Nocopi Technologies (NNUP) Q2 2026 earnings summary

Executive summary

• Revenue for Q2 2026 rose 167% year-over-year to $961,000, driven by the Polymeric acquisition and increased ink shipments, partially offset by a decline in licenses, royalties, and fees due to non-renewals of major licenses.

• Net loss widened to $472,000 for Q2 2026 from $59,000 in Q2 2025, reflecting higher operating expenses, lower gross margin percentage, and one-time legal and consulting fees related to the acquisition.

• Gross profit for Q2 2026 was $357,000 (37% margin), down from 53% margin in Q2 2025 due to a shift in revenue mix toward lower-margin product sales.

• The acquisition of Polymeric U.S., Inc. in May 2026 expanded product offerings and contributed $620,000 in revenue and $85,000 in net income post-acquisition.

• Cash and cash equivalents stood at $10.69 million as of June 30, 2026, with no debt, supporting operational growth and future acquisitions.

Financial highlights

• Total revenues for the six months ended June 30, 2026 were $1,351,000, up 61% year-over-year.

• Product and other sales surged to $0.9 million from $0.22 million year-over-year, while license, royalties, and fees declined.

• Operating expenses for Q2 2026 increased to $925,000 from $364,000 in Q2 2025, mainly due to higher R&D, sales and marketing, professional fees, and G&A costs, much of which related to the Polymeric acquisition.

• Net cash from operating activities for the first half of 2026 was $297,000, down from $460,000 in the prior year period.

• Working capital was $12.7 million and total stockholders’ equity reached $14.4 million as of June 30, 2026.

Outlook and guidance

• Management expects existing cash resources to fund operations for at least the next twelve months.

• The company plans to focus on expanding relationships in the entertainment and toy products market and pursue additional strategic acquisitions, targeting niche, high-margin specialty materials businesses.

• Revenue growth is anticipated from expanded product offerings and new customer relationships post-Polymeric acquisition.

• Management is focused on organic growth, cost efficiency, and disciplined capital investment to drive free cash flow over the next 12–24 months.