EcoSynthetix (ECO) Q3 2026 earnings summary

Executive summary

• Q3 sales fell 38% YoY to $3.6M as lower volumes at two strategic accounts in wood composites and pulp, alongside difficult market conditions, weighed on results.

• Adjusted EBITDA remained positive at $39,400, versus $0.2M in Q3 2025.

• Trial and development activity remained strong, but adoption was slower than anticipated; increasing usage with existing and new customers is a priority.

• Growth priorities include product innovation and commercialization, expanding SurfLock distribution, and developing lower-cost DuraBind formulations.

Financial highlights

• Q3 net sales were $3.6M versus $5.8M in Q3 2025; YTD sales were $12.0M versus $14.9M, down 20%.

• Q3 gross profit was $1.1M versus $1.7M; YTD gross profit was $3.3M versus $4.0M, primarily reflecting lower sales volumes.

• SG&A was $1.4M versus $1.8M YoY; R&D was $270,000 versus $390,000, with higher refundable tax credits contributing to the decline.

• Q3 net loss was $0.3M versus $0.1M; YTD net loss was $1.3M versus $0.6M.

• Adjusted EBITDA was $39,400 in Q3 versus $0.2M; YTD adjusted EBITDA was a loss of $0.5M versus a loss of $0.1M.

Outlook and guidance

• A significant sales-volume gap remains; management expects challenging near-term market conditions, with recovery timing uncertain.

• Next-generation DuraBind showed improved cost and sustainability in lab trials; the retailer plans its own trial in the coming quarter.

• North American SurfLock opportunities, particularly in tissue, may become commercial in 2027; packaging takes longer and pulp remains less predictable.

• Dow plans to launch another MaizeCare product in spring 2027; the product pipeline and sales show steady, modest growth.