SYNTEC OPTICS HOLDINGS, INC.
For the period ended Jun 30, 2026. Filed Aug 10, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Aug 10, 2026
OPTX$4.87+29.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-05-15.
0001493152-26-023833
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-10.
0001493152-26-036869
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 94 previous paragraphs and 98 current paragraphs.
73 unchanged; 13 reworded; 11 added; 8 removed; 0 previous and 1 current paragraphs rearranged.
Tables are not compared: 5 previous and 5 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (11)
Current report
Recent Developments
Current report
In the second quarter of 2026, the Company’s common stock was added to the Russell 3000® Index. Management believes inclusion in the index may increase the Company’s visibility among institutional investors and enhance trading liquidity.
Current report
Net sales increased by $1.7 million, or 26%, to $8.3 million for the three months ended June 30, 2026, as compared to $6.6 million for the three months ended June 30, 2025. This increase was due to increases across all four of our served industries, as detailed in Note 3 to the financial statements. For the six months ended June 30, 2026, as compared to the six months ended June 30, 2025, sales were up from $13.6 million in 2025 to $14.8 million in 2026. Sales were up significantly in three of the four industries served, while year to date sale in the medical industry were down. This decrease in medical was due to a shipping hold to one particular customer in the first quarter, as described in our first quarter 10-Q. Shipments to that customer were back to normal in the second quarter.
Current report
Gross profit increased by 34%, to $2.1 million for the three months ended June 30, 2026, as compared to $1.6 million for the three months ended June 30, 2025. As a percentage of revenue, this increase was proportionate to the increases in revenue and cost of goods sold for the comparison periods. For the six months ended June 30, 2026 compared to the same six-month period in 2025, gross profits were down from $3.9 million in 2025 to $3.1 million in 2026. The decrease was primarily due to the increase in material cost as described above, combined with the lower performance in the first quarter.
Current report
Net Income (Loss)
Current report
We experienced income of $0.3 million for the three months ended June 30, 2026, as compared to a loss of $0.3 million for the same three-month period ended in 2025. This turnaround from a loss to positive income, was primarily due to the improvement in gross profit as detailed above. For the six-month period ended June 30, 2026, we experienced a loss of $0.6 million, as compared to nearly zero earnings for the same period in 2025. This decrease in year-to-date earnings in 2026 was attributable to the significant loss experienced in the first quarter of 2026, partially offset by the positive earnings in the second quarter.
Current report
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2026 AND 2025
Current report
The Company continues to generate positive cash flows from operations.
Current report
The Company used a portion of the proceeds from both of these transactions to repay some of its indebtedness, approximately $6.8 million, and proceeded to close out its existing line of credit.
Current report
Cash Flow — Six Months Ended June 30, 2026 and 2025
Current report
FOR THE SIX MONTHS ENDED JUNE 30, 2026 AND 2025
Removed paragraphs (8)
Previous report
Net sales decreased by $0.6 million, or 8%, to $6.5 million for the three months ended March 31, 2026, as compared to $7.1 million for the three months ended March 31, 2025. This decrease was primarily due to decreases in medical markets of $1.0 million, partially offset by an increase in the consumer market of $0.4 million.
Previous report
Gross profit decreased by 58%, to $1.0 million for the three months ended March 31, 2026, as compared to $2.3 million for the three months ended March 31, 2025. This decrease was primarily due to the decrease in revenue and the increase in costs of goods sold, as detailed above.
Previous report
Net (loss) Income
Previous report
We experienced a loss of $0.9 million for the three months ended March 31, 2026, as compared to income of $0.3 million for the same three month period ended in 2025. This increase in net loss was primarily due to a decline in sales of $0.6 million, and an increase in cost of goods sold of $0.8 million.
Previous report
The Company’s primary sources of liquidity are cash generated from operations and borrowings under its revolving credit facility with M&T Bank. The Company uses cash to fund working capital requirements, capital expenditures, and debt service obligations.
Previous report
As of March 31, 2026, the Company had $6,763,863 outstanding under its $7.5 million revolving credit facility, providing approximately $736,137 of remaining availability, subject to borrowing base and covenant compliance requirements. The revolving credit facility matures in November 2026.
Previous report
Subsequent to March 31, 2026, the Company completed a public equity offering resulting in aggregate net proceeds of approximately $21.5 million, including the underwriter’s exercised over-allotment option. The Company utilized a portion of the proceeds to repay the outstanding balance under its revolving line of credit with M&T Bank to zero, which management expects will reduce future cash interest expense. The Company’s $7.5 million revolving credit facility remains available through June 30, 2027, providing additional financial flexibility and available liquidity for working capital requirements, capital expenditures, organic growth initiatives and potential strategic opportunities. In addition, management continues to implement operational efficiency and cost reduction initiatives intended to improve gross profit and EBITDA in future periods.
Previous report
Cash Flow — Three Months Ended March 31, 2026 and 2025
Reworded paragraphs (13)
Previous wording
In the last three years Syntec Optics launched low weight night vision optics and hybrid light-weight magnifiers and thermal clips in the defense end market. Syntec Optics also announced biomedical mirrors for sensing in the medical end market. Rounding out new product launches, in the communication end market, Syntec Optics launched microlens arrays and low earth satellite optics.
Current wording
In the last three years Syntec Optics launched low weight night vision optics and hybrid light-weight magnifiers and thermal clips in the defense end market. More recently, we have entered the AI-driven military augmented reality (AR) wearables, enhancing situational awareness for warfighters.
Previous wording
Comparisons for the Three Months Ended March 31, 2026 and 2025
Current wording
Comparisons for the Three and Six Months Ended June 30, 2026 and 2025
Previous wording
The following table sets forth our results of operations for the three months ended March 31, 2026 and 2025, respectively. This data should be read together with our financial statements and related notes included elsewhere in this Quarterly Report and is qualified in its entirety by reference to such financial statements and related notes.
Current wording
The following tables set forth our results of operations for the three and six months ended June 30, 2026 and 2025, respectively. This data should be read together with our financial statements and related notes included elsewhere in this Quarterly Report and is qualified in its entirety by reference to such financial statements and related notes .
Previous wording
Cost of revenue increased by $0.8 million, to $5.6 million for the three months ended March 31, 2026, as compared to $4.8 million for the three months ended March 31, 2025. This increase was primarily due to an increase in material costs, particularly for aluminum.
Current wording
Cost of revenue increased by $1.1 million, to $6.1 million for the three months ended June 30, 2026, as compared to $5.0 million for the three months ended June 30, 2025. This increase was generally proportionate to the increase in revenue, for the same period. Cost of revenue increased by $2.0 million, to $11.7 million for the six months ended June 30, 2026, as compared to $9.7 million for the six months ended June 30, 2025. This increase was primarily due to an increase in material costs, particularly for aluminum.
Previous wording
General and administrative expenses remained flat, decreasing slightly by 2% for the quarter ended March 31, 2026, as compared to the same period for 2025.
Current wording
General and administrative expenses increased slightly by 4% for the quarter ended June 30, 2026, as compared to the same period for 2025. For the six months ended June 30, 2026 as compared to the same six month period in 2025, these expenses remained flat, increasing just 1%.
Previous wording
Other expenses improved to an expense of $0.1 million for the three months ended March 31, 2026, from an expense of $0.2 million for the three months ended March 31, 2025.
Current wording
Other expenses improved by $0.1 million for the three months ended June 30, from an expense of $0.2 million for the three months ended June 30, 2025, to an expense of $0.1 million for the three months ended June 30, 2026. For the six months ended June 30, expenses decreased from $0.4 million in 2025 to $0.2 million in 2026. In both comparison periods, the improvement was primarily due to the debt reductions and the increase in interest earned on our larger cash balance.
Previous wording
Income tax expense (benefit) remained flat, with no material change when comparing the three months ended March 31, 2026 and 2025.
Current wording
Income tax expense (benefit) remained flat, with no material change when comparing the three and six months ended June 30, 2026 and 2025.
Previous wording
The table below presents our adjusted EBITDA, reconciled to net income for the three months ended March 31, 2026 and 2025.
Current wording
The table below presents our adjusted EBITDA, reconciled to net income for the three and six months ended June 30, 2026 and 2025.
Previous wording
On April 30, 2026, subsequent to the end of the quarter, the Company completed an underwritten public offering of 2,857,142 shares of its common stock at a public offering price of $7.00 per share, generating gross proceeds of approximately $20.0 million and net proceeds of approximately $18.6 million. The Company intends to use the proceeds to support working capital, capital expenditures, and to optimize its capital structure, including potential repayment of indebtedness.
Current wording
On April 30, 2026, the Company completed an underwritten public offering of 2,857,142 shares of its common stock at a public offering price of $7.00 per share, generating gross proceeds of approximately $20.0 million and net proceeds of approximately $18.6 million.
Previous wording
The Company expects that cash generated from operations together with availability under its revolving credit facility and the proceeds received from the public stock offering, will be sufficient to fund operations, working capital needs, and contractual obligations for at least the next twelve months.
Current wording
The Company expects that cash generated from operations together with the proceeds received from the public stock offering, will be sufficient to fund operations, working capital needs, and contractual obligations for at least the next twelve months.
Previous wording
Net cash provided by operating activities was $0.5 million for the three months ended March 31, 2026, as compared to net cash provided by operating activities of $0.3 million for the three months ended March 31, 2025. The primary drivers of the changes for the three month period ended March 31, 2026 include net changes from operating assets of $0.6 million, changes from depreciation and amortization, stock-based compensation and allowance of $0.7 million, offset by net loss of $0.9 million.
Current wording
Net cash provided by operating activities was $0.2 million for the six months ended June 30, 2026, as compared to net cash provided by operating activities of $0.1 million for the six months ended June 30, 2025. The primary drivers of operating cash flows for the six months ended June 30, 2026 included depreciation of $1.1 million, a decrease in accounts receivable of $1.2 million, an increase in deferred revenue of $0.7 million, and a decrease in inventory of $0.3 million. In addition, stock-based compensation, amortization of debt issuance costs, and changes in allowance for expected credit losses contributed $0.3 million in aggregate. These favorable items were partially offset by a net loss of $0.6 million and a decrease in accounts payable and accrued expenses of $0.4 million..
Previous wording
Net cash used in investing activities was $0.3 million for the three months ended March 31, 2026, as compared to net cash used in investing activities of $0.2 million for the three months ended March 31, 2025. The net cash used in investing activities increased primarily due to the purchase of a single machine for approximately $0.4 million related to a new customer in 2026 that did not take place in 2025.
Current wording
Net cash used in investing activities was $1.1 million for the six months ended June 30, 2026, as compared to net cash used in investing activities of $0.6 million for the six months ended June 30, 2025. The net cash used in investing activities increased primarily due to the purchase of two large machines for approximately $0.5 million and $0.3 million each, plus several smaller purchases.
Previous wording
Net cash provided by financing activities was $0.1 million for the three months ended March 31, 2026, as compared to net cash used in financing activities of $0.1 million for the three months ended March 31, 2025. The primary driver of this change was the increase in debt borrowings from a related party in the first quarter of 2026 of $0.2 million.
Current wording
Net cash provided by financing activities was $14.6 million for the six months ended June 30, 2026, as compared to net cash provided by financing activities of $0.2 million for the six months ended June 30, 2025. The primary driver of this change was the aforementioned public stock offering, generating $21.4 million net, partially offset by the line of credit paydown of $6.8 million, and other debt related activity totaling $0.1 million.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
Syntec Optics also announced biomedical mirrors for sensing in the medical end market. Rounding out new product launches, in the communication end market, Syntec Optics launched microlens arrays and low earth satellite optics. This includes incorporating its high-precision photonics into critical orbital safety components, enhancing collision avoidance in space, a growing concern as space traffic continues to increase.