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 ...

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]

Financial Data and Key Metrics Changes - In Q3 2025, total revenue increased by 29% to $7.1 million compared to $5.5 million in Q3 2024 [24] - Gross profit rose to $4.8 million from $4.0 million, with a consolidated gross margin of 68.3%, down from 73.9% in the previous year [25][26] - Operating income slightly decreased to $1.38 million from $1.39 million, resulting in an operating margin of 19.5% compared to 25.4% in Q3 2024 [27][28] 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 revenue [24][25] - The marine engineering business saw a revenue decline of 33.2%, down to $1.6 million from $2.4 million in Q3 2024 [24][26] - The newly acquired Precision Acoustics Ltd contributed 20.6% to net revenue, generating $1.5 million [24][25] Market Data and Key Metrics Changes - Hardware sales in the marine technology business increased by 103.6% to $2.7 million, while rental asset utilization was low, impacting gross profit margins [8][26] - Revenue from the Echoscope accounted for 57.7% of marine technology revenue, while DAVD contributed 42.3% [8] 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 and DAVD technologies [5][6] - The launch of the NanoGen series sonars aims to address the growing demand for smaller underwater vehicles and enhance situational awareness [12][13] - The company is pursuing an M&A strategy to build a pipeline of complementary technologies, particularly in the defense sector [32][50] 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][31] - The company is optimistic about achieving $4 million in DAVD-related revenue for the fiscal year, a significant increase from $1.2 million the previous year [37][46] Other Important Information - The company has $26.2 million in cash and cash equivalents with no debt, reflecting a $3.7 million increase since October 2024 [28] - The marine engineering business is reliant on defense program funding, which has been delayed, affecting contract awards [9][26] Q&A Session Summary Question: Feedback on Echoscope Type Nano Gen series - Management received positive feedback regarding the reduced size and weight of the new Echoscope, which allows for integration into smaller platforms [34][35] Question: Changes in DAVD revenue target - The company expects to achieve $4 million in DAVD revenue, up from a previous target of $4.5 million, reflecting significant growth from last year's $1.2 million [36][37] 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 [40][41] 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 [42][43][44] Question: Thoughts on stock buyback program - Management indicated that stock buyback decisions are for the board to consider, focusing currently on M&A opportunities [48][50]

Financial Data and Key Metrics Changes - In Q3 2025, total revenue increased by 29% to $7.1 million from $5.5 million in Q3 2024 [24] - Gross profit rose to $4.8 million, with a consolidated gross margin of 68.3%, down from 73.9% in the previous year [25][26] - Operating income slightly decreased to $1.38 million, with an operating margin of 19.5%, compared to 25.4% in Q3 2024 [27][28] 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 net revenue [4][24] - The marine engineering business saw a revenue decline of 33.2%, down to $1.6 million from $2.4 million in Q3 2024 [9][24] - The newly acquired Precision Acoustics Ltd contributed 20.6% to net revenue, generating $1.5 million [10][24] Market Data and Key Metrics Changes - Hardware sales in the marine technology business increased by 103.6%, reaching $2.7 million compared to $1.3 million in Q3 2024 [8][24] - Revenue from the Echoscope accounted for 57.7% of marine technology business revenue, while DAVD contributed 42.3% [8] 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 [5][6] - The launch of the NanoGen series sonars aims to address the growing demand for smaller underwater vehicles and enhance situational awareness [12][13] - The company is pursuing an M&A strategy to build a pipeline of complementary technologies, particularly for the DAVD product line [32][50] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about achieving $4 million in DAVD revenue for the fiscal year, a significant increase from $1.2 million the previous year [37][46] - The company is experiencing delays in contract awards within the marine engineering business due to funding issues in defense programs [9][28] - Management highlighted the importance of the defense market for scalable growth, noting that the evaluation process for technology integration can be lengthy [44][46] Other Important Information - The company reported an increase in cash and cash equivalents to $26.2 million, with no debt [28] - The gross margin for the marine technology business decreased to 77.0% from 82.9% in the previous year, reflecting a shift in sales mix [25][26] 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, which allows for integration into smaller platforms [34][35] Question: Change in DAVD-related revenue target - The company is now targeting $4 million in DAVD revenue for the fiscal year, up from the previous target of $4.5 million [36][37] 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 regulatory barriers [40][41] Question: Echoscope as a revenue driver - Echoscope remains a key revenue driver, with recent sales growth attributed to hardware sales, although rental revenues have declined due to shifts in funding for offshore renewables [43][44]

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]