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 was CAD 112,000 (USD 112,000), compared to a loss of CAD 1.3 million (USD 1,268,000) in Q2 2024.

• Net income included CAD 764,000 from a one-time U.S. employee retention tax credit and $1,126,000 from discontinued operations, mainly due to a $836,000 USD tax refund.

• Gross margin improved to 33%, a substantial turnaround from negative 25% in the prior year.

• Royalty revenues for Q2 2025 were CAD 474,000 (USD 474,000), up 14% year-over-year, reflecting more royalty partners and increased product sales.

Financial highlights

• Six-month revenue was $4,866,000, up 153% year-over-year, mainly from additional machine sales.

• Royalty revenues for six months were $1,033,000, up 16% year-over-year, due to more partners and exclusivity payments.

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

• Basic and diluted EPS for Q2 2025 was $0.01, compared to $(0.01) in Q2 2024.

• Net loss from continuing operations for Q2 2025 was $362,000, a 77% improvement year-over-year.

Outlook and guidance

• Royalties are expected to continue growing as capacity utilization and machine sales increase.

• The company aims to sell and deliver at least four large-scale REV machines annually to achieve break-even, with additional sales driving profitability.

• Ongoing efforts to expand the sales pipeline include hiring a new European business development manager and attending major industry trade shows.

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