Shares of Syntec Optics Holdings, Inc. (OPTX) have declined 30.7% since the company reported its earnings for the quarter ended Sept. 30, 2025, significantly underperforming the S&P 500 index, which dropped just 3.1% during the same period. The stock’s losses have been steeper over the past month, sliding 46.6% versus the broader market’s 1.2% decline, reflecting investor disappointment in the company’s latest results and outlook.Syntec Optics incurred a third-quarter 2025 net loss of 4 cents per share comp ...

Syntec Optics Holdings (NasdaqCM:OPTX) Q3 2025 Earnings Call November 18, 2025 05:00 PM ET Company ParticipantsDean Rudy - CFOAl Kapoor - CEOOperatorThis meeting is being recorded.Good afternoon and welcome to Syntec Optics Holdings' Third Quarter 2025 earnings conference call. Today's call is being recorded. At this time, all participants are in a listen-only mode. Before we begin, please note that today's discussion will include forward-looking statements within the meaning of the federal securities laws. ...

Syntec Optics Holdings (NasdaqCM:OPTX) Q3 2025 Earnings Call November 18, 2025 05:00 PM ET Company ParticipantsDean Rudy - CFOAl Kapoor - CEOOperatorThis meeting is being recorded.Good afternoon and welcome to Syntec Optics Holdings' Third Quarter 2025 Earnings Conference Call. Today's call is being recorded. At this time, all participants are in a listen-only mode. Before we begin, please note that today's discussion will include forward-looking statements within the meaning of the federal securities laws. ...

Financial Data and Key Metrics Changes - For Q3 2025, net sales were $7.0 million, an increase of 6% over Q2 2025, driven by strong volume improvements in key product lines [3] - Gross profit for the quarter was $0.9 million, down from $1.6 million in Q2 2025, reflecting investments in direct labor and manufacturing overhead [3][4] - Adjusted EBITDA for the year-to-date totaled $2.1 million, compared to $2.2 million in the same period last year, indicating stable performance despite temporary increases in expenses [4] - The net loss for the quarter was $1.4 million, or $0.04 per share, compared to a loss of $0.01 per share in Q2 2025 [4] Business Line Data and Key Metrics Changes - Strong volume improvements were noted in LEO Satellite Optics, Night Vision Optics, and other defense-related programs, contributing to revenue growth [3][8] - Operational initiatives focused on yield, throughput, and efficiency are expected to enhance margin performance in the coming quarters [4][7] Market Data and Key Metrics Changes - The global space economy is projected to reach $1 trillion by 2040, with significant growth in the hyperspectral imaging market expected to reach $28 billion by 2030 [11] - There is a growing demand for satellite-enabled communications, as nearly 30% of the world's population still lacks broadband access [11] Company Strategy and Development Direction - The company is focused on operational execution, innovation, and partnerships with OEMs across defense, communication, biomedical, and consumer markets [8] - Investments in manufacturing capacity and capabilities are ongoing, with $0.6 million allocated for targeted capital improvements year-to-date [5] - The introduction of Automated Flash Reporting aims to enhance operational transparency and improve performance metrics [9] Management's Comments on Operating Environment and Future Outlook - Management expects continued demand strength across space communications, defense optics, and biomedical automation, supported by long-term tailwinds [6][7] - For Q4 2025, revenue is expected to be in the range of $7.3 million to $8.0 million, indicating continued sequential growth [7] - The company remains confident in its long-term strategic position, supported by a strong customer base and an expanding product portfolio [7][12] Other Important Information - The company was not in compliance with certain covenants under its credit facility but received a waiver from M&T Bank, allowing continued access to its revolving credit facility [5][6] - A new position of Assistant Director of Strategic Military Sales has been created to enhance alignment with military end-user requirements [10] Q&A Session Summary - No specific questions or answers were documented in the provided content, indicating that the call concluded without a Q&A segment [14]

Core Insights - Syntec Optics Holdings, Inc. reported a sequential revenue growth of 6% in Q3 2025, with net sales reaching $6.95 million compared to $6.56 million in Q2 2025 [4][9] - The company experienced a net loss of $1.4 million in Q3 2025, which is a decline from a loss of $0.3 million in Q2 2025 [6][16] - Adjusted EBITDA for Q3 2025 was nearly zero, down from $0.69 million in Q2 2025, primarily due to a reduction in gross profit and increased administrative expenses [5][8] Financial Performance - Net sales for Q3 2025 were $6.95 million, a 6% increase from Q2 2025 [4] - Gross profit for Q3 2025 was $0.9 million, down $1.0 million year-over-year and down $0.7 million from the previous quarter [8] - The company’s cash balance was $0.6 million at the end of Q3 2025, with total cash including available lines of credit at $1.3 million [8] Future Growth Strategy - Syntec Optics aims to capitalize on the nearly $10 trillion market for light-enabled products, focusing on a diverse product portfolio for blue-chip customers [7] - The company is enhancing production capabilities, particularly in LEO Satellite Optics and Night Vision, and is increasing staffing to scale production [8][10] - Fourth-quarter 2025 revenue is projected to be between $7.3 million and $8.0 million, indicating continued growth in communications, biomedical, and defense sectors [9] Operational Highlights - The company has implemented yield and efficiency improvements across key product lines, contributing to the increase in sales volume [8] - Significant investments in labor and overhead have been made to improve product quality and delivery [8] - Syntec Optics is initiating cost-reduction projects to strengthen earnings and expects improvements in Q4 2025 [8]

Financial Performance - Net sales decreased by $0.9 million, or 11%, to $6.95 million for the three months ended September 30, 2025, compared to $7.87 million for the same period in 2024[73] - Gross profit for the three months ended September 30, 2025, was $854,359, representing 12% of net sales, down from $1,833,720, or 23% of net sales, in the same period of 2024[73] - The net loss for the three months ended September 30, 2025, was $1,429,133, or 21% of net sales, compared to a net loss of $13,289, or 0% of net sales, in the same period of 2024[73] - For the nine months ended September 30, 2025, net sales were $20,578,717, a decrease from $21,128,263 in the same period of 2024[74] - Net sales decreased by approximately $0.5 million, or 3%, to $20.6 million for the nine months ended September 30, 2025, compared to $21.1 million for the same period in 2024[76] - Gross profit decreased by 54%, to $0.9 million for the three months ended September 30, 2025, compared to $1.8 million for the same period in 2024[78] - Net loss increased by $1.4 million to $1.4 million for the three months ended September 30, 2025, compared to a net income of $0.0 million for the same period in 2024[82] - For the nine months ended September 30, 2025, net loss increased by $0.5 million to $1.4 million compared to a net loss of $0.9 million in 2024[83] Expenses - General and administrative expenses increased to $2,072,962, accounting for 30% of net sales in Q3 2025, compared to 22% in Q3 2024[73] - General and administrative expenses increased by $0.3 million, or 20%, to $2.1 million for the three months ended September 30, 2025, compared to $1.7 million for the same period in 2024[79] - Cost of revenue increased by $0.1 million to $6.1 million for the three months ended September 30, 2025, compared to $6.0 million for the same period in 2024[77] - Other expenses for the nine months ended September 30, 2025, increased by $0.4 million to $0.6 million due to a reduction of other income attributed to the sale of an asset in 2024[80] Cash Flow and Financing - As of September 30, 2025, the company had cash totaling $0.6 million and a line of credit with $0.7 million available[99] - Net cash provided by operating activities was $676,529 for the nine months ended September 30, 2025, compared to a net cash used of $1,566,598 for the same period in 2024[105] - Net cash used in investing activities increased to $643,808 for the nine months ended September 30, 2025, from $319,229 in 2024, primarily due to a one-time asset disposal in 2024[107] - Net cash used in financing activities was $53,584 for the nine months ended September 30, 2025, compared to net cash provided of $204,366 in 2024, driven by a decrease in debt borrowings[108] - The Company obtained approximately $1.5 million in financing from a related party to facilitate required paydowns under the waiver[102] Compliance and Risks - As of September 30, 2025, the Company was not in compliance with financial covenants, but received a waiver from M&T Bank, requiring repayment of approximately $1.3 million in loans and reducing the revolving credit line from $8.0 million to $7.5 million[101] - The Company expects to maintain compliance with all amended covenants through the remainder of 2025, strengthening its liquidity position[103] - Significant risks affecting liquidity include economic consequences of global pandemics, geopolitical conflicts, and supply chain disruptions[104] - The primary market risk exposure for the Company is interest rate sensitivity, with no material changes reported during the nine months ended September 30, 2025[109] Business Development - The company plans to grow into new end markets of communications and sensing, having entered the communications market in 2023[59] - In 2023, the company launched several new products, including low weight night vision optics and biomedical mirrors for the medical market[55] - The company has expanded its manufacturing facility to nearly 90,000 square feet, enhancing production capacity and advanced manufacturing processes[53] - The company relies on U.S.-based suppliers for specialized components, which has helped mitigate supply chain disruptions and inflation-related costs[60] Taxation - Income tax expense decreased by $0.1 million to zero for the three months ended September 30, 2025, compared to a tax benefit of ($0.1) million for the same period in 2024[81] - Adjusted EBITDA for the nine months ended September 30, 2025, was $(1.4) million compared to $(0.9) million in 2024[95]

Core Insights - Syntec Optics has achieved a production milestone by manufacturing over 17,000 satellite optics to support low-Earth-orbit satellite launches, enabling a laser mesh network for improved data transmission [1] - The company emphasizes the importance of backward integration in manufacturing optics to achieve super high tolerances, which is critical for satellite communication [2] - The satellite market is projected to grow significantly, with estimates suggesting an increase from $15 billion to $108 billion by 2035, highlighting the potential for Syntec Optics in this expanding market [3] Company Overview - Syntec Optics Holdings, Inc. is a leading manufacturer of custom optics and photonics in the United States, operating for over two decades with a state-of-the-art facility [4] - The company is diversifying its product lines to include optics for low-Earth orbit satellites, lightweight night vision goggles, biomedical applications, and data center optics for AI [4] Industry Context - Goldman Sachs reports that nearly 30% of the global population lacks internet services, indicating a substantial market opportunity for satellite communications [3] - Morgan Stanley forecasts that the global space economy will reach $1 trillion by 2040, further underscoring the growth potential in the satellite and space sectors [3]

Shares of Syntec Optics Holdings, Inc. (OPTX) have gained 22.2% since the company reported its earnings for the quarter ended June 30, 2025. This compares to the S&P 500 index’s 2.5% decline over the same time frame. Over the past month, the stock moved 4.7% versus the S&P 500’s 1.2% decline.For the second quarter of fiscal 2025, Syntec Optics incurred a net loss of 1 cent per share against a net income of 1 cent per share in the same period last year. The company reported net sales of $6.6 million, a 6.4% ...

[Filing Information](index=1&type=section&id=Filing%20Information) This section provides essential identification details for the registrant, SYNTEC OPTICS HOLDINGS, INC., and specifics of the Form 8-K filing, including its jurisdiction, address, and report dates [Registrant and Filing Details](index=1&type=section&id=Registrant%20and%20Filing%20Details) This section provides the core identification details for the registrant, SYNTEC OPTICS HOLDINGS, INC., and the specifics of the Form 8-K filing, including its jurisdiction, address, and the date of the report - The registrant is **SYNTEC OPTICS HOLDINGS, INC.**, incorporated in Delaware, with principal executive offices at 515 Lee Rd., Rochester, NY 14606[1](index=1&type=chunk)[2](index=2&type=chunk) - The Form 8-K report date is **October 6, 2025**, with the earliest event reported on **October 3, 2025**[1](index=1&type=chunk) [Securities Information](index=1&type=section&id=Securities%20Information) This part details the securities registered by SYNTEC OPTICS HOLDINGS, INC. under Section 12(b) of the Securities Exchange Act of 1934, including their trading symbols and the exchange on which they are registered Securities Registered Under Section 12(b) | Title of Each Class | Trading Symbol(s) | Name of Each Exchange on Which Registered | | :------------------ | :---------------- | :---------------------------------------- | | Common stock, par value $0.0001 per share | OPTX | The Nasdaq Capital Market | | Redeemable warrants, exercisable for common stock at an exercise price of $11.50 per share, subject to adjustment | OPTXW | The Nasdaq Capital Market | [Emerging Growth Company Status](index=1&type=section&id=Emerging%20Growth%20Company%20Status) The company has indicated its status as an 'emerging growth company' as defined by relevant SEC rules - **SYNTEC OPTICS HOLDINGS, INC.** is designated as an 'Emerging growth company'[3](index=3&type=chunk) [Item 2.02 Results of Operations and Financial Condition](index=2&type=section&id=Item%202.02%20Results%20of%20Operations%20and%20Financial%20Condition) This section details the company's announcement of financial results for specific quarters and the full year through a press release [Financial Results Announcement](index=2&type=section&id=Financial%20Results%20Announcement) SYNTEC OPTICS HOLDINGS, INC. announced its financial results for the fourth quarter and full year ended December 31, 2024, and the first and second quarters of 2025, through a press release - On **October 6, 2025**, the Company issued a press release announcing financial results for **Q4 2024, Q1 2025, and Q2 2025**[4](index=4&type=chunk) - The press release is attached as **Exhibit 99.1** and is furnished under Item 2.02, not deemed 'filed' for Section 18 purposes unless specifically referenced[4](index=4&type=chunk)[5](index=5&type=chunk) [Item 9.01 Financial Statement and Exhibits](index=2&type=section&id=Item%209.01%20Financial%20Statement%20and%20Exhibits) This section provides a comprehensive list of all documents filed as exhibits to the Form 8-K, including the financial results press release and interactive data [Exhibits List](index=2&type=section&id=Exhibits%20List) This section lists the documents filed as exhibits to the Form 8-K, including the press release detailing financial results and the interactive data file Exhibits Filed | Exhibit Number | Description | | :------------- | :---------- | | 99.1 | Press release dated October 6, 2025 | | 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | [Signatures](index=3&type=section&id=SIGNATURES) This section confirms the official signing of the report by the registrant's authorized officer, validating its submission [Report Signatures](index=3&type=section&id=Report%20Signatures) The report is officially signed by the registrant's authorized officer, confirming its submission in accordance with the Securities Exchange Act of 1934 - The report was signed on behalf of **SYNTEC OPTICS HOLDINGS, INC.** by **Al Kapoor, Chief Executive Officer**, on **October 6, 2025**[8](index=8&type=chunk)[9](index=9&type=chunk)

Financial Performance - Adjusted EBITDA increased to 15.3% for the first half of 2025 compared to 5.8% for the same period in 2024, reflecting significant improvement in profitability [9][13] - Net income for the six-month period ending June 30, 2025, improved by $0.9 million compared to the same period in 2024, reaching $0 million [15] - Net sales for the first half of 2025 totaled $13.6 million, an increase of $0.3 million from $13.3 million in the same period in 2024 [10] Operational Highlights - The calendar year 2024 saw record-high net sales and a double-digit increase in the communications end-market, including sales for space optics and AI-driven data center optical connectivity [4] - The company invested $3.3 million in state-of-the-art equipment in 2024 to enhance capacity and service reliability for customers [8] - Production ramped up for low-weight hybrid optics used in night vision goggle systems, with final OEM acceptances underway [5] Market Expansion - Syntec Optics entered a new end-market in energy by enabling light for space-based solar power and grid-scale fusion energy products in the first half of 2025 [9] - The company launched a new product in optical connectivity for AI deployment-based scaling of data centers in 2024 and began production runs in the first half of 2025 [9] - Future growth strategy focuses on operational excellence, scaling production, and expanding into new light-enabled applications, including fusion energy and hyperspectral imaging [16][19] Cost Management - General and administrative expenses for the first half of 2025 were reduced by $0.6 million compared to 2024, with notable reductions in outside consulting and travel expenses [12] - Gross profit for the first half of 2025 was $3.9 million, an improvement of $1.0 million over the previous year, with gross margin increasing from 22% to 29% [11]