Precision Optics Corporation Inc (PEYE) reported QQ3 2025 results characterized by a material top-line decline and pronounced margin compression, culminating in a meaningful net loss. Revenue of $4.186 million declined 7.5% QoQ and 20.15% YoY, while gross profit was $0.418 million on a 9.99% gross margin, signaling limited pricing power and potential underutilization of fixed cost absorption. Operating income stood at $(2.038) million with an EBITDAR of $(2.039) million, translating to an operating margin of approximately -48.7% and an EBITDA loss. The net loss was $(2.097) million or $(0.30) per share, underscoring persistent profitability challenges despite a smaller quarterly base. On the balance sheet, liquidity remains adequate on a working-capital basis, with a current ratio near 2.0, cash of $2.548 million, and total debt of $0.670 million. However, the company funded a substantial portion of the quarter through equity issuance, with common stock totaling $3.861 million issued, suggesting reliance on external financing to sustain operations. Free cash flow remained negative at $(1.997) million, driven by negative operating cash flow of $(1.873) million despite modest capex of $(0.125) million. Management commentary is not included in the provided transcript; thus, the assessment relies on disclosed financials and industry context. The near-term outlook hinges on stabilization or growth in revenue, scaling of high-margin components, and the ability to reduce operating and SG&A costs while maintaining prudent liquidity management.