Coda Octopus Group, Inc. (CODA) Earnings
Coda Octopus Group, Inc. is expected to report next earnings on September 14, 2026 (in NaN days), with a consensus EPS estimate of $0.12. CODA has beaten EPS estimates in 10 of its last 12 reported quarters (average surprise +59.4% over the last four).
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Jun 15, 2026 | $0.13 | $0.15 | +15.4% | $7M | -8.2% |
| Mar 17, 2026 | $0.06 | $0.08 | +33.3% | $7M | +7.8% |
| Sep 15, 2025 | $0.09 | $0.11 | +22.2% | $7M | +8.3% |
| Jun 16, 2025 | $0.03 | $0.08 | +166.7% | $7M | +14.0% |
| Mar 17, 2025 | $0.03 | $0.08 | +166.7% | $5M | -18.0% |
| Sep 16, 2024 | $0.10 | $0.11 | +10.0% | $5M | +3.9% |
| Jun 12, 2024 | $0.05 | $0.13 | +160.0% | $5M | +17.3% |
| Mar 18, 2024 | $0.01 | $0.06 | +500.0% | $4M | +11.8% |
| Sep 13, 2023 | $0.12 | $0.09 | -25.0% | $5M | -10.8% |
| Jun 14, 2023 | $0.10 | $0.09 | -10.0% | $5M | -8.4% |
| Mar 16, 2023 | $0.09 | $0.12 | +33.3% | $6M | +0.1% |
| Sep 14, 2022 | $0.07 | $0.16 | +128.6% | $6M | +6.3% |
Source: company filings + earnings calendar. For informational purposes only — not investment advice.
Earnings call summary
Q2 FY2026 · June 15, 2026
AI summary of management’s prepared remarks and analyst Q&A. For informational purposes only — not investment advice.
Management highlights
- Overall Business Resilience and Performance * Delivered solid Q2 results with improvements in gross profit margin, net income, and earnings per share despite a slight 1.6% consolidated revenue decline * Geopolitical instability in the Middle East (centered on Iran) and disruption to global shipping through the Strait of Hormuz softened commercial demand in the Middle East and Asia, the main drag on marine technology revenue * Ended the quarter with $30.6 million in cash and no debt, representing a $1.9 million increase in cash from October 31, 2025 * Net income after taxes was $1.7 million ($0.15 diluted EPS), up from $0.9 million ($0.08 diluted EPS) in Q2 FY2025 - Core Marine Technology Milestones * Secured US Navy use approval for the David untethered diving system, a key inflection point that enables procurement across all Navy commands and full fleet deployment of 20 previously purchased systems * Completed delivery and training for an initial order of David systems to a European Navy, with positive customer feedback that establishes a foundation for future international military diving growth * Received and delivered an initial order of the new NanoGen series ultra-miniaturized 3D sonars for integration and evaluation on an established underwater vehicle program * Continues targeting expansion of Ecoscope sonar adoption in the defense sector, capitalizing on global defense budget allocations for new classes of underwater vehicles - Strategic Priorities * Maintains an active M&A pipeline with two targets currently in active due diligence, with a goal to close a disciplined, strategically aligned transaction in FY2026 * Aims to shift the marine technology revenue model toward recurring, multi-year program-based revenue aligned with major defense programs
Guidance
- No formal full-year financial guidance was revised or reissued in this call - Management expects the first US Navy procurement orders for the David untethered system to arrive in Q3 FY2026, following delayed budget approval - If NanoGen sonar evaluation on the existing vehicle program is successful, management expects the opportunity to scale rapidly into a meaningful recurring revenue stream - Management anticipates that once geopolitical instability in the Middle East is resolved, delayed commercial offshore projects will resume quickly, as demand softening is temporary not structural
Segment performance
Coda Octopus has three business segments, with the following Q2 FY2026 performance: 1. Marine Technology: Generated $2.8 million in net revenue, a 26.8% decrease from $3.9 million in Q2 FY2025. It contributed 41.1% of consolidated net revenue. Within this segment, hardware revenue fell 46.9% to $1.8 million, while rental revenue rose 51.1% quarter-over-quarter to ~$0.7 million. Gross margin for the segment increased to 77.0% from 67.7% year-over-year, driven by higher rental sales and lower commission expenses. 2. Acoustics, Sensors, and Materials: Generated $1.5 million in net revenue, a 17.5% increase from $1.3 million in Q2 FY2025. Gross margin decreased to 53.7% from 65.4% year-over-year, due to a shift in sales mix toward more acoustic test environment product sales. 3. Defense Engineering Services: Generated $2.5 million in net revenue, a 37.9% increase from $1.8 million in Q2 FY2025. Gross margin increased to 62.0% from 55.5% year-over-year, driven by favorable project mix in the quarter. Consolidated total net revenue for Q2 FY2026 was $6.9 million, a 1.6% decrease year-over-year.
Risks & headwinds
- Geopolitical instability in the Middle East centered on Iran has disrupted commercial operations and softened customer demand in the Middle East and Asia, and the duration of this impact is unpredictable - Ongoing continuing resolutions for US defense funding have delayed contract awards for the US arm of the defense engineering services segment, pushing out revenue recognition - Pace of new underwater vehicle OEM integration programs has slowed, as defense customers have shifted near-term spending priorities to address ongoing global conflicts, delaying procurement timelines - Initial NanoGen adoption depends on successful customer evaluation and integration, and final volume and timing of any scaled orders remain uncertain - Forward-looking statements are subject to multiple external risks and uncertainties that could cause actual results to differ materially from management expectations, as detailed in the company's SEC filings
Analyst Q&A
Q: With David untethered now approved for Navy use, how will demand ramp, what is the procurement process, and are there existing contract vehicles in place? /
A: Approval removes the key barrier to procurement for the untethered variant, and funding is already included in the current fiscal year budget. Management expects orders to arrive in Q3 FY2026, but cannot yet predict if orders will be for tethered or untethered variants. No IDIQ or BPA contract vehicle is in place, and all orders will be placed directly with Coda Octopus. The 20 already purchased untethered systems can now be fielded, and operational use is expected to drive future demand.
Q: How long will the NanoGen evaluation process take, and what is the size of the potential opportunity for this program? /
A: The customer has not yet finalized the platform configuration, so the total annual volume cannot be sized at this stage. If NanoGen is approved and written into the vehicle specification, it will become a recurring production opportunity aligned with the platform's development cycle. The initial order delivered this quarter is not material to current quarter revenue; its significance is the long-term growth opportunity it represents if successful.
Q: What progress has been made on integrating Coda's sonars into next-generation underwater vehicles from other OEMs? /
A: Opportunities fall into two groups: customer-initiated integrations for existing programs, where customers already know Coda's technology and want to embed it for perception, obstacle avoidance, and navigation, and collaborative manufacturer-driven opportunities that are internally funded to pair the two technologies. There are 3-4 additional NanoGen integration opportunities at varying stages of maturity, with 2-3 in fairly advanced stages, though overall pace has slowed due to shifting customer priorities tied to ongoing global conflicts.
Q: Where does the company stand on its M&A strategy for fiscal 2026? /
A: The company is currently in active due diligence for two identified acquisition targets. The process remains ongoing, but management is close to completing the review phase, and still aims to close a transaction this fiscal year while maintaining discipline on strategic fit and due diligence.