New Horizon Aircraft (HOVR) Q3 2026 earnings summary

Executive summary

• Focused on developing the hybrid-electric Cavorite X7 VTOL aircraft for both commercial and defense markets, with assembly completion targeted for late 2026 and flight testing in early 2027.

• Strategic partnerships with RAMPF Group, North Aircraft Industries, and Mitsubishi Heavy Industries RJ Aviation Group are advancing production and certification capabilities.

• Maintains strong liquidity with $20 million in cash, expected to fund development milestones through fiscal 2027.

• Targeting both civilian and military markets, leveraging a dual-use business model and addressing military-specific requirements.

• No revenue generated to date; company remains in research, development, and flight-testing phase.

Financial highlights

• Ended the quarter with $20 million in cash, providing over 12 months of working capital runway.

• Net loss of $6.9 million for the quarter ended February 28, 2026, and $26.5 million for the nine months, driven by increased R&D and engineering costs.

• Raised $25 million year-to-date at an average price of $2.03 per share through at-the-market programs, grants, and warrant exercises.

• Operating expenditures for Q3 were $7.6 million, up from $3.6 million year-over-year, with year-to-date operating costs nearly doubling to $19 million.

• Shareholders’ equity increased to $14.1 million from $2.6 million at May 31, 2025.

Outlook and guidance

• Full-scale prototype assembly expected to complete in 2026, with flight testing to begin in early 2027.

• Cash from operations expected to remain consistent or modestly increase through completion of the full-scale demonstrator.

• Management expects current cash to fund operations for at least the next 12 months, but additional financing will be required to achieve long-term objectives.

• Targeting aircraft rollout and commercial operations prior to 2030.

• Successful application to the Canadian INSAT fund will provide partial reimbursement for R&D over the next 1-2 years.