Precision Optics Financials
This page shows Precision Optics (POCI) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 15 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
Financial Health Signals
Based on FY2025 annual data. Scores normalized against common benchmarks. How we calculate these scores
Precision Optics has an operating margin of -29.1%, meaning the company retains $-29 of operating profit per $100 of revenue. This below-average margin results in a low score of 0/100, suggesting thin profitability after operating expenses. This is down from -14.3% the prior year.
Precision Optics's revenue declined 0.1% year-over-year, from $19.1M to $19.1M. This contraction results in a growth score of 28/100.
Precision Optics carries a low D/E ratio of 0.11, meaning only $0.11 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 100/100, indicating a strong balance sheet with room for future borrowing.
Precision Optics's current ratio of 1.64 indicates adequate short-term liquidity, earning a score of 45/100. The company can meet its near-term obligations, though with limited headroom.
While Precision Optics generated -$3.5M in operating cash flow, capex of $227K consumed most of it, leaving -$3.8M in free cash flow. This results in a low score of 0/100, reflecting heavy capital investment rather than weak cash generation.
Precision Optics passes 3 of 9 financial strength tests. 1 of 4 profitability signals pass, 2 of 3 leverage/liquidity signals pass, neither operating efficiency signal passes.
For every $1 of reported earnings, Precision Optics generates $0.61 in operating cash flow (-$3.5M OCF vs -$5.8M net income). This low ratio suggests earnings are primarily driven by accounting accruals rather than cash generation, which may not be sustainable.
Precision Optics earns $-24.5 in operating income for every $1 of interest expense (-$5.6M vs $227K). This narrow margin raises concern about the company's ability to service its debt if operating income declines.
Key Financial Metrics
Precision Optics generated $19.1M in revenue in fiscal year 2025. This represents a decrease of 0.1% from the prior year.
Precision Optics's EBITDA was -$5.3M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents a decrease of 112.5% from the prior year.
Precision Optics generated -$3.8M in free cash flow in fiscal year 2025, representing cash available after capex. This represents a decrease of 27.7% from the prior year.
Precision Optics reported -$5.8M in net income in fiscal year 2025. This represents a decrease of 95.8% from the prior year.
Precision Optics earned $-0.85 per diluted share (EPS) in fiscal year 2025. This represents a decrease of 73.5% from the prior year.
Precision Optics held $1.8M in cash against $1.3M in long-term debt as of fiscal year 2025.
Precision Optics had 8M shares outstanding in fiscal year 2025. This represents an increase of 27.0% from the prior year.
Precision Optics's gross margin was 17.8% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is down 12.5 percentage points from the prior year.
Precision Optics's operating margin was -29.1% in fiscal year 2025, reflecting core business profitability. This is down 14.8 percentage points from the prior year.
Precision Optics's net profit margin was -30.3% in fiscal year 2025, showing the share of revenue converted to profit. This is down 14.8 percentage points from the prior year.
Precision Optics invested $1.2M in research and development in fiscal year 2025. This represents an increase of 17.9% from the prior year.
Precision Optics invested $227K in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents a decrease of 16.6% from the prior year.
POCI Income Statement
| Metric | Q2'26 | Q1'26 | Q3'25 | Q2'24 | Q2'25 | Q1'25 | Q2'23 | Q3'24 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $7.4M+10.3% | $6.7M+59.6% | $4.2M-28.9% | $5.9M+22.0% | $4.8M+11.6% | $4.3M+10.9% | $3.9M-22.8% | $5.0M |
| Cost of Revenue | $7.2M+24.9% | $5.7M+52.2% | $3.8M+14.6% | $3.3M-2.5% | $3.4M+18.0% | $2.9M+2.9% | $2.8M-16.1% | $3.3M |
| Gross Profit | $205K-78.4% | $946K+126.4% | $418K-83.9% | $2.6M+79.2% | $1.5M-0.9% | $1.5M+30.7% | $1.1M-35.5% | $1.7M |
| R&D Expenses | $250K-20.0% | $312K+47.6% | $211K+36.1% | $155K-30.0% | $222K+4.2% | $213K+88.0% | $113K-45.2% | $206K |
| SG&A Expenses | $1.7M-23.9% | $2.2M-0.7% | $2.2M+19.9% | $1.9M-3.1% | $1.9M+16.7% | $1.7M+12.9% | $1.5M-27.5% | $2.0M |
| Operating Income | -$1.7M-9.2% | -$1.6M+21.7% | -$2.0M-456.9% | $571K+181.1% | -$704K-73.7% | -$405K+12.0% | -$460K+6.7% | -$493K |
| Interest Expense | $38K-7.9% | $42K-28.6% | $58K-6.3% | $62K+14.2% | $55K-7.6% | $59K+26.7% | $47K-3.0% | $48K |
| Income Tax | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Net Income | -$1.8M-8.8% | -$1.6M+21.9% | -$2.1M-512.2% | $509K+167.0% | -$759K-63.4% | -$464K+8.4% | -$507K-27.3% | -$398K |
| EPS (Diluted) | $-0.23-9.5% | $-0.21+30.0% | $-0.30-433.3% | $0.09+169.2% | $-0.13-62.5% | $-0.08+11.1% | $-0.09-28.6% | $-0.07 |
POCI Balance Sheet
| Metric | Q2'26 | Q1'26 | Q3'25 | Q2'24 | Q2'25 | Q1'25 | Q2'23 | Q3'24 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $22.9M+2.3% | $22.4M+14.1% | $19.6M+16.0% | $16.9M-4.4% | $17.7M-7.2% | $19.1M-3.4% | $19.7M+8.5% | $18.2M |
| Current Assets | $10.4M+5.7% | $9.9M-1.1% | $10.0M+40.1% | $7.1M-9.1% | $7.8M-15.2% | $9.2M-6.3% | $9.9M+19.2% | $8.3M |
| Cash & Equivalents | $881K-36.7% | $1.4M-45.4% | $2.5M+528.7% | $405K-58.9% | $987K-28.0% | $1.4M-53.2% | $2.9M+378.0% | $612K |
| Inventory | $4.3M+9.9% | $3.9M+5.7% | $3.7M+28.0% | $2.9M-7.5% | $3.1M+4.3% | $3.0M+7.0% | $2.8M-6.2% | $3.0M |
| Accounts Receivable | $4.9M+16.3% | $4.2M+22.3% | $3.4M-3.4% | $3.5M+1.0% | $3.5M-22.5% | $4.5M+16.0% | $3.9M-11.0% | $4.4M |
| Goodwill | $8.8M0.0% | $8.8M0.0% | $8.8M0.0% | $8.8M0.0% | $8.8M0.0% | $8.8M0.0% | $8.8M0.0% | $8.8M |
| Total Liabilities | $13.6M+18.4% | $11.5M+77.8% | $6.4M-5.8% | $6.8M+7.3% | $6.4M-13.5% | $7.4M-4.1% | $7.7M-9.4% | $8.5M |
| Current Liabilities | $10.0M+30.6% | $7.6M+52.1% | $5.0M+2.1% | $4.9M+13.8% | $4.3M-15.9% | $5.1M-2.5% | $5.3M-19.0% | $6.5M |
| Long-Term Debt | $1.0M-12.6% | $1.1M-20.2% | $1.4M-24.4% | $1.9M-1.1% | $1.9M-6.3% | $2.0M-5.9% | $2.2M+29.4% | $1.7M |
| Total Equity | $9.3M-14.6% | $10.9M-17.1% | $13.2M+30.9% | $10.1M-11.0% | $11.3M-3.2% | $11.7M-3.0% | $12.0M+24.2% | $9.7M |
| Retained Earnings | -$60.4M-3.0% | -$58.6M-5.5% | -$55.6M-8.6% | -$51.2M-3.5% | -$49.5M-1.6% | -$48.7M-1.0% | -$48.2M-0.2% | -$48.1M |
POCI Cash Flow Statement
| Metric | Q2'26 | Q1'26 | Q3'25 | Q2'24 | Q2'25 | Q1'25 | Q2'23 | Q3'24 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | -$256K-427.4% | $78K+104.2% | -$1.9M-91.9% | -$976K-714.5% | -$120K+91.3% | -$1.4M-126.0% | -$607K-219.3% | $509K |
| Capital Expenditures | $46K+89.8% | $24K-80.8% | $127K+990.3% | $12K-90.4% | $121K+294.8% | $31K+1053.8% | -$3K-150.2% | $6K |
| Free Cash Flow | -$615K-79.4% | -$343K+82.8% | -$2.0M-102.5% | -$988K-309.3% | -$241K+82.8% | -$1.4M-129.9% | -$611K-221.4% | $503K |
| Investing Cash Flow | -$96K+68.1% | -$302K-236.2% | -$90K-660.3% | -$12K+90.7% | -$127K-192.4% | -$44K-50501.2% | -$86+99.4% | -$15K |
| Financing Cash Flow | -$158K-0.1% | -$158K-103.7% | $4.3M+818.3% | $468K+443.3% | -$136K+1.8% | -$139K-104.8% | $2.9M+1207.6% | -$264K |
| Dividends Paid | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
POCI Financial Ratios
| Metric | Q2'26 | Q1'26 | Q3'25 | Q2'24 | Q2'25 | Q1'25 | Q2'23 | Q3'24 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 2.8%-11.4pp | 14.2%+4.2pp | 10.0%-34.2pp | 44.2%+14.1pp | 30.1%-3.8pp | 33.9%+5.1pp | 28.7%-5.7pp | 34.4% |
| Operating Margin | -23.6%+0.2pp | -23.9%+24.8pp | -48.7%-58.4pp | 9.7%+24.3pp | -14.6%-5.2pp | -9.4%+2.4pp | -11.8%-2.0pp | -9.8% |
| Net Margin | -24.2%+0.3pp | -24.5%+25.6pp | -50.1%-58.7pp | 8.6%+24.4pp | -15.7%-5.0pp | -10.8%+2.3pp | -13.0%-5.1pp | -7.9% |
| Return on Equity | 19.1% | N/A | N/A | 5.3% | N/A | N/A | N/A | N/A |
| Return on Assets | -7.8%-0.5pp | -7.3%+3.4pp | -10.7%-13.6pp | 2.9%+7.2pp | -4.3%-1.8pp | -2.4%+0.6pp | -3.0%-0.8pp | -2.2% |
| Current Ratio | 1.05-0.2 | 1.29-0.7 | 1.99+0.5 | 1.45-0.4 | 1.82+0.0 | 1.80-0.1 | 1.87+0.6 | 1.27 |
| Debt-to-Equity | 0.110.0 | 0.100.0 | 0.11-0.1 | 0.19+0.0 | 0.170.0 | 0.180.0 | 0.180.0 | 0.17 |
| FCF Margin | -18.0%-9.9pp | -8.2%+39.6pp | -47.8%-44.6pp | -3.1%+1.9pp | -5.0%+27.5pp | -32.5%-18.7pp | -13.8%-23.8pp | 10.0% |
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Frequently Asked Questions
What is Precision Optics's annual revenue?
Precision Optics (POCI) reported $19.1M in total revenue for fiscal year 2025. This represents a -0.1% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Precision Optics's revenue growing?
Precision Optics (POCI) revenue declined by 0.1% year-over-year, from $19.1M to $19.1M in fiscal year 2025.
Is Precision Optics profitable?
No, Precision Optics (POCI) reported a net income of -$5.8M in fiscal year 2025, with a net profit margin of -30.3%.
What is Precision Optics's earnings per share (EPS)?
Precision Optics (POCI) reported diluted earnings per share of $-0.85 for fiscal year 2025. This represents a -73.5% change compared to the previous fiscal year. EPS represents the portion of a company's net income allocated to each outstanding share of common stock and is widely used to evaluate profitability on a per-share basis.
What is Precision Optics's EBITDA?
Precision Optics (POCI) had EBITDA of -$5.3M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
How much debt does Precision Optics have?
As of fiscal year 2025, Precision Optics (POCI) had $1.8M in cash and equivalents against $1.3M in long-term debt.
What is Precision Optics's gross margin?
Precision Optics (POCI) had a gross margin of 17.8% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.
What is Precision Optics's operating margin?
Precision Optics (POCI) had an operating margin of -29.1% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.
What is Precision Optics's net profit margin?
Precision Optics (POCI) had a net profit margin of -30.3% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.
What is Precision Optics's free cash flow?
Precision Optics (POCI) generated -$3.8M in free cash flow during fiscal year 2025. This represents a -27.7% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Precision Optics's operating cash flow?
Precision Optics (POCI) generated -$3.5M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are Precision Optics's total assets?
Precision Optics (POCI) had $19.8M in total assets as of fiscal year 2025, including both current and long-term assets.
What are Precision Optics's capital expenditures?
Precision Optics (POCI) invested $227K in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
How much does Precision Optics spend on research and development?
Precision Optics (POCI) invested $1.2M in research and development during fiscal year 2025.
How many shares does Precision Optics have outstanding?
Precision Optics (POCI) had 8M shares outstanding as of fiscal year 2025.
What is Precision Optics's current ratio?
Precision Optics (POCI) had a current ratio of 1.64 as of fiscal year 2025, which is generally considered healthy.
What is Precision Optics's debt-to-equity ratio?
Precision Optics (POCI) had a debt-to-equity ratio of 0.11 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Precision Optics's return on assets (ROA)?
Precision Optics (POCI) had a return on assets of -29.2% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
What is Precision Optics's cash runway?
Based on fiscal year 2025 data, Precision Optics (POCI) had $1.8M in cash against an annual operating cash burn of $3.5M. This gives an estimated cash runway of approximately 6 months at the current burn rate. Cash runway measures how long a company can continue operating before running out of cash, assuming no additional funding.
What is Precision Optics's Piotroski F-Score?
Precision Optics (POCI) has a Piotroski F-Score of 3 out of 9, indicating weak financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7–9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Precision Optics's earnings high quality?
Precision Optics (POCI) has an earnings quality ratio of 0.61x, considered low quality (accrual-driven). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
Can Precision Optics cover its interest payments?
Precision Optics (POCI) has an interest coverage ratio of -24.5x, meaning it can struggle to cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.
How financially healthy is Precision Optics?
Precision Optics (POCI) scores 35 out of 100 on our Financial Profile, indicating weak overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.