Coda Octopus Group, Inc.

What they do

Coda Octopus operates through three reportable segments: Marine Technology Business, Acoustics Sensors and Materials Business, and Defense Engineering Services Business. The company markets and sells internationally, with $4,265,324, or 55.3%, of Current Quarter consolidated net revenues generated from customers outside the United States. It is headquartered in Orlando, Florida and had 11,270,575 shares outstanding as of January 25, 2026.

Revenue drivers

• Marine Technology Business — One of three reportable segments; management states a significant portion of this segment's customer base is in the Middle East and Asia, and the quarter's geopolitical instability adversely affected portions of it.
• Acoustics Sensors and Materials Business — A reportable segment identified in the 10-Q MD&A; the filings provided do not disclose its revenue contribution or product detail.
• Defense Engineering Services Business — A reportable segment identified in the 10-Q MD&A; the filings provided do not disclose its revenue contribution or contract detail.
• International sales — Non-U.S. customers produced $4,265,324, or 55.3% of consolidated net revenues in the quarter ended July 31, 2026, versus 63.5% in the prior-year quarter.

Recent performance

Fiscal 2025 revenue was $26.6M with net income of $4.1M and diluted EPS of $0.37, up from $20.3M revenue, $3.6M net income and $0.32 EPS in fiscal 2024. Operating cash flow was $7.2M in fiscal 2025 versus $2.5M in fiscal 2024. Quarterly revenue has run $7.3M, $6.7M, $6.9M and $7.7M across the four most recent reported quarters. At July 31, 2026, total assets were $68.9M, total liabilities $6.1M, shareholder equity $62.7M and cash $31.7M. The 10-K/A filed February 26, 2026 amended the original 10-K solely to include the signed Frazier & Deeter audit report.

Strategy

The filings provided describe operations by segment and note exposure to foreign currency, tariffs, government spending and defense procurement timing, but do not lay out a specific strategic plan. Management says it expects macroeconomic and geopolitical factors to continue influencing customer demand, procurement activity and supply chain conditions through the remainder of fiscal 2026. The company reports segment-level performance and allocates resources through the three identified segments. It maintains a cash position of $31.7M against $6.1M of total liabilities as of July 31, 2026.

Risks

• Middle East and Asia customer concentration — A significant portion of Marine Technology Business customers are in the Middle East and Asia, where conflict involving Iran and associated disruption delayed customer activity in the quarter.
• Geopolitical and Strait of Hormuz disruption — The 10-Q cites ongoing Iranian conflict and closure of the Strait of Hormuz as disrupting regional commercial activity and contributing to delays.
• Foreign revenue exposure — 55.3% of Current Quarter consolidated net revenues came from customers outside the United States, exposing results to foreign exchange and international trade policy.
• Defense procurement timing and government spending — Management lists reductions in government spending or delays in defense procurement programs among factors that could materially affect results.

Outlook

Management states it expects inflation, interest rates, government spending priorities, global trade policies and geopolitical developments to continue influencing customer demand, procurement activity, supply chain conditions and operating results during the remainder of fiscal 2026. The company reports that geopolitical instability in the Middle East contributed to delays in portions of the Marine Technology Business during the quarter ended July 31, 2026. No specific numeric guidance is provided in the excerpts.