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Precision Optics Corporation
(NASDAQ:POCI)
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Rating:61Neutral
Price Target:
$5.50
▲(30.64% Upside)
Action:Reiterated
Date:05/14/26
The score reflects strong recent earnings-call momentum (record revenue, sharply higher gross margin, and positive adjusted EBITDA with raised FY2026 revenue guidance) and a supportive technical backdrop. These positives are tempered by still-weak underlying financial performance (losses and negative cash flow) and limited valuation support given negative earnings.
Positive Factors
Record revenue growth
A 108% YoY Q3 revenue surge to $8.7M and a raised FY2026 revenue guide ($29–31M) indicate durable demand and scaling ability. This momentum reflects expanding production revenue and a pipeline of programs moving to production, supporting sustainable top‑line growth over months.
Negative Factors
Negative operating and free cash flow
Consistent negative operating and free cash flow is a structural constraint: TTM OCF ~-$1.5M and FCF ~-$1.9M with steep FCF decline increases reliance on external capital. If cash generation doesn’t sustainably turn positive, the company may need further dilution or debt to fund growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Record revenue growth
A 108% YoY Q3 revenue surge to $8.7M and a raised FY2026 revenue guide ($29–31M) indicate durable demand and scaling ability. This momentum reflects expanding production revenue and a pipeline of programs moving to production, supporting sustainable top‑line growth over months.
Read all positive factors
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.
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The Fly
The FlyPrecision Optics Corporation (POCI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$57.90M
Dividend YieldN/A
Average Volume (3M)22.99K
Price to Earnings (P/E)―
Beta (1Y)0.38
Revenue Growth64.18%
EPS Growth28.90%
CountryUS
Employees83
SectorHealthcare
Sector Strength45
IndustryMedical - Instruments & Supplies
Share Statistics
EPS (TTM)-0.66
Shares Outstanding10,944,869
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 Cap0.66
Enterprise Value/Revenue1.32
Enterprise Value/Gross Profit9.57
Enterprise Value/Ebitda-8.54
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. (POCI) specializes in the engineering, manufacturing, and sale of advanced optical and illumination systems, along with their complementary components. Its main operational regions are the United States and the E...
How the Company Makes Money
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Precision Optics Corporation Earnings Call Summary
Earnings Call Date:May 13, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Sep 24, 2026
Earnings Call Sentiment Positive
The call communicated strong operational momentum and important financial inflection points: record revenue, materially improved gross margins, and positive adjusted EBITDA in Q3, supported by manufacturing yield gains, Ross Optical growth and a reinforced cash position from a $10M offering. Management increased full-year revenue guidance and outlined a robust pipeline with multiple programs expected to enter production. Key near-term risks include a customer-requested aerospace production slowdown (estimated 15%–20% pullback in early FY2027), remaining yield improvements needed on the cystoscope line, and facility modernization requirements. On balance, the positive operational and financial progress significantly outweighs the contained challenges, indicating constructive near-term trajectory toward sustained profitability.Positive Updates
Record Quarterly Revenue
Q3 revenue of $8.7M, a new quarterly record and an increase of $4.5M or 108% year-over-year (vs. $4.2M) and up from $7.4M in the prior quarter (~17.6% sequential growth).
Negative Updates
Customer-Requested Aerospace Slowdown
Aerospace customer asked Precision Optics to slow production in Q1 and Q2 of FY2027 due to their internal deployment bottlenecks; management estimates a potential 15%–20% pullback in those quarters despite long-term program strength.
Read all updates
Q3-2026 Updates
Positive
Negative
Record Quarterly Revenue
Q3 revenue of $8.7M, a new quarterly record and an increase of $4.5M or 108% year-over-year (vs. $4.2M) and up from $7.4M in the prior quarter (~17.6% sequential growth).
Read all positive updates
Company Guidance
Management raised FY2026 revenue guidance to $29–31M (from $26–28M), implying 52%–62% growth vs FY2025 revenue of $19.1M, and tightened adjusted EBITDA guidance to a loss of $2.5–$2.7M (from -$2.5–$3.0M), with Q4 expected to be roughly breakeven; year-to-date revenue is $22.8M (so Q4 would need roughly $6.2–8.2M). Q3 was a milestone: record revenue $8.7M (+108% YoY from $4.2M, up from $7.4M sequential), production revenue $7.6M, product development $1.1M, adjusted EBITDA +$300K, gross margin 23.6% (vs 10% a year ago and 2.8% in Q2), net loss $108K (vs -$2.1M YoY), cash $10.7M (vs $0.9M at 12/31) after a $10M offering and bank debt ~$1.5M. Program metrics include aerospace revenue $3.6M (44% sequential growth) with yields ~97%, single‑use cystoscope $2.2M (~10% sequential) with yields >90% targeting 95% in Q4, Ross Optical $1.3M (65% YoY), a $225K refundable EDIP credit in the quarter, and management expects 5–6 dev programs to move to production in FY2027 (three in the next six months) while noting a customer-requested 15–20% pullback for the aerospace program in Q1–Q2 FY2027.Precision Optics Corporation Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
63
Positive
Cash Flow
28
Negative
| Breakdown | TTM | Jun 2025 | Sep 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 28.94M | 19.09M | 19.10M | 21.04M | 15.68M | 10.67M |
| Gross Profit | 4.01M | 3.40M | 5.80M | 7.73M | 4.93M | 3.43M |
| EBITDA | -4.49M | -5.34M | -2.51M | 286.99K | -526.57K | 50.18K |
| Net Income | -4.93M | -5.78M | -2.95M | -144.61K | -928.42K | -102.83K |
Balance Sheet | ||||||
| Total Assets | 33.69M | 19.79M | 16.91M | 19.74M | 16.70M | 6.26M |
| Cash, Cash Equivalents and Short-Term Investments | 10.68M | 1.77M | 405.28K | 2.93M | 605.75K | 861.65K |
| Total Debt | 4.28M | 2.04M | 3.43M | 3.16M | 3.00M | 251.99K |
| Total Liabilities | 13.58M | 7.53M | 6.84M | 7.69M | 7.73M | 2.83M |
| Stockholders Equity | 20.11M | 12.26M | 10.07M | 12.05M | 8.97M | 3.43M |
Cash Flow | ||||||
| Free Cash Flow | -1.87M | -3.77M | -2.98M | -133.59K | -1.09M | -75.85K |
| Operating Cash Flow | -1.47M | -3.55M | -2.68M | -81.09K | -933.37K | 46.55K |
| Investing Cash Flow | -432.27K | -233.47K | -293.88K | -52.50K | -407.80K | -289.06K |
| Financing Cash Flow | 10.03M | 5.15M | 456.32K | 2.45M | 1.09M | -30.53K |
Precision Optics Corporation Technical Analysis
Positive
4.21
Price Trends
5.00
Positive
4.74
Positive
4.57
Positive
Market Momentum
0.07
Positive
48.04
Neutral
16.23
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For POCI, the sentiment is Positive. The current price of 4.21 is below the 20-day moving average (MA) of 5.58, below the 50-day MA of 5.00, and below the 200-day MA of 4.57, indicating a neutral trend. The MACD of 0.07 indicates Positive momentum. The RSI at 48.04 is Neutral, neither overbought nor oversold. The STOCH value of 16.23 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
61 Neutral | $57.90M | -7.97 | -37.47% | ― | 64.18% | 28.90% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
46 Neutral | $20.88M | -3.24 | -8.13% | ― | 10.08% | 71.71% | |
45 Neutral | $28.28M | -5.73 | -166.28% | ― | 3.37% | 15.78% | |
45 Neutral | $12.20M | ― | -258.08% | ― | 39.88% | 64.70% | |
45 Neutral | $6.14M | -1.31 | -55.33% | ― | 10.14% | 12.18% |
* Healthcare Sector Average
POCI
Precision Optics Corporation
5.29
0.39
7.96%
RVP
Retractable Technologies
0.70
0.06
9.08%
MLSS
Milestone Scientific
0.32
-0.32
-49.84%
FEMY
Femasys
3.80
-15.52
-80.33%
NXGL
NexGel Inc
0.52
-2.06
-79.88%
Precision Optics Corporation Corporate Events
Private Placements and FinancingRegulatory Filings and Compliance
Precision Optics Completes Dilutive Public Equity Offering
Neutral
Mar 30, 2026
On March 27, 2026, Precision Optics Corporation, Inc. entered into an underwriting agreement with Lucid Capital Markets, LLC for an underwritten public offering of 2,777,777 shares of common stock at $3.60 per share, with a 45‑day over‑...
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.