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]

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 ...

Core Insights - Coda Octopus reported a consolidated net revenue increase of 30.7% for fiscal year 2025, reaching $26.6 million compared to $20.3 million in fiscal year 2024 [28][29] - The company operates three main business segments: marine technology, defense engineering services, and acoustics, sensors, and materials [4][10] - The marine technology segment generated 49.8% of total revenue, with a focus on underwater imaging technologies and real-time information platforms [4][5] Financial Performance - Total revenue for the marine technology business was $13.2 million, reflecting a 3.2% increase from the previous year [28] - The defense engineering services business saw a revenue increase of 5.6%, totaling $7.9 million [12][29] - The newly acquired acoustics, sensors, and materials business contributed $5.4 million, accounting for 20.4% of consolidated revenue [28][34] Product Highlights - The Echoscope, a flagship imaging sonar, is crucial for underwater applications and represents a significant revenue source, contributing 71.9% of marine technology revenue [11][15] - The NanoGen series, a new ultra-compact sonar, is designed for various underwater platforms and aims to enhance the company's market share in defense applications [7][18] - The Diver Augmented Vision Display (DAVD) system is gaining traction in both defense and commercial diving sectors, with a focus on enhancing safety and efficiency [9][21] Market Dynamics - The marine technology business is positioned to capitalize on the growing demand for AI-enabled autonomous capabilities in the subsea market [5][16] - The defense sector accounted for 46% of the core business revenue, indicating a strategic shift towards defense-related opportunities [35][62] - The company is actively pursuing broader adoption of its technologies in international markets, particularly in Europe [41][52] Strategic Initiatives - Coda Octopus aims to pivot its revenue model towards multi-year program-based adoption, focusing on recurring sales and long-term revenue streams [37][62] - The company is exploring potential acquisitions to enhance its growth strategy and expand its market presence [37][63] - The successful completion of the DAVD hardening program is expected to facilitate broader military adoption and operational use [24][41]

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]

Core Insights - Coda Octopus Group, Inc. reported strong financial results for FY2025, with significant increases in consolidated net revenue, operating income, pre-tax income, and earnings per share [2][8]. Financial Performance - Total revenue for FY2025 was approximately $26.6 million, a 30.7% increase from $20.3 million in FY2024 [8]. - Revenue from the Marine Technology Business was $13.2 million, up 3.2% from $12.8 million in FY2024 [8]. - Revenue from the Defense Engineering Services Business increased by 5.6% to $7.9 million compared to $7.5 million in FY2024 [8]. - Gross profit rose to $17.7 million, with a gross margin of 66.5%, down from 69.8% in FY2024 [12]. - Operating income increased by 26.6% to $4.5 million, with an operating margin of 17.1% [12]. - Pre-tax income was approximately $5.5 million, a 19.5% increase from $4.6 million in FY2024 [12]. - Net income after taxes was $4.1 million, reflecting a 13.3% increase from $3.6 million in FY2024 [12]. - Diluted earnings per share increased to $0.37 from $0.32 in FY2024 [12]. Business Developments - The acquisition of Precision Acoustics Limited (PAL) contributed positively to financial performance, achieving qualifying conditions for earn-out payments [2][3]. - Sales related to DAVD technology reached approximately $3.7 million, up from $1.2 million in the previous fiscal year [3]. - Equipment sales for Echoscope increased by 30.5% to $9.4 million compared to $7.2 million in FY2024 [3]. - The company completed the "Joint Funded DUS Hardening Program," delivering 16 next-generation DUS Systems for the U.S. Navy [5]. - The new generation of untethered DAVD systems is undergoing the Authorization for Navy Use (ANU) approval process, which is crucial for broader adoption [5][13]. Strategic Focus - The company is focused on increasing its share in the Defense Underwater Vehicles sector, which is transitioning towards AI-enabled autonomous capabilities [11]. - The introduction of the NANO Gen Series imaging sonar is aimed at enhancing the company's position in the underwater imaging sonar market [11][14]. - The company is expanding its growth strategy to include M&A activities, targeting value-accretive opportunities [15]. Cash Position - The cash balance at the end of FY2025 was $28.7 million, an increase of $6.2 million from $22.5 million in FY2024 [9]. Research and Development - Research and Development expenditures for FY2025 were approximately $2.4 million, a 9.2% increase compared to $2.2 million in FY2024 [12]. Summary of Achievements - The company successfully launched the ultra-compact Echoscope PIPE NANO Gen Series imaging sonar, which is well-received in the market [13]. - The company is seeing traction for DAVD technology outside the U.S., with sales to a European Navy [13].

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]

Financial Data and Key Metrics Changes - The company reported total revenue of $7.1 million for Q3 2025, a 29% increase from $5.5 million in Q3 2024 [26] - Gross profit for Q3 2025 was $4.8 million, compared to $4.0 million in Q3 2024, with a consolidated gross margin of 68.3% versus 73.9% in the previous year [27] - Operating income decreased slightly to $1.38 million in Q3 2025 from $1.39 million in Q3 2024, resulting in an operating margin of 19.5% compared to 25.4% [29][30] Business Line Data and Key Metrics Changes - The marine technology business generated $4.0 million in revenue, a 30.7% increase from $3.0 million in Q3 2024, accounting for 56.4% of total net revenue [4][26] - The marine engineering business saw a revenue decline of 33.2%, generating $1.6 million compared to $2.4 million in Q3 2024 [10][26] - The newly acquired Precision Acoustics Ltd contributed 20.6% to net revenue and 18% to operating income in Q3 2025 [11][26] Market Data and Key Metrics Changes - The marine technology business's hardware sales increased by 103.6% to $2.7 million, while rental assets were underutilized, impacting gross profit margins [9][27] - The company noted a decrease in hardware sales to Asia by approximately 27.9%, which affected commission costs [9] Company Strategy and Development Direction - The company is focusing on increasing market share in the defense sector for underwater imaging sensors, particularly with the Echoscope technology [6][7] - The launch of the NanoGen series sonars aims to address the growing demand for smaller underwater vehicles and platforms [15][19] - The company is pursuing an M&A strategy to enhance its capabilities and diversify its revenue streams [33] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in the global policy environment but expressed confidence in the growth strategy and progress made in key milestones [4][32] - The company is optimistic about the potential for increased revenue from the DAVD product line, projecting $4 million in revenue for the fiscal year [38][46] Other Important Information - The company has $26.2 million in cash and cash equivalents as of July 31, 2025, with no debt, reflecting a $3.7 million increase from the previous year [30] Q&A Session Summary Question: Feedback on Echoscope Type Nano Gen series - Management received positive feedback regarding the reduced size and weight of the Echoscope Type Nano Gen series, which allows for integration into smaller platforms [35][36] Question: Changes in DAVD-related revenue target - The company is targeting $4 million in DAVD revenue for the fiscal year, a significant increase from $1.2 million last year [38] Question: Exposure to China and supply chain concerns - The company has minimal exposure to China, with most components sourced from Europe, and has faced challenges in exporting to China due to government restrictions [41][42] Question: Echoscope as a revenue driver - Echoscope remains a key revenue driver, with recent sales growth attributed to hardware sales, although rental revenues have decreased due to shifts in funding for offshore renewables [44][46] Question: Thoughts on stock buyback program - Management indicated that stock buyback decisions are for the board to consider, while focusing on M&A opportunities to enhance business value [50]

Financial Data and Key Metrics Changes - In Q1 2025, total revenue increased by 16.8% to $5.2 million from $4.5 million in Q1 2024 [34][35] - Operating income rose by 19.2% to $0.7 million compared to $0.6 million in Q1 2024 [40] - Net income after taxes was $0.91 million or $0.08 per diluted share, up from $0.6 million or $0.06 per diluted share in Q1 2024 [41] Business Line Data and Key Metrics Changes - Marine Technology business revenue decreased by 35.8% to $2.3 million from $3.5 million in Q1 2024 [35] - Engineering business revenue increased by 77% to $1.6 million from $0.9 million in Q1 2024 [12] - Acoustic Sensors & Materials business generated $1.3 million in revenue, contributing 25.2% to consolidated revenue [36][43] Market Data and Key Metrics Changes - The Marine Technology business faced significant headwinds due to U.S. policy changes affecting offshore renewables, leading to weak demand [9][10] - Increased defense spending in Europe, particularly Germany's expected $428 billion, is anticipated to favor the company's products in the medium to long term [11][12] Company Strategy and Development Direction - The company aims to pivot the revenue model of the Marine Technology business to a multi-year, multi-sales model [47] - Focus on increasing the number of defense programs that utilize the company's technologies, particularly Echoscope and DAVD [28][30] - The acquisition of Precision Acoustics is seen as a strategic move to compete for larger defense contracts [31][32] Management's Comments on Operating Environment and Future Outlook - Management expects a quieter Q2 due to customer standstill amid uncertain policy environments, but anticipates a robust Q3 and Q4 [52][55] - The company is optimistic about the long-term impact of increased defense spending in Europe and the U.S. [46][47] Other Important Information - The company has $22.54 million in cash and cash equivalents with no debt as of January 31, 2025 [42] - The gross margin for the Acoustic Sensors & Materials business is expected to be between 57% and 61% on an annualized basis [38] Q&A Session Summary Question: What needs to happen for marine products to recover? - Management noted that customers are currently on standstill due to uncertainty, expecting a quiet Q2 but a robust Q3 and Q4 [52][55] Question: Timeline for tethered and untethered markets? - Management targets $4 million to $4.5 million in revenues for DAVD this year, with significant demand for both tethered and untethered systems [57][60] Question: Impact of market conditions on acoustic solutions? - The acoustic solutions market appears stable, with no significant slowdown observed [72] Question: Status of potential acquisition? - The company is focused on one target for acquisition, pending further understanding of the global policy environment [80][84]