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what it is
It sells underwater sonar and defense hardware for jobs where failure underwater or in combat gets expensive fast.
how it gets paid
Last year Coda Octopus made $27M in revenue.
why it's growing
Revenue grew 30.7% last year. The quarter paired 145% EPS growth with a 66.1% gross margin.
what just happened
The latest quarter put up $19M in revenue, up 173% vs. prior year, while EPS reached $0.27.
At a glance
B balance sheet — gets the job done, barely
45/100 earnings predictability — expect surprises
29.2x trailing p/e — priced about right
7.1% return on capital — nothing to write home about
$0.37 fy2025 eps est
xvary composite: 61/100 — average
What they do
It sells underwater sonar and defense hardware for jobs where failure underwater or in combat gets expensive fast.
This is a 103-employee company selling gear for jobs where failure is expensive. Its Echoscope sonar makes real-time 3D/4D/5D underwater images, and the latest quarter still carried a 66.1% gross margin. Gross margin → money left after building the product → so what: your customer is paying for capability, not bargain-bin pricing.
How they make money
$27M
annual revenue · their business grew +30.7% last year
total revenue
$27M
+30.7%
The products that matter
real-time 3D sonar hardware
Echoscope® Real-Time 3D Sonar
supports the $18.6M defense business
it is the flagship system inside a defense segment that accounts for 70% of the company’s $27M revenue. That concentration makes it the product you are really underwriting.
70% of revenue
processing and visualization software
Software & Processing Solutions
paired with a 66.1% gross margin model
these tools make the hardware more usable and more defensible. If gross margin keeps sliding from 66.1%, the supposed software support is not doing enough.
margin defense
Key numbers
29.2x
trailing p/e
P/E → price compared with yearly profit per share → so what: you are not buying cheap earnings here.
22.3%
operating margin
Operating margin → profit after running the business → so what: this company converts sales into operating profit better than its size suggests.
66.1%
gross margin
Gross margin → money left after building the product → so what: customers are paying for specialized hardware, not commodity metal in a box.
7.1%
return on capital
Return on capital → profit earned on the money invested in the business → so what: decent, but not elite, for a company priced at 29.2x earnings.
Financial health
B
strength
- balance sheet grade B — adequate — nothing special
- risk rank 2 — safer than 80% of stocks
- price stability 30 / 100
B — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for CODA right now.
source: institutional data · return history unavailable
What just happened
beat estimates
The latest quarter put up $19M in revenue, up 173% vs. prior year, while EPS reached $0.27.
The quarter paired 145% EPS growth with a 66.1% gross margin. Revenue growth → more money coming in → so what: this tiny company suddenly printed a very large quarter.
$7M
revenue
$0.27
eps
66.1%
gross margin
the number that mattered
$19M matters because one quarter delivered about 70.4% of the company's $27M annual revenue base.
source: company earnings report, 2026
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What could go wrong
the #1 risk is underwater imaging margin compression. This is a $27M business with a premium multiple. When gross margin drops from 69.4% to 66.1%, valuation stops getting the benefit of the doubt.
med
Margin compression
Net profit margin fell to 15.5% from 17.9% last year. Gross margin also fell 3.3 points to 66.1%.
On current revenue, each point of net margin is worth about $265k of profit. That is a big swing for a company this size.
med
Defense concentration
Defense & Security contributes $18.6M of the company’s $27M revenue. That is roughly 70% of the business tied to one end market.
If defense demand wobbles, commercial growth at $8.0M is not yet large enough to fully offset it.
low
Insider selling
Insiders sold $1.7M in shares over the past year, with no reported buying in that period.
That does not automatically mean trouble. It does mean management has not been sending a strong “stock is cheap” signal with its own money.
med
Thin institutional sponsorship
Institutional ownership is 20.1%. The last 12 months showed 17 buyers adding $5.3M, but that is still a light holder base.
Small-cap stocks with thin sponsorship can reprice fast when sentiment turns. There are fewer natural buyers on bad days.
A 2.4-point net margin decline on roughly $26.6M–$27M of revenue translates to about $638k less profit. For a stock already trading near 29.2x trailing earnings, that is not noise.
source: institutional data · regulatory filings · risk analysis
Pay attention to
calendar
Q1 2026 earnings call
March 17, 2026, 10:00 AM ET. This is the next real test of whether margin pressure was temporary or structural.
metric
gross margin stabilization
66.1% is still high. Another step down after a 3.3-point drop would make the premium valuation harder to defend.
trend
commercial share of the business
Commercial & Survey grew 32% to $8.0M. You want to see that mix keep rising so the company is not living almost entirely on defense demand.
risk
insider behavior
$1.7M of insider selling with no buying is not a thesis breaker. It is still worth watching in a company this small.
Analyst rankings
earnings predictability
45 / 100
Low predictability means quarterly results can swing more than you want. In human-speak: analysts do not trust this to print clean, boring numbers every quarter.
source: institutional data
Institutional activity
institutional ownership data for CODA is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$11
current price
n/a
target midpoint · n/a from current
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