Coda Octopus Q3 Revenue Jumps 29 Percent
Coda Octopus Group(NASDAQ:CODA) reported earnings for the third quarter of fiscal 2025 on September 15, 2025, with revenue rising 29% year-over-year to $7.1 million and net income holding steady at $1.28 million ($0.11 per share). Core marine technology revenue grew 30.7% year-over-year, driven by hardware sales, while the recent acquisition of Precision Acoustics contributed 20.6% of consolidated revenue. Key product milestones, major defense engagements, and ongoing M strategy signal distinct long-term shifts in growth strategy and market focus.
Precision Acoustics, acquired in October 2024, supplemented group revenue and operating income, while marine technology hardware sales surged 103.6% year-over-year to $2.7 million. Rental activity remained weak due to lower U.S. renewables funding, with hardware displacement offsetting some lost services revenue.
The shift from rentals to hardware sales increases near-term revenue but compresses gross margins, as seen in the marine technology business where gross margin decreased to 77% compared to 82.9% a year earlier, highlighting both resilience to shifting end-market conditions and evolving product mix risks.
Source Fool.com
