Executive Summary
Precision Optics Corporation Inc (PEYE) reported QQ3 2025 results characterized by a material top-line decline and pronounced margin compression, culminating in a meaningful net loss. Revenue of $4.186 million declined 7.5% QoQ and 20.15% YoY, while gross profit was $0.418 million on a 9.99% gross margin, signaling limited pricing power and potential underutilization of fixed cost absorption. Operating income stood at $(2.038) million with an EBITDAR of $(2.039) million, translating to an operating margin of approximately -48.7% and an EBITDA loss. The net loss was $(2.097) million or $(0.30) per share, underscoring persistent profitability challenges despite a smaller quarterly base. On the balance sheet, liquidity remains adequate on a working-capital basis, with a current ratio near 2.0, cash of $2.548 million, and total debt of $0.670 million. However, the company funded a substantial portion of the quarter through equity issuance, with common stock totaling $3.861 million issued, suggesting reliance on external financing to sustain operations. Free cash flow remained negative at $(1.997) million, driven by negative operating cash flow of $(1.873) million despite modest capex of $(0.125) million. Management commentary is not included in the provided transcript; thus, the assessment relies on disclosed financials and industry context. The near-term outlook hinges on stabilization or growth in revenue, scaling of high-margin components, and the ability to reduce operating and SG&A costs while maintaining prudent liquidity management.
Key Performance Indicators
QoQ: -7.53% | YoY:-20.15%
QoQ: -60.93% | YoY:-77.51%
QoQ: -123.98% | YoY:-688.42%
QoQ: -116.23% | YoY:-561.32%
QoQ: -100.00% | YoY:-474.71%
Key Insights
Revenue: $4.186 million, down 7.53% QoQ and down 20.15% YoY; Gross Profit: $0.418 million with margin 9.99%; Operating Income: $(2.038) million, margin $(48.69)%; Net Income: $(2.097) million, margin $(50.09)%; EPS: $(0.30); EBITDA: $(2.038) million; EBITDAR: $(2.039) million; Weighted Average Shares: 6.917 million; Gross Profit Margin: ~9.99%; Operating Margin: ~-48.69%; Net Margin: ~-50.09%; Cash from Operations: $(1.873) million; Free Cash Flow: $(1.999) million; Cash at End of Period: $2.548...
Financial Highlights
Revenue: $4.186 million, down 7.53% QoQ and down 20.15% YoY; Gross Profit: $0.418 million with margin 9.99%; Operating Income: $(2.038) million, margin $(48.69)%; Net Income: $(2.097) million, margin $(50.09)%; EPS: $(0.30); EBITDA: $(2.038) million; EBITDAR: $(2.039) million; Weighted Average Shares: 6.917 million; Gross Profit Margin: ~9.99%; Operating Margin: ~-48.69%; Net Margin: ~-50.09%; Cash from Operations: $(1.873) million; Free Cash Flow: $(1.999) million; Cash at End of Period: $2.548 million; Working Capital: $4.961 million (approx. current assets $9.971 million vs. current liabilities $5.009 million); Total Assets: $19.622 million; Total Liabilities: $6.444 million; Total Equity: $13.178 million; Debt: $0.670 million; Cash Ratio: 0.509; Current Ratio: 1.991; Debt-to-Equity: 0.051; Goodwill: $8.824 million; Net Debt: $(1.879) million. Valuation context: Price-to-book ~1.02x; EV/Sales and related multiples reported as negative in the dataset; no peers identified for direct comparison.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
4.19M |
-20.15% |
-7.53% |
| Gross Profit |
417.98K |
-77.51% |
-60.93% |
| Operating Income |
-2.04M |
-688.42% |
-123.98% |
| Net Income |
-2.10M |
-561.32% |
-116.23% |
| EPS |
-0.30 |
-474.71% |
-100.00% |
Key Financial Ratios
operatingProfitMargin
-48.7%
operatingCashFlowPerShare
$-0.27
freeCashFlowPerShare
$-0.29
Management Commentary
No earnings call transcript available for QQ3 2025 in the provided data. Consequently, management quotes and thematic highlights from an earnings call could not be incorporated. If/when a transcript is provided, we will group insights by themes (strategy, operations, market conditions) and attach context and implications for investors.
No earnings call transcript available for QQ3 2025.
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Forward Guidance
No formal forward guidance was disclosed for QQ3 2025 in the data. Given the current losses, negative cash flow, and reliance on equity financing, investors should monitor: (1) revenue trajectory and product mix improvements, (2) progress toward gross-margin expansion (pricing, mix, and cost efficiencies), (3) ongoing financing needs and dilution risk from stock issuances, and (4) any potential capex or R&D milestones that could drive future revenue growth. The absence of explicit guidance suggests the company is not providing near-term commitments on profitability or cash flow stabilization; therefore, the key factors to track are revenue momentum, expense discipline, and cash-burn rate going into the next reporting cycle.