$POCI Precision Optics Corporation Inc
I have listened to the last 4 earnings calls and am about to increase my position in this company.
They are the U.S. domestic vertically integrated manufacturer of micro-optics. The market for their products is growing like dough, and their record-breaking quarters are additional evidence of that.
POCI is a relatively small company offering custom tiny optics for two major industries that are POCI's revenue pillars:
- medical
- defense/aerospace
Recently, they added Satellite Communications (i.e., LEO) as a third pillar, a future growth area they're now actively pursuing.
Demand for these micro-optics is growing because of new developing trends.
Medical industry:
- shift toward single-use scopes for a variety of procedures to eliminate cross-contamination (I remember how in the Soviet Union grocery stores used shared cups to serve milkshakes; after the USSR collapsed, single-use cups were slowly but permanently adopted);
- growing demand for minimally invasive surgeries, which require advanced micro-optics.
Defense industry:
- experiencing a renaissance in technological inspection devices, for example, borescopes to inspect jet engines, etc.
- the CEO also stated that there are opportunities in niches ranging "from autonomous vehicles to directed energy weapons."
Satellite communication:
- shifting from Radio Frequency to optical inter-satellite links (laser comms) for the growing LEO satellite business.
Clients:
POCI doesn't disclose customer names, but publicly available information strongly suggests its AR fighter-pilot training program supports Red 6, the US Air Force's exclusive AR combat training vendor.
Their single-use cystoscope partner is widely speculated to be PROCEPT BioRobotics, based on the technical match.
Intuitive Surgical is a confirmed historical customer (POCI's website states they were an early partner on the da Vinci robotic surgery system).
What is special about POCI?
- They are based in the US;
- Vertically integrated;
- They design custom optics from scratch for every client, develop prototypes, and handle mass production which helps them stand out against giants like Corning, ZEISS, etc.;
- They provide agility and decades of expertise to satisfy demanding customer needs;
- Their optics can operate in extreme conditions;
- They recently expanded their facilities to increase production and raised capital for growth.
POCI has two major revenue streams:
- a design and prototyping arm
- and manufacturing.
For each client, they run a dedicated "engineering program" first, and then a "production program."
The largest production program is currently Medical but in terms of a single client, it is Aerospace/Defense.
POCI considers Space as the third strategic market focus .
Now they have:
- up to 6 engineering programs (production could start in FY2027)
- 3 active production programs:
Aerospace/Defense (top-tier aerospace customer) $3.6M in Q3 FY2026
Single-use cystoscope (surgical robotics customer) $2.2M in Q3 FY2026
Single-use ophthalmic program ramping, ~$2-3M expected in CY2026
Because the optics are custom, initial yields start low and improve over time. For example, the ophthalmic line yields went from ~60% in November to over 90% within a few months. That impacts revenue and margin.
Financials:
Record-breaking revenue, quarter after quarter:
Q4 FY2025 - $6.2m
Q1 FY2026 - $6.7m
Q2 FY2026 - $7.4m
Q3 FY2026 - $8.7m
Aerospace backlog only is $9m
Almost break-even and about to reach profitability. Margin is about 23%, with a trajectory to improve to 30% by the end of FY2026. Debt is under $2m
They raised FY2026 revenue guidance to $31m, up from $25m
The CEO stated that demand is not just growing it is accelerating.
New facility provides capacity headroom. POCI can grow production without needing additional capex on top of what they've already committed.
Market cap is $62.8m (June 5 2026).
P/S: 2.03x on FY2026 guidance of $31m
To conclude:
There is a clear trend toward adopting micro-optics. POCI's clients are in trending niches like Defense, Robotics and potentially Space. These clients need more advanced technology for their medical devices, robots, military systems, and space hardware. POCI has the expertise and assets to create those advanced products custom and fast. It's a pick-and-shovel play with revenue growth of 50%โ100% YoY, a 30% margin guidance, and a business that is about to become profitable.
not financial advice / DYOR.