Precision Optics Corporation, Inc. reported significant financial results for the second quarter and first half of fiscal year 2026, ending December 31, 2025. The company generated revenues of $7.37 million for the quarter, a 62.8% increase from $4.53 million in the same period last year. For the six months, revenues reached $14.05 million, up 61.0% from $8.72 million in the prior year. However, the company reported a net loss of $1.78 million for the quarter, compared to a loss of $0.97 million in the same quarter of the previous year, and a total net loss of $3.42 million for the six months, worsening from a loss of $2.28 million in the prior year.
The financial performance reflects a notable shift in revenue sources, particularly in the Systems Manufacturing segment, which saw a dramatic increase of 213.2% for the quarter and 248.9% for the six months, driven by heightened customer demand. Conversely, revenue from Engineering Design Services decreased significantly, down 31.2% for the quarter and 46.3% for the six months, attributed to reduced demand and the completion of prior engagements. The MicroOptics Lab also experienced a decline in revenue, primarily due to delays in new production orders.
Operationally, the company has made strategic moves to enhance its financial health, including leadership changes and process improvements aimed at increasing manufacturing yields. The company has also renegotiated pricing with major customers and is planning to launch several development projects into manufacturing over the next year. Despite these efforts, Precision Optics faces challenges, including a substantial increase in current liabilities, which rose to $9.95 million from $6.15 million in the previous period, and a decrease in stockholders' equity from $12.26 million to $9.33 million.
Looking ahead, Precision Optics acknowledges the need for additional funding to support its operations, as its cash reserves of $0.88 million are deemed insufficient for the upcoming year. The company plans to pursue various funding avenues, including equity offerings and debt financing, while also implementing cost reductions to align expenses with revenue expectations. The management's ability to execute these strategies will be critical for the company's future liquidity and operational viability.
About PRECISION OPTICS CORPORATION, INC.
Precision Optics Corporation designs and manufactures advanced optical instruments, including endoscopes, micro lenses, and imaging systems for medical, defense, and industrial markets. The company leverages proprietary technology in miniaturized optics, 3D imaging, and micro cameras to serve minimally invasive surgery, aerospace, and defense applications. With integrated engineering, manufacturing, and global supply networks, it offers custom solutions, emphasizing innovation, quality, and regulatory compliance.
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