Coda Octopus Group Reports Fiscal Second Quarter 2025 Financial Results
- Revenue increased 31.8% year-over-year to $7.0 million
- Secured $1.53M in DAVD tethered system orders, expanding to 12 Navy Commands
- Equipment sales increased 65.5% to $3.3 million
- Strong cash position of $24.5 million, up $2.0 million from October 2024
- Expanding opportunities in defense sector with direct U.S. Department of Defense engagement
- Net income decreased 35.8% to $0.9 million
- Operating margin declined from 25.4% to 15.5%
- Rental revenue decreased 75.9% due to reduced offshore renewable projects
- SG&A expenses increased 47.4% to $2.7 million
- Gross margin declined from 70.2% to 64.1%
Insights
CODA reports 31.8% revenue growth but declining margins; DAVD program showing promising adoption potential despite profitability headwinds.
Coda Octopus delivered 31.8% revenue growth in Q2, reaching
While top-line growth impresses, profitability metrics show pressure points. Gross margins contracted from
The DAVD (Diver Augmented Vision Display) program shows meaningful commercial traction with
Cash position remains solid at
ORLANDO, FL, June 16, 2025 (GLOBE NEWSWIRE) -- Coda Octopus Group, Inc. (“CODA” or the “Company”) (Nasdaq: CODA) a global market leader in real-time 4D/5D/6D imaging sonar technology for real-time subsea intelligence and cutting-edge diving technology, today reported its unaudited financial results for its fiscal second quarter ended April 30, 2025 (SQ2025).
Annmarie Gayle, CODA’s Chairman and CEO, commented: “I am pleased with our overall results of operations in SQ2025 especially the increase in revenue by
Despite the fluid global policy setting environment, we continue to invest in our growth strategy and have made good progress under the DAVD Program. In the SQ2025 we received orders for DAVD tethered system having a contract value of
Looking forward to other key milestone, during our third fiscal quarter 2025, we expect to deliver 16 DAVD untethered system (DUS) for integration into the MK16 Underwater Breathing Apparatus (UBA) system for SPECWAR and EOD applications. We believe this to be the pre-cursor to broader adoption once the system evaluation is completed . The DUS is the largest addressable market for the DAVD technology. For example,
As mentioned previously, the DAVD technology is the subject of various evaluation programs. Recent assessment as to the state of readiness of the technology from several major defense field trials on the DAVD confirms its its effectiveness in dive operations. The report also emphasized the benefits and critical nature of combining the DAVD with Echoscope in low visibility environments – again giving us good insight that the full-scale adoption by user groups is likely to include Echoscope, thus expanding the opportunities for the Company. As a result, in this year alone, we have 5 DAVD related development projects where various other sensors are being integrated into the DAVD to ensure that all US Defense sensors used by various missions are compatible with the DAVD. We believe we have created the DAVD solution ecosystem which is well positioned to serve the global defense and commercial diving market.
The Echoscope® was part of the ongoing assessment for the defense market and this report concluded that this technology represents a notable improvement over existing solutions and offers a new capability for detailed underwater imaging and object detection.
The numbers shown below have been rounded to one decimal point, unless two decimal points are required for clarity. The full SQ2025 financials can be found in CODA’s Form 10-Q filed with the SEC on June 16, 2025.
- Total revenue was approximately
$7.0 million compared to$5.3 million in SQ2024, representing an increase of31.8% . - Revenues from our core business (Marine Technology Business) were
$3.9 million compared to$3.5 million in SQ2024, representing a10.0% increase. - Revenues from our Marine Engineering Business were
$1.84 million compared to$1.80 million in SQ2024, representing a2.3% increase. - Revenues from the Acoustics Sensors and Material segment were
$1.3 million in SQ2025 (no prior comparative data is available as this business unit was acquired on October 29, 2024). - Gross profit was
$4.5 million compared to$3.7 million in SQ2024. Gross margin was64.1% compared to70.2% in SQ2024, reflecting lower gross profit margins from our core business in conjunction with the mix and geography of sales reported in the period. - Operating income was
$1.1 million in SQ2025 compared to$1.4 million in SQ2024, a reduction of19.5% . Operating margin was15.5% compared to25.4% in SQ2024, driven by the increase in Selling, General and Administrative costs and the addition of the Acoustics Sensor and Material Business. - Pre-tax income was approximately
$1.3 million in SQ2025 compared to$1.6 million in SQ2024, representing a decrease of22.9% . Net income after taxes was$0.9 million in SQ2025 compared to$1.4 million in SQ2024, a decrease of35.8% . - Diluted earnings per share in SQ2025 was
$0.08 compared to$0.13 in SQ2024. - Pre-tax income as a percentage of revenues for SQ2025 was approximately
18.0% compared to30.8% in SQ2024. Research and Development expenditures for SQ2025 were approximately$0.7 million , an increase of27.2% , compared to approximately$0.5 million in SQ2024. SG&A in SQ2025 was approximately$2.7 million , an increase of47.4% over$1.8 million in SQ2024. - The income statement comparisons to the corresponding period last year (SQ2024) do not include the Acoustics Sensors and Materials segment.
Our cash balance at the end of SQ2025 of
Annmarie Gayle, CODA’s Chairman and CEO, commented: “Despite the uncertain global policy environment, I am pleased with our overall financial results in our SQ2025 and the diversification of our revenue structure. In our SQ205 all business units increased revenue. Our core business, the Marine Technology Business, sells its products and solutions worldwide and in the SQ2025, we saw a
Furthermore, a key part of our strategy as a Group relies on Defense spending. Defense budgets are set to increase in Europe and the United Kingdom, which favors our business and, in the SQ2025 we saw an increase in the pipeline of opportunities both in the U.S and the UK. Of note, we also saw opportunities to work directly with the U.S. Department of Defense (as opposed to through Prime Defense Contractors), which, in itself, is expected to create new opportunities .
The Company’s full financial results, including its results for the SQ2025, are available at www.nasdaq.com/symbol/coda/sec-filings.
Conference Call
CODA will host a conference call today, June 16, 2025, at 10:00 a.m. Eastern Time (7:00 a.m. Pacific Time) to discuss its results for the fiscal quarter ended April 30, 2025.
CODA management will provide prepared remarks, followed by a question-and-answer period.
Date: Monday, June 16, 2025
Time: 10:00 a.m. Eastern time (7:00 a.m. Pacific time)
U.S. dial-in numbers: 1-877-451-6152 or 1-201-389-0879
International number: 1-201-389-0879
Conference ID: 13753929
The conference call will broadcast live and be available for replay here.
Persons interested in attending are required to call the conference telephone number approximately 10 minutes before the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please press *0.
A replay of the call will be available after approximately 2:00 p.m. Eastern time on the same day through June 30, 2025 at 11:59 p.m.
Telephone replay numbers: 1-844-512-2921 or 1-412-317-6671
International replay number: 1-412-317-6671
Access ID: 13753929
About Coda Octopus Group, Inc.
The Company, founded in 1994, is an established supplier to the underwater/subsea market. It supplies a range of hardware and software solutions to this market which includes key proprietary real time 4D/5D/6D imaging sonars, marketed under the name Echoscope® and Echoscope PIPE® addressing the underwater imaging sensor market along with new generation diving technology, Diver Augmented Vision Display (DAVD) system. The Company’s Echoscope PIPE® sonar generates real-time 3D/4D/5D images of moving objects underwater including in zero visibility water conditions. Echoscope technology is used globally for numerous applications in both the commercial offshore market and defense underwater markets. Applications for the Echoscope® technology include complex mapping underwater, subsea intervention, subsea asset placements, salvage and recovery, search and rescue, offshore renewables cable installations and surveys, marine construction, subsea infrastructure installation, mining applications, robotics (3D Perception and Depth), breakwater construction and monitoring, decommissioning, diving applications and port and harbor security.
The recently launched new generation of diving technology, DAVD, has the potential to change the way global diving operations are performed (both in the Defense and Commercial space) because it is a fully integrated singular system for topside control and fully connected diver HUD system, allowing both the topside and diver to share a range of critical information and visualize the same underwater scene. Furthermore, the DAVD integrates the Company’s sonar technology, which allows dive operations to be performed in zero visibility conditions, a common problem that besets these operations.
The Company recently acquired Precision Acoustics Limited, an acoustics sensor and materials business. This Company is a recognized leader in the ultrasound and acoustic measurement field. Specializing in acoustic hydrophone design and innovative acoustic materials, they provide a comprehensive range of products and solutions, with a primary focus on medical imaging and Non-Destructive Testing (NDT). NDT is used to validate the viability of structures such as aircraft, ship hulls, wellheads and other subsea structures. Their expertise extends to working closely with national and global standard-setting bodies (such as the National Physical Laboratory of the UK), contributing to the establishment of the primary measurement standards in the industry.
The Company also includes two discrete Defense engineering businesses Coda Octopus Martech Ltd (UK based) and Coda Octopus Colmek, Inc. (U.S. based) whose primary business model is to supply sub-assemblies into broader mission critical programs in the capacity of sub-contractors to the Prime Defense Contractors. Their scope of supply under these programs typically includes concept, design, prototype, manufacturing, and post-sale support. This gives them the opportunity to have repeat orders for these sub-assemblies through the life of these programs.
For further information, please visit http://www.codaoctopusgroup.com or contact us at coda@codaoctopusgroup.com.
Forward Looking Statements
This press release contains forward-looking statements concerning Coda Octopus Group, Inc. within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. When used in this document, the words “may”, “would”, “could”, “will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect”, “assume” and similar expressions are intended to identify forward‐looking statements. Those forward-looking statements include, without limitation, statements regarding the Company's expectations for the growth of the Company's operations and revenue. Such statements are subject to certain risks and uncertainties, and actual circumstances, events or results may differ materially from those projected in such forward-looking statements. Factors that could cause or contribute to differences include, but are not limited to, restrictions on our business operations due to the Pandemic, customer demand for our products and market prices; the outcome of our ongoing research and development efforts relating to our products including our patented real time 3D solutions; our ability to develop the sales force required to achieve our development and other examples of forward looking statement set forth in our Annual Report on Form 10-K for the year ended October 31, 2024, filed with the Securities and Exchange Commission on January 29, 2025, and the subsequently filed 10-Qs and 8-Ks. Coda Octopus Group, Inc. does not undertake and specifically disclaims any obligation to update or revise such statements to reflect new circumstances or unanticipated events as they occur, unless required by law.
Contact:
coda.ir@codaoctopusgroup.com
Coda Octopus Group, Inc.
1- 407-735 2406
CODA OCTOPUS GROUP, INC.
Consolidated Balance Sheets
April 30, 2025 and October 31, 2024
| 2025 | 2024 | |||||||
| Unaudited | ||||||||
| ASSETS | ||||||||
| CURRENT ASSETS | ||||||||
| Cash and Cash Equivalents | $ | 24,462,301 | $ | 22,479,072 | ||||
| Accounts Receivable, net | 4,720,117 | 3,493,463 | ||||||
| Inventory | 13,527,744 | 13,975,529 | ||||||
| Unbilled Receivables | 2,370,530 | 1,657,827 | ||||||
| Prepaid Expenses | 842,252 | 537,289 | ||||||
| Other Current Assets | 393,273 | 838,835 | ||||||
| Total Current Assets | 46,316,217 | 42,982,015 | ||||||
| FIXED ASSETS | ||||||||
| Property and Equipment, net | 6,801,586 | 6,822,990 | ||||||
| Right of Use Assets | 403,228 | 413,171 | ||||||
| Total Fixed Assets | 7,204,814 | 7,236,161 | ||||||
| OTHER ASSETS | ||||||||
| Goodwill | 3,639,334 | 3,639,334 | ||||||
| Intangible Assets, net | 3,429,779 | 3,687,034 | ||||||
| Total Other Assets | 7,069,113 | 7,326,368 | ||||||
| Total Assets | $ | 60,590,144 | $ | 57,544,544 | ||||
CODA OCTOPUS GROUP, INC.
Consolidated Balance Sheets (Continued)
April 30, 2025 and October 31, 2024
| 2025 | 2024 | |||||||
| Unaudited | ||||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| CURRENT LIABILITIES | ||||||||
| Accounts Payable | $ | 882,988 | $ | 1,034,488 | ||||
| Current portion of operating lease liabilities | 35,863 | 32,298 | ||||||
| Accrued Expenses and Other Current Liabilities | 1,450,573 | 1,604,596 | ||||||
| Deferred Revenue | 1,877,350 | 1,225,634 | ||||||
| Total Current Liabilities | 4,246,774 | 3,897,016 | ||||||
| LONG TERM LIABILITIES | ||||||||
| Deferred Tax Liability, net | 41,855 | 82,011 | ||||||
| Non-current operating lease liabilities | 385,819 | 380,873 | ||||||
| Deferred Revenue, less current portion | 27,199 | 56,121 | ||||||
| Total Long Term Liabilities | 454,873 | 519,005 | ||||||
| Total Liabilities | 4,701,647 | 4,416,021 | ||||||
| Commitments and contingencies | ||||||||
| STOCKHOLDERS’ EQUITY | ||||||||
| Common Stock, $.001 par value; 150,000,000 shares authorized, 11,232,514 issued and outstanding as of April 30, 2025 and 11,195,487 shares issued and outstanding as of October 31, 2024 | 11,233 | 11,195 | ||||||
| Preferred Stock $.001 par value; 5,000,000 shares authorized, zero issued and outstanding as of April 30, 2025 and October 31, 2024 | - | - | ||||||
| Treasury Stock | (61,933 | ) | (61,933 | ) | ||||
| Additional Paid-in Capital | 63,262,929 | 63,096,583 | ||||||
| Accumulated Other Comprehensive Loss | (1,738,978 | ) | (2,510,831 | ) | ||||
| Accumulated Deficit | (5,584,754 | ) | (7,406,491 | ) | ||||
| Total Stockholders’ Equity | 55,888,497 | 53,128,523 | ||||||
| Total Liabilities and Stockholders’ Equity | $ | 60,590,144 | $ | 57,544,544 | ||||
CODA OCTOPUS GROUP, INC.
Consolidated Statements of Income and Comprehensive Income
(Unaudited)
| Three Months Ended April 30, | Six Months Ended April 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Net Revenues | $ | 7,017,459 | $ | 5,323,178 | $ | 12,227,174 | $ | 9,784,369 | ||||||||
| Cost of Revenues | 2,520,178 | 1,584,744 | 4,301,423 | 2,959,199 | ||||||||||||
| Gross Profit | 4,497,281 | 3,738,434 | 7,925,751 | 6,825,170 | ||||||||||||
| OPERATING EXPENSES | ||||||||||||||||
| Research & Development | 689,995 | 542,481 | 1,233,121 | 1,028,458 | ||||||||||||
| Selling, General & Administrative | 2,719,602 | 1,845,570 | 4,942,924 | 3,890,945 | ||||||||||||
| Total Operating Expenses | 3,409,597 | 2,388,051 | 6,176,045 | 4,919,403 | ||||||||||||
| INCOME FROM OPERATIONS | 1,087,684 | 1,350,383 | 1,749,706 | 1,905,767 | ||||||||||||
| OTHER INCOME | ||||||||||||||||
| Other Income (Expense) | 32,332 | (2,636 | ) | 110,999 | 32,384 | |||||||||||
| Interest Income | 145,594 | 293,468 | 339,765 | 486,008 | ||||||||||||
| Total Other Income | 177,926 | 290,832 | 450,764 | 518,392 | ||||||||||||
| INCOME BEFORE INCOME TAX EXPENSE | 1,265,610 | 1,641,215 | 2,200,470 | 2,424,159 | ||||||||||||
| INCOME TAX (EXPENSE) BENEFIT | ||||||||||||||||
| Current Tax (Expense) | (374,701 | ) | (191,073 | ) | (423,575 | ) | (157,058 | ) | ||||||||
| Deferred Tax Benefit (Expense) | 17,853 | (34,904 | ) | 44,842 | (221,975 | ) | ||||||||||
| Total Income Tax (Expense) | (356,848 | ) | (225,977 | ) | (378,733 | ) | (379,033 | ) | ||||||||
| NET INCOME | $ | 908,762 | $ | 1,415,238 | $ | 1,821,737 | $ | 2,045,126 | ||||||||
| NET INCOME PER SHARE: | ||||||||||||||||
| Basic | $ | 0.08 | $ | 0.13 | $ | 0.16 | $ | 0.18 | ||||||||
| Diluted | $ | 0.08 | $ | 0.13 | $ | 0.16 | $ | 0.18 | ||||||||
| WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | ||||||||||||||||
| Basic | 11,221,080 | 11,168,493 | 11,223,528 | 11,148,565 | ||||||||||||
| Diluted | 11,306,828 | 11,288,210 | 11,309,276 | 11,268,282 | ||||||||||||
| COMPREHENSIVE INCOME, net of tax | $ | 908,762 | $ | 1,415,238 | $ | 1,821,737 | $ | 2,045,126 | ||||||||
| Foreign Currency Translation Adjustment | 1,800,439 | (437,683 | ) | 771,853 | 591,897 | |||||||||||
| Total Other Comprehensive Income (Loss) | $ | 1,800,439 | $ | (437,683 | ) | $ | 771,853 | $ | 591,897 | |||||||
| COMPREHENSIVE INCOME | $ | 2,709,201 | $ | 977,555 | $ | 2,593,590 | $ | 2,637,023 | ||||||||
FAQ
What were CODA's Q2 2025 earnings per share?
How much revenue did Coda Octopus Group generate in Q2 2025?
What is the market potential for CODA's DAVD untethered system?
How much cash does CODA have on its balance sheet?
Why did CODA's rental revenue decline in Q2 2025?
