The accelerating revenue trajectory (4.4% → 26.6% YoY over two quarters) plus expanding margins and record backlog create a strong near-term catalyst. With the $186M market cap and $22.2M quarterly revenue run-rate, the stock is pricing in further growth — watch for Q3 updates on data center order conversion and fiber supply continuity. The cross-filing Q1 beat and bullish commentary reinforce the positive setup.
Price Chart
Executive Summary
Optical Cable Corporation (OCC) reported a strong Q2 FY2026 beat: net sales surged 26.6% YoY to $22.2M, gross profit rose 42.4% to $7.6M, and the company swung to net income of $0.12 per share vs a -$0.09 loss in the prior year period. Backlog/forward load grew 82% YoY to $13.3M, signaling continued demand momentum in enterprise, data center and severe duty markets.
Key Financial Metrics
Key Facts
- Net sales $22.2M, +26.6% YoY vs $17.5M in Q2 FY2025
- Net income $1.1M ($0.12 per share) vs net loss of $698K (-$0.09) a year ago
- Gross profit margin expanded to 34.2% from 30.4%
- Sales order backlog/forward load $13.3M, +82% from $7.3M at Oct 31, 2025
- International sales +45.3% YoY; domestic sales +21.2% YoY
- Sequential revenue growth of 35.2% vs Q1 FY2026 ($16.4M)
Financial Impact
Revenue growth of 26.6% YoY and transformation from a -$0.09 loss to +$0.12 EPS are material. Backlog up 82% supports near-term visibility.
Risk Factors
- Industry-wide optical fiber shortages could constrain capacity to convert backlog into revenue
- SG&A grew 9.2% YoY and may pressure margins if revenue growth slows
- Non-current liabilities surged to $4.3M from $1.6M (Oct 2025), increasing financial leverage
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001437749-26-020157 |
| Exhibit: ex_974887.htm | 0001437749-26-020157 |
| Document: occ20260609c_8k.htm | 0001437749-26-020157 |
| Document: 0001437749-26-020157-index-headers.html | 0001437749-26-020157 |
| Document: 0001437749-26-020157-index.html | 0001437749-26-020157 |
| Document: 0001437749-26-020157.txt | 0001437749-26-020157 |
| 8-K Data (Synthetic) | 0001437749-26-020157 |
US Market Status
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