Precision Optics Corporation Reports 65.2% Revenue Growth to $31.5 Million in Fiscal Year Ending June 30, 2026

Precision Optics Corporation, Inc. reported significant financial growth in its fiscal year ending June 30, 2026, with total revenues reaching $31.5 million, a 65.2% increase from $19.1 million in the previous year. The surge in revenue was primarily driven by a 172.9% increase in systems manufacturing, which accounted for 71.8% of total sales, reflecting heightened customer demand and enhanced manufacturing capabilities. However, the company experienced a decline in engineering design services revenue, which fell by 29.7% due to decreased demand and a shift of its single-use cystoscope program from development to production.

Despite the revenue growth, Precision Optics reported a net loss of $3.6 million for the fiscal year, an improvement from the $5.8 million loss in the prior year. The gross profit increased to $5.4 million, with a gross margin of 17.2%, slightly down from 17.8% in the previous year. The company attributed the increase in gross profit to higher volumes in systems manufacturing, although overall gross margin was impacted by rising costs associated with production and engineering activities.

Operationally, the company has made strategic advancements, including the launch of its Unity Imaging Platform in January 2025, which offers a modular and customizable endoscopic system. This platform is expected to enhance the company’s product offerings and streamline the development process for customers. Additionally, Precision Optics has expanded its workforce to 108 employees, with a focus on maintaining a skilled team to support its engineering and manufacturing operations.

The company continues to face challenges related to customer concentration, with two customers accounting for 68% of total revenues in the fiscal year ending June 30, 2026, compared to 42% in the previous year. This increased reliance on a limited customer base raises concerns about potential revenue volatility. Furthermore, Precision Optics is navigating regulatory environments, particularly in the medical device sector, where compliance with FDA regulations is critical for product marketing and sales.

Looking ahead, Precision Optics remains optimistic about its growth trajectory, anticipating continued revenue increases as new product programs transition from engineering to commercial phases. The company plans to leverage its unique manufacturing capabilities and technological advancements to capture a larger share of the medical device and defense/aerospace markets. However, it acknowledges the need for ongoing capital to support its operations and product development initiatives, emphasizing the importance of maintaining liquidity and financial stability in the coming fiscal periods.