Precision Optics Corporation: Precision Optics Reports Third Quarter Fiscal Year 2026 Financial Results

LITTLETON, Mass., May 13, 2026 (GLOBE NEWSWIRE) -- Precision Optics Corporation, Inc. (NASDAQ: POCI), a leading designer and manufacturer of advanced optical instruments for the medical and defense/aerospace industries, announced operating results on an unaudited basis for its third quarter fiscal year 2026 for the period ended March 31, 2026.

Q3 2026 Financial Highlights (3 Months Ended March 31, 2026):

• Revenue was $8.7 million, a quarterly record, compared to $4.2 million in the same quarter of the previous fiscal year, representing growth of approximately 108%, and compared to $7.4 million in the most recent sequential quarter.
• Production revenue, or total revenue net of engineering revenue, was $7.6 million, a quarterly record, compared to $3.3 million in the same quarter of the previous fiscal year, representing growth of approximately 131%, and compared to $6.4 million in the most recent sequential quarter.
• Engineering revenue was $1.1 million compared to $0.9 million in the same quarter of the previous fiscal year, an increase of 22%, and compared to $1.0 million in the most recent sequential quarter.
• Gross margins were 23.6% compared to 10.0% in the same quarter of the previous fiscal year and compared to 2.8% in the most recent sequential quarter.
• Net loss for the quarter was $(0.1) million, compared to $(2.1) million in the same quarter of the previous fiscal year, and compared to $(1.8) million in the most recent sequential quarter.
• Adjusted EBITDA was $0.3 million for the quarter compared to $(1.3) million in the same quarter of the previous fiscal year and compared to $(1.5) million in the most recent sequential quarter.

Recent Additional Highlights:

• Increased production to a top-tier aerospace company. Third quarter fiscal 2026 revenue totaled $3.6 million from this customer, a quarterly revenue record.
• Increased production of cystoscopy surgery system. Third quarter fiscal 2026 revenue totaled $2.2 million from this customer, a quarterly revenue record.
• Received a $3.5 million follow-on production order for single-use ophthalmic program, with shipments expected to commence during the fourth fiscal quarter.
• The Company's Ross Optical operations saw continued strong volume growth, driving a 65% year-over-year growth in the segment's revenues.
• Completed an oversubscribed $10 million public offering in March 2026 to support the growth plans of the Company.
  
  

FY 2026 Financial Guidance (Year Ended June 30, 2026):

• The Company is increasing its previously announced guidance for fiscal year 2026 revenue to be in a range of $29 to $31 million, compared to previously announced guidance of $26 to $28 million. The newly increased revenue guidance represents 52% to 62% growth over the Company's fiscal year 2025 revenue.
• The Company is increasing its previously announced guidance for fiscal year 2026 Adjusted EBITDA to be in a range of $(2.5) to $(2.7) million, compared to previously announced guidance of $(2.5) to $(3.0) million.

"Our third quarter results were highlighted by revenue of $8.7 million, a new quarterly revenue record, and positive adjusted EBITDA, reflecting the continued strength of our core production programs and meaningful improvements in manufacturing performance," said Joe Forkey, CEO of Precision Optics. "Revenue growth was driven primarily by increased volumes in our aerospace and single-use cystoscope programs, both of which continue to perform at strong levels, as well as our Ross Optical segment. We achieved significant improvements in manufacturing efficiency, which drove a dramatic improvement in gross margins. Our new manufacturing leadership and production team have done an outstanding job improving execution while supporting higher production volumes."

"We expect production revenue to remain strong and so we are increasing our revenue and adjusted EBITDA guidance for the fiscal year."

"Industry trends remain highly favorable and with the additional capital raised recently we are strategically investing in the ongoing capabilities expansion and acceleration of our go-to-market planning to accelerate overall growth," Forkey concluded.

The following table summarizes the third quarter and year-to-date (unaudited) results for the periods ending March 31, 2026, and 2025:

		Three Months							Nine Months
		Ended March 31							Ended March 31
			2026			2025				2026			2025
Revenues		-	8,708,631		-	4,185,968			-	22,757,291		-	12,909,928
Gross Profit			2,056,534			417,975				3,207,552			2,605,247
Stock Compensation Expenses			253,777			714,662				742,497			1,172,232
Other			1,867,219			1,741,598				5,867,101			5,628,262
Total Operating Expenses			2,120,996			2,456,260				6,609,598			6,800,494
Operating Income (Loss)			(64,462	-		(2,038,285	-			(3,402,046	-		(4,195,247	-
Net Income (Loss)			(108,283	-		(2,096,761	-			(3,526,104	-		(4,377,689	-
Income (Loss) per Share
	Basic & Fully Diluted	-	(0.01	-	-	(0.30	-		-	(0.46	-	-	(0.67	-
Weighted Average Common Shares Outstanding
	Basic & Fully Diluted		7,794,263			6,917,281				7,740,834			6,491,687

Conference Call Details
Date and Time: Wednesday, May 13, 2026, at 5:00 p.m. ET.

Call-in Information: Interested parties can access the conference call by dialing [phone] or [phone].

Live Webcast Information: Interested parties can access the conference call via a live webcast, which is available at https://app.webinar.net/l90v4RE3K1N.

Replay: A teleconference replay of the call will be available for seven days, at [phone] or [phone], replay access code 3475317. A webcast replay will be available at https://app.webinar.net/l90v4RE3K1N.

About Precision Optics Corporation
Founded in 1982, Precision Optics is a vertically integrated optics company primarily focused on leveraging its proprietary micro-optics, 3D imaging and digital imaging technologies to the healthcare and defense/aerospace industries by providing services ranging from new product concept through mass manufacture. Utilizing its leading-edge in-house design, prototype, regulatory and fabrication capabilities as well as its Ross Optical division's high volume world-wide sourcing, inspecting and production resources, the Company is able to design and manufacture next-generation product solutions to the most challenging customer requirements. Within healthcare, Precision Optics enables next generation medical device companies around the world to meet the increasing demands of the surgical community who require more enhanced and smaller imaging systems for minimally invasive surgery as well as 3D endoscopy systems to support the rapid proliferation of surgical robotic systems. In addition to these next generation applications, Precision Optics has supplied top tier medical device companies a wide variety of optical products for decades, including complex endocouplers and specialized endoscopes. The Company is also leveraging its technical proficiency in micro-optics to enable leading edge defense/aerospace applications which require the highest quality standards and the optimization of size, weight and power. For more information, please visit www.poci.com.

Non-GAAP Financial Measures

Precision Optics has provided in this press release financial information that has not been prepared in accordance with accounting principles generally accepted in the Unites States of America ("non-GAAP"). The non-GAAP financial measure is Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization). In addition to the aforementioned items, Adjusted EBITDA also excludes from Net Income (Loss) the effect of stock-based compensation.

This non-GAAP financial measure assists Precision Optics management in comparing its operating performance over time because certain items may obscure the underlying business trends and make comparisons of long-term performance difficult, as they are of a nature and/or size that occur with inconsistent frequency or relate to discrete acquisition or restructuring plans that are fundamentally different from the ongoing productivity of the Company. Precision Optics management also believes that presenting this measure allows investors to view its performance using the same measures that the Company uses in evaluating its financial and business performance and trends.

Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information calculated in accordance with GAAP. Investors are encouraged to review the reconciliation of non-GAAP measures to their most directly comparable GAAP financial measures. A reconciliation of the non-GAAP financial measure presented above to GAAP results has been provided in the financial tables included with this press release.

About Forward-Looking Statements
This press release contains forward-looking statements within the meaning of U.S. federal securities laws. Any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements. In addition, any statements that refer to projections, forecasts, or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words "anticipate," "believe," "continue," "could," "estimate," "expect," "intends," "may," "might," "plan," "possible," "potential," "predict," "project," "should," "would" and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements in this press release include, without limitation, the Company's projections for future revenue, gross margins and Adjusted EBITDA, expectations regarding margin improvement and operational performance, anticipated product and program expansion, and the Company's strategic outlook. The forward-looking statements contained in this press release are based on certain assumptions and analyses made by the management of the Company in light of their respective experience and perception of historical trends, current conditions, and expected future developments and their potential effects on the Company as well as other factors they believe are appropriate in the circumstances. There can be no assurance that future developments affecting the Company will be those anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond the control of the parties), or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements, including the demand for the Company's products, global supply chains and economic activity in general and other risks and uncertainties identified in the Company's filings with the SEC. Should one or more of these risks or uncertainties materialize or should any of the assumptions being made prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as may be required under applicable securities laws.

Company Contact:
PRECISION OPTICS CORPORATION
550 King Street, Bldg. A Suite 100
Littleton, MA 01460
Telephone: [phone]

Investor Contact:
LYTHAM PARTNERS, LLC
Robert Blum
Telephone: [phone]
[e-mail]

PRECISION OPTICS CORPORATION, INC. BALANCE SHEETS (UNAUDITED)
		March 31,				June 30,
		2026				2025
ASSETS
Current Assets:
Cash and cash equivalents		-	10,680,046			-	1,773,735
Accounts receivable, net of allowance for credit losses of $134,313 at March 31, 2026 and $80,192 at June 30, 2025			6,577,866				4,336,730
Inventories, net			3,702,461				3,562,112
Prepaid expenses			446,313				385,390
Total current assets			21,406,686				10,057,967
Fixed Assets:
Machinery and equipment			3,415,589				3,385,958
Leasehold improvements			1,225,401				871,356
Furniture and fixtures			615,723				538,428
			5,256,713				4,795,742
Less-accumulated depreciation and amortization			4,388,000				4,261,950
Net fixed assets			868,713				533,792
Operating lease right-to-use asset			2,371,091				141,825
Patents, net			215,507				232,493
Goodwill			8,824,210				8,824,210
Total other assets			11,410,808				9,198,528
TOTAL ASSETS		-	33,686,207			-	19,790,287
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Current portion of capital lease obligation		-	-			-	27,368
Current maturities of long-term debt			577,898				577,898
Accounts payable			6,239,450				2,909,100
Contract liabilities			2,224,660				1,821,929
Accrued compensation and other			836,582				764,004
Current portion of operating lease liability			314,329				50,995
Total current liabilities			10,192,919				6,151,294
Long-term debt, net of current maturities			855,780				1,289,205
Operating lease liability, net of current portion			2,531,601				90,954
Total liabilities			13,580,300				7,531,453
Stockholders' Equity:
Common stock, $0.01 par value: 50,000,000 shares authorized; issued and outstanding - 10,929,869 shares at March 31, 2026 and 7,714,701 at June 30, 2025			109,298				77,147
Additional paid-in capital			80,493,343				69,152,317
Accumulated deficit			(60,496,734	-			(56,970,630	-
Total stockholders' equity			20,105,907				12,258,834
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY		-	33,686,207			-	19,790,287

PRECISION OPTICS CORPORATION, INC. STATEMENTS OF OPERATIONS FOR THE THREE AND NINE MONTHS ENDED MARCH 31, 2026 AND 2025 (UNAUDITED)
		Three Months Ended March 31,								Nine Months Ended March 31,
		2026				2025				2026				2025
Revenues		-	8,708,631			-	4,185,968			-	22,757,291			-	12,909,928
Cost of Goods Sold			6,652,097				3,767,993				19,549,739				10,304,681
Gross Profit			2,056,534				417,975				3,207,552				2,605,247
Research and Development Expenses			267,319				211,242				828,733				929,648
Selling, General and Administrative Expenses			1,853,677				2,245,018				5,780,865				5,870,846
Total Operating Expenses			2,120,996				2,456,260				6,609,598				6,800,494
Operating Income			(64,462	-			(2,038,285	-			(3,402,046	-			(4,195,247	-
Interest Expense			(35,116	-			(58,476	-			(115,353	-			(182,442	-
Income before provision for income taxes			(99,578	-			(2,096,761	-			(3,517,399	-			(4,377,689	-
Provision for income taxes			8,705				-				8,705				-
Net Income		-	(108,283	-		-	(2,096,761	-		-	(3,526,104	-		-	(4,377,689	-
Loss Per Share:
Basic and Fully Diluted		-	(0.01	-		-	(0.30	-		-	(0.46	-		-	(0.67	-
Weighted Average Common Shares Outstanding:
Basic and Fully Diluted			7,794,263				6,917,281				7,740,834				6,491,687

PRECISION OPTICS CORPORATION, INC. STATEMENTS OF STOCKHOLDERS' EQUITY FOR THE THREE AND NINE MONTHS ENDED MARCH 31, 2026 AND 2025 (UNAUDITED)
		Nine Month Period Ended March 31, 2026
		Number of Shares				Common Stock				Additional Paid-in Capital				Accumulated Deficit				Total Stockholders' Equity
Balance, July 1, 2025			7,714,701			-	77,147			-	69,152,317			-	(56,970,630	-		-	12,258,834
Stock-based compensation			-				-				301,639				-				301,639
Net loss			-				-				-				(1,637,030	-			(1,637,030	-
Balance, September 30, 2025			7,714,701				77,147				69,453,956				(58,607,660	-			10,923,443
Stock-based compensation			-				-				162,082				-				162,082
Issuance of common stock for employee services			5,528				55				24,945				-				25,000
Net loss			-				-				-				(1,780,791	-			(1,780,791	-
Balance, December 31, 2025			7,720,229				77,202				69,640,983				(60,388,451	-			9,329,734
Issuance of common stock in public offering			3,194,444				31,944				10,598,734				-				10,630,678
Proceeds from exercise of stock option			13,628				136				(136	-			-				-
Stock-based compensation			-				-				247,528				-				247,528
Issuance of common stock for employee services			1,568				16				6,234				-				6,250
Net loss			-				-				-				(108,283	-			(108,283	-
Balance, March 31, 2026			10,929,869			-	109,298			-	80,493,343			-	(60,496,734	-		-	20,105,907

		Nine Month Period Ended March 31, 2025
		Number of Shares				Common Stock				Additional Paid-in Capital				Accumulated Deficit				Total Stockholders' Equity
Balance, July 1, 2024			6,073,939			-	60,739			-	61,197,433			-	(51,190,384	-		-	10,067,788
Issuance of common stock in registered direct offering			265,868				2,659				1,201,883				-				1,204,542
Proceeds from exercise of stock option			10,363				104				26,896				-				27,000
Stock-based compensation			-				-				149,364				-				149,364
Net loss			-				-				-				(1,311,247	-			(1,311,247	-
Balance, September 30, 2024			6,350,170				63,502				62,575,576				(52,501,631	-			10,137,447
Stock-based compensation			-				-				278,206				-				278,206
Issuance of common stock for consulting services			5,364				53				29,947				-				30,000
Net loss			-				-				-				(969,681	-			(969,681	-
Balance, December 31, 2024			6,355,534				63,555				62,883,729				(53,471,312	-			9,475,972
Issuance of common stock in registered direct offering			1,272,500				12,725				5,052,869				-				5,065,594
Proceeds from exercise of stock option			13,162				132				18,118				-				18,250
Stock-based compensation			-				-				592,964				-				592,964
Issuance of common stock for consulting services and employees			25,051				250				121,448				-				121,698
Net loss			-				-				-				(2,096,761	-			(2,096,761	-
Balance, March 31, 2025			7,666,247			-	76,662			-	68,669,128			-	(55,568,073	-		-	13,177,717

PRECISION OPTICS CORPORATION, INC. STATEMENTS OF CASH FLOWS FOR THE NINE MONTHS ENDED MARCH 31, 2026 AND 2025 (UNAUDITED)
		Nine Months Ended March 31,
		2026				2025
Cash Flows from Operating Activities:
Net Loss		-	(3,526,104	-		-	(4,377,689	-
Adjustments to reconcile net loss to net cash used in operating activities -
Depreciation and amortization			214,948				159,844
Stock-based compensation expense			742,499				1,020,534
Non-cash interest expense			13,825				8,918
Non-cash operating lease expense			255,965				-
Loss on disposal of fixed assets			34,506				-
Changes in operating assets and liabilities -
Accounts receivable, net			(2,241,136	-			120,438
Inventories, net			(140,349	-			(803,301	-
Prepaid expenses			(60,923	-			(27,160	-
Accounts payable			3,330,350				476,259
Contract liabilities			402,731				493,201
Accrued compensation and other			72,578				(49,209	-
Net cash used in operating activities			(901,110	-			(2,978,165	-
Cash Flows from Investing Activities:
Purchases of fixed assets			(349,750	-			(180,985	-
Proceeds from sale of fixed assets			3,000				-
Additional/reclassification patent costs			(1,889	-			31,148
Net cash used in investing activities			(348,639	-			(149,837	-
Cash Flows from Financing Activities:
Payments of capital lease obligations			(27,368	-			(32,257	-
Payments of long-term debt			(447,250	-			(149,230	-
Payment of debt modification costs			-				(15,000	-
Payment on revolving line of credit			-				(1,000,000	-
Proceeds from registered direct sale of common stock, net			-				6,270,136
Proceeds from public offering of common stock, net			10,630,678				-
Stock issued for services			-				151,698
Gross proceeds from the exercise of stock options			-				45,250
Net cash provided by (used in) financing activities			10,156,060				5,270,597
Net increase in cash and cash equivalents			8,906,311				2,142,595
Cash and cash equivalents, beginning of period			1,773,735				405,278
Cash and cash equivalents, end of period		-	10,680,046			-	2,547,873
Supplemental disclosure of cash flow information:
Operating right-of-use assets obtained in exchange for operating lease liabilities		-	2,632,584			-	-
Lease improvements financed by landlord		-	218,750			-	-
Issuance of common stock for employee services		-	31,250			-	-

PRECISION OPTICS CORPORATION, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
ADJUSTED EBITDA
		Three Months Ended										Nine Months Ended
		March 31										March 31
		2026					2025					2026					2025
Net Income (loss) (GAAP)		-	(108,283	-			-	(2,096,761	-			-	(3,526,104	-			-	(4,377,689	-
Stock based compensation			253,778					714,662					742,499					1,172,232
Depreciation and amortization			75,602					62,358					214,948					159,844
Income Taxes			8,705										8,705
Interest expense			35,116					58,476					115,353					182,442
Adjusted EBITDA (non-GAAP)		-	264,918				-	(1,261,265	-			-	(2,444,599	-			-	(2,863,171	-