EnWave (ENW) investor relations material

Executive summary

• Q3 2025 revenue reached $2.75M, up 5% year-over-year, driven by machine sales, new fabrication contracts, and initial manufacturing of two 60kW machines for Microdried.

• Royalty revenues increased to $431,000 in Q3 2025, reflecting more partners and higher machine utilization, partially offset by a license termination.

• Net loss from continuing operations widened to $1,162,000 in Q3 2025, compared to $235,000 in Q3 2024.

• Robust sales pipeline, with about half of future orders expected from existing royalty partners due to capacity expansion needs.

• Recent license amendments and new product rights granted to key partners, supporting expansion into new product categories and geographies.

Financial highlights

• Q3 revenue was $2.75M, a 5% increase year-over-year; royalties remained flat due to a license termination offset by growth from other partners.

• Gross margin for Q3 2025 was 19%, down from 44% in Q3 2024, mainly due to sales mix, bulk discounts, and absence of a high-margin machine resale.

• Adjusted EBITDA loss for Q3 2025 was $575K, down from a positive $85K in the prior year, reflecting lower margins and absence of small-scale machine sales.

• For the nine months ended June 30, 2025, revenue rose 67% to $7.61M, with gross margin up 71% to $2.08M.

• Cash and cash equivalents stood at $4.6M, with net working capital surplus of $7M as of June 30.

Outlook and guidance

• Expecting Q4 revenue improvement if large-scale machine sales close; continued royalty growth projected into fiscal 2026.

• Management expects continued growth in production capacity and market expansion, supported by new equipment sales and licensing agreements.

• Sales pipeline robust, targeting superior machine sales in fiscal 2026, with at least half of new orders anticipated from existing partners.

• Anticipates acceleration in REV machine sales, driven by repeat orders from partners exceeding current capacity.