Precision Optics Corporation, Inc.

What they do

The company operates primarily in two market segments: medical devices and advanced defense/aerospace products. It develops traditional endoscopes and endocouplers, digital imaging endoscopes using CMOS sensor technology (some for single-use), and other custom imaging and illumination products for minimally invasive surgery. It also supplies custom optical components and assemblies, including thin-film coatings, through its Ross Optical business acquired in 2019, and expanded electrical engineering capabilities via the Lighthouse Imaging asset acquisition in 2021.

Revenue drivers

• Medical devices — Custom endoscopes, endocouplers, and digital imaging systems for minimally invasive surgery; includes single-use designs and complete medical devices built to customer specifications.
• Defense/aerospace — Advanced optical assemblies and micro-precision components for defense and aerospace applications, including satellite network communications.
• Ross Optical components and assemblies — Custom optical components (lenses, prisms, mirrors, windows) and complex mechano-optical assemblies for military, defense, medical, and industrial customers, sourced through a global supplier network.
• Engineering and product development — Contract design and development services that assess customer needs, design devices, and create manufacturing processes for higher-volume production.

Recent performance

Annual revenue was $19.1M in both fiscal 2024 and 2025, down from $21.0M in 2023. Net losses widened to $3.0M in fiscal 2024 and $5.8M in fiscal 2025, with diluted EPS of -$0.49 and -$0.85, respectively. Operating cash flow was negative $2.7M in fiscal 2024 and negative $3.5M in fiscal 2025. However, recent quarterly revenue has grown sequentially: $6.2M in the quarter ended June 30, 2025, $6.7M in September 2025, $7.4M in December 2025, and $8.7M in March 2026. As of March 31, 2026, the company had $10.7M in cash, $13.6M in total liabilities, and $20.1M in shareholder equity.

Strategy

The company focuses on two key market segments—medical devices and advanced defense/aerospace—and operates through four areas: systems manufacturing, engineering and product development, Ross Optical components and assemblies, and a micro-optics laboratory. It emphasizes custom designs, expert manufacturing, and advanced engineering to serve customers seeking smaller, disposable, and enhanced imaging systems. The 2019 Ross Optical acquisition expanded its optics components and assemblies business, while the 2021 Lighthouse Imaging acquisition added electrical engineering capabilities and was integrated under the POC brand. Management highlights single-source value-added development services and product offerings for medical visualization customers.

Risks

• Persistent net losses — The company reported net losses of $3.0M in fiscal 2024 and $5.8M in fiscal 2025, with negative operating cash flow in both years.
• Revenue concentration — Revenue depends on a limited number of customers in medical device and defense/aerospace markets, where contracts may be subject to timing and program-specific fluctuations.
• Dependence on acquisitions and integration — The Ross Optical (2019) and Lighthouse Imaging (2021) acquisitions required integration, and future growth may rely on successfully managing acquired operations.
• Small-cap reporting and governance — As a smaller reporting company, the company filed a 10-K/A to include Part III information after not filing a proxy within 120 days of fiscal year-end, and it has limited analyst coverage and liquidity.

Outlook

The company does not provide specific forward guidance in the excerpts. Management notes that recent quarterly revenue has increased sequentially through the quarter ended March 31, 2026. It continues to focus on servicing medical device and defense/aerospace customers while leveraging its engineering and manufacturing capabilities.