Syntec Optics Q2 2025 Earnings Report

Syntec Optics EPS Results

• Actual EPS: -$0.01
• Consensus EPS: N/A
• Beat/Miss: N/A
• One Year Ago EPS: N/A

Syntec Optics Revenue Results

• Actual Revenue: $6.56 million
• Expected Revenue: N/A
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

Syntec Optics Announcement Details

• Quarter: Q2 2025
• Date: 10/3/2025
• Time: After Market Closes
• Conference Call Date: N/A
• Conference Call Time: N/A

Syntec Optics (NASDAQ:OPTX), Inc. operates as a photonics company specializing in the design, development and manufacturing of precision optical components and subsystems. Its core offerings include thin-film filters, dichroic beamsplitters, anti-reflection coated lenses and custom optical assemblies. The company leverages proprietary coating technologies to deliver high-performance imaging solutions and spectral filters for visible, infrared and multispectral applications.

In addition to standard catalog products, Syntec Optics provides custom engineering services tailored to meet the specifications of customers in aerospace and defense, industrial automation, environmental sensing and life-sciences markets. Its in-house capabilities span optical design, prototyping and volume production, with clean-room fabrication and rigorous quality-control procedures ensuring consistency and reliability in demanding operating environments.

Based in North America, Syntec Optics serves a global customer base, supplying components to original equipment manufacturers, system integrators and research institutions. The company’s management team is composed of industry veterans with backgrounds in optical engineering, materials science and advanced manufacturing, guiding strategic growth initiatives and technology development to support evolving market needs.

Syntec Optics Q2 2025 Earnings Call Transcript

Key Takeaways

• Negative Sentiment: The Nasdaq granted Syntec Optics an exception to regain compliance with its delinquent Form 10-K and two 10-Qs, but the company must complete filings by October 13, 2025, while auditors finish final reviews.
• Positive Sentiment: Syntec Optics has launched a three-pronged execution plan centered on operational excellence, deploying new KPIs, daily technician meetings, and ERP dashboards to improve yields and meet surging customer demand.
• Positive Sentiment: The company is scaling production by increasing staffing—including additional night shifts—and targeting yield improvements up to 95% to support existing customers and prepare for new applications.
• Positive Sentiment: Syntec is expanding into breakthrough applications such as fusion energy, hyperspectral imaging for defense, satellite communications, quantum computing, and DNA sequencing to drive long-term growth.

Presentation

[Operator]

Good afternoon and welcome to the Syntec Optics Holdings Inc.'s Conference Call to discuss the status of financial results and provide a business update. As a reminder, this conference call is being recorded. At this time, all participants are in a listen-only mode. Syntec Optics is a leading provider of mission-critical optics to scientific and technical instruments and equipment OEMs in diverse defense, biomedical, communications, and consumer end markets. I'll now turn the call over to Dean Rudy, Syntec Optics' Chief Financial Officer. Please go ahead.

[Dean Rudy, CFO at Syntec Optics Holdings Inc.]

Thank you, Operator, for your introduction and welcome. Al Kapoor, Chairman and Chief Executive Officer of Syntec Optics, will join me today as well. Here are a few quick reminders before we start. First, today's call is being webcast, and our press release can be accessed along with it on the Investors section of our company website, www.syntecoptics.com. Second, we'll make forward-looking statements based on current expectations during the call. Actual results may differ due to factors noted in this press release and in our filings. The company did an 8-K filing on September 4, 2025, that addressed the status of the company's Form 10-K for the period ending December 31, 2024, its Form 10-Q for the period ending March 31, 2025, and its Form 10-Q for the period ending June 30, 2025. Previously, Nasdaq had granted the company an exception until August 20, 2025, to file its Form 10-K for the year ending December 31, 2024, and its Form 10-Q for the period ending March 31, 2025. An additional exception will be granted to enable the company to regain compliance with all delinquent filings, but only for a maximum of 180 calendar days from the due date of the initial delinquent filing, or October 13, 2025. The company submitted to Nasdaq an updated plan on September 5, 2025, to regain compliance with the filing requirement within the specified period. The update was as definitive as possible, including plans to file the Form 10-K and the two 10-Qs, and detailing the progress the company has made. An audit committee meeting was held on September 4, 2025. The auditors presented the 10-K audit results and communications. As a result, the audit committee approved the filings of the 10-K. A similar audit committee meeting was held on September 11, 2025, for the audit results and communications of the two 10-Qs. The company targeted the filing of the 10-K and the two 10-Qs together on September 15, 2025, to regain compliance. However, the company's financial team is still working diligently, continuing the daily calls with auditors, completing the final steps for the auditor's quality department, and completing other final subject matter reviews by the auditors, all to provide results within the Nasdaq specified period. We will schedule a new conference call shortly to go over our final results. If you have any questions, please reach out to our investor relations as noted in the announcement, and we will try to address them at our next call. With that, I will turn the call over to Al Kapoor, Chairman and Chief Executive Officer.

[Al Kapoor, Chairman and CEO at Syntec Optics Holdings Inc.]

Thank you, Dean, and thank you to everyone joining us today. As discussed before, Syntec Optics' strategy is to lead the large yet often overlooked market for light-enabled products by offering a diverse product portfolio tailored to blue-chip customers' needs. This approach leverages our operational strengths of horizontal and vertical integration of optics manufacturing processes and techniques. We believe with more and more products becoming light-enabled, we will have continued growth opportunities for many years to come. Here is how we are right this moment currently executing our strategy. We have implemented a very clear three-pronged execution plan that provides a clear roadmap for sustainable growth and involves everyone at the company, including technicians that make the very intricate optics. By focusing first on operational excellence, then scaling our talented team, and finally expanding into new high-growth light-enabled markets, we are positioning Syntec Optics to capitalize on the immense opportunity. The company's execution plan is centered on the following three pillars. Number one, operational excellence to maximize capacity. The first prong focuses on improving yields and maximizing capacity utilization to meet robust demand of our current products. All key customers are demanding increased volumes, and in some cases, 20%, 50%, to 100% higher than we are currently delivering. The company is deploying enhanced operations KPIs, daily technician meetings, and ERP dashboards to provide real-time data for decision-making. This initiative targets increased efficiency in key growth areas that we have discussed before, like satellite optics and communications, aiming night vision, integrated scope optics and defense, artificial intelligence deployment-driven data center optics and communications, and hospital diagnostic optics for biomedical. This execution builds upon our highly defensible model of vertical and horizontal integration. Number two, scaling production with increased staffing. Simultaneously, we are targeting yield improvements from 50% to 50% in some cases to reach 95%, and Syntec is increasing staffing as well in night shifts. This will allow the company to continue scaling its production platforms, ensuring it can not only satisfy existing customer demands, but also prepare for the next wave of growth from new and emerging applications. Number three, expansion into new breakthrough applications. The third prong centers on innovation and market expansion. As more products across end markets become light-enabled, Syntec is securing new customers in breakthrough applications. Key new areas that we have added over the past several months include fusion energy, a new end market, hyperspectral imaging for defense, ground networks for satellite communications and space, and furthering quantum computing and DNA sequencing products. All simultaneously, we are positioning the company at the forefront of next-generation technologies as well. I will hand it back to the Operator. Thank you.

[Operator]

Ladies and gentlemen, thank you for your participation and interest in Syntec Optics . This concludes today's.

Participants

Executives

• Al Kapoor, Chairman and CEO
• Dean Rudy, CFO