Coda Octopus Group Inc

Coda Octopus Group reported third-quarter fiscal 2026 results on September 14 that crossed a threshold the company had never reached in its public history: positive retained earnings, after years of operating at an accumulated deficit. Revenue rose 9.2% year over year to $7.7 million, and pretax income climbed 16% to $1.8 million, even as instability in the Middle East knocked down the marine technology unit that has long been the company's calling card. Defense engineering revenue jumped 68.3% to $2.7 million during the quarter, with sustainment spares orders already topping $2.4 million year to date, while marine technology sales fell 15.2% to $3.4 million and hardware revenue specifically dropped 17.8% to $2.3 million. Coda Octopus has delivered 24 DAVID systems to the US Navy to date, including 16 untethered units earlier in the year, and since the quarter closed the Navy has placed about $1.4 million in additional orders covering tethered systems and DAVID Flex adoption. Consolidated gross margin fell to 65.4% from 68.3%, defense engineering margin eased to 56.9% from 58.9%, and acoustic sensors margin dropped to 52.4% from 54.8%, while the company ended the period with $31.7 million in cash and no debt.

Coda Octopus Group has appointed Mark Kelly as its new permanent CFO, effective August 3, 2026, succeeding interim CFO Gayle Jardine who will retire on the same date. The transition includes an initial three-month probationary period, which the company may extend by an additional two months. Kelly's experience includes serving as Finance Director at Medac Pharma from 2024 to 2025, Head of Glasgow Finance at Chubb Insurance from 2022 to 2024, and Finance Director at Twist Bioscience Corp. prior to that. He will receive an annual base salary of £165,000, approximately $218,625, along with eligibility for discretionary annual performance bonuses and a $40,000 restricted stock grant vesting in two equal annual installments beginning October 31, 2027, contingent on performance milestones.