OPTICAL CABLE CORPORATION REPORTS THIRD QUARTER OF FISCAL YEAR 2026 FINANCIAL RESULTS

OCC delivered double‑digit sales growth, stronger margins and a year‑to‑date move from loss to profitability in fiscal 2026.

Rhea-AI Summary

Optical Cable Corporation (OCC) reported sharp growth and improved profitability for the third quarter of fiscal 2026 ended July 31, 2026.

Q3 net sales rose 22.0% to $24.3 million from $19.9 million, with gains in enterprise, data center, and specialty markets. U.S. sales increased 20.3% and international sales 28.8%. The sales order backlog increased to $13.5 million from $7.3 million at October 31, 2025. Gross profit grew 43.9% to $9.1 million and gross margin improved to 37.4% from 31.7%.

Q3 SG&A expenses increased to $7.0 million but remained 28.7% of sales. Net income rose to $1.9 million, or $0.21 per share, from $302,000, or $0.04. For the first nine months, net sales increased 18.3% to $62.9 million, gross profit rose 35.5% to $22.1 million, and results swung to net income of $2.5 million from a $1.5 million loss.

Positive

• Q3 2026 net sales up 22.0% to $24.3 million versus $19.9 million
• Q3 gross profit up 43.9% to $9.1 million; margin 37.4% vs. 31.7%
• Q3 net income increased to $1.9 million vs. $302,000; EPS $0.21 vs. $0.04
• 9M 2026 net sales up 18.3% to $62.9 million from $53.2 million
• 9M 2026 gross profit up 35.5% to $22.1 million; margin 35.0% vs. 30.6%
• Year‑to‑date net result swung to $2.5 million income from $1.5 million loss
• Order backlog increased to $13.5 million from $7.3 million at October 31, 2025

Negative

• Q3 SG&A expenses rose to $7.0 million from $5.7 million
• 9M 2026 SG&A expenses increased to $18.8 million from $16.9 million
• Non‑current liabilities increased to $4.2 million from $1.6 million at October 31, 2025
• Total shareholders’ equity decreased to $14.7 million from $16.5 million
• Cash balance remained low at $297,000 as of July 31, 2026

News Explained

For liquidity context, the latest prior quarterly figures showed cash of $145,600 and operating cash flow of negative $2,525,305; at that reported outflow rate, the cash equaled 5.1 days of operating cash use.

Sources and calculations

• Optical Cable Corporation third-quarter fiscal 2026 results (2026-09-09)
• Optical Cable Corporation second-quarter 2026 fundamentals (2026-04-30)

• Available liquidity against the last reported quarterly operating outflow, in days at that rate $145,600 / ($2,525,305 / 89) = 5.1 days

Argus 15 min delay

-13.14% vs previous close $11.90 last price 220.4x rel. volume Open Argus

Details

Market reaction after 3Q26 earnings report: OCC -13.14%

-13.7% Trough in 2 min

$11.20 $16.33 Day Range

$105.04M Market Cap

Following this news, OCC has declined 13.14%, reflecting a significant negative market reaction. Argus tracked a trough of -13.7% from its starting point during tracking. Our momentum scanner has triggered 15 alerts so far, indicating notable trading interest and price volatility. The stock is currently trading at $11.90. Trading volume is exceptionally heavy at 220.4x the average, suggesting significant selling pressure.

Data tracked by StockTitan Argus (15 min delayed). Upgrade to Gold for real-time data.

Market Context

OCC was down 1.08% pre-headline, while its two prior FY2026 earnings releases were followed by 54.47...

Analysis

OCC was down 1.08% pre-headline, while its two prior FY2026 earnings releases were followed by 54.47% and 30.61% gains; the current report added another quarter of sales, margin, and profitability data to that sequence.

Key Figures

Q3 net sales: $24.3 million, +22.0% Q3 gross profit: $9.1 million, +43.9% Gross profit margin: 37.4% +5 more

Q3 net sales

$24.3 million, +22.0%

Third quarter fiscal 2026 versus the same period in fiscal 2025

Q3 gross profit

$9.1 million, +43.9%

Third quarter fiscal 2026 versus the same period in fiscal 2025

Gross profit margin

37.4%

Third quarter fiscal 2026 versus 31.7% in the prior-year quarter

Q3 net income

$1.9 million, or $0.21 per share

Third quarter fiscal 2026 versus $302,000, or $0.04 per share

Sales order backlog

$13.5 million

At the end of the third quarter of fiscal 2026

Nine-month net sales

$62.9 million, +18.3%

First nine months of fiscal 2026 versus the same period in fiscal 2025

Nine-month gross profit margin

35.0%

First nine months of fiscal 2026 versus 30.6% in fiscal 2025

Nine-month net income

$2.5 million, or $0.28 per share

First nine months of fiscal 2026 versus a $1.5 million net loss, or $0.19 per share

Previous Earnings Reports

5 past events · Latest: Jun 08

Same Type 5 events

1. Jun 08

   Q2 earnings results

   24h Move

   +54.5%

   Reported sales and gross profit growth, higher margin, net income, and backlog.

2. Mar 10

   Q1 earnings results

   24h Move

   +30.6%

   Reported sales and gross profit growth, margin expansion, and a smaller net loss.

3. Dec 18

   Q4 earnings results

   24h Move

   -34.4%

   Reported gross-profit and margin gains while narrowing the full-year net loss.

4. Sep 11

   Q3 earnings results

   24h Move

   +36.3%

   Reported sales, gross-profit, margin, and net-income improvements plus Lightera collaboration.

5. Jun 05

   Q2 earnings results

   24h Move

   -13.9%

   Reported sales, gross-profit, and margin gains despite a quarterly and half-year loss.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

gross profit margin, sg&a, operating leverage, weighted average shares outstanding

4 terms

gross profit margin financial

"Gross profit margin, or gross profit as a percentage of net sales, increased"

Gross profit margin shows how much money a company keeps from sales after paying for the goods or services it sold. It’s like checking how much profit is left over from each dollar earned before covering other costs. A higher margin indicates the company makes more money from its sales, which helps assess its profitability and efficiency.

sg&a financial

"SG&A expenses increased to $7.0 million"

SG&A stands for Selling, General, and Administrative expenses. It includes the costs a company spends on selling products, running the business day-to-day, and managing staff, like advertising, rent, and salaries. These expenses matter because they affect how much profit a company can make from its sales.

operating leverage technical

"the resulting positive impact of OCC's manufacturing operating leverage"

Operating leverage measures how much a company's profits are affected by changes in sales volume. When a business has high operating leverage, small increases in sales can lead to much larger increases in profit, much like a lever amplifies force. It matters to investors because it indicates how sensitive a company's earnings are to fluctuations in sales, affecting risk and potential returns.

View in glossary

weighted average shares outstanding financial

"Weighted average shares outstanding: Basic and diluted"

The weighted average shares outstanding is the average number of a company’s common shares that were available during a reporting period, adjusted so each change (like new shares issued or shares bought back) counts only for the portion of the period it was in effect. Investors use it to calculate per-share measures such as earnings per share, so it shows how ownership dilution or buybacks affect what each share is entitled to—like averaging how many people were at a potluck over time to determine each person’s share of the food.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Net Sales Increased 22.0% and Gross Profit Increased 43.9%
in the Third Quarter of Fiscal 2026 Compared to Same Period in Prior Year

ROANOKE, Va., Sept. 9, 2026 /PRNewswire/ -- Optical Cable Corporation (Nasdaq GM: OCC) ("OCC^®" or the "Company") today announced financial results for its third quarter of fiscal year 2026 ended July 31, 2026.

Third Quarter 2026 Financial Results

Consolidated net sales for the third quarter of fiscal year 2026 increased 22.0% to $24.3 million, compared to $19.9 million for the same period in the prior year. OCC experienced an increase in net sales in its enterprise, data center, and specialty markets during the third quarter of fiscal year 2026, compared to the third quarter of fiscal year 2025.

OCC continues to capitalize on growth opportunities in its targeted market sectors, both domestically and internationally – with robust demand from customers and end-users in the Company's enterprise, data center, and specialty markets.

Net sales to customers in the United States increased 20.3% and net sales to customers outside of the United States increased 28.8% in the third quarter of fiscal year 2026, compared to the same period last year.

At the end of the third quarter of fiscal year 2026, the Company's sales order backlog/forward load increased to $13.5 million as compared to $13.3 million as of April 30, 2026, $10.4 million as of January 31, 2026, and $7.3 million as of October 31, 2025.

Gross profit increased 43.9% to $9.1 million in the third quarter of fiscal year 2026, compared to $6.3 million for the same period in fiscal year 2025, due to increased volumes and the resulting positive impact of OCC's manufacturing operating leverage.

Gross profit margin, or gross profit as a percentage of net sales, increased to 37.4% in the third quarter of fiscal year 2026, compared to 31.7% in the third quarter of fiscal year 2025.

SG&A expenses increased to $7.0 million in the third quarter of fiscal year 2026, compared to $5.7 million for the third quarter of fiscal year 2025, primarily due to increases in employee costs, contracted sales personnel-related costs, and shipping costs. SG&A expenses as a percentage of net sales were 28.7% in the third quarter of fiscal year 2026, compared to 28.8% in the third quarter of fiscal year 2025.

For the third quarter of fiscal year 2026, OCC recorded net income of $1.9 million, or $0.21 per basic and diluted share, compared to net income of $302,000, or $0.04 per basic and diluted share, for the third quarter of fiscal year 2025.

Fiscal Year-to-Date 2026 Financial Results

Consolidated net sales for the first nine months of fiscal year 2026 were $62.9 million, an increase of 18.3% compared to net sales of $53.2 million for the first nine months of fiscal year 2025, driven by sales increases in the Company's enterprise, data center, and specialty markets.

Net sales to customers in the United States increased 14.8% and net sales to customers outside of the United States increased 31.1% in the first nine months of fiscal year 2026, compared to the same period in fiscal year 2025.

OCC reported gross profit of $22.1 million in the first nine months of fiscal year 2026, an increase of 35.5% compared to gross profit of $16.3 million in the first nine months of fiscal year 2025.

Gross profit margin was 35.0% in the first nine months of fiscal year 2026, compared to 30.6% for the same period in fiscal year 2025.

SG&A expenses increased to $18.8 million during the first nine months of fiscal year 2026, compared to $16.9 million for the first nine months of fiscal year 2025, primarily due to increases in employee costs, contracted sales personnel-related costs, and shipping costs.

OCC recorded net income of $2.5 million, or $0.28 per basic and diluted share, for the first nine months of fiscal year 2026, compared to a net loss of $1.5 million, or $0.19 per basic and diluted share, for the first nine months of fiscal year 2025.

Management's Comments

Neil Wilkin, President and Chief Executive Officer of OCC, said, "Our third quarter results demonstrate the strength of our team, the disciplined execution of our strategy, and the momentum we are building across our targeted market sectors. Net sales increased 22.0% in the third quarter, reflecting strong demand in our enterprise, data center, and specialty markets. Gross profit increased 43.9% in the third quarter, due to increased volumes and the positive impact of our manufacturing operating leverage. With compelling opportunities ahead in both domestic and international markets, we remain focused on capturing growth, delivering exceptional service to our customers and end-users, and driving sustainable value creation for our shareholders."

Conference Call Information

As previously announced, OCC will host a conference call today, September 9, 2026, at 11:00 a.m. Eastern Time. Individuals wishing to participate in the conference call should call (833) 316-1983 in the U.S. or (785) 838-9310 internationally, Conference ID: OCCQ326. For interested individuals unable to join the call, a replay will be available through Wednesday, September 16, 2026, by dialing (800) 839-6975 or (402) 220-6061. The call will also be broadcast live over the internet and can be accessed by visiting the investor relations section of the Company's website at www.occfiber.com.

Company Information

Optical Cable Corporation ("OCC^®") is a leading manufacturer of a broad range of fiber optic and copper data communication cabling and connectivity solutions primarily for the enterprise, data center and various harsh environment and specialty markets, offering integrated suites of high-quality products which operate as a system solution or seamlessly integrate with other components.

OCC^® is internationally recognized for pioneering innovative fiber optic and copper communications technologies, including fiber optic cable designs for the most demanding environments and applications, copper connectivity designs to meet the highest data communication industry standards, as well as a broad product offering built on the evolution of these fundamental technologies.

OCC uses its expertise to deliver cabling and connectivity products and integrated solutions that are best suited to the performance requirements of end-user applications. And OCC's product solutions offerings cover a broad range of applications—from commercial, enterprise network, data center, residential, and campus installations to customized products for specialty applications and harsh environments, including military, industrial, mining, petrochemical, renewable energy, broadcast and wireless carrier applications.

Founded in 1983, OCC is headquartered in Roanoke, Virginia with offices, manufacturing and warehouse facilities located in Roanoke, Virginia, near Asheville, North Carolina and near Dallas, Texas. OCC's facilities are ISO 9001:2015 registered and its Dallas facility is also MIL-STD-790G certified.

Optical Cable Corporation™, OCC^®, Procyon^®, Superior Modular Products™, SMP Data Communications™, Applied Optical Systems™, and associated logos are trademarks of Optical Cable Corporation.

Further information about OCC^® is available at www.occfiber.com.

FORWARD-LOOKING INFORMATION

This news release by Optical Cable Corporation and its subsidiaries (collectively, the "Company" or "OCC") may contain certain forward-looking information within the meaning of the federal securities laws. The forward-looking information may include, among other information, (i) statements concerning our outlook for the future, (ii) statements of belief, anticipation or expectation, (iii) future plans, strategies or anticipated events, and (iv) similar information and statements concerning matters that are not historical facts. Such forward-looking information is subject to known and unknown variables, uncertainties, contingencies and risks that may cause actual events or results to differ materially from our expectations, and such known and unknown variables, uncertainties, contingencies and risks may also adversely affect Optical Cable Corporation and its subsidiaries, the Company's future results of operations and future financial condition, and/or the future equity value of the Company. A partial list of such variables, uncertainties, contingencies and risks that could cause or contribute to such differences from our expectations or that could otherwise adversely affect Optical Cable Corporation and its subsidiaries is set forth in Optical Cable Corporation's quarterly and annual reports filed with the Securities and Exchange Commission ("SEC") under the heading "Forward-Looking Information." OCC's quarterly and annual reports are available to the public on the SEC's website at www.sec.gov. In providing forward-looking information, the Company expressly disclaims any obligation to update this information, whether as a result of new information, future events or otherwise except as required by applicable laws and regulations.

(Financial Tables Follow)

 

OPTICAL CABLE CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (thousands, except per share data) (unaudited)
	Three Months Ended				Nine Months Ended
	July 31,				July 31,
	2026		2025		2026		2025
Net sales	$    24,297		$    19,917		$    62,942		$    53,209
Cost of goods sold	15,202		13,598		40,883		36,929
Gross profit	9,095		6,319		22,059		16,280
SG&A expenses	6,963		5,737		18,791		16,939
Royalty expense, net	7		7		20		20
Amortization of intangible assets	13		13		41		40
Income (loss) from operations	2,112		562		3,207		(719)
Interest expense, net	(247)		(260)		(692)		(772)
Other, net	2		4		(8)		19
Other expense, net	(245)		(256)		(700)		(753)
Income (loss) before income taxes	1,867		306		2,507		(1,472)
Income tax expense (benefit)	9		4		(8)		31
Net income (loss)	$      1,858		$      302		$  2,515		$   (1,503)
Net income (loss) per share:
Basic and diluted	$       0.21		$         .04		$        0.28		$       (0.19)
Weighted average shares outstanding:
Basic and diluted	8,835		8,395		8,845		7,901

 

OPTICAL CABLE CORPORATION CONDENSED CONSOLIDATED BALANCE SHEET DATA (thousands) (unaudited)
	July 31,		October 31,
	2026		2025
Cash	$              297		$              238
Trade accounts receivable, net	11,843		10,281
Inventories	22,938		19,802
Other current assets	491		435
Total current assets	35,569		30,756
Non-current assets	9,286		9,304
Total assets	$         44,855		$         40,060
Current liabilities	$         16,409		$         16,853
Non-current liabilities	4,175		1,633
Total liabilities	20,584		18,486
Redeemable restricted common stock	9,543		5,067
Total shareholders' equity	14,728		16,507
Total liabilities, redeemable restricted common stock
and shareholders' equity	$         44,855		$         40,060

 

AT THE COMPANY:
Neil Wilkin	Tracy Smith
Chairman, President & CEO	Executive Vice President & CFO
(540) 265-0690	(540) 265-0690
investorrelations@occfiber.com	investorrelations@occfiber.com
AT JOELE FRANK, WILKINSON BRIMMER KATCHER:
Aaron Palash	Caroline Felix
(212) 355-4449 ext. 8603	(212) 355-4449 ext. 8980
occ-jfwbk@joelefrank.com	occ-jfwbk@joelefrank.com

 

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SOURCE Optical Cable Corporation

FAQ

How did OCC’s sales perform by geography in Q3 and year‑to‑date fiscal 2026?

In the third quarter of fiscal 2026, U.S. net sales increased 20.3% and net sales outside the U.S. increased 28.8% compared to the same period in fiscal 2025. For the first nine months of fiscal 2026, U.S. net sales grew 14.8% and net sales to customers outside the United States grew 31.1% versus the prior‑year period.

How has OCC’s order backlog changed over recent quarters?

OCC’s sales order backlog/forward load was $13.5 million at the end of Q3 2026, compared to $13.3 million at April 30, 2026, $10.4 million at January 31, 2026, and $7.3 million at October 31, 2025.

What were OCC’s key balance sheet figures as of July 31, 2026?

As of July 31, 2026, OCC reported cash of $297,000, trade accounts receivable of $11.8 million, and inventories of $22.9 million. Total assets were $44.9 million. Total liabilities were $20.6 million, redeemable restricted common stock was $9.5 million, and total shareholders’ equity was $14.7 million.

When is OCC’s conference call on the Q3 2026 results and how can investors join?

The company will host a conference call on September 9, 2026 at 11:00 a.m. Eastern Time. Participants can dial (833) 316-1983 in the U.S. or (785) 838-9310 internationally, using Conference ID: OCCQ326. A replay is available through September 16, 2026 by dialing (800) 839-6975 or (402) 220-6061. The call is also webcast via the investor relations section of www.occfiber.com.