Optical Cable (OCC) Q3 2025 earnings summary

Executive summary

• Net sales for Q3 2025 increased 22.8% year-over-year to $19.9 million, with gross profit up 61.2% to $6.3 million and net income of $302,000, reversing a $1.6 million loss in Q3 2024.

• For the nine months ended July 31, 2025, net sales rose 12.8% to $53.2 million, gross profit increased 39.5% to $16.3 million, and net loss narrowed to $1.5 million from $4.6 million in the prior year.

• Entered a strategic collaboration and equity agreement with Lightera (also referred to as Laterra), issuing redeemable restricted shares valued at $2.0 million, with Lightera acquiring a 7.24% equity stake.

• Management remains optimistic about continued growth opportunities and disciplined execution into fiscal 2026.

Financial highlights

• Q3 net sales rose to $19.9 million from $16.2 million year-over-year; sequentially up 13.5% from Q2.

• Gross profit for Q3 increased to $6.3 million from $3.9 million, with gross margin rising to 31.7% from 24.2% year-over-year.

• Net income for Q3 was $302,000 ($0.04 per share) versus a net loss of $1.6 million ($0.20 per share) in Q3 2024.

• Nine-month net loss narrowed to $1.5 million from $4.6 million year-over-year.

• Cash at July 31, 2025 was $421,000, up from $244,000 at October 31, 2024.

Outlook and guidance

• Management expects future cash flow from operations, cash on hand, and the existing revolver to be adequate to fund operations for at least the next twelve months.

• No material new capital expenditures planned; $1.0 million budgeted for FY2025.

• Management expresses optimism for the remainder of fiscal 2025 and into 2026, citing industry recovery, strong market position, and the Lightera partnership.