Clear Blue Technologies International Inc. reported its first quarterly profit on Thursday, posting CAD 1.0 million in revenue for Q2 2026 while its shares rose 14.29% to $0.04.
The Toronto-based company, which provides solar-powered edge computing systems for telecom and satellite infrastructure, achieved positive net income for the quarter, a milestone after years of operating at a loss. Revenue declined 12% from a year earlier but remained flat sequentially at CAD 1.0 million. Gross margins strengthened to 53%, the highest level in two years, up from 52% in Q1 2026 and 37% in Q3 2025. The company expects margins to decline to about 40% in the second half due to a higher hardware sales mix.
Recurring revenue rose 11% year-over-year to CAD 200,000, while bookings increased 19% to CAD 1.8 million. Adjusted EBITDA loss narrowed 78% year-over-year to CAD 48,000. Working capital improved 113% from fiscal 2025 to CAD 1.4 million, though the company’s financial health score from InvestingPro remains weak at 1.21.
Clear Blue maintained its full-year 2026 revenue target of approximately CAD 5.0 million, representing a 53% increase from fiscal 2025’s CAD 3.3 million. The company expects H2 2026 revenue of about CAD 3.0 million across Q3 and Q4. Operating expenses are projected to reach an annualized run rate of CAD 2.5 million by Q4 2026, roughly 45% below fiscal 2025 levels of CAD 4.5 million.
CEO Miriam Tuerk emphasized the company’s focus on "delivering energy as a service" and reiterated long-term profitability goals. "Once we get to EBITDA positive and cash flow positive, that’s the start line," she said. "We didn’t do all of this for that to be the end result." CFO Farrukh Anwar noted that with gross margins in the low 50s and a lean cost base, Clear Blue does not require aggressive revenue growth to achieve positive adjusted EBITDA.
The company’s Pico Plus units, which combine solar power, edge computing, and cloud analytics, are deployed at over 400 customer sites with more than 15,000 units in operation. Its cloud platform has processed over 1 trillion transactions across 15 million cumulative days. Clear Blue holds 12 patents across North America and Europe.
Clear Blue’s largest near-term opportunity comes from a letter of intent with Eutelsat, which could deliver 1,500 to 2,500 Pico Plus units in H2 2026 across four African countries as part of a broader agreement targeting approximately 15,000 systems over three years for the Konnect WiFi service. Eutelsat, formed in 2023 via the merger of OneWeb and Eutelsat, operates 31 geostationary and 600+ low Earth orbit satellites and generated EUR 1.2 billion in revenue in 2025.
For fiscal 2027, Clear Blue projects revenue of CAD 2.83 million and a negative EPS of CAD 0.03, reflecting continued investment in growth despite the recent profit milestone.
