The company's innovative Diver Augmented Vision Display (DAVD) system and Echoscope PIPE NANO Gen Series are securing significant orders from the U.S. Navy and expanding into new markets. CODA's defense engineering businesses focus on sub-assemblies supplied to prime defense contractors, along with design, prototype, manufacturing and post-sale support work for mission-critical programs.
Cyborg Score Rationale
Net income surged 86.8% to $1.7 million in Q2 2026, demonstrating explosive bottom-line growth despite modest revenue headwinds. Gross margin was 66.3%, SG&A declined 21.4%, and cash increased to $30.6 million. Strong unit economics and U.S. Navy adoption provide durable competitive moat.
Top Insights
Net income rose 86.8% to $1.7 million with diluted EPS of $0.15 in Q2 2026; Defense Engineering Services grew 37.9% to $2.5 million while Marine Technology declined 26.8% to $2.8 million
Q2 2026 revenue declined 1.6% year-over-year to $6.9 million due to geopolitical delays in the Middle East and Asia
Company exhibits robust profitability, strong balance sheet, and unique competitive advantages in critical subsea intelligence
Navy approvals and expanding global defense spending provide growth tailwinds for future quarters
Named Competitors
Sonar systems — Marine technology and subsea sonar systems
Underwater imaging — Defense contractor with underwater systems division
Acoustic sensors — Marine electronics and acoustic sensor manufacturer
Recent Developments
(June 2026) Q2 2026 results reported with 86.8% net income growth to $1.7 million despite 1.6% revenue decline
(March 2026) Q1 2026 results showed 28.8% revenue growth to $6.7 million with Marine Technology revenue up 47.4%
(May 2026) Board expansion announced with addition of Aerospace & Defense industry veteran to governance
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