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EcoSynthetix (ECO) investor relations material

EcoSynthetix Q3 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q3 2025 earnings summary7 Nov, 2025

Executive summary

  • Net sales increased 11% year-over-year to $5.8 million in Q3 2025, driven by strong demand and new commercial wins in pulp, tissue, wood composites, and personal care end markets.

  • Strategic diversification away from legacy graphic paper has led to higher quality revenue and improved business composition.

  • Positive adjusted EBITDA in 4 of the last 5 quarters, with Q3 2025 at $0.2 million.

  • Key accounts and partnerships, including with Dow and RNM Group, are accelerating adoption and market penetration.

  • Major global pulp manufacturer tripled SurfLock™ production run-rate, with new wins in tissue and expanded use in personal care.

Financial highlights

  • Q3 2025 net sales were $5.8 million, up $600,000 (11%) from Q3 2024, primarily due to higher volumes.

  • Gross profit for Q3 2025 was $1.7 million, with gross margin at 29.9%–34.2%, down from prior year due to higher manufacturing costs.

  • Adjusted EBITDA was $0.2 million in Q3 2025, down from $0.4 million in Q3 2024, but positive for four of the last five quarters.

  • SG&A expenses rose to $1.8 million from $1.5 million year-over-year, mainly due to higher salaries and maintenance.

  • Cash and term deposits totaled $30.4 million as of September 30, 2025, supporting a strong balance sheet.

Outlook and guidance

  • Management expects continued demand growth in core end markets, with a focus on sustainable, profitable long-term growth.

  • Significant opportunities identified in pulp and wood composites, each with potential to exceed $50 million in annual revenue per key account.

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

  • Anticipates ramp-up in volumes and broader market adoption as leading customers drive industry change.

  • Forward-looking statements highlight risks and uncertainties, including capital allocation and new product development.

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Frequently asked questions

EcoSynthetix Inc. is a renewable chemicals company that develops and commercializes bio-based technologies. Its primary focus is on the production of bio-based materials that serve as alternatives to petroleum-based products used in adhesives, binders, and coatings. The company's products are primarily used in industries such as paper and packaging, wood composites, and personal care. By utilizing renewable raw materials, EcoSynthetix aims to offer sustainable solutions that reduce environmental impact while maintaining performance standards. The company is headquartered in Burlington, Canada, and its shares are listed on the TSX.

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