Coda Octopus Group Reports Strong Q3 Financial Results Despite Market Challenges
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ORLANDO, FL, Sept. 14, 2026 /CourierPR/ -- Coda Octopus Group, a global leader in real-time subsea imaging and diving augmented reality technology, reported strong financial results for its fiscal third quarter ending July 31, 2026. Despite a decline in revenue from its core Marine Technology Business, the company saw significant growth in its Defense Engineering Services Business and Acoustics Sensors and Materials Business.
Total revenue for the quarter was approximately $7.7 million, up 9.2% from $7.1 million in the same period last year. Revenue from the core Marine Technology Business decreased by 15.2% to $3.4 million, while the Defense Engineering Services Business saw a 68.3% increase to $2.7 million. The Acoustics Sensors and Materials Business also showed growth, with revenue increasing by 10.4% to $1.6 million.
Operating income for the quarter was $1.5 million, a 11.1% increase from $1.4 million in the previous year. Operating margin improved to 19.9% from 19.5% in the same period last year. Pre-tax income and net income after taxes also saw increases, rising 16.0% and 8.3%, respectively, to $1.8 million and $1.4 million.
The company's cash balance at the end of the quarter was $31.7 million, up $3.0 million from $28.7 million at the end of October 2025. Research and Development expenditures increased by 27.4% to approximately $0.7 million, while SG&A decreased by 2.9% to $2.8 million.
In the Marine Technology Business, the company received orders totaling approximately $1.4 million for its DAVD tethered systems and peripherals. The DAVD untethered system, with Approved Navy Use authorization, is being trained on by discrete user groups, and the company is supporting several integration programs under contract. The Echoscope PIPE NANO Gen Series, a new product, is generating strong customer engagement and is being integrated into underwater vehicle platforms by at least five customers.
The Defense Engineering Services Business is experiencing steady demand for repairs, sustainment, and spare parts supporting long-standing U.S. defense programs. A multi-year repair and sustainment contract was awarded to one of the company's prime contractor customers, leading to increased repair-related activity and additional subcontract opportunities. The company is also supporting the development of rugged, deployable radio frequency electronic warfare systems for various platforms, including unmanned systems, helicopters, airborne pods, and ground vehicles.
Gayle stated, "We believe the long-term market drivers underlying our business remain compelling. Global defense priorities continue to focus on autonomous and unmanned maritime capabilities, creating significant opportunities for advanced underwater sensing, imaging, and situational awareness technologies. We remain focused on commercial execution, innovation, and expanding adoption of our key technologies while positioning the Company for long-term growth."
The company will host a conference call on September 14, 2026, at 10:00 a.m. Eastern Time (7:00 a.m. Pacific Time) to discuss its results for the fiscal third quarter ended July 31, 2026.