Optex Systems Holdings Announces Fiscal Q2 2026 Financial Results
Rhea-AI Summary
Optex Systems (Nasdaq:OPXS) reported fiscal Q2 2026 revenue of $9.6M, down 10.3% year over year, with net income of $1.3M or $0.19 per diluted share.
Gross margin improved to 35.2%. Six‑month revenue was $18.8M and Adjusted EBITDA $2.8M. The company guides full‑year 2026 revenue to $43–$45M and Adjusted EBITDA to $7.5–$8.5M, versus 2025 revenue of $41.3M and Adjusted EBITDA of $8.0M. New orders reached $16.3M year to date, working capital was $22.6M, cash was $4.2M, and there was no debt on the revolving credit facility.
Positive
- Gross margin rose to 35.2% from 31.3% year over year in Q2
- Q2 gross profit held at $3.4M despite a 10.3% revenue decline
- Six‑month new orders grew 3.8% to $16.3M year over year
- Full‑year 2026 revenue guided to $43–$45M vs. $41.3M in 2025
- Working capital increased to $22.6M with cash of $4.2M
- No outstanding debt under the revolving credit facility as of March 29, 2026
Negative
- Q2 2026 revenue declined 10.3% year over year to $9.6M
- Q2 net income decreased 24.2% to $1.3M; EPS fell to $0.19
- Six‑month net income declined 39.4% to $1.6M year over year
- Q2 Adjusted EBITDA fell 16.4% to $2.0M; six‑month down 22.6%
- Operating income declined 25.6% in Q2 and 42.5% year to date
- Operating expenses rose on leadership transition, stock compensation, R&D and compliance investments
News Market Reaction – OPXS
In the May 12 session, OPXS gained 12.76%, reflecting a significant positive market reaction. Argus tracked a peak move of +20.4% during that session. Our momentum scanner triggered 20 alerts that day, indicating elevated trading interest and price volatility. Trading volume was exceptionally heavy at 6.2x the daily average, suggesting very strong buying interest.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Feb 05 | Earnings call notice | Neutral | -4.5% | Announcement of fiscal 2026 Q1 earnings release and investor conference call. |
| Dec 03 | Earnings call notice | Neutral | +4.9% | Scheduling of fiscal 2025 Q4 results release and same-day investor call. |
| Aug 04 | Earnings call notice | Neutral | +3.5% | Scheduling of fiscal 2025 Q3 earnings conference call and results release. |
| May 01 | Earnings call notice | Neutral | +3.9% | Announcement of fiscal 2025 Q2 earnings report timing and conference call. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Earnings-tagged announcements have produced modest single-digit moves, with both positive and negative reactions, suggesting limited but noticeable sensitivity to earnings-related headlines.
Over the past year, Optex’s earnings-tagged news has mainly been scheduling notices for quarterly and annual conference calls, with share moves generally contained to low single digits around these dates. The average move across these 4 events was about 1.95%, split between positive and negative reactions. Today’s release goes beyond call logistics by providing full fiscal Q2 2026 financial results, including margin expansion, cash position and updated full-year revenue and Adjusted EBITDA outlook, building on that established earnings communication pattern.
Key Terms
adjusted EBITDA financial
working capital financial
capital expenditures financial
revolving credit facility financial
Form 10-Q regulatory
Annual Report on Form 10-K regulatory
AI-generated analysis. How Rhea-AI works. Not financial advice.
RICHARDSON, TX / ACCESS Newswire / May 11, 2026 / Optex Systems Holdings, Inc. (Nasdaq:OPXS), a manufacturer of precision optical sighting systems for military and commercial applications, today announced financial results for the three and six months ended March 29, 2026. The Q2 earnings call will be held on May 14th at 2pm EST with the Conference Number 800-343-4849 and Conference ID Code: OPXS2Q26.
Chad George, CEO of Optex Systems Holdings, Inc., commented: "Optex remains on track to deliver one of the strongest revenue years in the Company's history, while continuing to improve gross margins through operational efficiencies and disciplined cost management. We believe increased investment in research and development positions the Company for long-term growth and stronger profitability moving forward."
Three and Six-month Fiscal 2026 Highlights
Revenue for the quarter was
$9.6 million compared to$10.7 million in the prior year periodSix-month revenue totaled
$18.8 million , relatively flat compared to the prior yearThree-month gross margin improved to
35.2% compared to31.3% last yearQuarterly net income was
$1.3 million , or$0.19 per diluted share, compared to$1.6 million , or$0.23 per diluted share last yearQuarterly adjusted EBITDA was
$2.0 million compared to$2.4 million in the prior year periodNew orders increased
3.8% year over year to$16.3 million for the first six monthsWorking capital increased to
$22.6 million Cash balance totaled
$4.2 million with no outstanding debt under the Company's revolving credit facility
The Company's first-half revenue was impacted by the federal government shutdown and delayed approval of the fiscal 2026 appropriations bill, which postponed several contract awards into the second half of the fiscal year.
Despite the lower revenue, gross profit and gross margins improved due to the completion of legacy loss-making contracts, improved pricing on newer programs, and operational efficiencies across both operating segments.
Operating expenses increased primarily due to leadership transition costs, stock compensation expense, higher research and development spending and investments related to CMMC compliance and internal systems upgrades.
Fiscal 2026 Outlook
Based on current funded backlog and anticipated contract awards, the Company expects stronger revenue performance during the second half of fiscal 2026, with full-year revenue anticipated to range between
In addition, the Company expects full-year fiscal 2026 Adjusted EBITDA to range between
During the first six months of fiscal 2026, the Company invested approximately
Our key performance measures for the three and six months ended March 29, 2026 and March 30, 2025 are summarized below.
(Thousands) | ||||||||||||||||||||||||
Three months ended | Six months ended | |||||||||||||||||||||||
Metric | Mar 29, 2026 | Mar 30, 2025 | % Change | Mar 29, 2026 | Mar 30, 2025 | % Change | ||||||||||||||||||
Revenue | $ | 9,627 | $ | 10,730 | (10.3 | )% | $ | 18,772 | $ | 18,928 | (0.8 | )% | ||||||||||||
Gross Profit | $ | 3,392 | $ | 3,361 | 0.9 | % | $ | 5,488 | $ | 5,489 | - | |||||||||||||
Gross Margin % | 35.2 | % | 31.3 | % | 12.5 | % | 29.2 | % | 29.0 | % | 0.7 | % | ||||||||||||
Operating Income | $ | 1,664 | $ | 2,237 | (25.6 | )% | $ | 1,813 | $ | 3,153 | (42.5 | )% | ||||||||||||
Net Income | $ | 1,341 | $ | 1,768 | (24.2 | )% | $ | 1,583 | $ | 2,612 | (39.4 | )% | ||||||||||||
Adjusted EBITDA (non-GAAP) | $ | 2,035 | $ | 2,435 | (16.4 | )% | $ | 2,763 | $ | 3,572 | (22.6 | )% | ||||||||||||
The table below summarizes our three and six-month operating results for the periods ended March 29, 2026 and December 30, 2025, in terms of both the GAAP net income measure and the non-GAAP Adjusted EBITDA measure. We believe that including both measures allows the reader to better evaluate our overall performance.
(Thousands) | ||||||||||||||||
Three months ended | Six months ended | |||||||||||||||
March 29, 2026 | March 30, 2025 | March 29, 2026 | March 30, 2025 | |||||||||||||
Net Income (GAAP) | $ | 1,341 | $ | 1,768 | $ | 1,583 | $ | 2,612 | ||||||||
Add: | ||||||||||||||||
Non-recurring General and Administrative Expenses | 14 | - | 291 | - | ||||||||||||
Federal Income Tax Expense | 358 | 470 | 313 | 529 | ||||||||||||
Depreciation and Amortization | 97 | 126 | 187 | 255 | ||||||||||||
Stock Compensation | 260 | 72 | 472 | 164 | ||||||||||||
Interest (Income) Expense | (35 | ) | (1 | ) | (83 | ) | 12 | |||||||||
Adjusted EBITDA - Non GAAP | $ | 2,035 | $ | 2,435 | $ | 2,763 | $ | 3,572 | ||||||||
Optex Systems Holdings, Inc.
Condensed Consolidated Balance Sheets
(Thousands, except share | ||||||||
(Unaudited) | September 28, 2025 | |||||||
ASSETS | ||||||||
Cash and Cash Equivalents | $ | 4,164 | $ | 6,389 | ||||
Accounts Receivable, Net | 5,657 | 4,569 | ||||||
Inventory, Net | 15,636 | 14,322 | ||||||
Contract Asset | 115 | 142 | ||||||
Prepaid Expenses | 578 | 285 | ||||||
Current Assets | 26,150 | 25,707 | ||||||
Property and Equipment, Net | 2,089 | 1,427 | ||||||
Other Assets | ||||||||
Deferred Tax Asset | 1,098 | 1,199 | ||||||
Right-of-use Asset | 1,500 | 1,700 | ||||||
Security Deposits | 23 | 23 | ||||||
Other Assets | 2,621 | 2,922 | ||||||
Total Assets | $ | 30,860 | $ | 30,056 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current Liabilities | ||||||||
Accounts Payable | $ | 908 | $ | 1,525 | ||||
Operating Lease Liability | 672 | 645 | ||||||
Federal Income Taxes Payable | - | 87 | ||||||
Accrued Expenses | 1,570 | 1,634 | ||||||
Accrued Selling Expense | 134 | 141 | ||||||
Accrued Warranty Costs | 25 | 162 | ||||||
Contract Loss Reserves | 56 | 132 | ||||||
Customer Advance Deposits | 227 | 234 | ||||||
Current Liabilities | 3,592 | 4,560 | ||||||
Other Liabilities | ||||||||
Operating Lease Liability, net of current portion | 964 | 1,205 | ||||||
Total Liabilities | 4,556 | 5,765 | ||||||
Commitments and Contingencies | - | - | ||||||
Stockholders' Equity | ||||||||
Common Stock - ( | 7 | 7 | ||||||
Additional Paid in Capital | 22,231 | 21,801 | ||||||
Retained Earnings | 4,066 | 2,483 | ||||||
Stockholders' Equity | 26,304 | 24,291 | ||||||
Total Liabilities and Stockholders' Equity | $ | 30,860 | $ | 30,056 | ||||
The accompanying notes in our Form 10-Q for the three and six months ended March 29, 2026 and our Annual Report on Form 10-K for the twelve months ended September 28, 2025 filed with the SEC on May 11, 2026 and December 17, 2025, respectively, are an integral part of these financial statements.
Optex Systems Holdings, Inc.
Condensed Consolidated Statements of Income
(Unaudited)
(Thousands, except share and per share data) | ||||||||||||||||
Three months ended | Six months ended | |||||||||||||||
March 29, | March 30, | March 29, | March 30, | |||||||||||||
Revenue | $ | 9,627 | $ | 10,730 | $ | 18,772 | $ | 18,928 | ||||||||
Cost of Sales | 6,235 | 7,369 | 13,284 | 13,439 | ||||||||||||
Gross Profit | 3,392 | 3,361 | 5,488 | 5,489 | ||||||||||||
General and Administrative Expense | 1,728 | 1,124 | 3,675 | 2,336 | ||||||||||||
Operating Income | 1,664 | 2,237 | 1,813 | 3,153 | ||||||||||||
Interest Income (Expense) | 35 | 1 | 83 | (12 | ||||||||||||
Income Before Taxes | 1,699 | 2,238 | 1,896 | 3,141 | ||||||||||||
Income Tax Expense, net | 358 | 470 | 313 | 529 | ||||||||||||
Net Income | $ | 1,341 | $ | 1,768 | $ | 1,583 | $ | 2,612 | ||||||||
Basic Income per Share | $ | 0.19 | $ | 0.26 | $ | 0.23 | $ | 0.38 | ||||||||
Weighted Average Common Shares Outstanding - basic | 6,919,674 | 6,871,960 | 6,905,249 | 6,842,949 | ||||||||||||
Diluted Income per Share | $ | 0.19 | $ | 0.26 | $ | 0.23 | $ | 0.38 | ||||||||
Weighted Average Common Shares Outstanding - diluted | 6,925,172 | 6,893,231 | 6,940,620 | 6,902,912 | ||||||||||||
The accompanying notes in our Form 10-Q for the three and six months ended March 29, 2026 and our Annual Report on Form 10-K for the twelve months ended September 28, 2025 filed with the SEC on May 11, 2026 and December 17, 2025, respectively, are an integral part of these financial statements.
About Optex Systems Holdings
Optex Systems Holdings, Inc. manufactures optical sighting systems and assemblies primarily for U.S. Department of Defense applications. Its products are installed on military vehicle platforms including the Abrams, Bradley, and Stryker vehicle families, along with numerous surveillance and night vision systems.
For more information, visit www.optexsys.com
Safe Harbor Statement
This press release contains certain forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995, including those relating to the products and services described herein. You can identify these statements by the use of the words "believe," "may," "will," "could," "should," "would," "plans," "expects," "anticipates," "continue," "estimate," "project," "intend," "likely," "forecast," "probable," and similar expressions.
These forward-looking statements represent our expectations, beliefs, intentions or strategies concerning future events, including, but not limited to, any statements regarding growth strategy; product and development programs; financial performance and financial condition (including revenue, net income, Adjusted EBITDA, G&A expenses, profit margins and working capital); customer demand; orders and backlog; expected timing of contract deliveries to customers and corresponding revenue recognition; increases in the cost of materials and labor; costs remaining to fulfill contracts; contract loss reserves; labor shortages; follow-on orders; supply chain challenges; the continuation of historical trends; the sufficiency of our cash balances for future liquidity and capital resource needs; the expected impact of changes in accounting policies on our results of operations, financial condition or cash flows; anticipated problems and our plans for future operations; and the economy in general or the future of the defense industry.
These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected or anticipated. Such risks and uncertainties include, but are not limited to, continued funding of defense programs and military spending, the timing of such funding, general economic and business conditions, including unforeseen weakness in the Company's markets, effects of continued geopolitical unrest and regional conflicts, competition, changes in technology and methods of marketing, delays in completing engineering and manufacturing programs, changes in customer order patterns, changes in product mix, continued success in technological advances and delivering technological innovations, changes in the U.S. Government's interpretation of federal procurement rules and regulations, changes in spending due to policy changes in any new federal presidential administration, market acceptance of the Company's products, shortages in components, production delays due to performance quality issues with outsourced components, inability to fully realize the expected benefits from acquisitions and restructurings or delays in realizing such benefits, challenges in integrating acquired businesses and achieving anticipated synergies, changes to export regulations, increases in tax rates, changes to generally accepted accounting principles, difficulties in retaining key employees and customers, unanticipated costs under fixed-price service and system integration engagements, changes in the market for microcap stocks regardless of growth and value and various other factors beyond our control.
You must carefully consider any such statement and should understand that many factors could cause actual results to differ from the Company's forward-looking statements. These factors include inaccurate assumptions and a broad variety of other risks and uncertainties, including some that are known and some that are not. No forward-looking statement can be guaranteed and actual future results may vary materially. The Company does not assume the obligation to update any forward-looking statement. You should carefully evaluate such statements in light of factors described in the Company's filings with the SEC, especially on Forms 10-K, 10-Q and 8-K. In various filings the Company has identified important factors that could cause actual results to differ from expected or historic results. You should understand that it is not possible to predict or identify all such factors. Consequently, you should not consider any such list to be a complete list of all potential risks or uncertainties.
Contact:
IR@optexsys.com
1-972-764-5718
SOURCE: Optex Systems Holdings, Inc.
View the original press release on ACCESS Newswire