OPTX Reports Q3 Loss Attributed to Elevated Labor Expenses, Shares Plummet 31%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 19 2025
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Source: NASDAQ.COM
Stock Performance: Syntec Optics Holdings, Inc. (OPTX) shares have dropped 30.7% since their Q3 2025 earnings report, significantly underperforming the S&P 500, which fell only 3.1% during the same period. The company reported a net loss of 4 cents per share and a revenue decline of 11.6% year-over-year.
Profitability Challenges: Despite a slight improvement in revenue quarter-over-quarter, Syntec Optics experienced a significant drop in gross profit and adjusted EBITDA due to increased labor and overhead costs, as well as higher general and administrative expenses.
Cash Flow and Liquidity: Operating cash flow turned positive at $0.7 million for the first nine months of 2025, but cash reserves remain low at $0.6 million, with total liquidity at $1.3 million, indicating tight financial conditions.
Future Outlook: Management remains optimistic about future growth, citing improvements in production and ongoing development projects, with a revenue forecast for Q4 2025 between $7.3 million and $8 million, driven by demand in communications, biomedical, and defense sectors.
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Analyst Views on OPTX
About OPTX
Syntec Optics Holdings, Inc. is a custom optics and photonics manufacturer in the United States. The Company offers optics and photonics components and sub-systems from opto-mechanicals to optical elements of various geometries, diamond turned optics for both prototype and production, and optical systems including optics assembly, electro-optics assembly, design, and coating. It offers a range of services to support its manufacturing capabilities, including tool design, design for manufacturing, optical and opto-mechanical design, and mold flow analysis. It offers single point diamond turning for prototyped polymer optics and its patented high refraction diamond. It integrates mold and tooling development to align with the total need for design, production and assembly. Its products include Low Earth Orbit satellite optics, lightweight night vision goggle optics, biomedical equipment optics, and precision microlens arrays. It serves the medical, defense, and consumer end-markets.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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