In Marine Technology, gross margin fell to 74.5% from 77.9% , which management linked to a shift toward more hardware sales and fewer rentals. Jardine cited a 30.5% increase in hardware units sold and a 36.6% reduction in higher-margin rental sales. CEO Annmarie Gayle connected underutilization of rental assets to a change in U.S. policy on funding for offshore renewables, which she said led to projects being shelved and reduced rental and associated services demand.Gross profit increased to $17.7 million f ...

We disclaim any obligation or undertaking to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made, except as may be required by law. We refer you to our filings with the Securities and Exchange Commission for detailed disclosures and descriptions of our business, as well as uncertainties and other variable circumstances, including, but not limited to, risks and uncertainties identified in our Form 10-K for the year ended Octob ...

Financial Data and Key Metrics Changes - Consolidated net revenue for fiscal year 2025 increased by 30.7% to $26.6 million, compared to $20.3 million in fiscal year 2024 [23][25] - Gross profit rose to $17.7 million from $14.2 million, with a consolidated gross margin of 66.5%, down from 69.8% in the previous year [25][26] - Operating income increased by 26.6% to $4.5 million, with an operating margin of 17.1%, slightly down from 17.6% [28] Business Line Data and Key Metrics Changes - Marine technology business revenue increased by 3.2% to $13.2 million, contributing 49.8% of consolidated net revenue [4][23] - Defense engineering services revenue rose by 5.6% to $7.9 million [25] - The newly acquired Acoustic Sensors and Materials business generated $5.4 million, contributing 20.4% to consolidated net revenue [23][11] Market Data and Key Metrics Changes - In the marine technology business, 46% of revenue came from the defense sector, while 54% was from the commercial marine sector [9][31] - Hardware sales increased by 30.5% to $9.5 million, with significant growth in Asia, where sales rose by approximately 7.7% [9][10] Company Strategy and Development Direction - The company aims to pivot its revenue model towards a multi-year program-based adoption model, focusing on recurring sales and long-tail revenue [33] - The launch of the NanoGen series sonar is positioned as a core real-time perception sensor for AI-enabled autonomous platforms [32][14] - The company is actively seeking to complete acquisitions to enhance growth and shareholder value [64] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth in the defense sector, which is seen as a key area for future revenue [31][60] - The company anticipates that procurement decisions for active opportunities will be made in early 2026, with initial deliveries expected to align with customer deployment schedules [17][16] - Management highlighted the importance of broader adoption of DAVD technology outside the U.S. as a critical benchmark for growth [47] Other Important Information - The company had $28.7 million in cash and cash equivalents as of October 31, 2025, with no debt [29] - Total operating expenses increased by 24.0% to $13.1 million, primarily due to the addition of Precision Acoustics Limited and currency translation effects [27] Q&A Session Summary Question: Updates on deliveries to the Indian Navy - Management was unclear about the Indian Navy deliveries and did not confirm any new customer relationships [35] Question: Progress in Europe regarding DAVD systems - Management confirmed the delivery of two systems to a European navy and expressed excitement about potential larger orders following training [36][37] Question: Cumulative deliveries of the untethered DAVD system - In fiscal 2025, the company achieved $3.7 million in DAVD revenue and anticipates beating this in fiscal 2026, pending approval for operational use [39][40] Question: Offshore commercial demand environment outlook - Management noted a significant uptick in rental opportunities in Q4 and emphasized the importance of the defense market for future growth [59][60]

Financial Data and Key Metrics Changes - Consolidated net revenue for fiscal year 2025 increased by 30.7% to $26.6 million from $20.3 million in fiscal year 2024 [23][25] - Gross profit rose to $17.7 million, with a gross margin of 66.5%, down from 69.8% in the previous year [25][26] - Operating income increased by 26.6% to $4.5 million, with an operating margin of 17.1% [28] Business Line Data and Key Metrics Changes - Marine technology business revenue increased by 3.2% to $13.2 million, contributing 49.8% of consolidated net revenue [4][23] - Defense engineering services revenue grew by 5.6% to $7.9 million [25] - Acoustic Sensors and Materials business, added in October 2024, generated $5.4 million, contributing 20.4% to consolidated net revenue [23][25] Market Data and Key Metrics Changes - 46% of marine technology business revenue came from the defense sector, while 54% was from the commercial marine sector [31] - Hardware sales in the marine technology business increased by 30.5% to $9.5 million [9] - Rental assets were underutilized, impacting gross profit margins due to changes in U.S. policy on offshore renewables [10] Company Strategy and Development Direction - The company aims to pivot the revenue model of the marine technology business towards a multi-year program-based adoption model [33] - Focus on increasing market share in underwater imaging sensors within the defense sector, leveraging the unique capabilities of the Echoscope and DAVD technologies [6][12] - The launch of the NanoGen series sonar is positioned as a core real-time perception sensor for AI-enabled autonomous platforms [14][32] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth potential in the defense sector, highlighting the importance of securing contracts and expanding market presence [31][60] - The company anticipates procurement decisions for active opportunities in early 2026, with expectations for initial deliveries to commence within the 2026 fiscal year [17] - Management noted the challenges posed by the global policy environment but emphasized the solid financial results achieved [4][23] Other Important Information - The company has $28.7 million in cash and cash equivalents with no debt, representing an increase from $22.5 million the previous year [29] - The acquisition of Precision Acoustics Limited is expected to enhance capabilities in underwater acoustics and position the company for larger defense contracts [8][11] Q&A Session Summary Question: Updates on deliveries to the Indian Navy - Management was unclear about the specifics regarding the Indian Navy and did not confirm any new customer relationships [35] Question: Progress in Europe and future orders - Management expressed excitement about delivering systems to a European navy and anticipated that training would catalyze further adoption [36][37] Question: Cumulative deliveries of the DAVD untethered system - In fiscal 2025, the company achieved $3.7 million in DAVD revenue and expects to exceed this in fiscal 2026, pending approval for operational use [39][40] Question: Foreign navies testing DAVD - Management highlighted the importance of U.S. Navy approval for broader adoption and mentioned involvement with multiple foreign navies [42][46] Question: Next generation Echoscope customer feedback - Management reported strong interest in the NanoGen series, indicating it is a game changer for various markets [50][51]

Coda Octopus Group (NasdaqCM:CODA) Q4 2025 Earnings call January 29, 2026 10:00 AM ET Speaker6Good morning, and welcome to Coda Octopus Group's fiscal year 2025 earnings conference call. My name is Shamali, and I will be your operator today. Before this call, Coda Octopus issued its financial results for the fiscal year ended October 31, 2025, including a press release, a copy of which will be furnished in a report filed with the SEC and will be available in the investor relations section of the company's w ...

Business Segments - Coda Octopus Group operates three segments: Marine Technology Business, Acoustic Sensors and Materials Business, and Defense Engineering Services Business[12][14]. - The Defense Engineering Services Business has a long-standing relationship with major defense contractors, generating 20% to 30% of consolidated revenues from a small number of clients[21]. - The Marine Technology Business offers a range of proprietary solutions, including real-time volumetric imaging sonar and GNSS-Aided Navigation Systems, targeting various marine sectors[48]. Technology and Innovation - The Echoscope technology provides real-time 3D imaging for underwater applications, with significant growth opportunities in the defense sector, particularly for mine countermeasures and surveillance[27][28]. - The Echoscope PIPE NANO Gen Series, launching in FY 2025, aims to enhance subsea AI-enabled autonomy and is designed to meet the needs of smaller underwater vehicles[29]. - The Diver Augmented Vision Display (DAVD) system enhances diver safety and situational awareness by providing real-time data in low-visibility conditions[65]. - The DAVD system provides a fully transparent high-definition HUD for divers, integrating various data and communication capabilities[99]. - Coda Octopus has developed 5D/6D Echoscope PIPE sonar technology, distinguishing its offerings in the underwater imaging market[94]. Acquisitions and Growth - The acquisition of Precision Acoustics Limited (PAL) enhances Coda's capabilities in acoustic sensors and calibration services, serving critical markets such as medical and defense[20]. - The acquisition of Precision Acoustics Limited in October 2024 aimed to leverage its expertise and technologies for the subsea market[45]. - The company expanded its Defense Engineering Services Business by acquiring Coda Octopus Martech Limited in June 2006 and Coda Octopus Engineering, Inc. in April 2007[43]. Financial Performance - Consolidated net revenue for the fiscal year 2025 was $26,563,126, an increase of 30.7% compared to $20,316,161 in the previous fiscal year[188]. - The acquisition of PAL contributed 20.4% or $5,409,954 to the consolidated net revenue in the fiscal year 2025[195]. - Marine Technology Business generated $13,221,339, accounting for 49.8% of consolidated net revenues, with a gross profit margin of 74.5%[193]. - Defense Engineering Services Business revenue was $7,931,833, representing 29.9% of consolidated net revenue, with a gross profit margin increase to 58.6%[196]. - Total operating expenses increased by 24.0% to $13,126,340 in the current fiscal year, largely due to the inclusion of PAL[188]. Research and Development - Research and Development (R&D) is foundational to the company's growth strategy, with an expected increase in R&D expenditure following the acquisition of PAL on October 29, 2024[115]. - Research and Development (R&D) expenditure increased by 9.2% to $2,447,762 in FY 2025, primarily due to the inclusion of PAL[205]. - R&D expenditure for the Marine Technology Business decreased by 8.0% to $1,858,139, reflecting reduced headcount and fewer ongoing projects[206]. Market and Competitive Landscape - Coda Octopus aims to capitalize on the growing demand for advanced underwater technologies, positioning itself for scalable growth in both commercial and defense markets[26]. - The company is focused on maintaining its leading position in sonar technology amidst rapid technological advancements in the subsea market[166]. - The geopolitical landscape, particularly trade relations with China, poses significant risks to revenue growth, especially in the offshore renewables sector[161]. - The company faces challenges from increased raw material costs due to rising demand for AI processing, which may affect product competitiveness[163]. Regulatory and Compliance - The company is subject to various government regulations and export control regimes, which may impact revenue and business prospects[117][118]. - The company has established a Cyber Security Management Committee to oversee cybersecurity risk management and compliance with certifications[126]. Employee and Operational Insights - The company employs approximately 100 employees, with a significant portion holding advanced degrees in science and technology[122]. - The company has not experienced any organized labor difficulties and does not have employees under a collective agreement[122]. Strategic Focus - Coda Octopus's integrated operating model leverages synergies across its segments to deliver comprehensive underwater solutions, enhancing its competitive position[23][24]. - The company is working on diversifying revenue in the Defense Engineering Services Business by investing in the Thermite® Octal range of mission computers[197]. - Coda Octopus's marketing strategy includes industry events and a network of non-exclusive agents in key markets such as Japan, China, and South Africa[85].

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 ove ...

Core Viewpoint - Coda Octopus Group, Inc. will host a conference call on January 29, 2026, to discuss its fiscal year 2025 results, with a press release to be issued prior to market opening on the same day [1] Group 1: Company Overview - Coda Octopus Group, Inc. is a leader in real-time 3D/4D/5D and 6D imaging sonar technology, providing solutions for subsea intelligence and augmented reality diving technology [1][4] - The company was founded in 1994 and supplies hardware and software solutions to the underwater/subsea market, including proprietary sonar technologies marketed under names like Echoscope [4] - Echoscope technology is utilized globally for various applications, including underwater mapping, subsea intervention, and marine construction [4] Group 2: New Technologies - The newly launched Diver Augmented Vision Display (DAVD) technology aims to revolutionize diving operations by integrating topside control with diver HUD systems, enabling shared visualization of underwater scenes [5] - DAVD technology allows operations in zero visibility conditions, addressing a common challenge in diving [5] Group 3: Defense Engineering Services - Coda Octopus Group operates two Defense Engineering Services businesses, Coda Octopus Martech Ltd and Coda Octopus Engineering, which supply sub-assemblies to prime defense contractors [6] - These businesses provide services including concept design, prototype manufacturing, and post-sale support, allowing for repeat orders throughout the life of defense programs [6] Group 4: Recent Acquisition - The company recently acquired Precision Acoustics Limited, which specializes in acoustic sensors and materials, and is accredited to ISO/IEC 17025 standard [7][8] - This acquisition enhances the company's capabilities in precision ultrasonic measurement, critical for regulated applications in medical and defense sectors [8]

Core Insights - Coda Octopus Group (CODA) is positioned as an emerging technology company despite having nearly 50 years of operational experience [1] Company Analysis - The focus is on small to mid-cap companies that possess disruptive technology, with an emphasis on competitive analysis and the backgrounds of founders [2] - The investment strategy involves a two-year time frame, with a tendency to hold investments for longer periods [2] - The company has a historical context of family investment experiences, highlighting lessons learned from past market downturns [2] Investment Perspective - The analyst expresses a potential interest in initiating a long position in CODA within the next 72 hours [3]

Company Overview - Coda Octopus Group, Inc. (CODA) is a multi-division underwater technology platform that specializes in real-time volumetric sonar systems [1] - The company offers devices and is developing the upcoming PIPE series, along with patented augmented-reality solutions for professional divers [1] Technology and Products - CODA's product lineup includes advanced sonar systems and augmented-reality solutions designed for enhancing the capabilities of professional divers [1]