EnWave (ENW) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue reached CAD 3.7 million (USD 3,689,000), up 456% year-over-year, driven by large-scale machine sales and commissioning of two small-scale machines.

• Adjusted EBITDA for Q2 2025 was CAD 112,000 (USD 112,000), a significant improvement from a loss of CAD 1.3 million in Q2 2024.

• Net income was CAD 764,000, primarily due to a U.S. employee retention tax credit payment; net income from discontinued operations was USD 1,126,000, mainly from a USD 836,000 tax refund.

• Gross margin improved to 33% in Q2 2025 from negative 25% in Q2 2024, attributed to higher machine sales, royalties, and tolling revenue.

• Key growth drivers included large-scale machine sales, increased royalties, expanded commercial partnerships, and new international agreements.

Financial highlights

• Revenue for Q2 2025 was CAD 3.7 million (USD 3,689,000), up 456% year-over-year from CAD 0.7 million.

• Adjusted EBITDA improved to CAD 112,000 from a loss of CAD 1.3 million in Q2 2024.

• Net income reached CAD 764,000, aided by a one-time U.S. tax credit; net loss from continuing operations was USD 362,000, a 77% improvement year-over-year.

• Third-party royalty revenue grew 14% year-over-year to CAD 474,000 (USD 474,000).

• Cash and cash equivalents stood at CAD 3.8 million, with net working capital of CAD 7.9 million as of March 31.

Outlook and guidance

• Expectation to meet or exceed the annual target of four large-scale REV machine sales, with two already confirmed.

• Royalties anticipated to continue growing due to higher capacity utilization and additional machine sales.

• Additional contracts for REVworx are expected in the coming months.

• Ongoing expansion in Europe with a new business development manager to drive international growth.

• Management highlights ongoing growth strategy, international expansion, and focus on commercializing new products and technologies.