Syntec Optics Holdings, Inc. reported third‑quarter 2025 revenue of $6.95 million, a 6% sequential increase from $6.56 million in Q2. The figure represents a 12% year‑over‑year decline from $7.86 million reported for Q3 2024, underscoring a contraction in overall demand despite the quarterly uptick.
Profitability slipped sharply. Adjusted EBITDA fell to a negative $0.01 million from a positive $0.69 million in Q2, while the company posted a net loss of $1.4 million, or $0.04 per share, compared with a $0.01‑per‑share loss in the prior quarter. The loss widened because gross profit dropped $0.74 million, other income fell $0.41 million, and general‑administrative expenses rose $0.33 million, reflecting higher labor and material costs and ongoing investments in production capacity.
Segment analysis shows that defense, biomedical, and communications revenue grew, driven by strong demand for satellite‑communications optics, night‑vision systems, and data‑center photonics. However, the mix shift toward higher‑margin satellite products was offset by lower gross margins in the biomedical line, which faced pricing pressure and increased component costs.
Management guided fourth‑quarter revenue to $7.3–$8.0 million, a 5–10% sequential increase over Q3. The guidance signals confidence in continued demand for high‑margin light‑enabled products, but the company cautions that margin compression will persist as it scales production and absorbs higher material and labor costs.
Liquidity remains a concern. Syntec Optics reported a cash balance of $2.1 million at quarter end, after repaying $1.3 million on two loans and reducing its revolving credit facility. The company also disclosed material weaknesses in internal controls, with remediation plans underway. These factors highlight the need for disciplined cost management and robust governance as the firm pursues growth in satellite and data‑center markets.
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