Coda Octopus Group Reports Fiscal Third Quarter 2025 Financial Results

Core Insights - Coda Octopus Group, Inc. reported a 29.0% increase in total revenue for the fiscal third quarter ended July 31, 2025, reaching approximately $7.1 million compared to $5.5 million in the same quarter of the previous year [2][6][9] - The company continues to invest in its growth strategy, particularly through the Diver Augmented Vision Display (DAVD) program, with expected sales of $3.5 million to $4.0 million for fiscal year 2025, up from $1.2 million in the previous fiscal year [3][4] Financial Performance - Revenues from the Marine Technology Business increased by 30.7% to $4.0 million, while revenues from the Marine Engineering Business decreased by 33.2% to $1.6 million [6][9] - Gross profit for TQ2025 was $4.8 million, with a gross margin of 68.3%, down from 73.9% in TQ2024 [6][9] - Operating income was $1.38 million, a slight decrease of 0.8% from $1.39 million in TQ2024, with an operating margin of 19.5% [6][9] Product Development and Market Opportunities - The company successfully completed the DUS Hardening Program, leading to an order for sixteen DAVD untethered systems from the U.S. Navy, which were delivered in TQ2025 [4][5] - The launch of the Echoscope PIPE NANO GEN SERIES® is expected to open new market opportunities, particularly in defense and underwater robotics, with the UUV market projected to grow from $4.8 billion in 2024 to $11.1 billion by 2030 [10][15] Cash Position and Investments - Coda Octopus Group's cash balance increased to $26.2 million at the end of TQ2025, up from $22.5 million at the end of October 2024 [8] - Research and Development expenditures rose by 15.3% to approximately $0.6 million, reflecting the company's commitment to innovation [12]