Aluula Composites (AUUA) investor relations material

Executive summary

• Q3 2026 revenue rose 16% year-over-year to $2.47 million, with year-to-date revenue up 58% to $7.86 million compared to the same period last year.

• Performance Outdoor and Commercial Industrial segments both contributed to growth, with the latter up 150% year-to-date.

• Vancouver manufacturing expansion advanced, with partial facility use beginning and full access expected in October 2026.

• Ended the quarter with $12.6 million in cash and $14.8 million in working capital.

Financial highlights

• Q3 2026 sales were $2,468,502, up from $2,121,588 in Q3 2025, but down 19% sequentially from Q2 2026.

• Gross margin for Q3 was 32%, down from 41% in Q3 2025; year-to-date gross margin was 40%, down from 42% last year.

• Net loss from continuing operations was $677,330 for Q3 2026, compared to $763,524 in Q3 2025; year-to-date net loss was $1,503,028 versus $1,458,583 last year.

• Operating expenses for Q3 were $1,439,706, down from $1,550,333 in Q3 2025.

• Cash used in operating activities for the first nine months was $1.3 million, down from $1.7 million in the prior year.

Outlook and guidance

• Fiscal 2026 and 2027 are viewed as investment periods focused on scaling production capacity and supporting growth.

• Gross margin expected to remain below long-term targets during Vancouver facility ramp-up; targets to be reassessed after sufficient operating history.

• Continued investment in technology, product innovation, and process improvements to support wider-width manufacturing and customer adoption.