Syntec Optics Holdings, Inc. (Nasdaq: OPTX) Reports Full Year 2024 and First Half 2025 Financial Results

ROCHESTER, NEW YORK, Oct. 06, 2025 (GLOBE NEWSWIRE) -- Syntec Optics Holdings, Inc. (“Syntec Optics” or the “Company”) (Nasdaq: OPTX), a leading provider of mission-critical products to advanced technology defense, biomedical, and communications equipment & scientific instruments manufacturers, reported financial and operational results for the full year 2024 and first half 2025. Full Year 2024 Financial Highlights Sales from products increase by $1.9 million year-over-yearAdjusted EBITDA of $2.2 million was positive but down $3.1 million from the 2023 adjusted EBITDA of $5.3 millionCash, including available lines of credit, was nearly $5.1 million First Half 2025 Financial Highlights Net Sales of $13.6 million, up $0.3 million from $13.3 million compared to 2024Adjusted EBITDA as a percentage of revenue increased to 15.3% for the six months ended June 30, 2025, compared to 5.8% for the same period in 2024Cash, including available lines of credit, was $4.3 million8% of principal on commercial bank lines was paid down during the six months ended June 30, 2025Net income for the six-month period ending June 30, 2025, improved by $0.9 million versus the same period in 2024 Operational and Business Highlights Entered a new end-market - Energy - by enabling light for space-based solar power and grid-scale fusion energy products in the first half of 2025Strengthened the management team in the first part of 2025 for public marketsContinued production on night vision goggles, integrated scope, and other aiming scope optics for defense in 2024 and the first half of 2025Continued production for disposable optics for biomedical diagnostics in 2024 and the first half of 2025Continued production for Low Earth Orbit Satellite Space Optics in 2024 and the first half of 2025Launched one new product in optical connectivity for Artificial Intelligence deployment-based scaling of data centers in 2024, and started production runs in the first half of 2025Initiated engineering that expands the space optics line of products into new products for complementary ground networks and satellite path tracking The calendar year 2024 was marked by record-high Net Sales and growth within the new end-market – Communications, a double-digit increase. This includes sales for Space Optics and AI-driven Data Center optical connectivity. Syntec Optics leveraged a robust platform and continued to innovate, offering products for existing markets and utilizing existing capabilities to serve existing customers. Space Optics reached higher production levels. Next, low-weight hybrid optics used in night vision goggle systems are finalizing volume production OEM acceptances. Production ramp occurs after the product is produced on a higher volume line, meets customer specifications, and is integrated into the end product by the customer for final OEM acceptance. Full Year 2024 Financial and Operating Results Sales from products increase by $1.9 million year-over-year in the Net Sales of $28.4 million, reflecting strong gains in capacity utilization and robust product demand while moving from pilot plant to mass production on several major product lines. Adjusted EBITDA of $2.2 million decreased from the 2023 adjusted EBITDA of $5.3 million, primarily driven by the decrease in net income resulting from the costs associated with the company’s transition and reorganizing for public markets, which the company believes can be reduced in the years to follow. Specifically for the fourth quarter, we provided guidance at our last call that fourth-quarter revenue would exceed $7.4 million. Our actual revenue for the quarter was $7.3 million. We are pleased to announce that in 2024, we invested $3.3 million in state-of-the-art equipment to enhance our capacity to reliably service our customers. These investments will enable us to continue developing our key technologies for our customers in 2025 and beyond. First Half 2025 Financial and Operating Results Sales for the six months ended June 30, 2025, totaled $13.6 million, an increase of $0.3 million from the same period in 2024. This growth was driven by increases in biomedical industry sales of $0.8 million and defense tech industry sales of $0.6 million. Gross profit for the six months was $3.9 million, a $1.0 million improvement over 2024’s $2.9 million gross profit, moving our gross margin from 22% for the six months ending June 30, 2024, up to 29% for the six months ending June 30, 2025. Improvements across materials, labor, and manufacturing overhead all contributed to the improvements as the Company drives towards greater efficiencies. The company believes it will continue to improve gross profits as yields improve. General and administrative expenses for the six months ending June 30, 2025, were $3.5M, a $0.6 million reduction from 2024. There were reductions of $0.4 million in outside consulting, $0.1 million in travel. Adjusted EBITDA of $2.1 million increased by $1.2 million from the first half of the prior year, resulting in our adjusted EBITDA as a percentage of revenue rising from 5.8% in 2024 in the same period to 15.3% for the six months ended June 30, 2025, representing a significant improvement in profitability. The Company ended the second quarter of 2025 with unused lines of credit totaling $1.5 million and $2.8 million, as well as a paydown of 8% principal on other commercial bank lines for the six months ended June 30, 2025. Net income for the six-month period ending June 30, 2025, of $0 million was an improvement of $0.9 million versus the same period in 2024, reflecting a $1.0 million improvement in gross profit and a $0.6 million reduction in general and administrative expenses, partially offset by increased interest and other expenses. Future Growth Syntec Optics’ strategy is to lead the large yet often overlooked market for light-enabled products by offering a diverse product portfolio tailored to the needs of blue-chip customers. This approach leverages our operational strengths, including the horizontal and vertical integration of optics manufacturing processes and techniques. We believe that, as more products become light-enabled, we will continue to have growth opportunities for many years to come. Here is how we are currently executing on our strategy. We have implemented a clear, three-pronged execution plan that provides a roadmap for sustainable growth and involves everyone in the company, including technicians who design and manufacture the intricate optics. By focusing first on operational excellence, then scaling our talented team, and finally expanding into new, high-growth, light-enabled markets, we are positioning Syntec Optics to capitalize on the immense opportunities. The Company’s execution plan is centered on the following three pillars: 1. Operational Excellence to Maximize Capacity: The first prong focuses on improving yield and maximizing capacity utilization to meet robust demand for our current products. All key customers are demanding increased volumes, in most cases, 20%, 50% to 100% higher than we are currently delivering. The Company is deploying enhanced operations KPIs, daily technician meetings (DTMs), and ERP dashboards to provide real-time data for decision-making. This initiative targets increased efficiency in key growth areas: LEO Satellite Optics (Communication), Aiming / Night Vision / Integrated Scopes Optics (Defense), Artificial Intelligence-driven Data Center Optics (Communication), and Hospital Diagnostic Optics (Biomedical). This execution builds upon our highly defensible model of vertical and horizontal integration.2. Scaling Production with Increased Staffing: Second, simultaneously targeted yield improvements from 40%-50% in some cases to 95%, Syntec is increasing staffing on night shifts. This will allow the Company to continue scaling its production platforms, ensuring it can not only satisfy existing customer demand but also prepare for the next wave of growth from new and emerging applications.3. Expansion into New Breakthrough Applications: The third prong centers on innovation and market expansion. As more products across end-markets become light-enabled, Syntec is securing new customers in breakthrough applications. Key new areas of delivering products include Fusion Energy (a new end-market), Hyperspectral Imaging (Defense), Ground Network for Satellite Communications (Space), and furthering Quantum Computing / DNA Sequencing, all simultaneously positioning the Company at the forefront of next-generation technology. Syntec intends to codify this execution plan so that it can be applied to future inorganic growth through acquisitions. About Syntec Optics Syntec Optics Holdings, Inc. (Nasdaq: OPTX), headquartered in Rochester, NY, is one of the largest custom and diverse end-market optics and photonics manufacturers in the United States. Operating for over two decades, Syntec Optics runs a state-of-the-art facility with extensive core capabilities of various optics manufacturing processes, both horizontally and vertically integrated, to provide a competitive advantage for mission-critical OEMs. As more products become light-enabled, Syntec Optics continues to add more product lines, including recent Low Earth Orbit (LEO) satellite optics for communication, lightweight night vision goggle optics for defense, biomedical optics for defense, and data center optics for Artificial Intelligence. To learn more, visit www.syntecoptics.com. Forward-Looking Statements This press release contains certain “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended, including certain financial forecasts and projections. All statements other than statements of historical fact contained in this press release, including statements as to the transactions contemplated by the business combination and related agreements, future results of operations and financial position, revenue and other metrics, planned products and services, business strategy and plans, objectives of management for future operations of Syntec Optics, market size, and growth opportunities, competitive position and technological and market trends, are forward-looking statements. Some of these forward-looking statements can be identified by the use of forward-looking words, including “may,” “should,” “expect,” “intend,” “will,” “estimate,” “anticipate,” “believe,” “predict,” “plan,” “targets,” “projects,” “could,” “would,” “continue,” “forecast” or the negatives of these terms or variations of them or similar expressions. All forward-looking statements are subject to risks, uncertainties, and other factors (some of which are beyond the control of Syntec Optics), which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. All forward-looking statements are based upon estimates, forecasts and assumptions that, while considered reasonable by Syntec Optics and its management, as the case may be, are inherently uncertain and many factors may cause the actual results to differ materially from current expectations which include, but are not limited to: 1) risk outlined in any prior SEC filings; 2) ability of Syntec Optics to successfully increase market penetration into its target markets; 3) the addressable markets that Syntec Optics intends to target do not grow as expected; 4) the loss of any key executives; 5) the loss of any relationships with key suppliers including suppliers abroad; 6) the loss of any relationships with key customers; 7) the inability to protect Syntec Optics’ patents and other intellectual property; 8) the failure to successfully execute manufacturing of announced products in a timely manner or at all, or to scale to mass production; 9) costs related to any further business combination; 10) changes in applicable laws or regulations; 11) the possibility that Syntec Optics may be adversely affected by other economic, business and/or competitive factors; 12) Syntec Optics’ estimates of its growth and projected financial results for the future and meeting or satisfying the underlying assumptions with respect thereto; 13) the impact of any pandemic, including any mutations or variants thereof and the Russian/Ukrainian or Israeli conflict, and any resulting effect on business and financial conditions; 14) inability to complete any investments or borrowings in connection with any organic or inorganic growth; 15) the potential for events or circumstances that result in Syntec Optics’ failure to timely achieve the anticipated benefits of Syntec Optics’ customer arrangements; and 16) other risks and uncertainties set forth in the sections entitled “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in prior SEC filings including registration statement on Form S-4 filed with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Nothing in this press release should be regarded as a representation by any person that the forward-looking statements set forth herein will be achieved or that any of the contemplated results of such forward-looking statements will be achieved. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. Syntec Optics does not give any assurance that Syntec Optics will achieve its expected results. Syntec Optics does not undertake any duty to update these forward-looking statements except as otherwise required by law. For further information, please contact: Investor RelationsInvestorRelations@syntecoptics.comSOURCE: Syntec Optics Holdings, Inc. (Nasdaq: OPTX) SYNTEC OPTICS HOLDINGS, INC.CONSOLIDATED BALANCE SHEETSDECEMBER 31, 2024 AND 2023 2024 2023 2024 2023 ASSETS Current Assets Cash $598,787 $2,158,245 Accounts Receivable, Net 5,739,205 6,800,064 Inventory 6,953,278 5,834,109 Prepaid Expenses and Other Assets 596,589 359,443 Income Tax Receivable 9,794 - Total Current Assets 13,897,653 15,151,861 Property and Equipment, Net 11,668,859 11,101,052 Intangible Assets, Net - 295,000 Deferred Tax Asset 439,942 - Total Assets $26,006,454 $26,547,913 LIABILITIES AND STOCKHOLDERS’ EQUITY Current Liabilities Accounts Payable $2,706,392 $3,042,315 Accrued Expenses 814,600 1,071,256 Federal Income Tax Payable - 370,206 Deferred Revenue 36,512 - Line of Credit 6,263,863 6,537,592 Current Maturities of Debt Obligations 467,742 362,972 Current Maturities of Finance Lease Obligations 284,002 - Total Current Liabilities 10,573,111 11,384,341 Long-Term Liabilities Long-Term Debt Obligations 2,614,812 2,024,939 Long-Term Finance Lease Obligations 1,784,449 - Deferred Income Tax - 74,890 Total Long-Term Liabilities 4,399,261 2,099,829 Total Liabilities 14,972,372 13,484,170 Commitments and Contingencies - - Stockholder’s Equity CL A Common Stock, Par value $.0001 per share; 121,000,000 authorized; 36,688,266 issued and outstanding as of December 31, 2024; 36,688,266 issued and outstanding as of December 31, 2023 3,669 3,669 Common Stock Value 3,669 3,669 Additional Paid-In Capital 2,377,204 1,927,204 Retained Earnings 8,653,209 11,132,870 Total Stockholder’s Equity 11,034,082 13,063,743 Total Liabilities and Stockholder’s Equity $26,006,454 $26,547,913 SYNTEC OPTICS HOLDINGS, INC.CONSOLIDATED STATEMENTS OF OPERATIONSFOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023 2024 2023 Net Sales $28,449,941 $29,441,180 Cost of Goods Sold 22,747,615 21,520,189 Gross Profit 5,702,326 7,920,991 General and Administrative Expenses 8,278,720 6,379,879 Income (Loss) from Operations (2,576,394) 1,541,112 Other Income (Expense) Other Income 346,835 370,914 Interest Expense, Including Amortization of Debt Issuance Costs (764,934) (654,765)Total Other (Expense) (418,099) (283,851) (Loss) Income Before Provision for (Benefit) Income Taxes (2,994,493) 1,257,261 Provision (Benefit) for Income Taxes (514,832) (719,172) Net Income (Loss) $(2,479,661) $1,976,433 Net Income (Loss) per Common Share Basic and diluted $(0.07) $0.06 Weighted Average Number of Common Shares Outstanding Basic and diluted 36,688,266 32,366,725 SYNTEC OPTICS HOLDINGS, INC.CONSOLIDATED STATEMENTS OF CASH FLOWSFOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023 2024 2023 Cash Flows From Operating Activities Net (Loss) Income $(2,479,661) $1,976,433 Adjustments to Reconcile (Loss) Income to Net Cash (Used In) Provided By Operating Activities: Adjustments to Reconcile (Loss) Income to Net Cash (Used In) Provided By Operating Activities: Depreciation and Amortization 2,765,713 2,769,284 Amortization of Debt Issuance Costs 15,057 12,451 Stock-Based Compensation 450,000 - Grant Revenue Income - (300,000)Gain on Disposal of Property and Equipment (309,000) - Change in Allowance for Expected Credit Losses (121,767) (25,820)Change in Reserve for Obsolescence 186,285 124,911 Deferred Income Taxes (514,832) (1,199,214)(Increase) Decrease in: Accounts Receivable 1,182,626 (848,520)Inventory (1,305,454) (2,332,660)Prepaid Expenses and Other Assets (237,146) 340,298 Increase (Decrease) in: Accounts Payables and Accrued Expenses (231,163) 2,493,826 Federal Income Tax Payable (380,000) 129,328 Deferred Revenue 36,512 (348,095)Net Cash (Used In) Provided By Operating Activities (942,830) 2,792,222 Cash Flows From Investing Activities Purchases of Property and Equipment (1,239,866) (1,921,181)Proceeds from Disposal of Property and Equipment 309,000 - Net Cash Used in Investing Activities (930,866) (1,921,181) Cash Flows From Financing Activities (Repayments) Borrowing on Line of Credit, Net (273,729) 137,592 Borrowing on Debt Obligations 1,100,388 1,745,573 Repayments on Debt Obligations (420,802) (2,908,502)Repayments on Finance Lease Obligations (91,619) - Cash proceeds from OLIT - 45,946 Net proceeds from OLIT Trust - 1,802,479 Distributions - (62,065) Net Cash Provided By Financing Activities 314,238 761,023 Net Decrease in Cash (1,559,458) 1,632,064 Cash - Beginning 2,158,245 526,182 Cash - Ending $598,787 $2,158,245 Supplemental Cash Flow Disclosures: Cash Paid for Interest $738,010 $652,778 Cash Paid for Taxes $568,143 $283,561 Supplemental Disclosures of Non-Cash Investing Activities: Assets Acquired and Included in Accounts Payable and Accrued Expenses $198,584 $642,547 Issuance of finance lease for acquisition of equipment $2,160,070 $- De-recognition of PPE and Intangible Asset transaction $560,000 $- NON-GAAP RECONCILIATION OF EBITDAFOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023 2024 2023 Net (Loss) Income $(2,479,661) $1,976,433 Stock-Based Compensation expense 450,000 - Depreciation & Amortization 2,765,713 2,769,284 Amortization of Debt Issuance Costs 9,222 12,451 Interest Expenses 738,010 642,314 Taxes (514,832) (719,172)Non-Recurring Items Anomalous Executive Transition expenses 379,389 - Nonrecurring professional Fees 174,500 - Technology Start-up Costs 344,496 - Optical Molding Evaluation Expenses 201,908 - Glass Molding Evaluation Expenses 130,196 - Sale of Equipment & Accessories - (10,068)Transaction Filing Fees - 344,752 Management Fees & Expenses - 318,334 Adjusted EBITDA $2,198,941 $5,334,328 SYNTEC OPTICS HOLDINGS, INC.CONDENSED CONSOLIDATED BALANCE SHEETSJUNE 30, 2025 AND DECEMBER 31, 2024 2025(unaudited) 2024 ASSETS Current Assets Cash $287,085 $598,787 Accounts Receivable, Net 6,038,305 5,739,205 Inventory 7,992,617 6,953,278 Income Tax Receivable - 9,794 Prepaid Expenses and Other Assets 321,301 596,589 Total Current Assets 14,639,308 13,897,653 Property and Equipment, Net 10,385,435 11,668,859 Deferred Tax Asset 270,360 439,942 Total Assets $25,295,103 $26,006,454 LIABILITIES AND STOCKHOLDERS’ EQUITY Current Liabilities Accounts Payable $1,854,077 $2,706,392 Accrued Expenses 821,676 814,600 Deferred Revenue 33,993 36,512 Line of Credit 6,763,863 6,263,863 Current Maturities of Debt Obligations 482,973 467,742 Current Maturities of Finance Lease Obligations 340,492 284,002 Total Current Liabilities 10,297,074 10,573,111 Long-Term Liabilities Long-Term Debt Obligations 2,372,985 2,614,812 Long-Term Finance Lease Obligations 1,611,218 1,784,449 Total Long-Term Liabilities 3,984,203 4,399,261 Total Liabilities 14,281,277 14,972,372 Commitments and Contingencies - - Stockholders’ Equity CL A Common Stock, Par value $.0001 per share; 121,000,000 authorized; 36,920,226 issued and outstanding as of June 30, 2025; 36,688,266 issued and outstanding as of December 31, 2024; 3,692 3,669 Common stock value 3,692 3,669 Additional Paid-In Capital 2,377,181 2,377,204 Retained Earnings 8,632,953 8,653,209 Total Stockholders’ Equity 11,013,826 11,034,082 Total Liabilities and Stockholders’ Equity 25,295,103 26,006,454 SYNTEC OPTICS HOLDINGS, INC.UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONSFOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2025 AND 2024 Three Months Ended Six Months Ended June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 Net Sales $6,559,455 $7,006,000 $13,628,497 $13,261,908 Cost of Goods Sold 4,961,489 4,831,673 9,721,913 10,380,138 Gross Profit 1,597,966 2,174,327 3,906,584 2,881,770 General and Administrative Expenses 1,744,216 2,015,783 3,524,382 4,130,326 Income (Loss) from Operations (146,250) 158,544 382,202 (1,248,556) Other Income (Expense) Interest Expense, Including Amortization of Debt Issuance Costs (208,969) (167,242) (409,865) (327,109)Other Income 11,298 319,623 16,995 338,972 Total Other (Expense) (197,671) 152,381 (392,870) 11,863 Income (Loss) Before Provision for (Benefit) Income Taxes (343,921) 310,925 (10,668) (1,236,693) Provision (Benefit) for Income Taxes - 29,082 9,588 (309,393) Net (Loss) Income $(343,921) $281,843 $(20,256) $(927,300) Net Income (Loss) per Common Share Basic and diluted $(0.01) $0.01 $(0.00) $(0.03) Weighted Average Number of Common Shares Outstanding Basic and diluted 36,920,226 36,688,266 36,920,226 36,688,266 SYNTEC OPTICS HOLDINGS, INC.UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWSFOR THE SIX MONTHS ENDED JUNE 30, 2025 AND 2024 2025 2024 Cash Flows From Operating Activities Net Loss $(20,256) $(927,300)Adjustments to Reconcile Loss to Net Cash (Used In) Provided By Operating Activities: Adjustments to Reconcile (Loss) Income to Net Cash (Used In) Provided By Operating Activities: Depreciation and Amortization 1,387,427 1,385,606 Amortization of Debt Issuance Costs 4,834 4,387 Gain on Disposal of Property and Equipment - (309,000)Change in Allowance for Expected Credit Losses 75,727 (24,395)Change in Reserve for Obsolescence (18,881) 291,576 Deferred Income Taxes - (357,994)(Increase) Decrease in: Accounts Receivable (374,827) 885,368 Inventory (1,020,458) (1,958,557)Decrease in Federal Income Tax Receivable 179,376 - Prepaid Expenses and Other Assets 275,288 57,309 Increase (Decrease) in: Accounts Payables and Accrued Expenses (344,470) (993,406)Federal Income Tax Payable - (318,240)Deferred Revenue (2,519) 280,763 Net Cash Provided By (Used In) Operating Activities 141,241 (1,983,883) Cash Flows From Investing Activities Purchases of Property and Equipment (604,772) (254,767)Proceeds from Disposal of Property and Equipment - 309,000 Net Cash (Used in) Provided in Investing Activities (604,772) 54,233 Cash Flows From Financing Activities (Repayments) Borrowing on Line of Credit, Net 500,000 (273,729)Borrowing on Debt Obligations - 1,100,388 Repayments on Debt Obligations (231,430) (224,775)Repayments on Finance Lease Obligations (116,741) - Net Cash Provided By Financing Activities 151,829 601,884 Net Decrease in Cash (311,702) (1,327,766) Cash - Beginning 598,787 2,158,245 Cash - Ending $287,085 $830,479 Supplemental Cash Flow Disclosures: Cash Paid for Interest $409,579 $276,809 Cash Paid for Taxes $- $537,510 Supplemental Disclosures of Non-Cash Investing Activities: Assets Acquired and Included in Accounts Payable and Accrued Expenses $40,362 $651,736 Issuance of restricted stock from stock-based compensation $23 $- NON-GAAP RECONCILIATION OF EBITDAFOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2025 AND 2024 Three Months Ended Six Months Ended June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 Net (Loss) Income $(343,921) $281,843 $(20,256) $(927,300)Depreciation & Amortization 676,623 692,194 1,387,427 1,389,993 Debt Issuance Costs 2,418 - 4,834 - Interest Expenses 207,623 164,828 409,579 322,722 Taxes - 29,082 9,588 (309,393)Non-Recurring Items Executive Transition 135,246 - 249,189 - One time Contract exit costs 11,750 - 21,063 - Non-recurring property damage - - 21,261 - Professional & Transaction Fees - - - 25,265 Technology Start-up Costs - - - 165,034 Optical Molding Evaluation Expenses - - - 38,104 Glass Molding Evaluation Expenses - - - 68,392 Adjusted EBITDA $689,739 $1,167,947 $2,082,685 $772,817

Syntec Optics Holdings, Inc. (Nasdaq: OPTX) Reports Full Year 2024 and First Half 2025 Financial Results

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