Coda Octopus Group, Inc. ( CODA ) caught my attention because of the decent price correction it experienced recently, and now that it has had its Q1 results recently published, I thought it would beMSc in Finance. Long-term horizon investor mostly with 5-10 year horizon. I like to keep investing simple. I believe a portfolio should consist of a mix of growth, value, and dividend-paying stocks but usually end up looking for value more than anything. I also sell options from time to time.Analyst’s Disclosure: ...

Core Viewpoint - Coda Octopus Group, Inc. has demonstrated strong financial performance in Q1 2026, with significant revenue growth and positive earnings per share, indicating robust demand in its key segments [2][3][5]. Financial Performance - Earnings per share for Q1 2026 were reported at $0.08, exceeding the expected $0.06 [2] - Revenue reached approximately $6.71 million, surpassing the forecast of $6.23 million, marking a 28.8% increase year-over-year [2] - The Marine Technology segment generated $3.4 million in revenue, reflecting a 47.4% increase, driven by a 63.4% rise in Echoscope sales in Asia [3] - The Defense Engineering Services segment reported a revenue increase of 9.2%, totaling $1.8 million [3] Financial Stability - Cash and cash equivalents at the end of the quarter were $30.4 million, up from $28.7 million in the previous period [4] - The company's price-to-earnings (P/E) ratio is approximately 37.55, indicating strong investor confidence [4] - The price-to-sales ratio stands at around 5.55, reflecting the market's valuation of the company relative to its sales [4] Management Perspective - Annmarie Gayle, Chairman and CEO, expressed satisfaction with the financial results and the diversification of the company's revenue structure [5] - Despite global policy uncertainties, the company continues to strengthen its market position, evidenced by a strong earnings yield of approximately 2.66% [5]

CEO Annmarie Gayle said the company’s business comprises three operations: marine technology (its “core” business), defense engineering services, and acoustics sensors and materials. She said the marine technology unit generated 50% of consolidated net revenue in the first quarter and is the foundation of the company’s growth strategy.Net income after taxes was $0.93 million, or $0.08 per diluted share, compared with $0.91 million, also $0.08 per diluted share, in the year-ago quarter. The company recorded ...

Financial Data and Key Metrics Changes - In Q1 2026, total revenue increased by 28.8% to $6.7 million from $5.2 million in Q1 2025 [20] - Gross profit rose to $4.4 million, with a gross margin of 65.1%, slightly down from 65.8% in Q1 2025 [22][23] - Operating income increased by 52.6% to $1.0 million, with an operating margin of 15.1%, up from 12.7% in Q1 2025 [25] Business Line Data and Key Metrics Changes - The marine technology business generated $3.4 million in revenue, a 47.4% increase from $2.3 million in Q1 2025 [21] - The defense engineering services business saw revenue rise by 9.2% to $1.8 million from $1.6 million [22] - The acoustic sensors and materials business recorded a revenue increase of 20.7%, reaching $1.6 million compared to $1.3 million in Q1 2025 [21] Market Data and Key Metrics Changes - The marine technology business accounted for 50% of consolidated net revenue in Q1 2026, highlighting its significance [5] - Rental revenue in the marine technology business surged by 232.8% to approximately $0.7 million, contributing to improved gross profit margins [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, supporting a multiple sale model over the life of major programs [27] - The focus is on expanding market share for disruptive underwater technologies, particularly the DAVD and Echoscope systems [13][19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the broader adoption of technologies in the defense space, particularly for the DAVD and Echoscope products [27] - The company is keen to close another acquisition in fiscal year 2026 as part of its M&A strategy [27] Other Important Information - The company had $30.5 million in cash and cash equivalents as of January 31, 2026, with no debt [25] - Total assets increased to $65.6 million, reflecting a solid financial position [26] Q&A Session Summary Question: What is the total addressable market in dollar terms for the DAVD in the US? - Management indicated that it is difficult to provide a specific number as it depends on the negotiated sale price, previously estimated at $50,000 per unit [31] Question: What is the timing for revenue opportunities from the unmanned underwater vehicle market? - Management expects to see small batches of Nano being acquired under product improvement programs in the third and fourth quarters [32][40] Question: How do rising oil prices impact demand for products? - Management noted that rising oil prices do not significantly affect demand as the development cycle is not responsive to such changes [45] Question: What is holding back the product from scaling today? - Management attributed the slow scaling to the long gestation period of defense programs, while expressing optimism about near-term opportunities under product improvement programs [46][49]

Financial Data and Key Metrics Changes - Total revenue for the first quarter of fiscal 2026 was $6.7 million, an increase of 28.8% compared to $5.2 million in the first quarter of fiscal 2025 [21] - Gross profit increased to $4.4 million from $3.4 million, with a consolidated gross margin of 65.1%, slightly down from 65.8% in the prior year [23] - Operating income rose by 52.6% to $1.0 million, with an operating margin of 15.1%, up from 12.7% in the previous year [25][26] Business Line Data and Key Metrics Changes - The marine technology business generated $3.4 million in revenue, a 47.4% increase from $2.3 million in the first quarter of fiscal 2025 [22] - The defense engineering services business saw revenue increase by 9.2% to $1.8 million, up from $1.6 million [23] - The acoustic sensors and materials business recorded revenue of $1.6 million, a 20.7% increase from $1.3 million [22] Market Data and Key Metrics Changes - The marine technology business accounted for 50% of consolidated net revenue, indicating its significance in the overall business strategy [5] - Rental revenue in the marine technology business surged by 232.8% to approximately $0.7 million, contributing to the increase in gross profit margin [11] 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, supporting a multiple sale model over the life of major programs [28] - The focus is on expanding market share for disruptive underwater technologies, particularly the DAVD and Echoscope technologies [14][20] - The company is actively pursuing M&A opportunities to enhance growth and is keen to close another acquisition in fiscal year 2026 [28] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth potential in the defense space, particularly with the DAVD and Echoscope technologies [28] - The company is experiencing delays in contract awards due to funding issues in defense programs, but remains hopeful for future growth [12][28] - Management noted that the gestation period for defense programs can be lengthy, impacting the scaling of products like Echoscope [50] Other Important Information - The company had $30.5 million in cash and cash equivalents as of January 31, 2026, with no debt, representing an increase from $28.7 million at the end of the previous fiscal year [26][27] Q&A Session Summary Question: What is the total addressable market in dollar terms for the DAVD in the U.S.? - Management indicated that it is difficult to provide a specific number as it depends on the negotiated sale price, which has historically been around $50,000 per unit [32] Question: What is the timing for revenue opportunities in the unmanned underwater vehicle market? - Management expects to see small batches of NANO being acquired under product improvement programs in the third and fourth quarters [33][41] Question: How do rising oil prices impact demand for products? - Management stated that rising oil prices do not significantly affect demand as development cycles are not responsive to such changes [46] Question: What is holding back the scaling of Echoscope sales? - Management noted that the primary barrier has been the lengthy maturation period of defense programs, but they are optimistic about near-term opportunities under product improvement programs [50]

Financial Data and Key Metrics Changes - In Q1 2026, total revenue increased by 28.8% to $6.7 million compared to $5.2 million in Q1 2025 [19] - Gross profit rose to $4.4 million from $3.4 million, with a consolidated gross margin of 65.1% compared to 65.8% in Q1 2025 [20] - Operating income increased by 52.6% to $1.0 million, with an operating margin of 15.1% compared to 12.7% in Q1 2025 [24] - Net income after taxes was $0.93 million or $0.08 per diluted share, compared to $0.91 million, also $0.08 per diluted share in Q1 2025 [24] Business Line Data and Key Metrics Changes - The marine technology business generated revenue of $3.4 million, a 47.4% increase from $2.3 million in Q1 2025 [19] - The defense engineering services business revenue increased by 9.2% to $1.8 million from $1.6 million in Q1 2025 [20] - The acoustic sensors and materials business recorded revenue of $1.6 million, up 20.7% from $1.3 million in Q1 2025 [19] Market Data and Key Metrics Changes - The marine technology business accounted for 50% of consolidated net revenue in Q1 2026, highlighting its significance in the overall business strategy [5] - Rental revenue in the marine technology business increased by 232.8% to approximately $0.7 million, contributing to the gross profit margin increase [9] 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, supporting a multiple sale model over the life of major programs [26] - The focus is on expanding market share for disruptive underwater technologies, particularly the DAVD and Echoscope technologies [12] - The company is keen to close another acquisition in fiscal year 2026 as part of its M&A strategy [26] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth in the marine technology business despite a challenging global policy environment [5] - The company is seeing strong global momentum around the NanoGen series and anticipates initial adoption in the third quarter [15] - Management acknowledged the long gestation period for defense programs but remains focused on near-term opportunities under product improvement programs [46] Other Important Information - The company had $30.5 million in cash and cash equivalents as of January 31, 2026, with no debt [24] - Total assets increased by $1.1 million to $65.6 million in Q1 2026 [25] Q&A Session Summary Question: What is the total addressable market in dollar terms in the US for the DAVD? - Management indicated that it is difficult to provide a specific number as it depends on the negotiated sale price, previously estimated at $50,000 per unit [30] Question: What is the timing for opportunities in the unmanned underwater vehicle market? - Management expects to see small batches of Nano being acquired under product improvement programs in the third and fourth quarters [31][32] Question: How does rising oil prices impact demand for products? - Management noted that rising oil prices do not significantly impact demand as development cycles are not responsive to such changes [44] Question: What is holding back the product from scaling today? - Management attributed the slow scaling to the long maturation period of defense programs, while also highlighting strong sales in the commercial marine market [46][47]

Coda Octopus Group, Inc. (NASDAQ:CODA) shares are trading higher Monday after the company reported first-quarter financial results.Coda shares are trending higher. What’s driving CODA shares up?EPS And Revenue Beats ExpectationsThe company reported earnings per share of 8 cents, beating the consensus estimate of 6 cents. In addition, Coda reported revenue of $6.71 million, beating the consensus estimate of $6.22 million.Marine Technology revenue rose 47.4% to $3.4 million, driven by stronger Echoscope sales ...

Financial Performance - Net revenues for the three months ended January 31, 2026, increased to $6,710,112, representing a 28.8% growth compared to $5,209,715 in the same period of 2025[12] - Gross profit for the same period rose to $4,367,034, up 27.4% from $3,428,470 year-over-year[12] - Net income for the three months ended January 31, 2026, was $930,723, slightly up from $912,975 in the same period of 2025[12] - The company reported a comprehensive income of $2,042,939 for the three months ended January 31, 2026, compared to a loss of $115,611 in the same period of 2025[12] - Total net income for the three months ended January 31, 2026, was $930,723, compared to $912,975 for the same period in 2025, reflecting a slight increase[76] - Basic and diluted earnings per share remained stable at $0.08 for both January 31, 2026, and January 31, 2025[76] Assets and Liabilities - Total current assets increased to $51,160,535, a rise of 2.3% from $50,006,202 as of October 31, 2025[7] - Total liabilities decreased to $5,436,237, down 15% from $6,378,148 in the previous period[10] - Total assets as of January 31, 2026, were reported at $65,621,579, with total liabilities of $5,436,237[88] - Total liabilities as of January 31, 2026, were $3,784,241, compared to $3,784,241 as of October 31, 2025, indicating a stable liability position[89] Cash Flow - Cash and cash equivalents at the end of the period increased to $30,446,369, compared to $28,682,615 at the beginning of the period[17] - The company experienced a net cash provided by operating activities of $1,476,907, significantly higher than $641,511 in the previous year[17] Research and Development - Research and development expenses rose to $606,102, an increase of 11.6% from $543,126 in the prior year[12] - Research and development expenses for the three months ended January 31, 2026, were $606,102, slightly down from $543,126 in the same period of 2025[88] Revenue Recognition - The company’s revenue recognition follows the five-step process outlined in Topic 606, ensuring compliance with accounting standards[23] - The Engineering Business recognizes revenue based on the percentage of completion method, which is measured by the costs incurred to date against the estimated total costs[34] - The Company recognizes revenue based on the five-step process established by Topic 606, which includes identifying contracts, performance obligations, and recognizing revenue upon satisfaction of obligations[24] - For the Marine Technology Business, revenue from outright sales is recognized upon delivery, while rental revenue is recognized daily during the rental period[24] Business Segments - The company has three business segments: Marine Technology Business, Acoustic Sensors and Materials Business, and Defense Engineering Services Business, each contributing to revenue generation through various contracts[30] - The Marine Technology Business generated net revenues of $3,355,003 for the three months ended January 31, 2026, contributing significantly to total revenues of $6,710,112[88] Expenses - The cost of goods sold for the three-month period ended January 31, 2026, included commission costs of $301,438, up from $245,509 in the same period of 2025, representing a year-over-year increase of 22.7%[41] - Depreciation expense for the three months ended January 31, 2026, was $229,280, compared to $205,646 for the same period in 2025, an increase of 11.43%[49] - Total stock compensation expense for the three months ended January 31, 2026, was $26,989, a decrease from $100,145 in the same period of 2025[80] Inventory and Receivables - The total inventory as of January 31, 2026, was $14,195,378, compared to $13,636,512 on October 31, 2025, reflecting an increase of approximately 4.1%[46] - Unbilled Receivables decreased to $1,906,633 as of January 31, 2026, down from $2,988,779 as of October 31, 2025, a decline of 36.2%[51] - Deferred Revenue, current, was $1,159,868 as of January 31, 2026, compared to $1,722,796 as of October 31, 2025, a decrease of 32.6%[54] Taxation - The effective tax rate for the three months ended January 31, 2026, was 21.6%, compared to 2.3% for the same period in 2025, reflecting changes in tax regulations[96] - The company anticipates an increase in its income tax provision for fiscal year 2027 due to changes in the global intangible low-taxed income provisions under the 2025 Tax Act[96] Other Income - The company recorded total other income of $272,838 for the three months ended January 31, 2026, compared to $272,838 in the same period of 2025, reflecting consistent income generation from non-operating activities[89]

Coda Octopus Group, INC. World Leader in Sound Underwater Technology Forward-Looking Statements Corporate Presentation March 17, 2026 1 This presentation contains forward-looking statements concerning Coda Octopus Group, Inc. within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Those forward-looking statements include, without limitation, statements regarding the Company's expectations for the growth of the Company's ...

ORLANDO, FL, March 17, 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 for real-time subsea intelligence and cutting-edge diving augmented reality technology (DAVD), today reported its unaudited financial results for its fiscal first quarter ended January 31, 2026 (FQ2026). Annmarie Gayle, CODA’s Chairman and CEO, commented: “I am pleased with our overall results of operations in FQ2026, especial ...