | 3.4M | 5.8M | 7.73M | 4.93M | 3.43M | 3.36M | 2.12M | 1.48M | 773.72K | 942.02K | 798.27K | 800.79K | 654.43K | 557.41K | 752.12K | 1.3M | 1.6M | 792K | 475.27K | 4.06K | -647.77K | -597.94K | 326.98K | -1.35M | 809.15K | 1.53M | 1.2M | 900K | 2.2M | 2.8M |
| Gross Margin % | 13.85% | 17.83% | 30.35% | 36.75% | 31.43% | 32.16% | 33.89% | 31.19% | 36.7% | 24.53% | 24.05% | 20.41% | 21.93% | 25.97% | 25.9% | 33.5% | 41.92% | 45.22% | 27.29% | 19.18% | 0.18% | -47.99% | -40.82% | 13.63% | -76.03% | 19.05% | 50.68% | 40% | 21.95% | 29.73% | 34.57% |
| Gross Profit Growth % | - | -41.28% | -25.04% | 56.94% | 43.53% | 2.11% | 58.43% | 43.23% | 91.53% | -17.87% | 18.01% | -0.32% | 22.37% | 17.41% | -25.89% | -42.02% | -18.7% | 101.47% | 66.64% | 11600.47% | 100.63% | -8.33% | -282.87% | 124.24% | -266.71% | -46.95% | 27.1% | 33.33% | -59.09% | -21.43% | 0% |
| Operating Expenses | 8.76M | 8.96M | 8.52M | 8.37M | 6.28M | 4.34M | 4.79M | 2.61M | 1.83M | 1.78M | 2M | 2.01M | 1.97M | 1.89M | 1.85M | 1.74M | 1.7M | 2.14M | 2.41M | 3.41M | 2.31M | 3M | 3.05M | 3.31M | 8.8M | 5.32M | 3.94M | 2.9M | 3M | 2.7M | 2.4M |
| OpEx % of Revenue | - | 46.91% | 44.61% | 39.79% | 40.06% | 40.65% | 48.23% | 38.31% | 45.33% | 56.35% | 51% | 51.41% | 54.08% | 75.06% | 86.06% | 77.68% | 54.98% | 60.6% | 83.19% | 137.65% | 101.19% | 222.31% | 208.27% | 138.06% | 495.74% | 125.21% | 130.77% | 96.67% | 73.17% | 36.49% | 29.63% |
| Selling, General & Admin | 7.71M | 7.8M | 7.54M | 7.38M | 5.61M | 3.71M | 3.9M | 2.1M | 1.37M | 1.31M | 1.55M | 1.55M | 1.5M | 1.26M | 1.19M | 958.51K | 1.19M | 1.45M | 1.87M | 2.1M | 1.62M | 1.86M | 1.73M | 1.88M | 2.08M | 2.1M | 1.76M | 1.6M | 2.6M | 2.3M | 2.1M |
| SG&A % of Revenue | - | 40.84% | 39.47% | 35.07% | 35.8% | 34.8% | 39.3% | 30.89% | 34.03% | 41.64% | 39.62% | 39.51% | 41.18% | 50.05% | 55.18% | 42.69% | 38.55% | 41.07% | 64.33% | 84.68% | 70.81% | 137.6% | 118.21% | 78.41% | 117.23% | 49.52% | 58.47% | 53.33% | 63.41% | 31.08% | 25.93% |
| Research & Development | 1.06M | 1.16M | 981.78K | 992.38K | 666.48K | 624.25K | 886.13K | 505.3K | 456.38K | 464.16K | 478.27K | 492.94K | 471.11K | 630.29K | 664.7K | 825.03K | 529.41K | 737.79K | 757.85K | 1.31M | 859.94K | 1.14M | 1.32M | 1.24M | 2.27M | 3.22M | 1.69M | 900K | 0 | 0 | 0 |
| R&D % of Revenue | - | 6.07% | 5.14% | 4.72% | 4.25% | 5.85% | 8.93% | 7.43% | 11.3% | 14.71% | 12.21% | 12.6% | 12.9% | 25.01% | 30.88% | 36.75% | 17.11% | 20.91% | 26.11% | 52.97% | 37.64% | 84.71% | 90.06% | 51.49% | 127.99% | 75.69% | 56.3% | 30% | - | - | - |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -32.71K | -27.07K | 0 | 0 | 0 | -39.52K | -20.83K | -48.75K | -210.55K | 0 | -165.7K | 0 | 0 | 195.81K | 4.45M | 0 | 481.57K | 400K | 400K | 400K | 300K |
| Operating Income | -4.76M | -5.55M | -2.72M | -638.55K | -1.35M | -905.58K | -1.42M | -612.54K | -348.62K | -1M | -1.06M | -1.21M | -1.16M | -1.23M | -1.28M | -991.91K | -404.14K | -542.63K | -1.62M | -2.93M | -2.31M | -3.65M | -3.7M | -2.99M | -10.14M | -4.51M | -2.41M | -1.7M | -2.1M | -500K | 400K |
| Operating Margin % | -16.44% | -29.08% | -14.26% | -3.03% | -8.62% | -8.48% | -14.34% | -9% | -8.63% | -31.78% | -26.95% | -31.01% | -31.76% | -48.91% | -59.69% | -44.18% | -13.06% | -15.38% | -55.9% | -118.46% | -101.02% | -270.3% | -252.65% | -124.43% | -571.77% | -106.16% | -80.1% | -56.67% | -51.22% | -6.76% | 4.94% |
| Operating Income Growth % | - | -103.77% | -326.64% | 52.76% | -49.27% | 36.36% | -132.31% | -75.71% | 65.22% | 5.02% | 12.99% | -4.6% | 5.91% | 4.06% | -29.52% | -145.44% | 25.52% | 66.55% | 44.72% | -27.17% | 36.74% | 1.42% | -23.98% | 70.57% | -124.96% | -87.07% | -41.8% | 19.05% | -320% | -225% | -42.86% |
| EBITDA | -4.49M | -5.34M | -2.51M | -427.81K | -1.11M | -758.78K | -1.31M | -573.99K | -321.4K | -968.74K | -1.03M | -1.19M | -1.14M | -1.21M | -1.26M | -934.3K | -325.1K | -480.44K | -1.46M | -2.81M | -2.18M | -3.41M | -3.46M | -2.72M | -9.55M | -3.78M | -1.93M | -1.3M | -1.7M | -100K | 700K |
| EBITDA Margin % | -15.52% | -27.96% | -13.15% | -2.03% | -7.06% | -7.11% | -13.21% | -8.44% | -7.96% | -30.71% | -26.29% | -30.46% | -31.21% | -48.08% | -58.6% | -41.61% | -10.51% | -13.62% | -50.35% | -113.6% | -95.32% | -252.37% | -236.21% | -113.38% | -538.32% | -88.97% | -64.1% | -43.33% | -41.46% | -1.35% | 8.64% |
| EBITDA Growth % | 15.84% | -112.54% | -487.16% | 61.34% | -45.83% | 42.11% | -128.36% | -78.59% | 66.82% | 5.91% | 13.61% | -4.57% | 5.93% | 3.95% | -35.01% | -187.39% | 32.33% | 67.12% | 48.08% | -29.24% | 36.07% | 1.56% | -27.21% | 71.52% | -152.74% | -95.9% | -48.39% | 23.53% | -1600% | -114.29% | -22.22% |
| D&A (Non-Cash Add-back) | 267.54K | 212.44K | 212.38K | 210.74K | 245.24K | 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 |
| EBIT | -4.76M | -5.55M | -2.72M | 76.25K | -771.81K | -96.62K | -1.42M | -612.54K | -348.62K | -1M | -1.03M | -1.24M | -1.17M | -1.79M | 992.09K | -991.7K | -403.24K | -537.42K | -1.62M | -2.93M | -2.31M | -3.65M | -3.65M | -2.99M | -10.14M | -4.51M | -2.41M | -1.7M | -2.1M | -500K | 400K |
| Net Interest Income | -159.93K | -227.02K | -225.11K | -218.93K | -155.66K | -5.3K | -1K | -1.42K | -1.86K | -3.14K | -469 | 0 | 0 | -1.41K | -29.67K | -59.79K | -255.83K | -448.59K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 535 | 207 | 901 | 5.21K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 159.93K | 227.02K | 225.11K | 218.93K | 155.66K | 5.3K | 1K | 1.42K | 1.86K | 3.14K | 469 | 0 | 0 | 1.41K | 30.21K | 60K | 256.73K | 453.8K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -159.93K | -227.02K | -225.11K | 495.87K | 586.43K | 803.66K | -1K | -1.42K | -1.86K | -3.14K | 21.58K | 35.17K | 0 | -549.76K | 2.25M | -59.79K | -255.83K | -448.59K | -48 | 46.01K | 36.33K | 50.57K | 18.04K | 58.55K | 172.28K | 768.53K | 255.66K | 0 | 200K | 200K | 0 |
| Pretax Income | -4.92M | -5.78M | -2.95M | -142.68K | -927.46K | -101.92K | -1.42M | -613.96K | -350.48K | -1.01M | -1.03M | -1.18M | -1.16M | -1.79M | 961.88K | -1.05M | -659.97K | -991.22K | -1.62M | -2.89M | -2.27M | -3.69M | -3.68M | -2.93M | -9.97M | -3.74M | -2.15M | 0 | -1.9M | -300K | 0 |
| Pretax Margin % | -16.99% | -30.27% | -15.44% | -0.68% | -5.92% | -0.95% | -14.35% | -9.02% | -8.68% | -31.88% | -26.4% | -30.11% | -31.76% | -70.91% | 44.69% | -46.84% | -21.33% | -28.09% | -55.9% | -116.61% | -99.43% | -273.18% | -251.42% | -121.99% | -562.06% | -88.07% | -71.6% | - | -46.34% | -4.05% | - |
| Income Tax | 10.64K | 1.94K | 1.94K | 1.94K | 952 | 912 | 2.17K | 912 | 912 | 912 | 912 | 912 | 912 | 912 | 912 | 912 | 912 | 912 | 912 | 914 | 912 | 912 | 912 | 912 | 912 | 912 | 912 | 0 | 100K | 100K | 0 |
| Effective Tax Rate % | -0.22% | -0.03% | -0.07% | -1.36% | -0.1% | -0.89% | -0.15% | -0.15% | -0.26% | -0.09% | -0.09% | -0.08% | -0.08% | -0.05% | 0.09% | -0.09% | -0.14% | -0.09% | -0.06% | -0.03% | -0.04% | -0.02% | -0.02% | -0.03% | -0.01% | -0.02% | -0.04% | - | -5.26% | -33.33% | - |
| 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 |
| Net Margin % | -17.03% | -30.28% | -15.45% | -0.69% | -5.92% | -0.96% | -14.37% | -9.04% | -8.7% | -31.91% | -26.42% | -30.13% | -31.79% | -70.95% | 44.65% | -46.88% | -21.36% | -28.12% | -55.93% | -116.64% | -99.47% | -273.25% | -251.48% | -122.03% | -562.11% | -88.09% | -71.63% | -56.67% | -48.78% | -5.41% | 4.94% |
| Net Income Growth % | 14.86% | -95.85% | -1940.88% | 84.42% | -802.82% | 92.79% | -131.94% | -74.98% | 65.09% | 2.74% | 12.22% | -1.56% | 35.08% | -286.03% | 191.29% | -59.27% | 33.39% | 38.88% | 43.83% | -27.17% | 38.39% | -0.12% | -25.83% | 70.64% | -166.53% | -73.57% | -26.82% | 15% | -400% | -200% | -33.33% |
| Net Income (Continuing) | -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 |
| Discontinued Operations | 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 |
| Minority Interest | 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 |
| EPS (Diluted) | -0.63 | -0.85 | -0.49 | -0.03 | -0.18 | -0.02 | -0.33 | -0.16 | -0.11 | -0.36 | -0.43 | -0.56 | -0.78 | -1.52 | 2.34 | -3.17 | -1.95 | -2.92 | -4.78 | -11.04 | -19.44 | -40.99 | -157.71 | -125.33 | -426.95 | -160.75 | -115.76 | -114.67 | -147.54 | -30.09 | 31.50 |
| EPS Growth % | 27.65% | -73.47% | -1821.57% | 85.83% | -675.86% | 92.97% | -106.25% | -45.45% | 69.44% | 16.28% | 23.21% | 28.21% | 48.68% | -164.96% | 173.82% | -62.56% | 33.22% | 38.91% | 56.7% | 43.21% | 52.57% | 74.01% | -25.84% | 70.65% | -165.6% | -38.86% | -0.95% | 22.28% | -390.33% | -195.52% | -30% |
| EPS (Basic) | - | -0.85 | -0.49 | -0.03 | -0.18 | -0.02 | -0.33 | -0.16 | -0.11 | -0.36 | -0.45 | -0.57 | -0.78 | -1.53 | 2.49 | -3.17 | -1.95 | -2.92 | -4.78 | -11.04 | -19.44 | -40.99 | -157.71 | -125.33 | -426.95 | -160.75 | -115.76 | -114.67 | -147.54 | -30.09 | 31.50 |
| Diluted Shares Outstanding | 7.79M | 6.79M | 6.07M | 5.67M | 5.3M | 4.43M | 4.33M | 3.83M | 3.28M | 2.78M | 2.39M | 2.09M | 1.49M | 1.17M | 425.31K | 331.59K | 339.47K | 339.47K | 339.44K | 261.67K | 116.92K | 89.99K | 23.36K | 23.36K | 23.36K | 23.28K | 18.62K | 14.82K | 13.56K | 13.29K | 13.59K |
| Basic Shares Outstanding | 7.79M | 6.79M | 6.07M | 5.67M | 5.3M | 4.43M | 4.33M | 3.83M | 3.28M | 2.78M | 2.3M | 2.07M | 1.49M | 1.17M | 387.92K | 331.59K | 339.47K | 339.47K | 339.44K | 261.67K | 116.92K | 89.99K | 23.36K | 23.36K | 23.36K | 23.28K | 18.62K | 14.82K | 13.56K | 13.29K | 13.59K |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Liquidity and scaling constraints
According to quarterly financial data, POCI achieved a significant revenue acceleration to $8.7 million in 2026Q3, representing a 108% year-over-year increase. This sharp top-line expansion suggests a potential breakthrough in project conversion, though the sustainability of this growth remains unproven given the company's historical volatility.
The recent revenue spike appears to be a departure from the stagnant performance observed in previous periods, potentially indicating that long-gestation design projects are finally reaching commercial production. However, investors should monitor whether this growth is driven by one-time milestone payments or a durable increase in recurring manufacturing volume.
As reported in recent income statements, POCI's gross margin has fluctuated wildly, ranging from a low of 2.8% in 2026Q2 to a peak of 23.6% in 2026Q3. This inconsistency highlights the challenges of maintaining manufacturing efficiency within a high-fixed-cost environment for specialized micro-optical assemblies.
The inability to maintain stable gross margins suggests that the company may be struggling with yield management or unfavorable product mix shifts. Without consistent margin expansion, the company will likely continue to face difficulty in achieving the operating leverage necessary to reach a break-even point.
Based on the provided financial filings, POCI continues to struggle with operating leverage, as SG&A expenses frequently exceed gross profit, resulting in persistent operating losses. Despite the recent revenue growth, the company has yet to demonstrate a scalable cost structure capable of generating positive operating income.
The persistent gap between gross profit and operating expenses indicates that the current revenue base is insufficient to cover the company's fixed overhead. This suggests that management must either significantly increase production volume or aggressively rationalize the cost base to achieve long-term operational viability.
Financial records indicate that POCI utilizes stock-based compensation, with $563,000 recorded in 2025Q3, which further complicates the assessment of true economic profitability. This non-cash expense, while not impacting immediate liquidity, dilutes existing shareholders and masks the severity of the company's underlying operational losses.
The reliance on equity-based incentives in a loss-making environment warrants caution, as it may misalign management interests with the need for immediate cash flow preservation. Investors should scrutinize the impact of these non-cash charges on the overall quality of earnings and the potential for future share dilution.
As noted in recent financial disclosures, the company's cash position of $1.77 million against a backdrop of persistent net losses suggests a precarious liquidity profile. This financial vulnerability may force management to seek dilutive capital raises, potentially undermining the value proposition for current equity holders.
The combination of a high burn rate and limited cash reserves creates a significant risk of a liquidity event if revenue growth does not translate into immediate cash generation. Market participants should remain wary of the company's ability to fund its ongoing operations without external financing in the near term.
Quick answers to the most common questions about buying POCI stock.
For fiscal year 2025, Precision Optics Corporation, Inc. (POCI) reported total revenue of $19.1M. This represents a 135.7% increase compared to $8.1M in 1996.
Precision Optics Corporation, Inc. (POCI) reported a net loss of $5.8M for the fiscal year ending 2025.
Precision Optics Corporation, Inc. (POCI) reported an operating income of $-5.6M, resulting in an operating profit margin of -29.1%. This margin reflects the operational efficiency of the business before interest and taxes.
Precision Optics Corporation, Inc. (POCI) generated $3.4M in gross profit for the year, representing a gross profit margin of 17.8%. This demonstrates the company's core pricing power and production efficiency.