Precision Optics Corporation AI Stock Analysis
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Precision Optics Corporation (POCI) AI Stock Analysis
Precision Optics Corporation
(NASDAQ:POCI)
The score is primarily constrained by weak financial performance (ongoing losses, margin pressure, and negative operating/free cash flow). The latest earnings call provides some offset with clear operational improvements and a path toward quarterly profitability later in FY2027, but guidance still implies near-term losses and customer-driven revenue volatility. Technicals add modest support, while valuation remains limited by the company’s loss-making profile and no dividend.
Precision Optics Corporation Key Performance Indicators (KPIs)
Revenue by SegmentBreaks 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.
Precision Optics Corporation's Engineering Design Services segment experienced a significant revenue decline after a peak in early 2024, indicating potential challenges in maintaining client demand or project completions. Conversely, Optical Components show resilience with consistent growth, suggesting strong market demand or successful product innovations. The Medical Device Products & Assemblies segment is facing a downturn, possibly due to competitive pressures or market saturation. The absence of revenue from Systems Manufacturing and Technology Rights highlights a focus on core segments. Investors should watch for strategic pivots or new initiatives to drive growth.
The FlyPrecision Optics Corporation (POCI) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $55.41M
- Dividend Yield
- ―
- Average Volume (3M)
- 44.79K
- Price to Earnings (P/E)
- -10.9
- Beta (1Y)
- 0.26
- Revenue Growth
- 65.16%
- EPS Growth
- 45.07%
- Country
- US
- Employees
- 108
- Sector
- Healthcare
- Sector Strength
- 51
- Industry
- Medical - Instruments & Supplies
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 Euro...
Precision Optics Corporation Earnings Call Summary
The call was broadly positive, supported by record fourth-quarter and full-year revenue, sharply improved production efficiency, positive adjusted EBITDA in the second half, stronger yields, new satellite and defense opportunities, and a strengthened balance sheet. The main negative factors were the expected 40% first-quarter fiscal 2027 revenue reduction from the existing satellite customer, further second-quarter reduction, lower engineering revenue, an expected fiscal 2027 adjusted EBITDA loss, and the uncertainty surrounding the timing of satellite program recovery and new program production.
Q4-2026 Updates
Positive Updates
Negative Updates
Company Guidance
For fiscal 2027, Precision Optics expects revenue of $30 million to $33 million, similar to fiscal 2026, and adjusted EBITDA to range from negative $1.2 million to negative $1.7 million, with quarterly losses early in the year before a return to quarterly profitability by the end of the year; the existing satellite customer is expected to have an anticipated 40% reduction in revenue in the first quarter of fiscal 2027 and an additional reduction in the second quarter, with a recovery by the end of fiscal 2027, while the new satellite customer’s stated goal is to begin production within approximately 6 to 12 months with a potential significant impact to our fourth fiscal quarter in fiscal 2027, and initial production orders are expected to have a similar 2- to 4-month supply chain start-up; the single-use endoscope market estimates are still 10% to 20% per year, with the Unity platform expected to bring development-to-production timing down to 1 to 2 years.
Precision Optics Corporation Financial Statement Overview
Summary
Strong recent revenue momentum and manageable leverage support the story, but overall fundamentals are held back by persistent net losses, compressed gross margins in the latest annual period, and negative operating/free cash flow (still not consistently self-funding despite some improvement).
Income Statement
42NeutralBalance Sheet
64PositiveCash Flow
38Negative| Breakdown | TTM | Jun 2026 | Jun 2025 | Sep 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 31.53M | 31.53M | 19.09M | 19.10M | 21.04M | 15.68M |
| Gross Profit | 5.43M | 5.43M | 3.40M | 5.80M | 7.73M | 4.93M |
| EBITDA | -3.23M | -3.20M | -5.34M | -2.51M | 286.99K | -581.59K |
| Net Income | -3.63M | -3.63M | -5.78M | -2.95M | -144.61K | -928.42K |
Balance Sheet | ||||||
| Total Assets | 32.34M | 32.34M | 19.79M | 16.91M | 19.74M | 16.70M |
| Cash, Cash Equivalents and Short-Term Investments | 9.84M | 9.84M | 1.77M | 405.28K | 2.93M | 605.75K |
| Total Debt | 4.06M | 4.06M | 2.04M | 3.43M | 3.16M | 3.00M |
| Total Liabilities | 11.99M | 11.99M | 7.53M | 6.84M | 7.69M | 7.73M |
| Stockholders Equity | 20.35M | 20.35M | 12.26M | 10.07M | 12.05M | 8.97M |
Cash Flow | ||||||
| Free Cash Flow | -1.98M | -1.98M | -3.77M | -2.98M | -133.59K | -1.09M |
| Operating Cash Flow | -1.55M | -1.55M | -3.55M | -2.68M | -81.09K | -933.37K |
| Investing Cash Flow | -429.35K | -429.35K | -233.47K | -293.88K | -52.50K | -407.80K |
| Financing Cash Flow | 10.05M | 10.05M | 5.15M | 456.32K | 2.45M | 1.09M |
Precision Optics Corporation Technical Analysis
Price Trends
Market Momentum
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 5.05 is above the 20-day moving average (MA) of 4.59, above the 50-day MA of 4.50, and above the 200-day MA of 4.63, indicating a bullish trend. The MACD of 0.16 indicates Negative momentum. The RSI at 67.31 is Neutral, neither overbought nor oversold. The STOCH value of 72.25 is Neutral, 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.
Latest Risks Added
2 New RisksPrecision Optics Corporation Peers Comparison
Overall Rating
- POCI50Neutral
MLSS50Neutral
RVP44Neutral
FEMY42Neutral
NXGL40Underperform
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| Sector * | 51Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
| POCI | 50Neutral | $55.74M | -10.90 | -23.92% | ― | 65.16% | 45.07% |
| MLSS | 50Neutral | $26.46M | -6.49 | -149.08% | ― | 3.72% | 43.78% |
| RVP | 44Neutral | $16.59M | -4.61 | -4.59% | ― | -11.16% | 59.85% |
| FEMY | 42Neutral | $11.98M | -0.33 | -225.98% | ― | 21.86% | 73.27% |
| NXGL | 40Underperform | $11.00M | -0.29 | -133.10% | ― | 3.38% | -78.48% |
* Healthcare Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| POCI | Precision Optics Corporation, Inc. | 5.05 | 0.22 | 4.55% | |
| RVP | Retractable Technologies | 0.55 | -0.26 | -31.60% | |
| MLSS | Milestone Scientific Inc | 0.31 | -0.07 | -18.47% | |
| FEMY | Femasys, Inc. | 1.50 | -15.03 | -90.93% | |
| NXGL | Nexgel, Inc. | 4.24 | -33.76 | -88.84% |
Precision Optics Corporation Corporate Events
Precision Optics Signs New Facility Lease Agreement
PositiveOn October 28, 2026, Precision Optics Corporation, Inc. entered into a new lease agreement with Equity Assets, Inc. for its existing facility at 22-28 East Broadway in Gardner, Massachusetts, covering approximately 12,292 rentable square feet of comm...
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.
Date of analysis: Oct 30, 2026