EcoSynthetix (ECO) Q2 2026 earnings summary

Executive summary

• Q2 2026 sales were $4.5 million, down 9% year-over-year due to lower volumes in key end markets and challenging macroeconomic conditions.

• Adjusted EBITDA loss was $0.2 million, a decline from a $0.2 million gain in Q2 2025.

• Net loss for Q2 2026 was $0.4 million ($0.01 per share), versus net income of $0.1 million in Q2 2025.

• Technical performance remains strong, with a growing pipeline, high trial success rates, and expanded commercial trials with top-tier global producers.

• Maintained a strong balance sheet with $29.1 million in cash and term deposits as of June 30, 2026.

Financial highlights

• Net sales for Q2 2026 were $4.5 million, down from $5.0 million in Q2 2025; YTD 2026 net sales were $8.3 million, down from $9.0 million YTD 2025.

• Gross profit margin for Q2 2026 was 28.6%, up from 28.4% in Q2 2025; adjusted gross margin (excluding manufacturing depreciation) reached 34.0%.

• SG&A expenses for Q2 2026 were $1.7 million, up from $1.2 million in Q2 2025, mainly due to FX losses, higher salaries, and maintenance.

• R&D expenses for Q2 2026 were $0.3 million, down from $0.4 million in Q2 2025, reflecting tax credits; R&D was 7% of sales.

• Cash and term deposits at quarter-end: $29.1 million.

Outlook and guidance

• Management expects market dynamics to normalize, with strong interest and a robust prospect pipeline positioning for future growth.

• Commercial relationships and trial pipeline are expected to support a return to meaningful growth as adoption accelerates.

• No specific timeline for pulp price spread normalization; historical cycles suggest 6–12 months.

• Dow, a key partner in personal care, anticipates continued growth in 2026 following normalized order patterns.