Optex Systems (NASDAQ: OPXS) Q2 2026 revenue dips as margins improve

Rhea-AI Filing Summary

Optex Systems Holdings reported fiscal Q2 2026 results with softer sales but stronger margins. Revenue for the quarter was $9.6 million, down 10.3% from the prior year period, while six‑month revenue was essentially flat at $18.8 million. Management attributed the first‑half revenue impact to the federal government shutdown and delayed approval of the fiscal 2026 appropriations bill, which pushed several contract awards into the second half.

Despite lower revenue, quarterly gross profit rose slightly to $3.4 million and gross margin improved to 35.2% from 31.3%, helped by completed loss‑making contracts, better pricing on newer programs, and operational efficiencies. Operating income and net income declined year over year for both the quarter and first half as operating expenses increased from leadership transition costs, higher stock compensation, increased R&D spending, and CMMC and systems investments. The company expects stronger second‑half revenue and now anticipates full‑year fiscal 2026 revenue of $43–45 million versus $41.3 million in 2025, with Adjusted EBITDA projected between $7.5 million and $8.5 million compared to $8.0 million in 2025.

Insights

Defense-sector earnings analyst

Revenue timing hurt first-half results, but margins and backlog-driven outlook remain intact.

Optex Systems saw Q2 2026 revenue fall to $9.6M, down 10.3%, as federal budget delays pushed contracts into later periods. However, gross margin improved to 35.2% from 31.3%, aided by better pricing, completed loss contracts and operational efficiencies.

Operating income and net income declined for both the quarter and six months as general and administrative costs rose from leadership transition, stock compensation, higher R&D, and CMMC and systems investments. Adjusted EBITDA for the first half fell 22.6% to $2.8M, showing near-term profit pressure.

Management still guides full-year fiscal 2026 revenue to $43–45M versus $41.3M in 2025, and Adjusted EBITDA of $7.5–8.5M versus $8.0M. Actual performance will depend on the timing and execution of second-half contract awards and deliveries referenced for the period ended September 2026.

8-K Event Classification

2 items: 2.02, 9.01

2 items

Item 2.02 Results of Operations and Financial Condition Financial

Disclosure of earnings results, typically an earnings press release or preliminary financials.

Item 9.01 Financial Statements and Exhibits Exhibits

Financial statements, pro forma financial information, and exhibit attachments filed with this report.

Key Figures

Q2 2026 Revenue: $9.627M Q2 2026 Gross Margin: 35.2% Q2 2026 Net Income: $1.341M +5 more

8 metrics

Q2 2026 Revenue $9.627M Three months ended March 29, 2026; down 10.3% YoY

Q2 2026 Gross Margin 35.2% Up from 31.3% in prior-year quarter

Q2 2026 Net Income $1.341M Three months ended March 29, 2026; down 24.2% YoY

First-half 2026 Revenue $18.772M Six months ended March 29, 2026; down 0.8% YoY

First-half 2026 Adjusted EBITDA $2.763M Six months ended March 29, 2026; down 22.6% YoY

FY 2026 Revenue Guidance $43–45M Company outlook vs $41.3M revenue in fiscal 2025

FY 2026 Adjusted EBITDA Guidance $7.5–8.5M Company outlook vs $8.0M in fiscal 2025

Cash and Cash Equivalents $4.164M Balance sheet as of March 29, 2026

Key Terms

Adjusted EBITDA, federal government shutdown, CMMC compliance, Right-of-use Asset, +1 more

5 terms

Adjusted EBITDA financial

"the Company expects full-year fiscal 2026 Adjusted EBITDA to range between $7.5 million and $8.5 million"

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

federal government shutdown regulatory

"first-half revenue was impacted by the federal government shutdown and delayed approval of the fiscal 2026 appropriations bill"

CMMC compliance regulatory

"investments related to CMMC compliance and internal systems upgrades"

Right-of-use Asset financial

"Right-of-use Asset | | | 1,500 | | | | 1,700"

A right-of-use asset is the value a company records on its balance sheet for the practical use of something it leases — like the benefit of living in a rented office or using leased equipment for a set period. Investors care because it turns many leases into on-balance-sheet assets and matching liabilities, which can change reported leverage, asset base and performance metrics much like taking on a loan would.

Non-recurring General and Administrative Expenses financial

"Non-recurring General and Administrative Expenses | | | 14"

Earnings Snapshot

Q2 2026 Revenue: $9.627M · Guidance included

Three and six months ended March 29, 2026

Q2 2026 Revenue $9.627M -10.3% YoY

Q2 2026 Net Income $1.341M -24.2% YoY

Q2 2026 Adjusted EBITDA $2.035M -16.4% YoY

First-half 2026 Revenue $18.772M -0.8% YoY

First-half 2026 Adjusted EBITDA $2.763M -22.6% YoY

Guidance

Full-year fiscal 2026 revenue expected at $43–45M vs $41.3M in 2025; full-year Adjusted EBITDA expected at $7.5–8.5M vs $8.0M in 2025.

Understanding 8-K Material Events →

false 0001397016 0001397016 2026-05-11 2026-05-11 iso4217:USD xbrli:shares iso4217:USD xbrli:shares

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): May 11, 2026

OPTEX SYSTEMS HOLDINGS, INC.

(Exact Name of Registrant as Specified in Charter)

Delaware		001-41644		90-0609531
(State or other jurisdiction of incorporation)		(Commission File Number)		(IRS Employer Identification No.)

1420 Presidential Drive, Richardson, TX		75081-2439
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code: (972) 644-0722

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 DFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4 (c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:.

Title of each class		Trading Symbol		Name of each exchange on which registered
Common Stock		OPXS		NASDAQ

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

☐	Emerging growth company
☐	If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to section 13(a) of the Exchange Act.

Item 2.02 Results of Operations and Financial Condition.

On May 11, 2026, Optex Systems Holdings, Inc. (the “Company”) issued a press release regarding its financial results for the fiscal quarter ended March 29, 2026. A copy of the press release is furnished as Exhibit 99.1 hereto and is incorporated by reference herein.

The information above is furnished pursuant to Item 2.02 and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section. Such information, including Exhibit 99.1, shall not be incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

Item 9.01 Financial Statements and Exhibits.

(d)		Exhibits:
Exhibit Number		Description
99.1		Financial Results Press Release, dated May 11, 2026
104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	Optex Systems Holdings, Inc.
	(Registrant)
	By:	/s/ Karen Hawkins
		Karen Hawkins
	Title:	Chief Financial Officer

Date: May 11, 2026

Exhibit 99.1

Optex Systems Holdings Announces Fiscal Q2 2026 Financial Results

RICHARDSON, Texas, 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.

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 period

● Six-month revenue totaled $18.8 million, relatively flat compared to the prior year

● Three-month gross margin improved to 35.2% compared to 31.3% last year

● Quarterly net income was $1.3 million, or $0.19 per diluted share, compared to $1.6 million, or $0.23 per diluted share last year

● Quarterly adjusted EBITDA was $2.0 million compared to $2.4 million in the prior year period

● New orders increased 3.8% year over year to $16.3 million for the first six months

● Working 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 $43 million and $45 million compared to $41.3 million during fiscal 2025.

In addition, the Company expects full-year fiscal 2026 Adjusted EBITDA to range between $7.5 million and $8.5 million compared to $8.0 million in fiscal 2025.

During the first six months of fiscal 2026, the Company invested approximately $0.8 million in capital equipment and has an additional $1.1 million in committed capital expenditures focused on expanding manufacturing capacity, supporting new product lines, and enhancing rapid prototyping and research capabilities.

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 and per share data)
		(Unaudited) March 29, 2026				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 – ($0.001 par, 2,000,000,000 authorized, 6,937,358 and 6,920,658 shares issued and outstanding, respectively)			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, 2026				March 30, 2025				March 29, 2026				March 30, 2025
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

FAQ

How did Optex Systems (OPXS) perform in fiscal Q2 2026?

Optex Systems reported Q2 2026 revenue of $9.6 million, down 10.3% year over year, but improved gross margin to 35.2%. Net income was $1.3 million versus $1.8 million a year earlier, reflecting higher operating expenses despite stronger profitability per dollar of sales.

What are Optex Systems’ revenue and EBITDA outlooks for fiscal 2026?

Optex Systems expects full-year fiscal 2026 revenue between $43 million and $45 million, compared with $41.3 million in fiscal 2025. The company projects full-year Adjusted EBITDA of $7.5 million to $8.5 million, versus $8.0 million reported for fiscal 2025, implying relatively stable profitability overall.

Why were Optex Systems’ first-half 2026 revenues impacted?

First-half fiscal 2026 revenue was constrained by a federal government shutdown and delayed approval of the fiscal 2026 appropriations bill. These factors postponed several contract awards into the second half, affecting short-term sales timing rather than eliminating expected contract opportunities for Optex Systems’ defense-related products.

How did Optex Systems’ profitability metrics change year over year?

For Q2 2026, gross profit was $3.4 million with margin at 35.2%, up from 31.3%. However, operating income fell 25.6% to $1.7 million, and net income declined 24.2% to $1.3 million, as higher operating expenses more than offset the benefit of improved gross margins during the quarter.

What is Optex Systems’ Adjusted EBITDA trend in fiscal 2026?

Adjusted EBITDA for Q2 2026 was $2.0 million, down 16.4% from the prior-year quarter. For the first six months, Adjusted EBITDA totaled $2.8 million, a 22.6% decrease year over year, reflecting increased general and administrative costs and investments despite stable revenue levels across the first half.

What investments is Optex Systems making to support future growth?

During the first six months of fiscal 2026, Optex Systems invested about $0.8 million in capital equipment and committed another $1.1 million. These expenditures aim to expand manufacturing capacity, support new product lines, and enhance rapid prototyping and research capabilities, aligning with higher R&D spending and CMMC compliance efforts.

Filing Exhibits & Attachments

4 documents

Press Releases

• EX-99.1 EX-99.1 98.8 KB

Other Documents

• EX-101 XBRL SCHEMA FILE 2.9 KB
• EX-101 XBRL LABEL FILE 33.4 KB
• EX-101 XBRL PRESENTATION FILE 21.8 KB