Coda Octopus Group, Inc. (CODA): Marketing Mix Analysis [Dec-2025 Updated]

You're trying to get a clear read on Coda Octopus Group, Inc.'s (CODA) market footing as we close out 2025, and frankly, mapping their 4 Ps is the best way to cut through the hype. We're breaking down how their proprietary Echoscope® sonar and Diver Augmented Vision Display (DAVD) systems are actually performing, looking past the headlines to the hard numbers like the $24.35 million revenue for the last twelve months ending July 31, 2025, and that strong 68.3% gross margin reported in Q3. Stick with me below, because understanding their specific Product, Place, Promotion, and Price strategy is defintely the essential next step for valuing this unique defense and marine technology play.

Coda Octopus Group, Inc. (CODA) - Marketing Mix: Product

The product element for Coda Octopus Group, Inc. centers on proprietary, high-specification underwater imaging and sensing technologies, complemented by specialized engineering services and recently acquired material science capabilities.

Proprietary Echoscope® 4D/5D/6D real-time volumetric sonar technology

The core offering is the Echoscope® family of sonars, which provides real-time 4D/5D/6D imaging. Current variants can generate a complete 3D model from each acoustic transmission, composed of over 16,000 soundings. The Echoscope4G® supports a ping rate up to 20Hz and a range resolution down to 2cm. Revenues from the Products segment for the fiscal year ending October 31, 2024, totaled $12.8 million.

• Echoscope® technology is used in complex mapping, subsea intervention, and port security.
• The Echoscope® CIVS (Close-In-Visualization Sonar) gained wider acceptance for high-resolution target detection in FY2024.
• The Echoscope® technology is part of a contract valued at $1.5m received in May 2025.

Diver Augmented Vision Display (DAVD) system for zero-visibility diving

The Diver Augmented Vision Display (DAVD) system is a patented diving technology that integrates the Company's sonar to enable operations in zero visibility conditions. During the third fiscal quarter of 2025, Coda Octopus Group, Inc. expected to deliver 16 DAVD untethered systems (DUS) for integration into the MK16 Underwater Breathing Apparatus (UBA) for SPECWAR and EOD applications. The DAVD Tethered System is currently operational across nine naval commands within the U.S. Navy.

Echoscope PIPE NANO GEN Series® for high-performance subsea imaging

The Echoscope PIPE® series represents an advancement, with 5-D and 6-D variants embedding a high-powered parallel processing engine. The 5-D and 6-D sonars can capture and process the full backscatter (3D time series) data of up to 81 million points per ping (180x180x2,500) in real-time. The Echoscope PIPE® is noted as a promising growth catalyst.

Defense Engineering sub-assemblies for Prime Defense Contractors

The Defense Engineering Services Business, Coda Octopus Colmek, received two orders from the US Government totaling $1.3M in March 2025 for proprietary parts used as sub-components in a larger mission-critical Defense program. Management is executing a strategy to restore this business to its pre-COVID $10m revenue profile. Coda Octopus Group, Inc. continued work with several Prime Defense Contractors on their undersea vehicle programs in FY2024.

Acoustic Sensors and Material business from the 2024 acquisition

Coda Octopus Group, Inc. completed the acquisition of Precision Acoustics Limited ("PAL"), an Acoustics Sensor and Materials Business, on October 29, 2024. The acquisition price, net of cash acquired, was $4.6M. This division produces acoustic hydrophones, ultrasonic transducers, and acoustic materials.

Here's a quick look at some relevant financial and operational data points as of late 2025:

The Echoscope PIPE® sonar generates real-time 3D/4D/5D images of moving objects underwater, including in zero visibility water conditions. The DAVD system provides a real time information platform to the global diving market.

Coda Octopus Group, Inc. (CODA) - Marketing Mix: Place

Place, or distribution, for Coda Octopus Group, Inc. (CODA) involves a dual-pronged approach, leveraging direct sales for high-value defense contracts and a worldwide distribution network for its Marine Technology Business products across commercial subsea sectors.

Global distribution for the Marine Technology Business is executed through worldwide sales channels, targeting diverse subsea and marine science applications. The Marine Technology Business, which is the core products segment, generated $3.9 million in revenue during Fiscal Second Quarter 2025 (SQ2025), representing 55.3% of the total consolidated revenue of $7.02 million for that quarter. This segment's products are distributed globally to service providers and end-users in several key areas.

The primary application areas for the Marine Technology Business products include:

• Underwater construction market.
• Offshore oil and gas activities.
• Wind energy industry, specifically offshore renewables cable installations and surveys.
• Complex dredging operations.
• Port security and marine sciences sectors.

It is important to note the recent shift in market focus; rental revenue, which is often tied to offshore renewable projects, saw a significant decline of 75.9% in SQ2025, indicating a temporary contraction in that specific distribution channel due to U.S. energy policy shifts.

Direct sales to key defense clients like the U.S. Navy and foreign navies are a critical component of the distribution strategy, particularly for the Diver Augmented Vision Display (DAVD) technology. The DAVD program is seeing expansion, with new tethered system orders valued at $1.53 million in SQ2025, expanding the user base to approximately 12 Navy Commands. Furthermore, the company received an order for approximately $800,000 for 16 DAVD Untethered System (DUS) units in Fiscal First Quarter 2025 (FQ2025) for integration into the MK16 Underwater Breathing Apparatus (UBA) system for U.S. Navy SPECWAR and EOD applications. The DUS targets the largest addressable market, which includes an estimated 3,000 U.S. Navy divers and potentially 10,000 Public Safety and Law Enforcement divers utilizing similar full-face mask systems.

Sub-contractor role supplying mission-critical sub-assemblies to US/UK defense primes is managed through the Marine Engineering Business units, Coda Octopus Colmek, Inc. (US-based) and Coda Octopus Martech Limited (UK-based). These units operate as trusted suppliers, often enjoying sole source status for proprietary parts that are integrated into larger defense programs of record, some of which have been in existence for over 40 years. This business model is designed to ensure recurring and long tail revenues through obsolescence management programs. The Marine Engineering Business generated $1.84 million in revenue in SQ2025. Recent contract wins supporting this distribution channel include:

Key markets include defense, offshore construction, and renewable energy cable installation, all served by the company's technology portfolio, which includes the Echoscope® sonar and the DAVD system. The Services segment, which includes the Marine Engineering Business, saw revenue increase by 76.6% to $1.6 million in FQ2025, contrasting with the headwinds in the rental portion of the Products segment. The company's cash position at the end of SQ2025 was $24.5 million, providing resources to support these varied distribution and operational strategies.

Operations based in Orlando, Florida (HQ), with engineering units in the US and UK form the physical backbone of CODA's distribution and service support. The corporate headquarters is located in Orlando, Florida. The engineering and sub-assembly supply chain is anchored by the US-based Coda Octopus Colmek, Inc. in Salt Lake City, and the UK-based Coda Octopus Martech Limited. Additional operations supporting the DAVD technology are noted in Edinburgh and Copenhagen.

The primary operational locations are:

• Head Office: Orlando, Florida, United States.
• Defense Engineering (US): Salt Lake City, Utah (Coda Octopus Colmek, Inc.).
• Defense Engineering (UK): United Kingdom (Coda Octopus Martech Limited).
• DAVD Technology Operations: Orlando, Edinburgh, and Copenhagen.

Coda Octopus Group, Inc. (CODA) - Marketing Mix: Promotion

Product validation through the funded DUS Hardening Program with the U.S. Navy is a core promotional element, demonstrating capability to a key end-user.

Investor relations transparency is maintained via quarterly earnings conference calls, such as the one held on Monday, September 15, 2025, to discuss results for the fiscal third quarter ended July 31, 2025 (TQ2025).

The strategic delivery of 16 DAVD Untethered Systems (DUS) for live mission evaluation serves as a tangible proof point for the technology.

The focus on the DAVD's integration with Echoscope® is promoted as a pathway to broader adoption and recurring revenue.

Targeted marketing efforts are directed toward specialized military (SPECWAR/EOD) and commercial diving communities, leveraging successful program milestones.

Here's the quick math on the recent promotional validation points:

The promotion strategy emphasizes quantifiable achievements from the DAVD program, which is positioned to expand the user base significantly.

• Echoscope® revenue as a percentage of Marine Technology Business revenues: approximately 57.7%.
• Echoscope® revenue as a percentage of Marine Technology Business revenues: approximately 42.3% relates to DAVD.
• Echoscope® currently accounts for approximately 80% of Marine Technology Business revenues.
• Target U.S. Navy DUS market size: approximately 3,000 divers.
• U.S. Navy active divers percentage using Full-Face Mask systems: 75% of 4,000.
• Estimated Public Safety and Law Enforcement divers using similar systems: 10,000.

The delivery of the 16 DUS systems to the U.S. Navy in TQ2025 is explicitly stated as enabling the end customer to start evaluating the technology on live missions.

Investor communications highlighted specific financial metrics that support the promotional narrative:

• Marine Technology Business revenue increase in TQ2025: 30.7%.
• Hardware sales increase in TQ2025: 103.6% to $2.7 million.
• Gross margin for the Acoustic Sensors and Materials business: 54.8% in TQ2025.

The integration of DAVD with Echoscope® is framed as a mechanism to secure long tail recurring revenue under the DAVD Program.

The Marine Engineering Business has long-standing relationships with prime defense contractors, serving the defense market for over 48 years.

Finance: review TQ2025 SG&A increase of 32.8% against the $1.5 million in DAVD/DAVD related sales for the quarter by end of week.

Coda Octopus Group, Inc. (CODA) - Marketing Mix: Price

You're looking at how Coda Octopus Group, Inc. prices its specialized subsea intelligence and diving technology. Given the company's proprietary 4D/5D/6D imaging sonar technology and the new Diver Augmented Vision Display (DAVD) system, the pricing model leans heavily on value-based pricing. This strategy reflects the high perceived value and mission-critical nature of its unique offerings, especially in defense applications where performance outweighs initial cost concerns.

For context on the scale of operations supporting these prices, the last twelve months revenue ending July 31, 2025, was reported at $24.35 million. This revenue base supports the premium pricing structure Coda Octopus Group, Inc. employs for its specialized hardware and software solutions.

Here's a quick look at the financial performance metrics that underpin the pricing power:

The gross margin performance shows the inherent value captured by the Products Segment. For the third quarter of fiscal year 2025, the consolidated gross margin stood at 68.3%, down from 73.9% in the third quarter of fiscal year 2024. This margin shift reflects the inclusion of the Acoustics Sensors and Material Business, which posted a 54.8% gross margin in the quarter, and a product mix change within the core business. Still, the core Marine Technology Business maintained a strong gross margin of 77.0% in TQ3 2025, compared to 82.9% in TQ3 2024, showing that the core technology commands a high price point.

The focus on high-value defense systems directly impacts pricing expectations. Management is targeting FY 2025 DAVD-related sales to reach between $3.5 million and $4.0 million, a substantial increase from the $1.2 million realized in the previous fiscal year. In the third quarter alone, DAVD and DAVD related sales contributed approximately $1.5 million. This concentration on high-margin, high-value defense contracts allows Coda Octopus Group, Inc. to maintain premium pricing for the DAVD system.

The shift in sales mix also highlights where customers are willing to pay for ownership over leasing. Equipment sales in the core Marine Technology Business saw a massive 103.6% increase in TQ3 2025, reaching $2.7 million compared to $1.349 million in the comparable period of TQ3 2024. This surge in hardware sales, which displaced lower-margin rental activity, suggests customers are committing capital to acquire the technology outright.

You can see the key pricing realization metrics here:

• Equipment sales growth in Marine Technology: 103.6% in TQ3 2025.
• Marine Technology revenue in TQ3 2025: $4.0 million.
• Acoustics Sensors and Material Business contributed 20.6% of net revenue in TQ3 2025.
• Cash and cash equivalents balance as of July 31, 2025: $26.2 million.
• Net income after taxes for TQ2025: $1.28 million.

The pricing strategy is clearly calibrated to the value delivered by the proprietary technology, evidenced by the high gross margins and the successful push toward outright equipment sales over rentals, even with some margin compression from the acquired business mix. Finance: draft 13-week cash view by Friday.