ORLANDO, FL, Jan. 29, 2026 (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 and AI-enabled real-time subsea imaging and enhanced situational awareness for manned and autonomous platforms and advanced augmented diving technology, today reported its audited financial results for its fiscal year ended October 31, 2025 (FY2025).
Annmarie Gayle, CODA's Chairman and CEO, commented: "I am pleased with our overall results of operations in FY2025, especially the increase in our consolidated net revenue, operating income, pre-tax income and earnings per share. Both our Core Business and the Defense Engineering Business saw an increase in financial performance and Precision Acoustics Limited (PAL), which was acquired on October 29, 2024, delivered a very strong performance on a full year basis and achieved the qualifying conditions (revenue and pre-tax profit target) for the year one earn out payments.
Despite the fluid global policy setting environment, we continue to invest in our growth strategy and have made good progress in advancing the DAVD Technology and increasing sales. In the FY2025 we had DAVD and DAVD related sales of approximately $3.7m up from $1.2m in the previous fiscal year. We also saw increase in Echoscope and related sales, with equipment sale increasing by 30.5% to $9.4m compared to $7.2m in FY2024. Our Core Business had revenue in FY2025 of $13.2 million compared to $12.8 million in FY2024.
We also saw momentum around our growth drivers, Echoscope PIPE, with the launch of our NANO Gen Series and DAVD where we were contracted under several programs to modify the DAVD technology for integration as a life-support monitoring and visualization component within various diving systems. These modifications are designed to deliver real-time life-support data through the DAVD head-up display (HUD), as well as 3D situational awareness through integration with our compact series of imaging sonars, Echoscope, enhancing safety and mission effectiveness.
Critically, we completed the "Joint Funded DUS Hardening Program" and delivered all contractual program deliverables to both of the funding parties. Completion of this program was a pre-requisite for transitioning the untethered DUS variant into live operational use. As a result of the successful completion of the program, we delivered 16 next-generation DUS Systems for the U.S. Navy MK16 Rebreather system. The next generation DUS is currently undergoing the Authorization for Navy Use (ANU) approval process. We are excited about this as this was a pre-requisite for the broader adoption of the untethered variant which we continue to believe the largest opportunity for the DAVD technology. Records show that in the U.S. alone there are 14,000 divers within the potential community of government and defense users for the untethered system.
In our last quarter of FY2025 we conducted several key trials with the NANO Gen Series sonar which align with broader industry development towards AI-enabled autonomy and perception in subsea applications. As the subsea industry increasingly moves towards the adoption of workflows that reduce reliance on vessel-intensive and continuous human-in-the loop processes, the NANO Gen Series is designed, and uniquely positioned, to deliver the multi-mission operations required by AI-enabled autonomous and semi-autonomous platforms, including real time 3D perception and AI-enabled decision support for underwater perception, navigation, obstacle avoidance and guidance mission execution functions.
Unlike traditional sonars designed primarily for data collection, NANO Gen Series function as a core perception sensor within AI-enabled platforms".
FY2025 Financial Summary
The numbers shown below have been rounded to one decimal point. The full FY2025 financials can be found in CODA's Form 10-K filed with the SEC on January 29, 2026. When comparing the FY2024, these do not include PAL, which had no material income statement activity through October 29 -31, 2024 (the year end for the Company's FY2024).
- Total revenue was approximately $26.6 million compared to $20.3 million in FY2024, representing an increase of 30.7%.
- Revenues from the Marine Technology Business were $13.2 million compared to $12.8 million in FY2023, representing a 3.2% increase.
- Revenues from the Defense Engineering Services Business were $7.9 million compared to $7.5 million in FY2024, representing an increase of 5.6%.
- Revenues from the Acoustics Sensors and Material Business were $5.4 million in FY2025 (no prior comparative data is available for the reason mentioned above).
- Gross profit was $17.7 million compared to $14.2 million in FY2024. Gross margin was 66.5% compared to 69.8% in FY2024, reflecting the addition of the Acoustics Sensors and Material Business, and mix and geography of sales reported in the period in our other businesses.
- Operating income was $4.5 million in FY2025 compared to $3.6 million in FY2024, an increase of 26.6%.
- Operating margin was 17.1% compared to 17.6% in FY2024, which reflects the increase in total operating expenses by 24.0% largely caused by the addition of PAL and also exchange rate variance.
- Pre-tax income was approximately $5.5 million in FY2025 compared to $4.6 million in FY2024, representing an increase of 19.5%.
- Net income after taxes was $4.1 million in FY2025 compared to $3.6 million in FY2024, an increase of 13.3%.
- Diluted earnings per share in FY2025 was $0.37 compared to $0.32 in FY2024.
- Pre-tax income as a percentage of revenues for FY2025 was approximately 20.8% compared to 22.7% in FY2024. Research and Development expenditures for FY2025 were approximately $2.4 million, an increase of 9.2%, compared to approximately $2.2 million in FY2024. SG&A in FY2025 was approximately $10.7 million, an increase of 27.9% over $8.3 million in FY2024, which largely reflects the addition of PAL and the expensing of year one earnout for PAL which met the qualifying conditions for this payment.
Our cash balance at the end of FY2025 of $28.7 million represents an increase of $6.2 million over FY2024, when this figure was $22.5 million.
Fiscal Year 2025 Progress Summary:
In FY2025, we believe we have made significant progress in advancing our growth pillars and cementing the foundation for accelerated growth.
- We completed the DUS Hardening Program and delivered the first 16 new generation of untethered DAVD systems to the US Navy for MK16 Rebreather system.
- We also delivered all contractual deliverables to the Foreign Navy sponsor of the DUS Hardening Program including 4 upgraded DUS untethered systems and a full diver sled. This now puts this foreign navy in a position to evaluate the technology for broader adoption.
- The new generation of untethered DAVD systems is now undergoing approval for Authorization for Navy Use (ANU). Following this, this will pave the way for the operational use of the untethered variant and for broader adoption.
- We also received several contracts for modifying the DAVD Technology for several Defense Diving apparatus/device which we believe is a testament to the growing recognition of DAVD and Echoscope technologies as mission critical tools in the evolving landscape of military diving and underwater operations.
- We are now seeing traction for the DAVD Technology outside the U.S. and have now sold a small batch to a very influential European Navy and we will be conducting training in our second quarter of 2026.
- We launched our ultra compact Echoscope PIPE NANO Gen Series imaging sonar in our third quarter of FY2025, which is aligned and we believe the best fit for the subsea market AI enabled autonomy sensor requirement by providing a single sensor for multiple missions execution including 3D perception by supporting navigation, obstacle avoidance, target guidance and adaptive mission execution. We have had several successful trials of the NANO Gen Series which has been very well received, and we are following through on several opportunities for the NANO Gen Series.
Ms. Gayle continued: "A significant market for our business is the Defense Underwater Vehicles sector. This market is transitioning toward a new generation of underwater vehicles incorporating AI-enabled autonomous and semi-autonomous capabilities. We are focused on increasing our share of the underwater imaging sonar market and evolving our revenue profile toward program-based adoption models that support recurring sales over the life of major defense programs. As we work to expand our market share and advance our growth plans, it is crucial that Echoscope technology is positioned for consideration early in the development cycles of new underwater vehicle programs, and that we continue to invest in activities that support participation across a broad range of these programs. The introduction of the NANO Gen Series within our imaging sonar range, further strengthens our leadership in real- time 3D imaging and significantly expands our ability to address a much broader range of autonomous and semi-autonomous vehicles and application opportunities. In FY2025, we executed successful business development initiatives across this market and supported multiple defense programs in which Echoscope is being evaluated for inclusion in next-generation underwater vehicle platforms, including those AI-enabled platforms, as well as for capability upgrades on existing platforms. The inclusion of Precision Acoustics Limited into the Group has added significant capabilities especially around our imaging sonar range and also strengthens our position to compete for larger work packages in the Defense market".
We have also expanded our growth strategy to include M&A activities and continue to build our pipeline of opportunities. This is an ongoing task as we review carefully targets that are the most value accretive for the Group and easy to integrate within our operational structure.
The Company's full financial results, including its Annual Report for FY2025, are available at www.nasdaq.com/symbol/coda/sec-filings.
Conference Call
CODA will host a conference call today, January 29, 2026, at 10:00 a.m. Eastern Time (7:00 a.m. Pacific Time) to discuss its results for the fiscal year ended October 31, 2025.
CODA management will provide prepared remarks, followed by a question-and-answer period.
Date: Thursday, January 29, 2026
Time: 10:00 AM Eastern time (7:00 AM Pacific time)
U.S. dial-in numbers: 1-877-451-6152 or 1-201-389-0879
International number: 1-201-389-0879
Conference ID: 13757775
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 February 12, 2026 at 11:59 PM ET.
Telephone replay numbers: 1-844-512-2921 or 1-412-317-6671
International replay number: 1-412-317-6671
Conference ID: 13757775
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), AI enabled autonomous platforms, 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, 2026, 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:
Dillon King
coda.ir@codaoctopusgroup.com
Coda Octopus Group, Inc.
1- 407-768- 0988
CODA OCTOPUS GROUP, INC.
Consolidated Balance Sheets
October 31, 2025 and 2024
| 2025 | 2024 | |||||||
| ASSETS | ||||||||
| CURRENT ASSETS | ||||||||
| Cash and Cash Equivalents | - | 28,682,615 | - | 22,479,072 | ||||
| Accounts Receivable, net | 3,732,806 | 3,493,463 | ||||||
| Inventory | 13,636,512 | 13,975,529 | ||||||
| Unbilled Receivables | 2,988,779 | 1,657,827 | ||||||
| Prepaid Expenses | 434,021 | 537,289 | ||||||
| Other Current Assets | 531,469 | 838,835 | ||||||
| Total Current Assets | 50,006,202 | 42,982,015 | ||||||
| FIXED ASSETS | ||||||||
| Property and Equipment, net | 7,295,791 | 6,822,990 | ||||||
| Right of Use Asset, net | 372,647 | 413,171 | ||||||
| Total Fixed Assets | 7,668,438 | 7,236,161 | ||||||
| OTHER ASSETS | ||||||||
| Goodwill | 3,639,334 | 3,639,334 | ||||||
| Intangible Assets, net | 3,179,588 | 3,687,034 | ||||||
| Total Other Assets | 6,818,922 | 7,326,368 | ||||||
| Total Assets | - | 64,493,562 | - | 57,544,544 | ||||
CODA OCTOPUS GROUP, INC.
Consolidated Balance Sheets (Continued)
October 31, 2025 and 2024
| 2025 | 2024 | |||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| CURRENT LIABILITIES | ||||||||
| Accounts Payable | - | 1,407,439 | - | 1,034,488 | ||||
| Current portion of operating lease liabilities | 34,862 | 32,298 | ||||||
| Accrued Expenses and Other Current Liabilities | 2,475,952 | 1,604,596 | ||||||
| Deferred Revenue | 1,722,796 | 1,225,634 | ||||||
| Total Current Liabilities | 5,641,049 | 3,897,016 | ||||||
| LONG TERM LIABILITIES | ||||||||
| Deferred Tax Liability, net | 317,949 | 82,011 | ||||||
| Non-current operating lease liabilities | 360,070 | 380,873 | ||||||
| Deferred Revenue, less current portion | 59,080 | 56,121 | ||||||
| Total Long Term Liabilities | 737,099 | 519,005 | ||||||
| Total Liabilities | 6,378,148 | 4,416,021 | ||||||
| Commitments and contingencies | - | - | ||||||
| STOCKHOLDERS' EQUITY | ||||||||
| Common Stock, $.001 par value; 150,000,000 shares authorized, 11,270,575 issued and outstanding as of October 31, 2025 and 11,195,487 shares issued and outstanding as of October 31, 2024 | 11,271 | 11,195 | ||||||
| Preferred Stock $.001 par value; 5,000,000 shares authorized, zero issued and outstanding as of October 31, 2025 and 2024 | - | - | ||||||
| Treasury Stock | (61,933 | - | (61,933 | - | ||||
| Additional Paid-in Capital | 63,321,294 | 63,096,583 | ||||||
| Accumulated Other Comprehensive Loss | (1,878,657 | - | (2,510,831 | - | ||||
| Accumulated Deficit | (3,276,561 | - | (7,406,491 | - | ||||
| Total Stockholders' Equity | 58,115,414 | 53,128,523 | ||||||
| Total Liabilities and Stockholders' Equity | - | 64,493,562 | - | 57,544,544 | ||||
CODA OCTOPUS GROUP, INC.
Consolidated Statements of Income and Comprehensive Income
| Three Months Ended October 31, | Year Ended October 31, | ||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||
| Net Revenues | - | 7,271,157 | - | 5,055,248 | $ | 26,563,126 | - | 20,316,161 | |||||||||||||
| Cost of Revenues | 2,358,296 | 1,755,851 | 8,900,758 | 6,143,056 | |||||||||||||||||
| Gross Profit | 4,912,861 | 3,299,397 | 17,662,368 | 14,173,105 | |||||||||||||||||
| 67.6 | - | 65.3 | - | 66.5 | - | 69.8 | - | ||||||||||||||
| OPERATING EXPENSES | |||||||||||||||||||||
| Research & Development | 642,173 | 717,612 | 2,447,762 | 2,242,429 | |||||||||||||||||
| Selling, General & Administrative | 2,864,345 | 2,294,195 | 10,678,578 | 8,346,545 | |||||||||||||||||
| Total Operating Expenses | 3,506,518 | 3,011,807 | 13,126,340 | 10,588,974 | |||||||||||||||||
| INCOME FROM OPERATIONS | 1,406,343 | 287,590 | 4,536,028 | 3,584,131 | |||||||||||||||||
| OTHER INCOME | |||||||||||||||||||||
| Other Income | 148,171 | 45,535 | 268,092 | 88,382 | |||||||||||||||||
| Interest Income | 213,484 | 222,758 | 708,097 | 938,775 | |||||||||||||||||
| Interest Expense | - | - | - | - | |||||||||||||||||
| Total Other Income | 361,655 | 268,293 | 976,189 | 1,027,157 | |||||||||||||||||
| INCOME BEFORE INCOME TAX EXPENSE | 1,767,998 | 555,883 | 5,512,217 | 4,611,288 | |||||||||||||||||
| INCOME TAX EXPENSE | |||||||||||||||||||||
| Current Tax Expense | 457,454 | 230,987 | 1,149,815 | 713,670 | |||||||||||||||||
| Deferred Tax Expense/(Benefit) | 285,336 | (1,316 | - | 232,472 | 251,622 | ||||||||||||||||
| Total Income Tax Expense | 742,790 | 229,671 | 1,382,287 | 965,292 | |||||||||||||||||
| NET INCOME | 1,025,208 | - | 326,212 | $ | 4,129,930 | - | 3,645,996 | ||||||||||||||
| NET INCOME PER SHARE: | |||||||||||||||||||||
| Basic | - | 0.09 | - | 0.03 | - | 0.37 | - | 0.33 | |||||||||||||
| Diluted | - | 0.09 | - | 0.03 | - | 0.37 | - | 0.32 | |||||||||||||
| WEIGHTED AVERAGE SHARES: | |||||||||||||||||||||
| Basic | 11,249,575 | 11,182,778 | 11,232,440 | 11,166,956 | |||||||||||||||||
| Diluted | 11,269,802 | 11,306,149 | 11,252,667 | 11,290,327 | |||||||||||||||||
| NET INCOME | - | 1,025,208 | - | 326,212 | $ | 4,129,930 | - | 3,645,996 | |||||||||||||
| Foreign Currency Translation Adjustment | (210,171 | - | (53,559 | - | 632,174 | 931,718 | |||||||||||||||
| Total Other Comprehensive Income | - | (210,171 | - | - | (53,559 | - | $ | 632,174 | - | 931,718 | |||||||||||
| COMPREHENSIVE INCOME / (LOSS) | - | 815,037 | - | 272,653 | $ | 4,762,104 | - | 4,577,714 | |||||||||||||
