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Precision Optics Corporation
(NASDAQ:POCI)
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Rating:48Neutral
Price Target:
$4.00
▼(-9.30% Downside)
Action:Reiterated
Date:09/30/26
The score is held down primarily by weak financial fundamentals—compressed gross margins, continued net losses, and negative operating/free cash flow. The earnings call provides some offset due to operational improvements and better second-half profitability, but near-term guidance remains loss-making and includes a meaningful customer-driven revenue headwind. Technicals are weak-to-neutral, and valuation support is limited given the negative P/E and lack of dividend yield.
Positive Factors
Strong Revenue Growth
Rapid revenue expansion demonstrates stronger customer adoption and improved production scale after a relatively flat prior year. The growth in production revenue is especially constructive because it indicates increasing commercial activity across core manufacturing programs, supporting future operating leverage.
Negative Factors
Persistent Losses and Cash Burn
The core business is still not self-funding, despite narrower losses and improving cash burn. Continued negative operating cash flow limits internally generated capital for expansion and leaves profitability dependent on further execution improvements and available balance-sheet flexibility.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Revenue Growth
Rapid revenue expansion demonstrates stronger customer adoption and improved production scale after a relatively flat prior year. The growth in production revenue is especially constructive because it indicates increasing commercial activity across core manufacturing programs, supporting future operating leverage.
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
$46.85M
Dividend YieldN/A
Average Volume (3M)55.94K
Price to Earnings (P/E)―
Beta (1Y)0.47
Revenue Growth65.16%
EPS Growth45.07%
CountryUS
Employees108
SectorHealthcare
Sector Strength45
IndustryMedical - Instruments & Supplies
Share Statistics
EPS (TTM)-0.43
Shares Outstanding10,972,792
10 Day Avg. Volume91,859
30 Day Avg. Volume55,936
Financial Highlights & Ratios
PEG Ratio0.24
Price to Book (P/B)2.14
Price to Sales (P/S)1.38
P/FCF Ratio-22.01
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)-0.07
Revenue Forecast (FY)$34.50M
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...
Precision Optics Corporation Earnings Call Summary
Earnings Call Date:Sep 28, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Nov 16, 2026
Earnings Call Sentiment Positive
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.Positive Updates
Record Fourth-Quarter and Full-Year Revenue
Fourth-quarter revenue reached a record $8.8 million, up approximately 42% from $6.2 million a year ago and slightly above $8.7 million in the sequential third quarter. Full-year revenue increased approximately 65% to $31.5 million from $19.1 million, exceeding the company's most recent guidance.
Negative Updates
Temporary Existing Satellite Customer Pullback
The existing satellite customer is expected to reduce production, with revenue anticipated to decline 40% in the first quarter of fiscal 2027 and decrease further in the second quarter. Management attributed the reduction to excess inventory caused by constrained worldwide satellite launch capacity and said the timing and extent of recovery remain uncertain, although the most recent communications indicate recovery by the end of fiscal 2027.
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Q4-2026 Updates
Positive
Negative
Record Fourth-Quarter and Full-Year Revenue
Fourth-quarter revenue reached a record $8.8 million, up approximately 42% from $6.2 million a year ago and slightly above $8.7 million in the sequential third quarter. Full-year revenue increased approximately 65% to $31.5 million from $19.1 million, exceeding the company's most recent guidance.
Read all positive 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
Income Statement
42
Neutral
Balance Sheet
64
Positive
Cash Flow
38
Negative
| Breakdown | Jun 2026 | Jun 2025 | Sep 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 31.53M | 19.09M | 19.10M | 21.04M | 15.68M |
| Gross Profit | 5.43M | 3.40M | 5.80M | 7.73M | 4.93M |
| EBITDA | -3.48M | -5.34M | -2.51M | 286.99K | -526.57K |
| Net Income | -3.63M | -5.78M | -2.95M | -144.61K | -928.42K |
Balance Sheet | |||||
| Total Assets | 32.34M | 19.79M | 16.91M | 19.74M | 16.70M |
| Cash, Cash Equivalents and Short-Term Investments | 9.84M | 1.77M | 405.28K | 2.93M | 605.75K |
| Total Debt | 4.06M | 2.04M | 3.43M | 3.16M | 3.00M |
| Total Liabilities | 11.99M | 7.53M | 6.84M | 7.69M | 7.73M |
| Stockholders Equity | 20.35M | 12.26M | 10.07M | 12.05M | 8.97M |
Cash Flow | |||||
| Free Cash Flow | -1.98M | -3.77M | -2.98M | -133.59K | -1.09M |
| Operating Cash Flow | -1.55M | -3.55M | -2.68M | -81.09K | -933.37K |
| Investing Cash Flow | -429.35K | -233.47K | -293.88K | -52.50K | -407.80K |
| Financing Cash Flow | 10.05M | 5.15M | 456.32K | 2.45M | 1.09M |
Precision Optics Corporation Technical Analysis
Negative
4.41
Price Trends
4.36
Negative
4.75
Negative
4.60
Negative
Market Momentum
0.04
Negative
43.34
Neutral
47.55
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For POCI, the sentiment is Negative. The current price of 4.41 is below the 20-day moving average (MA) of 4.42, above the 50-day MA of 4.36, and below the 200-day MA of 4.60, indicating a bearish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 43.34 is Neutral, neither overbought nor oversold. The STOCH value of 47.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
55 Neutral | $37.16M | -8.51 | -149.08% | ― | 3.72% | 43.78% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
48 Neutral | $46.85M | -9.72 | -23.92% | ― | 65.16% | 45.07% | |
47 Neutral | $20.87M | -5.75 | -4.59% | ― | -11.16% | 59.85% | |
45 Neutral | $17.50M | -0.48 | -225.98% | ― | 21.86% | 73.27% | |
40 Underperform | $2.17M | -0.23 | -133.10% | ― | 3.38% | -78.48% |
* Healthcare Sector Average
POCI
Precision Optics Corporation
4.15
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-4.38%
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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.