EnWave reported third-quarter revenue of CAD 3.33 million for fiscal 2026, a 21% increase from CAD 2.77 million in the same period a year ago. The Vancouver-based company narrowed its adjusted EBITDA loss to CAD 93,000 from CAD 575,000 in Q3 2025, reflecting improved operational efficiency.
Gross margin rose to 25% in the quarter from 19% a year earlier, with year-to-date gross margin at 30%. Selling, general and administrative expenses, including research and development, declined 15% to CAD 1.2 million from CAD 1.4 million. Cash and cash equivalents totaled CAD 2.5 million as of June 30, while net working capital stood at CAD 7.1 million. Inventory increased to CAD 3.0 million from CAD 1.4 million at the fiscal year-end.
Royalty revenue reached CAD 536,000, up 24% year-over-year from CAD 432,000. Normalized base royalties were approximately CAD 600,000 after adjusting for a CAD 62,000 overpayment correction related to MicroDried. The company’s stock fell 4.26% to CAD 0.225, trading near the bottom of its 52-week range of CAD 0.21 to CAD 0.44.
Management highlighted growth across its royalty network, with BranchOut Food posting 265% year-over-year royalty growth and MicroDried expanding by roughly 24% to 25%. Procescir S.A. de C.V., EnWave’s Mexican partner, purchased a second 120-kilowatt Radiant Energy Vacuum machine, while Rhizome, led by chef Dan Barber, acquired a pilot-scale unit. The company also secured new license agreements with the University of Limerick and Swiss Cannabis Selection, and signed a technology evaluation deal with General Mills.
Looking ahead, EnWave projected fiscal 2027 royalties to approach CAD 3 million, up from CAD 1.5 million collected three years prior. Base expenses are targeted to drop to about CAD 3.5 million by fiscal 2028, with management expecting royalties to surpass operating costs by that year. Approximately 25% to 30% of installed capacity remains available across the partner network.
