EcoSynthetix (ECO) investor relations material

Executive summary

• Net sales increased 57% year-over-year to $5.0 million in Q2 2025, driven by 50% higher volumes, new and expanded orders from strategic accounts, and a 7% rise in average selling price.

• Achieved positive adjusted EBITDA of $0.2 million in Q2 2025, a $1 million improvement over last year, and positive adjusted EBITDA for the trailing twelve months for the first time.

• Growth was led by strategic wins and repeatable business in pulp, wood composites, and tissue, with expanding adoption of bio-based products.

• Maintained a strong balance sheet with $30.7 million in cash and term deposits as of June 30, 2025.

• Net income reached $0.1 million in Q2 2025, reversing a net loss of $0.7 million in the prior year quarter.

Financial highlights

• Q2 2025 net sales were $5.0 million, up from $3.2 million in Q2 2024; gross profit rose 66% to $1.4 million, with gross margin improving to 28.4% (adjusted: 33%).

• SG&A expenses decreased to $1.2 million, mainly due to the absence of prior year asset relocation costs.

• R&D expenses fell to $0.4 million (9% of sales), reflecting lower scale-up costs and depreciation.

• Adjusted EBITDA for Q2 2025 was $0.2 million, compared to a loss of $0.8 million in Q2 2024; positive in 3 of the last 4 quarters.

• Cash and term deposits totaled $30.7 million at quarter-end, with shareholders' equity at $38.6 million.

Outlook and guidance

• Management is optimistic about continued growth, with a current $800,000 quarterly run rate from a key pulp customer and expectations for further SurfLock™ orders in H2 2025.

• Targeting $100 million+ in sales by leveraging momentum in wood composites, pulp, tissue, packaging, and personal care markets.

• Ongoing industrial-scale DuraBind™ trials and expansion into new tissue and pulp accounts support growth and customer carbon footprint targets.

• Personal care segment, backed by Dow Chemical, is progressing with large brand trials and portfolio expansion.