Coda Octopus Group reported fiscal third-quarter 2026 revenue of $7.7 million, up 9.2% from $7.1 million a year earlier, as defense engineering services revenue jumped 68.3% to $2.7 million. The increase more than offset a 15.2% decline in marine technology revenue to $3.4 million, which the company linked to geopolitical instability affecting offshore activity in the Middle East and parts of Asia. Net income rose to $1.4 million, or $0.12 per diluted share, while pre-tax income increased 16% to $1.8 million. Defense programs involving diver vision systems, electronic warfare components, sustainment and next-generation technologies are becoming a more important growth engine alongside Coda Octopus’s underwater imaging business. The company completed the U.S. Navy’s Authorization for Navy Use assessment for its DAVD untethered system with the DAVD Gen 4 Hub and has delivered 24 DAVD systems to the Navy, including 16 untethered units earlier this year. It received approximately $1.4 million in additional Navy orders since its previous earnings call. Coda Octopus ended July 31, 2026, with $31.7 million in cash and no debt, and moved from an accumulated deficit to positive retained earnings for the first time. Management said marine-market disruption appears to be a timing issue rather than a structural change, while defense revenue remains uneven because of sustainment spending cycles and seasonality. The company is pursuing Navy, international and prime-contractor opportunities, including potential adoption of its NANO Gen CV sonar after imminent sea acceptance trials.