NanoXplore (GRA) Q1 2027 earnings summary

Executive summary

• Q1 FY2027 revenue rose 36% YoY to CAD 31.8M; adjusted gross margin expanded 440 bps to 21.7%, and adjusted EBITDA was CAD 714,160.

• Commercial graphene masterbatch supply to an insulating-foam customer began in October; CAD 35M of new-solutions opportunities is expected to launch over the next 18 months.

Financial highlights

• Total revenue was CAD 31,813,813 versus CAD 23,442,651 YoY; customer revenue rose 36% to CAD 31,160,777, mainly on higher volume, partly offset by lower tooling revenue.

• Adjusted EBITDA was CAD 714,160 versus an adjusted loss of CAD 1,390,101; net loss narrowed to CAD 3,535,293 from CAD 3,776,330.

• Adjusted gross margin dollars were CAD 6,763,413 versus CAD 3,965,370; higher volume, productivity, efficiency and cost controls supported improvement.

• Net cash use was CAD 1.5M; operating cash flow was CAD 1.5M, financing outflow CAD 2.7M and investing outflow CAD 318K, net of an CAD 800K tariff refund.

Outlook and guidance

• FY2027 revenue guidance was reiterated at CAD 130M–CAD 140M; Q2 revenue is expected at CAD 31M–CAD 32M, with sales expected to rise in H2.

• FY2027 free cash flow is expected to be positive for the first time; planned CapEx is CAD 3M–CAD 4M, including CAD 500K–CAD 1M per quarter for the remainder of the year.

• Insulating-foam masterbatch volumes are expected to exceed 500 tonnes in FY2027 and approach 1,000 tonnes in the first full production year; insulating-foam and other initiatives may contribute CAD 2M–CAD 5M before FY-end.

• Q2 gross margin is expected to be ~100+ bps above Q1, with further gains in Q3–Q4 as graphene-enhanced product mix rises.