Precision Optics reported record fiscal 2026 revenue of $31.5 million, up approximately 65% from $19.1 million, as expanding medical and aerospace production programs drove significantly higher sales.
Production revenue doubled to $28.1 million from $14.2 million, while the company’s full-year net loss narrowed to $3.6 million, or $0.43 per share, from $5.8 million, or $0.85 per share.
Adjusted EBITDA improved by approximately $1.6 million to a loss of $2.1 million from a loss of $3.7 million.
Precision Optics ended June with $9.8 million in cash and cash equivalents, compared with $1.8 million a year earlier.
Fourth-quarter results showed further operating improvement.
Revenue increased approximately 42% to a quarterly record $8.8 million from $6.2 million, while production revenue rose about 57% to a record $8 million.
Gross margin expanded to 25.3% from 13%, and the quarterly net loss narrowed to approximately $100,000 from $1.4 million.
Adjusted EBITDA was positive $400,000, compared with a $900,000 loss in the prior-year quarter, marking the company’s second consecutive quarter of positive adjusted EBITDA.
Precision Optics designs and manufactures advanced optical instruments used in medical, defense, aerospace, and related applications.
Recent commercial activity included record quarterly revenue from an existing top-tier aerospace customer and continued production of a single-use cystoscopy surgery system.
The company is also ramping production under a previously announced $3.5 million follow-on order for a single-use ophthalmic program.
Precision Optics received another $1.3 million follow-on production order from a large defense company and recently secured an initial engineering order from a U.S. space technology company.
For fiscal 2027, Precision Optics expects revenue of $30 million to $33 million.
The outlook reflects a temporary pause in demand from an existing satellite customer, partially offset by growth in single-use medical programs, renewed defense production, programs transitioning into production, and new engineering engagements.
Management expects business with the existing satellite customer to resume and anticipates a stronger second half.
Fiscal 2027 adjusted EBITDA is expected to range from a loss of $1.2 million to a loss of $1.7 million.
KEY QUOTES:
“Fiscal 2026 was a year of transformation for Precision Optics, and our fourth-quarter results demonstrate the progress we have made. We delivered record quarterly revenue, and a second consecutive quarter of positive Adjusted EBITDA, closing a year in which revenue grew 65%.
Our fiscal 2027 revenue guidance is significantly impacted by the temporary pause in production with our existing satellite customer. As that customer resumes orders and we execute on growing existing and new customers, we anticipate returning to record quarterly revenue levels in the second half of the fiscal year. We believe there is a significant market opportunity, and we will continue to invest in capabilities, capacity and market penetration.
Rebuilding our product development pipeline is a priority led by our new SVP of Sales and Marketing. We received an initial engineering order from a second satellite customer. Although it is still early, we see the potential to build another meaningful, long-term production relationship.”
Joe Forkey, CEO Of Precision Optics
