Precision Optics Corporation, Inc. Common stock

Precision Optics Corporation forecast fiscal 2027 revenue of $30 million to $33 million, roughly flat with fiscal 2026, as it absorbs an anticipated 40% first-quarter revenue reduction from its existing satellite customer. CEO Joseph Forkey said the slowdown, driven by constrained satellite launch capacity and customer excess inventory, is temporary and will be most pronounced in the first half of the fiscal year, with an additional reduction expected in the second quarter. The company guided fiscal 2027 adjusted EBITDA to negative $1.2 million to negative $1.7 million, with quarterly losses early in the year before a return to quarterly profitability by the end of the year. Forkey noted the satellite program is a higher-margin contributor, so replacing its revenue with other business does not immediately replace the same amount of profit. For the fourth quarter of fiscal 2026, revenue reached a record $8.8 million versus $6.2 million a year ago, gross margin improved to 25.3% from 13.0%, and adjusted EBITDA was positive $355,000; full-year revenue was $31.5 million compared to $19.1 million last year, and the net loss narrowed to $3.6 million, or $0.43 per share, from $5.8 million, or $0.85 per share. CFO Wayne Coll said IEEPA tariff refunds reduced reported quarterly revenue by approximately $558,000 while retained refunds cut cost of goods sold by approximately $707,000, and cash and cash equivalents stood at $9.8 million at June 30 versus $1.8 million a year earlier. Forkey said the company has no particular plans to raise equity in fiscal 2027 unless unusual events occur, and that higher-value assemblies for the satellite customer should begin contributing higher margins in the latter half of fiscal 2027.