Precision Optics Corporation, Inc.NASDAQ: POCI

Precision Optics Reports Second Quarter Fiscal Year 2026 Financial Results

Conference Call Scheduled for today, February 17, 2026, at 5:00pm ET

GARDNER, Mass., Feb. 17, 2026 (GLOBE NEWSWIRE) -- Precision Optics Corporation, Inc. (NASDAQ: POCI), a leading designer and manufacturer of advanced optical instruments for the medical and defense/aerospace industries, announced operating results on an unaudited basis for its second quarter fiscal year 2026 for the period ended December 31, 2025.

Q2 2026 Financial Highlights (3 Months Ended December 31, 2025):

  • Revenue was $7.4 million, a quarterly record, compared to $4.5 million in the same quarter of the previous fiscal year, representing growth of approximately 63%, and compared to $6.7 million in the most recent sequential quarter.

  • Production revenue was $6.4 million, a quarterly record, compared to $3.1 million in the same quarter of the previous fiscal year, representing growth of approximately 105%, and compared to $6.0 million in the most recent sequential quarter.

  • Engineering revenue was $1.0 million compared to $1.4 million in the same quarter of the previous fiscal year, a decrease of 29%, and compared to $0.7 million in the most recent sequential quarter.

  • Gross margins were 2.8% compared to 23.6% in the same quarter of the previous fiscal year.

  • Net loss for the quarter was $(1.8) million, compared to $(1.0) million in the same quarter of the previous fiscal year.

  • Adjusted EBITDA was $(1.5) million for the quarter compared to $(0.6) million in the same quarter of the previous fiscal year.

FY 2026 Financial Guidance (Year Ended June 30, 2026):

  • The Company is currently projecting revenue for fiscal year 2026 to be in a range of $26 to $28 million, which represents 36% to 47% growth over the Company’s fiscal year 2025 revenue.

  • The Company is currently projecting fiscal year 2026 Adjusted EBITDA to be approximately $(2.5) to ($3.0) million compared to $(3.7) million in fiscal 2025.

“Our second quarter results demonstrate the continued strength of demand across our core production programs, with record revenue of $7.4 million driven by 105% year-over-year growth in Production,” said Joe Forkey, CEO of Precision Optics. “Our aerospace program continues to perform at record shipment levels and is positioned for further expansion, while our single-use cystoscope program delivered its sixth consecutive record quarter of revenue. At the same time, our new single-use ophthalmic program is ramping and will be a key contributor to future growth.

“We are investing to build out required infrastructure of people and process in our production business. This is occurring while ramping programs and addressing associated inefficiencies. We are seeing tangible operational improvements that began to take hold toward the end of the quarter under new operations leadership. We expect margin performance to improve as we move through the second half of the fiscal year, Product Development bookings have increased for the third consecutive quarter to their highest level in over a year, and our Ross Optical division is entering the third quarter with its strongest backlog in more than three years. We believe the combination of sustained top-line growth, operational discipline, and strengthening bookings positions Precision Optics to transition from a period of investment and scaling to one of increasingly profitable growth,” Forkey concluded.

The following table summarizes the second quarter and year-to-date (unaudited) results for the periods ending December 31, 2025, and 2024:

Three Months

Six Months

Ended December 31

Ended December 31

2025

2024

2025

2024

Revenues

$7,369,837

$4,526,907

$14,048,660

$8,723,960

Gross Profit

204,660

1,069,942

1,151,018

2,187,272

Stock Compensation Expenses

187,081

308,206

488,721

457,570

Other

1,759,908

1,671,757

3,999,881

3,886,664

Total Operating Expenses

1,946,989

1,979,963

4,488,602

4,344,234

Operating Income (Loss)

(1,742,329)

(910,021)

(2,156,962)

(2,156,962)

Net Income (Loss)

(1,780,791)

(969,681)

(3,417,821)

(2,280,928)

Income (Loss) per Share

$(0.23)

$(0.15)

$(0.44)

$(0.36)

Weighted Average Common Shares Outstanding

Basic and Fully Diluted

7,714,759

6,350,403

7,714,730

6,283,516

Conference Call Details
Date and Time: Tuesday, February 17, 2026, at 5:00 p.m. ET.

Call-in Information: Interested parties can access the conference call by dialing (844) 735-3662 or
(412) 317-5705.

Live Webcast Information: Interested parties can access the conference call via a live webcast, which is available at https://app.webinar.net/Zo5aLdzPzmg.

Replay: A teleconference replay of the call will be available for seven days, at (855) 669-9658 or (412) 317-0088, replay access code 3100136. A webcast replay will be available at https://app.webinar.net/Zo5aLdzPzmg.

About Precision Optics Corporation
Founded in 1982, Precision Optics is a vertically integrated optics company primarily focused on leveraging its proprietary micro-optics, 3D imaging and digital imaging technologies to the healthcare and defense/aerospace industries by providing services ranging from new product concept through mass manufacture. Utilizing its leading-edge in-house design, prototype, regulatory and fabrication capabilities as well as its Ross Optical division's high volume world-wide sourcing, inspecting and production resources, the Company is able to design and manufacture next-generation product solutions to the most challenging customer requirements. Within healthcare, Precision Optics enables next generation medical device companies around the world to meet the increasing demands of the surgical community who require more enhanced and smaller imaging systems for minimally invasive surgery as well as 3D endoscopy systems to support the rapid proliferation of surgical robotic systems. In addition to these next generation applications, Precision Optics has supplied top tier medical device companies a wide variety of optical products for decades, including complex endocouplers and specialized endoscopes. The Company is also leveraging its technical proficiency in micro-optics to enable leading edge defense/aerospace applications which require the highest quality standards and the optimization of size, weight and power. For more information, please visit www.poci.com.

Non-GAAP Financial Measures

Precision Optics has provided in this press release financial information that has not been prepared in accordance with accounting principles generally accepted in the Unites States of America (“non-GAAP”). The non-GAAP financial measure is Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization). In addition to the aforementioned items, Adjusted EBITDA also excludes from Net Income (Loss) the effect of stock-based compensation.

This non-GAAP financial measure assists Precision Optics management in comparing its operating performance over time because certain items may obscure the underlying business trends and make comparisons of long-term performance difficult, as they are of a nature and/or size that occur with inconsistent frequency or relate to discrete acquisition or restructuring plans that are fundamentally different from the ongoing productivity of the Company. Precision Optics management also believes that presenting this measure allows investors to view its performance using the same measures that the Company uses in evaluating its financial and business performance and trends.

Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information calculated in accordance with GAAP. Investors are encouraged to review the reconciliation of non-GAAP measures to their most directly comparable GAAP financial measures. A reconciliation of the non-GAAP financial measure presented above to GAAP results has been provided in the financial tables included with this press release.

About Forward-Looking Statements
This press release contains forward-looking statements within the meaning of U.S. federal securities laws. Any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements. In addition, any statements that refer to projections, forecasts, or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words "anticipate," "believe," "continue," "could," "estimate," "expect," "intends," "may," "might," "plan," "possible," "potential," "predict," "project," "should," "would" and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements in this press release include, without limitation, the Company’s projections for future revenue, gross margins and Adjusted EBITDA, expectations regarding margin improvement and operational performance, anticipated product and program expansion, and the Company's strategic outlook. The forward-looking statements contained in this press release are based on certain assumptions and analyses made by the management of the Company in light of their respective experience and perception of historical trends, current conditions, and expected future developments and their potential effects on the Company as well as other factors they believe are appropriate in the circumstances. There can be no assurance that future developments affecting the Company will be those anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond the control of the parties), or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements, including the demand for the Company's products, global supply chains and economic activity in general and other risks and uncertainties identified in the Company's filings with the SEC. Should one or more of these risks or uncertainties materialize or should any of the assumptions being made prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as may be required under applicable securities laws.

Company Contact:
PRECISION OPTICS CORPORATION
22 East Broadway
Gardner, Massachusetts 01440-3338
Telephone: 978-630-1800

Investor Contact:
LYTHAM PARTNERS, LLC
Robert Blum
Telephone: 602-889-9700
poci@lythampartners.com

PRECISION OPTICS CORPORATION, INC.
BALANCE SHEETS
(UNAUDITED)

December 31,

June 30,

2025

2025

ASSETS

Current Assets:

Cash and cash equivalents

$

881,486

$

1,773,735

Accounts receivable, net of allowance for credit losses of $99,258 at December 31, 2025 and $80,192 at June 30, 2025

4,871,494

4,336,730

Inventories, net

4,264,049

3,562,112

Prepaid expenses

404,448

385,390

Total current assets

10,421,477

10,057,967

Fixed Assets:

Machinery and equipment

3,429,689

3,385,958

Leasehold improvements

1,273,875

871,356

Furniture and fixtures

604,473

538,428

5,308,037

4,795,742

Less—accumulated depreciation and amortization

4,318,690

4,261,950

Net fixed assets

989,347

533,792

Operating lease right-to-use asset

2,440,552

141,825

Patents, net

219,967

232,493

Goodwill

8,824,210

8,824,210

Total other assets

11,484,729

9,198,528

TOTAL ASSETS

$

22,895,553

$

19,790,287

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current Liabilities:

Current portion of capital lease obligation

$

9,268

$

27,368

Current maturities of long-term debt

577,898

577,898

Accounts payable

6,044,688

2,909,100

Contract liabilities

1,976,816

1,821,929

Accrued compensation and other

1,128,356

764,004

Current portion of operating lease liability

213,734

50,995

Total current liabilities

9,950,760

6,151,294

Long-term debt, net of current maturities

1,000,255

1,289,205

Operating lease liability, net of current portion

2,614,804

90,954

Total liabilities

13,565,819

7,531,453

Stockholders’ Equity:

Common stock, $0.01 par value: 50,000,000 shares authorized; issued and outstanding – 7,720,229 shares at December 31, 2025 and 7,714,701 at June 30, 2025

77,202

77,147

Additional paid-in capital

69,640,983

69,152,317

Accumulated deficit

(60,388,451

)

(56,970,630

)

Total stockholders’ equity

9,329,734

12,258,834

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

$

22,895,553

$

19,790,287

PRECISION OPTICS CORPORATION, INC.
STATEMENTS OF OPERATIONS
FOR THE THREE AND SIX MONTHS ENDED
DECEMBER 31, 2025 AND 2024
(UNAUDITED)

Three Months
Ended December 31,

Six Months
Ended December 31,

2025

2024

2025

2024

Revenues

$

7,367,837

$

4,526,907

$

14,048,660

$

8,723,960

Cost of Goods Sold

7,163,177

3,456,965

12,897,642

6,536,688

Gross Profit

204,660

1,069,942

1,151,018

2,187,272

Research and Development Expenses

249,574

317,747

561,414

718,406

Selling, General and Administrative Expenses

1,697,415

1,662,216

3,927,188

3,625,828

Total Operating Expenses

1,946,989

1,979,963

4,488,602

4,344,234

Operating Income (Loss)

(1,742,329

)

(910,021

)

(3,337,584

)

(2,156,962

)

Interest Expense

(38,462

)

(59,660

)

(80,237

)

(123,966

)

Net Income (Loss)

$

(1,780,791

)

$

(969,681

)

$

(3,417,821

)

$

(2,280,928

)

Income (Loss) Per Share:

Basic and Fully Diluted

$

(0.23

)

$

(0.15

)

$

(0.44

)

$

(0.36

)

Weighted Average Common Shares Outstanding:

Basic and Fully Diluted

7,714,759

6,350,403

7,714,730

6,283,516

PRECISION OPTICS CORPORATION, INC. 
STATEMENTS OF STOCKHOLDERS’ EQUITY
FOR THE THREE AND SIX MONTHS ENDED
DECEMBER 31, 2025 AND 2024
(UNAUDITED)

Six Month Period Ended December 31, 2025

Number of
Shares

Common
Stock

Additional
Paid-in
Capital

Accumulated
Deficit

Total
Stockholders’
Equity

Balance, July 1, 2025

7,714,701

$

77,147

$

69,152,317

$

(56,970,630

)

$

12,258,834

Stock-based compensation

–

–

301,639

–

301,639

Net loss

–

–

–

(1,637,030

)

(1,637,030

)

Balance, September 30, 2025

7,714,701

77,147

69,453,956

(58,607,660

)

10,923,443

Stock-based compensation

–

–

162,082

–

162,082

Issuance of common stock for employee services

5,528

55

24,945

–

25,000

Net loss

–

–

–

(1,780,791

)

(1,780,791

)

Balance, December 31, 2025

7,720,229

$

77,202

$

69,640,983

$

(60,388,451

)

$

9,329,734

Six Month Period Ended December 31, 2024

Number of
Shares

Common
Stock

Additional
Paid-in
Capital

Accumulated
Deficit

Total
Stockholders’
Equity

Balance, July 1, 2024

6,073,939

$

60,739

$

61,197,433

$

(51,190,384

)

$

10,067,788

Issuance of common stock in registered direct offering

265,868

2,659

1,201,883

–

1,204,542

Proceeds from exercise of stock option

10,363

104

26,896

–

27,000

Stock-based compensation

–

–

149,364

–

149,364

Net loss

–

–

–

(1,311,247

)

(1,311,247

)

Balance, September 30, 2024

6,350,170

63,502

62,575,576

(52,501,631

)

10,137,447

Stock-based compensation

–

–

278,206

–

278,206

Issuance of common stock for consulting services

5,364

53

29,947

–

30,000

Net loss

–

–

–

(969,681

)

(969,681

)

Balance, December 31, 2024

6,355,534

$

63,555

$

62,883,729

$

(53,471,312

)

$

9,475,972

PRECISION OPTICS CORPORATION, INC.
STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED
DECEMBER 31, 2025 AND 2024
(UNAUDITED)

Six Months
Ended December 31,

2025

2024

Cash Flows from Operating Activities:

Net Loss

$

(3,417,821

)

$

(2,280,928

)

Adjustments to reconcile net loss to net cash used in operating activities -

Depreciation and amortization

139,346

97,486

Stock-based compensation expense

488,721

457,570

Non-cash interest expense

9,216

8,918

Non-cash operating lease expense

169,112

–

Loss on disposal of fixed assets

34,506

–

Changes in operating assets and liabilities -

Accounts receivable, net

(534,764

)

39,096

Inventories, net

(701,937

)

(979,727

)

Prepaid expenses

(19,058

)

24,323

Accounts payable

3,135,588

1,340,791

Contract liabilities

154,887

245,583

Accrued compensation and other

364,352

(58,543

)

Net cash used in operating activities

(177,852

)

(1,105,431

)

Cash Flows from Investing Activities:

Purchases of fixed assets

(401,073

)

(54,170

)

Proceeds from sale of fixed assets

3,000

–

Additional patent costs

(58

)

(5,915

)

Net cash used in investing activities

(398,131

)

(60,085

)

Cash Flows from Financing Activities:

Payments of capital lease obligations

(18,100

)

(22,590

)

Payments of long-term debt

(298,166

)

(121,273

)

Payment of debt modification costs

–

(15,000

)

Payment on revolving line of credit

–

(100,000

)

Proceeds from registered direct sale of common stock, net

–

1,204,542

Gross proceeds from the exercise of stock options

–

27,000

Net cash provided by (used in) financing activities

(316,266

)

972,679

Net decrease in cash and cash equivalents

(892,249

)

(192,837

)

Cash and cash equivalents, beginning of period

1,773,735

405,278

Cash and cash equivalents, end of period

$

881,486

$

212,441

Supplemental disclosure of cash flow information:

Operating right-of-use assets obtained in exchange for operating lease liabilities

$

2,632,584

$

–

Lease improvements financed by landlord

$

218,750

$

–

Issuance of common stock for employee services

$

25,000

$

–

PRECISION OPTICS CORPORATION, INC.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

ADJUSTED EBITDA

Three Months Ended

Six Months Ended

December 31

December 31

2025

2024

2025

2024

Net Income (loss) (GAAP)

$

(1,780,791

)

$

(969,682

)

$

(3,417,821

)

$

(2,280,928

)

Stock based compensation

187,081

308,206

488,721

457,570

Depreciation and Amortization

74,165

46,338

139,346

94,628

Interest expense

38,462

59,660

80,237

123,966

Adjusted EBITDA (non-GAAP)

$

(1,481,083

)

$

(555,478

)

$

(2,709,517

)

$

(1,604,764

)