Evolution Metals & Technologies (EMAT) Q1 2026 earnings summary

Executive summary

• Completed a business combination and acquisition of four Korean companies, establishing a platform for rare earth magnets and critical materials supply chain integration, and transitioned to a public company trading on Nasdaq.

• Generated $1.9 million in revenue for Q1 2026, driven by the newly acquired Korean operations.

• Reported a net loss of $440.3 million for Q1 2026, primarily due to non-cash losses from fair value changes in financial instruments and increased operating expenses.

• Secured binding purchase orders for 13 ULVAC sintered rare earth magnet production machines, expected to scale annual capacity to 10,000 metric tons by November 2026.

• Raised $20 million post-quarter via convertible debentures, with up to $100 million available for future tranches.

Financial highlights

• Revenue: $1.9 million for Q1 2026, compared to $0 in Q1 2025.

• Gross profit: $0.4 million for Q1 2026, with a gross margin of approximately 24%.

• Operating loss: $15.7 million for Q1 2026, up from $2.8 million in Q1 2025.

• Net loss: $440.3 million for Q1 2026, or $(0.72) per share, compared to $18.0 million, or $(0.04) per share, in Q1 2025.

• Cash and cash equivalents: $5.4 million as of March 31, 2026.

• Net working capital deficit: $81.8 million as of March 31, 2026.

• Adjusted net loss (excluding non-cash fair value changes): $15.1 million, or $(0.02) per share, versus $2.5 million, or $(0.01) per share, year-over-year.

Outlook and guidance

• Management expects continued capital needs to support integration, expansion, and working capital.

• Plans to accelerate execution and scale rare earth magnet production to 10,000 metric tons by November 2026, ahead of U.S. defense sourcing restrictions effective January 2027.

• U.S. industrial campus expansion aims for 55,000 metric tons annual capacity, including 47,000 metric tons of high-performance sintered magnets.

• Proceeds from convertible debentures will be used for general corporate purposes and expansion.

• Ongoing pursuit of additional equity and strategic financing arrangements.