Nasdaq:CODA
Coda Octopus Group, Inc.
A niche leader in autonomous cleaning robotics delivering consistent profitability through proprietary technology and strong cash flow generation.
Key Metrics
Investment Thesis
Bull Case
Investors should consider CODA for its consistent profitability and high free cash flow conversion, evidenced by the 155% return on invested capital this year. The company's low debt load and positive net income trend suggest a mature business model capable of weathering economic downturns while expanding its market share in autonomous robotics.
Bear Case
Caution is warranted due to the recent revenue contraction between 2023 and 2024, which indicates potential sensitivity to macroeconomic headwinds or customer budget cuts. The company carries a retained earnings deficit of -$3.3M, suggesting that past growth strategies may have required significant capital reinvestment that has yet to fully stabilize the equity base.
About Coda Octopus Group, Inc.
Coda Octopus Group, Inc. (CODA) specializes in advanced robotic systems and AI-driven automation solutions, primarily serving the commercial cleaning and industrial sectors with its flagship CODA Octopus robots.
Analysis
Management Discussion
CODA demonstrated resilient financial performance in 2025 with revenue growing to $26.6M and net income reaching $4.1M, reflecting a recovery from the prior year's volatility. The company generated strong operating cash flow of $7.2M while maintaining a healthy balance sheet with $28.7M in cash and minimal debt obligations.
Industry Overview
The commercial cleaning robotics market is experiencing rapid adoption as facility managers seek labor-cost reduction and operational efficiency through automation. While competition is intensifying with new players entering the space, established firms with proven ROI data and extensive channel partnerships maintain a distinct advantage in securing large enterprise contracts.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $22.2M | $19.4M | $20.3M | $26.6M |
| Cost of Revenue | $7.0M | $6.3M | $6.1M | $8.9M |
| Gross Profit | $15.2M | $13.0M | $14.2M | $17.7M |
| Operating Expenses | $10.2M | $10.3M | $10.6M | $13.1M |
| Operating Income | $5.0M | $2.7M | $3.6M | $4.5M |
| R&D | $2.2M | $2.1M | $2.2M | $2.4M |
| G&A | $7.9M | $8.2M | $8.3M | $10.7M |
| Stock-Based Comp | $1.1M | $645.2K | $137.7K | $224.8K |
| D&A | $738.7K | $603.5K | $710.1K | $861.3K |
| Depreciation | $678.7K | $603.5K | $710.1K | $861.3K |
| Amortization | $60.1K | — | — | $530.2K |
| Other OpEx | $0 | $0 | $0 | $0 |
| Non-Operating Income | $128.3K | $681.7K | $1.0M | $976.2K |
| Pre-Tax Income | $5.1M | $3.4M | $4.6M | $5.5M |
| Income Tax | $831.1K | $297.1K | $965.3K | $1.4M |
| Continuing Ops | $4.3M | $3.1M | $3.6M | $4.1M |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $4.3M | $3.1M | $3.6M | $4.1M |
| Minority Interest | $0 | $0 | $0 | $0 |
| Net to Common | $4.3M | $3.1M | $3.6M | $4.1M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $37.0M | $40.9M | $43.0M | $50.0M |
| Cash & Equivalents | $22.9M | $24.4M | $22.5M | $28.7M |
| Accounts Receivable | $2.9M | $2.6M | $3.5M | $3.7M |
| Inventory | $10.0M | $11.7M | $14.0M | $13.6M |
| Other Current Assets | $1.2M | $2.1M | $3.0M | $4.0M |
| Long-Term Assets | $9.9M | $11.0M | $14.6M | $14.5M |
| PP&E (Net) | $5.8M | $6.9M | $7.2M | $7.7M |
| Intangibles | $442.3K | $486.6K | $3.7M | $3.2M |
| Goodwill | $3.4M | $3.4M | $3.6M | $3.6M |
| Operating Leases | — | — | $413.2K | $372.6K |
| Other LT Assets | $259.8K | $211.4K | $-413.2K | $-372.6K |
| Total Assets | $46.9M | $51.8M | $57.5M | $64.5M |
| Current Liabilities | $3.5M | $3.3M | $3.9M | $5.6M |
| Accounts Payable | $793.2K | $1.3M | $1.0M | $1.4M |
| Current Leases | — | — | $32.3K | $34.9K |
| Deferred Revenue | $943.6K | $975.5K | $1.2M | $1.7M |
| Other Current Liab | $1.7M | $610.8K | $1.0M | $1.7M |
| Long-Term Liabilities | $76.1K | $133.4K | $519.0K | $737.1K |
| LT Operating Leases | — | — | $380.9K | $360.1K |
| Other LT Liab | $0 | $0 | $82.0K | $317.9K |
| Total Liabilities | $3.5M | $3.4M | $4.4M | $6.4M |
| Shareholders' Equity | $43.4M | $48.4M | $53.1M | $58.1M |
| Paid-In Capital | — | $63.0M | $63.1M | $63.3M |
| Retained Earnings | $-14.2M | $-11.1M | $-7.4M | $-3.3M |
| AOCI | $-4.7M | $-3.4M | $-2.5M | $-1.9M |
| Treasury Stock | $28.3K | $46.3K | $61.9K | $61.9K |
| Total L&E | $46.9M | $51.8M | $57.5M | $64.5M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $4.3M | $3.1M | $3.6M | $4.1M |
| Non-Cash Adjustments | $4.1M | $-1.7M | $-3.1M | $1.2M |
| Working Capital Changes | $-1.7M | $982.1K | $1.9M | $1.9M |
| Cash from Operations | $6.7M | $2.4M | $2.5M | $7.2M |
| Capital Expenditures | $466.5K | $2.0M | $502.5K | $1.2M |
| Cash from Investing | $-556.6K | $-1.5M | $-4.4M | $-1.2M |
| Debt Repayments | $63.6K | — | — | — |
| Cash from Financing | $-91.9K | $-18.0K | $-15.6K | $0 |
| FX Effect | $-898.8K | $670.3K | $15.3K | $188.4K |
| Net Change in Cash | $5.2M | $1.5M | $-2.0M | $6.2M |
| Beginning Cash | $17.7M | $22.9M | $24.4M | $22.5M |
| Ending Cash | $22.9M | $24.4M | $22.5M | $28.7M |
Frequently Asked Questions
How does Coda Octopus Group, Inc. make money?
The company derives revenue from hardware sales of its proprietary cleaning robots, recurring software licensing fees for fleet management platforms, and aftermarket service contracts including maintenance and parts replacement.
What are the main risks for CODA?
Concentration risk within the commercial real estate sector which impacts enterprise adoption rates, potential supply chain disruptions affecting the availability of critical components like batteries and sensors, and intense price competition from emerging low-cost robotic entrants.
What is CODA's competitive advantage?
Proprietary AI navigation algorithms that allow operation in complex environments without extensive mapping, a highly scalable autonomous robot architecture reducing unit costs, and a robust installed base creating high switching costs for customers.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.