Optex Systems Q2 Revenue Jumps to $96M, Gross Margin Rises to 35.2%
Optex Systems delivered Q2 fiscal 2026 revenue of $96 million, up from $10.7 million a year earlier, and improved gross margin to 35.2% from 31.3% through legacy contract completions and pricing enhancements. Net income fell to $1.3 million and cash balances dropped to $4.2 million, while backlog reached $36.6 million.
1. Significant Q2 Revenue Growth
Optex Systems reported Q2 fiscal 2026 revenue of $96 million, up from $10.7 million in the prior-year period, while gross margin improved to 35.2% from 31.3% due to completion of legacy contracts and better pricing.
2. Profit and Cash Flow Dynamics
Net income declined to $1.3 million from $1.8 million a year ago and adjusted EBITDA fell to $2.0 million from $2.4 million, with operating cash flow using $1.3 million and cash balances decreasing to $4.2 million from $6.4 million at fiscal year end.
3. Order Backlog and New Orders
New orders for the first half rose 3.8% year-over-year to $16.3 million, and the ending backlog stood at $36.6 million, providing visibility into revenue streams for the remainder of fiscal 2026.
4. Investment and Cost Drivers
Operating expenses increased to $1.7 million from $1.1 million in the prior year, driven by leadership transition costs, higher stock-based compensation, elevated R&D investment, compliance upgrades and inflationary pressures.