EOS Shares Surge Following Forceful Rebuttal to Short Seller Claims

Electro Optic Systems (EOS) mounted a vigorous defense today, issuing a comprehensive statement to counter a critical report from short seller Grizzly Research. The robust response triggered significant volatility in the company's shares upon the resumption of trading. After initially plunging as much as 16% intraday, the stock staged a sharp reversal to finish notably higher.

The dispute centers on several key allegations made by the research firm, which EOS management has now addressed point by point.

The Australian defense technology company had requested a trading halt last week. Returning to the market today, EOS labeled the conclusions drawn by Grizzly Research as "misleading, manipulative and pejorative."

A primary point of contention is an $80 million contract with a South Korean customer, which the short seller argued had been misleadingly presented. EOS clarified that this specific contract was conditional and, as such, was correctly excluded from its reported unconditional order backlog.

To reinforce its position, the company provided updated figures for its firm order book. EOS stated that its unconditional order backlog has grown from $136 million at the end of 2024 to $459 million by the end of 2025.

Should investors sell immediately? Or is it worth buying EOS?

Financial Position and Legal Action Under Consideration

Beyond the order book, EOS addressed its financial health. The company reported holding over $100 million in liquid assets and emphasized that it is currently debt-free.

Management also defended the recent acquisition of MARSS. They stated that the acquired entity generated approximately €243 million in revenue between 2020 and 2025.

The conflict may escalate beyond the exchange of statements. EOS announced it is exploring legal options against Grizzly Research in both Australia and Germany. The company pointed out that the short seller maintains a position that profits from a decline in EOS's share price.

• Trading Catalyst: Resumption of trade following a company-requested halt
• Core Dispute: Classification and reporting of specific customer contracts
• Market Reaction: Shares fell to an intraday low of 5.05 AUD before recovering to around 6.86 AUD

Volatile Trading Session Underscores Market Sensitivity

Trading reopened with intense volatility. The equity initially dropped to a low of 5.05 AUD. However, as the market digested the company's detailed rebuttal, buying interest returned. By the afternoon local time, shares had rebounded to approximately 6.86 AUD, marking a gain of over 14% from the previous day's closing price.

These sharp price movements occur against a backdrop of strong performance over a longer horizon. Bolstered by rising global defense expenditures, EOS shares have appreciated roughly 300% over the past twelve months.