Precision Optics (PEYE) Q1 2025 Earnings Report

Precision Optics reported QQ1 2025 revenue of $4.197 million, down 13.0% year-over-year and 11.0% quarter-over-quarter. Gross profit was $1.118 million with a gross margin of 26.6%, yet the company posted an operating loss of $1.247 million and a net loss of $1.311 million, translating to an EPS of −$0.21. The quarter marks continued profitability challenges amid a modest improvement in some cost lines but persistent top-line and operating-leverage headwinds. The cash flow profile remains negative from operations, with FCF at −$0.343 million and a cumulative cash balance of $0.636 million, underscoring liquidity and funding needs as the business navigates a low-growth environment in the niche medical imaging space. On the balance sheet, total assets stand at $17.24 million with goodwill of $9.11 million and total liabilities of $7.10 million; stockholders’ equity sits at $10.14 million. The company carries total debt of $2.74 million and net debt of $2.10 million, with current liquidity metrics showing a current ratio of 1.41 and a quick ratio of 0.76, signaling moderate near-term liquidity but modest cushion to weather further downside. Management commentary is not embedded in the provided data; as a result, the forward-looking view relies on the quantitative signal set and industry context. Investors should monitor operating leverage progress, potential improvements in working capital efficiency, and any strategic actions that could unlock value given the sizable goodwill balance.