Coda Octopus Group, Inc. (NASDAQ: CODA) Q2 2025 Earnings ReportRevenue Surges 32% | 06/17/2025

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Coda Octopus Group, Inc. (NASDAQ: CODA) reported its fiscal Q2 2025 results on June 16, 2025, delivering a robust 31.8% year-over-year increase in revenue to $7.02 million, surpassing analyst expectations of $6.35 million. The company’s marine technology business, buoyed by strong hardware sales in Asia and the integration of its newly acquired acoustic sensors and materials segment, was the primary driver of growth, with the new segment contributing 18.5% of total revenue. Despite the revenue beat, net income declined 35.8% to $0.9 million, and diluted EPS came in at $0.08, missing the $0.09 consensus forecast and down from $0.13 in the prior year period. Gross profit rose to $4.5 million, although the consolidated gross margin contracted to 64.1% from 70.2% a year earlier, reflecting higher commission costs tied to increased hardware sales in Asia and lower utilization of rental assets. Operating income dropped by 19.5% to $1.1 million, with operating margin decreasing to 15.5% from 25.4% in Q2 2024, due to increased cost of revenue and higher selling, general, and administrative expenses, which rose 47.4% to $2.7 million. The company maintains a strong financial position with $24.5 million in cash and no debt as of April 30, 2025, up $2 million from October 2024. Strategically, Coda Octopus made significant progress under its DAVD (Diver Augmented Vision Display) Program, securing $1.53 million in new orders for tethered systems and expanding its user base to approximately 12 U.S. Navy Commands. The company also reported continued customer adoption of its Echoscope® real-time 3D Volumetric Imaging Sonar, setting the stage for recurring revenue opportunities. Management remains optimistic about the company’s growth trajectory, citing ongoing investments in R&D, expansion into defense and traditional oil & gas markets, and the integration of new technologies as key drivers for future performance. Despite the EPS miss and margin compression, investor sentiment was positive, with CODA’s stock rising 12.55% in pre-market trading following the earnings release, reflecting confidence in the company’s strategic direction and revenue momentum. For more in-depth analysis, real-time updates, and comprehensive financial reports on Coda Octopus Group, Inc. (NASDAQ: CODA) and other market movers, visit InsideTicker.com. Inside Ticker offers expert insights, breaking news, and actionable intelligence to keep investors informed about the latest trends and developments in the technology and marine sectors. #CodaOctopus #Q22025 #EarningsReport #MarineTechnology #Sonar #Imaging #DefenseTech #StockMarket #FinancialResults #InsideTicker