Coda Octopus Group Reports 30.7% Revenue Growth to $26.6 Million for Fiscal Year Ending October 31, 2025

Coda Octopus Group, Inc. reported a significant increase in its financial performance for the fiscal year ending October 31, 2025, with consolidated net revenue reaching $26.6 million, a 30.7% increase from $20.3 million in the previous fiscal year. This growth was largely attributed to the acquisition of Precision Acoustics Limited (PAL), which contributed approximately $5.4 million, or 20.4% of total revenue. Excluding PAL, the company's revenue growth was a more modest 4.1%. The gross profit margin decreased slightly to 66.5% from 69.8% in the prior year, reflecting changes in the sales mix and increased commission costs.

The company’s Marine Technology Business generated $13.2 million, a 3.2% increase from the previous year, while the Defense Engineering Services Business reported $7.9 million, up 5.6%. However, the Marine Technology segment faced challenges, particularly a 36.6% decline in equipment rentals, attributed to reduced demand in the offshore renewables sector following changes in U.S. funding policies. The overall operating income increased by 26.6% to $4.5 million, driven by higher revenues and gross profit.

Strategically, Coda Octopus has focused on integrating its three business segments: Marine Technology, Acoustic Sensors and Materials, and Defense Engineering Services. The acquisition of PAL is expected to enhance the company’s capabilities in acoustic measurement and calibration, particularly in high-risk applications such as medical imaging and underwater acoustics. The company also launched the Echoscope PIPE NANO Gen Series, a compact sonar technology aimed at the growing market for autonomous underwater vehicles.

Operationally, Coda Octopus employed approximately 100 individuals as of the end of the fiscal year, with a significant portion holding advanced degrees in relevant fields. The company continues to face challenges related to inflation and labor shortages, which have increased operational costs. Looking ahead, Coda Octopus anticipates continued growth driven by its innovative product offerings and strategic acquisitions, although it remains cautious about potential impacts from geopolitical tensions and changes in government funding for defense and renewable energy projects.