EnWave (ENW) Q2 2026 earnings summary

Executive summary

• Q2 2026 financial performance was below expectations, with revenue at $1,159K, down 69% year-over-year due to fewer machine sales and fabrication volatility, but fundamentals and long-term strategy remain strong.

• No material machine sale transactions announced year-to-date, but two large-scale REV machines are ready for quick deployment and the sales pipeline remains active.

• Four 10 KW units sold and four new commercial licenses signed year-to-date, including a technology evaluation and license option agreement with a leading global consumer packaged food company.

• Toll manufacturing business (REVworx) experienced a lull as larger customers transitioned to royalty partners, freeing capacity for new projects.

• Encouraging momentum from royalty partners like BranchOut Food and Milne MicroDried, with BranchOut achieving record production and expanding retail presence.

Financial highlights

• Q2 2026 revenue was CAD 1.2 million ($1,159K), down 69% from CAD 3.7 million in Q2 2025, mainly due to fewer machine sales.

• Base royalty revenue was CAD 434,000, down 8% year-over-year; total royalty revenue (including exclusivity payments) was CAD 465,000, down 2%.

• Gross margin improved to 35% from 33% in the prior year, attributed to lower fabrication costs.

• SG&A expenses (including R&D) rose 6% to CAD 1.5 million, mainly due to increased sales personnel and professional fees.

• Adjusted EBITDA loss was CAD 775,000 ($775K), compared to a positive CAD 112,000 in Q2 2025, reflecting lower machine sales.

Outlook and guidance

• Royalty revenue is expected to grow in future periods as partners build inventory for expanded sales and distribution.

• Management remains focused on expanding royalty revenue, improving commercial conversion of large-scale opportunities, maintaining cost discipline, and driving innovation.

• Several large-scale machine prospects remain in the pipeline, with some deals delayed but still active.