Optex Systems Holdings, Inc. Announces Financial Highlights for the Three and Nine Months Ended June 29, 2025

RICHARDSON, TX / ACCESS Newswire / August 12, 2025 / Optex Systems Holdings, Inc. (Nasdaq:OPXS), a leading manufacturer of precision optical sighting systems for domestic and worldwide military and commercial applications, announced financial results for the three and nine months ended June 29, 2025.

Danny Schoening, CEO of Optex Systems Holdings, Inc., commented, "We are proud to announce another record-breaking quarter for revenue, a testament to our unwavering commitment to excellence, reliability, and customer support. This milestone reflects not only our strong operational performance but also the momentum we are building across the business.

"In addition to surpassing previous revenue records, we are excited to report several significant new program wins that expand our footprint in both domestic and international markets. These new awards are the result of our consistent delivery of high-quality products and the trust we have earned as a dependable defense manufacturing partner.

"Our factory performance continues to highlight the strength of our team and the efficiency of our processes. As we celebrate this achievement, we remain focused on sustaining this growth trajectory, investing in innovation, and delivering superior value to our customers and shareholders.

"We thank our employees, customers, and investors for their ongoing support in making this success possible."

Backlog as of June 29, 2025 was $38.3 million, compared to a backlog of $45.6 million as of June 30, 2024, representing a decrease of $7.3 million, or 16.0% from the prior year June period. Subsequent to the period ended June 29, 2025, the Company announced several new awards including a $2.8 million order for the XM30 program, a $10.2 million five-year requirement-type contract award for optical sighting systems, and a $1.6 million order for laser filters, bringing our total backlog to $45.0 million as of August 5, 2025.

For the three months ended June 29, 2025, our total revenue increased by $2.1 million, or 22.6%, compared to the prior year period. For the nine months ended June 29, 2025, our total revenue increased by $5.5 million, or 22.3%, compared to the prior year period. The increase in revenue was primarily driven by higher periscope production levels at the Optex Richardson segment, combined with increased customer demand across both the Optex Richardson and the Applied Optics operating segments.

Consolidated gross profit for the three months ended June 29, 2025 increased by $0.3 million, or 10.0%, compared to the prior year period. Consolidated gross profit for the nine months ended June 29, 2025 increased by $1.5 million, or 21.6%, compared to the prior year period. The increase in the most recent three and nine-month period gross profit was primarily attributable to increased revenue and changes in product mix.

Our operating income for the three months ended June 29, 2025 increased by $0.3 million, or 18.3%, compared to the prior year period. Our operating income for the nine months ended June 29, 2025 increased by $1.5 million, or 43.8%, compared to the prior year period. The increase in operating income was primarily driven by higher revenue and gross profit.

As of June 29, 2025, Optex Systems Holdings had working capital of $19.4 million, as compared to $15.1 million as of September 29, 2024. During the nine months ended June 29, 2025, we generated operating cash of $5.4 million, primarily driven by increased net income, reductions in inventory and increased accounts payable. During the nine months ended June 29, 2025, we paid $1.0 million against the credit facility and purchased capital assets of $0.5 million.

At June 29, 2025, the Company had approximately $4.9 million in cash and no draws against its revolving credit line. As of June 29, 2025, our outstanding accounts receivable balance was $4.1 million to be collected during the fourth quarter of fiscal 2025.

Our key performance measures for the three and nine months ended June 29, 2025 and June 30, 2024 are summarized below.

The table below summarizes our three- and nine-month operating results for the periods ended June 29, 2025 and June 30, 2024, in terms of both the GAAP net income measure and the non-GAAP Adjusted EBITDA measure. We believe that including both measures allows the reader better to evaluate our overall performance.

Adjusted EBITDA has limitations and should not be considered in isolation or a substitute for performance measures calculated under GAAP. This non-GAAP measure excludes certain cash expenses that we are obligated to make. In addition, other companies in our industry may calculate Adjusted EBITDA differently than we do or may not calculate it at all, which limits the usefulness of Adjusted EBITDA as a comparative measure.

Our net income increased by $0.2 million to $1.5 million for the three months ended June 29, 2025, as compared to net income of $1.3 million for the prior year period. Our adjusted EBITDA increased by $0.3 million to $2.1 million for the three months ended June 29, 2025, as compared to adjusted EBITDA of $1.8 million for the prior year period.

Our net income increased by $1.3 million to $4.1 million for the nine months ended June 29, 2025, as compared to net income of $2.8 million for the prior year period. Our adjusted EBITDA increased by $1.5 million to $5.7 million for the nine months ended June 29, 2025, as compared to adjusted EBITDA of $4.2 million for the prior year period.

The increase in net income and adjusted EBITDA for the most recent three and nine-month periods compared to the prior year periods is primarily driven by increased revenue and gross profit.

We currently do not anticipate any significant material risks as a result of the recent tariff uncertainties or China's stranglehold on rare earths. Our defense products are primarily sourced domestically, but those which are imported are generally not subject to tariff or duties. We produce some commercial optical assemblies with selective components sourced from Taiwan; however, our current customer backlog is covered with existing material in inventory. We anticipate any future orders for these commercial products will be subject to revised pricing inclusive of any potential tariff impact.

Highlights of the Consolidated and Segment Results of Operations have been prepared in accordance with GAAP. These financial highlights do not include all information and disclosures required in the consolidated financial statements and footnotes and should be read in conjunction with our Quarterly Report on Form 10Q for the three and nine months ended June 29, 2025 filed with the SEC on August 12, 2025.

Optex Systems Holdings, Inc.
Condensed Consolidated Balance Sheets