Coda Octopus Group, Inc. (CODA) Earnings Call Transcripts

Coda Octopus Group, Inc.'s Latest Earnings Call - Q2 FY2026

In the second quarter of fiscal 2026, Coda Octopus Group, Inc. reported a slight revenue decrease of 1.6% year-over-year, totaling $6.9 million, which was slightly below expectations. However, net income increased to $1.7 million, or $0.15 per diluted share, reflecting strong operational performance despite geopolitical challenges affecting demand in the Middle East and Asia. Management maintained a positive outlook, highlighting key milestones in technology adoption and a focus on strategic growth initiatives, including M&A opportunities.

Reported metrics

Guidance from management

Management anticipates seeing orders for the DAVD system in the third quarter of fiscal 2026, following Navy approval. They are also focused on closing M&A opportunities within the fiscal year.

What management said

Thank you, Blair. Let me now turn the call over to our interim CFO, Gayle Jardine, to take you through our financials for our second quarter 2026 before I provide my closing remarks. Gayle?

First of all, it's difficult for anyone to predict the duration of the geopolitical instability in the region. What we can see is that we're staying very, very close to our customers. And one thing is clear about this, Brian, it's not structural. It's a timing issue. What we see the fundamentals are there for the projects. It's just timing and security. For example, in the UAE, a lot of offshore projects are on hold ...

What analysts pressed on

Analysts expressed concerns regarding the ongoing geopolitical instability affecting demand, particularly in the Middle East. There were also questions about the timing of future orders and the potential for revenue recovery once stability returns.

Main topics on the call

• Revenue Performance — Coda Octopus reported total revenue of $6.9 million, a decrease of 1.6% from $7.0 million in Q2 2025. The Marine Technology Business saw a significant decline of 26.8%, while the Defense Engineering Services Business gre...
• Gross Profit Margin Improvement — The consolidated gross margin increased to 66.3%, up from 64.1% in the same quarter last year, driven by improved rental revenue and reduced commission costs. Gayle Jardine noted, "This increase reflects the composition ...
• Defense Engineering Services Growth — The Defense Engineering Services Business experienced a robust revenue increase of 37.9%, attributed to strong relationships with prime defense contractors. This segment's growth is critical as it is closely tied to defe...
• Geopolitical Impact on Demand — Management cited the geopolitical situation in Iran as a significant factor affecting demand, particularly in the Middle East and Asia, leading to a 26.8% revenue decline in the Marine Technology Business. Annmarie Gayle...

Read the full Coda Octopus Group, Inc. transcript (Q2 FY2026) → Summary generated from the call transcript; every figure above is stated by management on the record.

Earnings Call History

EarningsCalls.dev has 13 Coda Octopus Group, Inc. earnings call transcripts on record, spanning March 16, 2023 to June 15, 2026. Based on this history, Coda Octopus Group, Inc. reports quarterly. The most recent call on file is dated June 15, 2026. The full list is below — each row opens the complete, free-to-read transcript.

Ticker

CODA

Exchange

NasdaqCM

Country

US

Sector

Information Technology

Industry

Electronic Equipment, Instruments and Components

Calls on record

13

First call

March 16, 2023

Most recent

June 15, 2026

Reporting cadence

quarterly