Syntec Optics (OPTX) Q1 2026 earnings summary

Executive summary

• Net sales for Q1 2026 were $6.5 million, down 8% year-over-year, primarily due to a $1.0 million decrease in medical market sales, partially offset by a $0.4 million increase in consumer market sales.

• Gross profit declined 58% to $1.0 million, with gross margin dropping from 33% to 15% due to higher material costs, especially aluminum.

• Net loss was $0.9 million for Q1 2026, compared to net income of $0.3 million in Q1 2025, driven by lower sales and increased costs.

• Subsequent to quarter-end, a public equity offering raised $21.5 million in net proceeds, used in part to repay the revolving credit facility.

Financial highlights

• Net sales: $6.5 million (Q1 2026), down from $7.1 million (Q1 2025).

• Gross profit: $1.0 million (Q1 2026) vs. $2.3 million (Q1 2025).

• Net loss: $0.9 million (Q1 2026) vs. net income of $0.3 million (Q1 2025).

• Adjusted EBITDA for Q1 2026 was $(96,080), compared to $1.39 million in Q1 2025.

• Cash at quarter-end: $617,007, up from $358,867 at prior year-end.

Outlook and guidance

• Management expects that cash from operations, the revolving credit facility, and proceeds from the equity offering will be sufficient to fund operations and obligations for at least the next twelve months.

• Operational efficiency and cost reduction initiatives are being implemented to improve gross profit and EBITDA in future periods.