Clear Blue Technologies International Inc. reported its first-ever quarterly net profit in the second quarter of 2026, driven by improved margins and cost reductions, despite a 12% year-over-year decline in revenue.
The Toronto-based company posted CAD 1.0 million in revenue for the quarter, flat sequentially from Q1 2026 but down from CAD 1.14 million in Q2 2025. Gross margin expanded to 53%, the highest level in two years, up from 52% in Q1 and 37% in Q3 2025. Adjusted EBITDA loss narrowed by 78% year-over-year to CAD 48,000, while the company reported positive net income for the quarter.
Recurring revenue rose 11% to CAD 200,000, and bookings increased 19% to CAD 1.8 million, supported by orders from partners including Eutelsat and Inmarsat. Working capital improved 113% from fiscal year-end 2025 to CAD 1.4 million. The company’s stock rose 14.29% to CAD 0.04 following the earnings call.
Management raised its full-year 2026 revenue guidance to approximately CAD 5.0 million, up from CAD 3.3 million in fiscal 2025, representing 53% growth. For the second half of 2026, Clear Blue targets CAD 3.0 million in combined revenue for Q3 and Q4. Gross margin is expected to decline to about 40% in H2 due to a higher hardware mix and increased volumes from Eutelsat.
The company outlined plans to reduce operating expenses to an annualized run rate of CAD 2.5 million by Q4 2026, down 45% from CAD 4.5 million in fiscal 2025. Planned reductions include CAD 286,000 in salaries, CAD 186,000 in professional fees, and CAD 256,000 in general and administrative costs. CEO Miriam Tuerk emphasized a focus on execution, stating the company is transitioning from sales development to large-scale manufacturing.
Clear Blue, which supports over 400 customers with 15,000 units deployed, also highlighted progress in its Eutelsat partnership. A formal three-year supply agreement for up to 15,000 Pico Plus systems is expected within weeks, with deliveries of 1,500 to 2,500 units targeted for H2 2026 across four African countries. The company acknowledged exposure to tariffs on lithium batteries sourced from China but plans to absorb short-term impacts without raising prices.
Looking ahead, Clear Blue forecast fiscal 2026 revenue of CAD 2.63 million and fiscal 2027 revenue of CAD 2.83 million, with a projected net loss per share of CAD 0.03 in 2027. The company also plans to expand its board with an additional independent director by the end of 2026.
