Optex Systems Reports 25.9% Revenue Growth and Increased Net Income in Latest Quarter

Optex Systems Holdings, Inc. reported significant financial growth in its latest 10-Q filing for the quarter ending March 30, 2025. The company achieved revenues of $10.73 million for the three months, marking a 25.9% increase from $8.52 million in the same period last year. For the six months, revenues rose to $18.93 million, up 22.2% from $15.49 million. The net income for the quarter was $1.77 million, compared to $1.06 million in the prior year, while net income for the six months reached $2.61 million, up from $1.49 million. This growth in profitability was attributed to increased production capacity and higher demand for key products, particularly in the periscope and laser filter segments.

The company’s operational metrics also showed improvement, with gross profit for the three months ending March 30, 2025, increasing to $3.36 million, a 31.4% rise from $2.56 million in the previous year. The gross margin improved to 31.3%, up from 30.0%. General and administrative expenses decreased slightly, contributing to a 65% increase in operating income to $2.24 million for the quarter. The company’s total assets increased to $27.48 million from $25.52 million, driven by higher cash reserves and accounts receivable.

Strategically, Optex Systems made a notable acquisition in January 2024, purchasing intellectual property related to the Speedtracker Mach product line for $1 million. This acquisition is expected to enhance the company’s product offerings in firearm projectile speed detection. The company has also focused on increasing production capacity, achieving a 50% increase in periscope production levels compared to the previous fiscal year, which has positively impacted revenue performance.

Despite the positive financial results, the company reported a decrease in new orders, with total bookings of $15.7 million for the six months ending March 30, 2025, down 12.3% from the prior year. The backlog as of March 30, 2025, was $41.1 million, a decrease from $44.2 million a year earlier. The decline in orders was primarily attributed to timing issues related to order releases. However, the company anticipates an increase in proposal requests and expects additional orders in the coming months.

Looking ahead, Optex Systems remains optimistic about its growth trajectory, planning to leverage its current cash reserves and credit facilities to support inventory purchases and meet anticipated demand. The company is also exploring international and commercial opportunities to expand its market presence. Management has indicated that while they expect to generate positive cash flow and net income over the next twelve months, they will continue to monitor market conditions and adjust operations accordingly to maintain profitability.