Mon, Jun 16, 11:01 AM (27 days ago)
**Coda Octopus Group, Inc. (CODA) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** Q1 2025 revenue was $7,017,459, up 31.8% from Q1 2024's $5,323,178. - **Profit Margins:** Gross profit margin decreased to 64.1% from 70.2% due to higher commission costs and a mix of sales. - **Cash Flow:** Operating activities provided $2,103,980 in cash, with $24,462,301 in cash and cash equivalents. **Segment Performance:** - **Marine Technology Business:** Generated $3,878,090 (55.3% of total revenue), with a gross profit margin of 67.7%. - **Acoustic Sensors and Materials Business (PAL):** Contributed $1,299,069 (18.5% of total revenue), with a gross profit margin of 65.4%. - **Marine Engineering Business:** Generated $1,840,300 (26.2% of total revenue), with a gross profit margin of 55.5%. **Earnings Changes:** - **Net Income:** Decreased by 35.8% to $908,762 from $1,415,238. - **EPS:** Diluted EPS was $0.08, down from $0.13 in Q1 2024. **Trends & Uncertainties:** - **Currency Fluctuations:** USD weakening against British Pound and Danish Kroner increased translated foreign revenues and costs. - **Geopolitical Factors:** U.S. policy changes affected offshore renewable projects, impacting rental revenue. - **Defense Spending:** Increased customer engagements and procurement pace in defense projects. **Future Operations Impact:** - **Growth Strategy:** Focus on defense spending and new U.S. policy on domestic energy production. - **Liquidity:** Sufficient working capital to meet anticipated cash needs for the next twelve months. **Key Metrics:** - **Revenue Growth:** 31.8% increase in consolidated net revenue. - **Operating Expenses:** Increased by 42.8%, primarily due to higher commission costs and foreign currency translation. - **Net Income:** Decreased by 35.8% due to lower gross profit margins and increased operating expenses. **Conclusion:** CODA's Q1 2025 showed strong revenue growth but faced challenges from currency fluctuations and geopolitical factors. The company remains focused on its growth strategy in defense and energy sectors, with sufficient liquidity to support future operations.