EnWave (ENW) Q4 2025 earnings summary

Executive summary

• Q4 2025 revenue reached CAD 6.2 million, up 71% year over year, with net income from continuing operations of CAD 928,000, up 58% year over year.

• Fiscal year 2025 revenue was CAD 13.8 million, a 69% increase year over year, driven by equipment construction contracts, machine sales, and production mix.

• Adjusted EBITDA for Q4 2025 was CAD 1.4 million, up CAD 950,000 year over year; annual Adjusted EBITDA was CAD 309,000, a turnaround from a CAD 1,489,000 loss in 2024.

• Growth was fueled by repeat large-scale machine orders, new licenses, and expansion into new geographies and verticals.

Financial highlights

• Q4 2025 gross margin was 41%, up from 40% in Q4 2024; annual gross margin was 34%, up from 33% in 2024.

• Q4 adjusted EBITDA was CAD 1.4 million, up from CAD 450,000 year over year.

• Q4 base royalties were CAD 418,000 (+31% YoY); annual base royalties were CAD 1.8 million (+14% YoY).

• SG&A expenses, including R&D, were CAD 1.5 million in Q4, up 17% year over year, and CAD 5.6 million for the year, mainly due to increased sales and marketing.

• Cash and cash equivalents at quarter-end were CAD 6.4 million, with net working capital of CAD 9.7 million.

Outlook and guidance

• Management anticipates superior machine sale performance in fiscal 2026, targeting six to eight large-scale machine sales.

• Conservative estimate for fiscal 2026 base royalties is CAD 2.3 million, assuming current machine utilization.

• Expects further royalty growth as new and existing partners increase capacity utilization.

• Profitability is expected if more than four large-scale machines are sold annually and royalty run rate improves.

• Forward-looking statements caution that actual results may differ due to various risks and uncertainties.