Precision Optics Corporation Reports $19.1 Million Revenue with Increased Losses in Fiscal Year 2025

Precision Optics Corporation, Inc. reported total revenues of $19.1 million for the fiscal year ending June 30, 2025, a slight decrease of 0.1% from $19.1 million in the previous fiscal year. The company's revenue breakdown showed a significant increase in systems manufacturing, which rose by 122.2% to $8.3 million, while engineering design services saw a decline of 42% to $4.9 million. The decrease in engineering revenue was attributed to the transition of the single-use cystoscope program from development to production, alongside increased internal research and development activities. Gross profit also fell to $3.4 million, resulting in a gross margin of 17.8%, down from 30.3% in the prior year, primarily due to yield issues in new manufacturing lines and lower utilization of engineering resources.

The company experienced a net loss of $5.8 million, compared to a loss of $2.9 million in the previous year. This increase in loss was driven by higher research and development expenses, which rose to $1.2 million, and selling, general, and administrative expenses, which increased by 3.4% to $7.8 million. The company’s cash and cash equivalents improved significantly, reaching $1.8 million at the end of the fiscal year, up from $405,278 in the previous year, largely due to successful capital raises through registered direct offerings.

Operationally, Precision Optics continues to focus on its core markets of medical devices and defense/aerospace products. The company sold products to 278 customers during the fiscal year, with two customers accounting for approximately 22% and 20% of total revenues. The company’s workforce remained stable at 90 employees, with a distribution across manufacturing, engineering, sales, and administration. The company has also made strategic acquisitions in recent years, including Lighthouse Imaging in 2021, which enhanced its capabilities in medical visualization devices.

Looking ahead, Precision Optics anticipates revenue growth as it transitions more products from the engineering design phase to commercial production. The company plans to leverage its unique manufacturing capabilities to meet the increasing demand for smaller, disposable medical devices. However, it acknowledges the potential risks associated with reliance on a limited number of customers and the need for ongoing capital to support its operations and product development initiatives. The company remains committed to enhancing its technological capabilities and expanding its market presence in both medical and defense sectors.