EnWave Reports 2026 Second Quarter Consolidated Interim Financial Results
VANCOUVER, British Columbia, May 22, 2026 (GLOBE NEWSWIRE) -- EnWave Corporation (TSX-V:ENW | FSE: E4U) (“EnWave”, or the "Company") today reported the Company’s consolidated interim financial results for the second quarter ended March 31, 2026.
All values in thousands and denoted in CAD unless otherwise stated.
- Reported revenue for Q2 2026 of $1,159, representing a decrease of $2,530 relative to the comparable period in the prior year. The decrease was primarily related to fewer machine sales and machines in fabrication due to the inherent volatility in large-scale Radiant Energy Vacuum (“REV”) machine orders.
- Reported royalties, excluding exclusivity payments (“Base Royalties”), for Q2 2026 of $434, a decrease of $40, or 8% relative to the comparable period in the prior year. Reported total royalty revenue for Q2 2026 of $465, a decrease of $9 or 2% relative to total royalty revenue in the comparable period in the prior year. Royalties decreased due to lower product sales and partner production for the quarter. The Company expects royalty revenue growth in future periods as a few partners have communicated inventory builds in anticipation of increased commercial sales activity and expanded product distribution in upcoming quarters.
- Gross margin for the three months ended Q2 2026 was 35% compared to 33% for the three months ended Q2 2025. The increase in margin was primarily attributable to lower fabrication costs from large-scale machines on contract, as compared to the prior quarter.
- Reported an increase in Selling, General & Administrative (“SG&A”) costs (including Research & Development (“R&D”)) of $78 for Q2 2026 relative to the comparable period in the prior year, with the increase primarily related to more sales personnel, the timing of patent maintenance fees and professional fees.
- Reported an Adjusted EBITDA(1) loss of $775 for Q2 2026, a decrease of $887 from the comparable period in the prior year.
Consolidated Financial Performance:
| ($ ‘000s) | Three months ended March31, | Six months endedMarch 31, | |||||||||||||||
| 2026 | 2025 | Change % | 2026 | 2025 | Change % | ||||||||||||
| Revenues | 1,159 | 3,689 | (69 | %) | 2,759 | 4,866 | (43 | %) | |||||||||
| Direct costs | (751 | ) | (2,480 | ) | (70 | %) | (1,757 | ) | (3,317 | ) | (47 | %) | |||||
| Gross margin | 408 | 1,209 | (66 | %) | 1,002 | 1,549 | (35 | %) | |||||||||
| Operating expenses | |||||||||||||||||
| General and administration | 529 | 585 | (10 | %) | 1,045 | 1,009 | 4 | % | |||||||||
| Sales and marketing | 460 | 436 | 6 | % | 1,013 | 922 | 10 | % | |||||||||
| Research and development | 488 | 378 | 29 | % | 887 | 736 | 21 | % | |||||||||
| 1,477 | 1,399 | 6 | % | 2,945 | 2,667 | 10 | % | ||||||||||
| Net loss - continuing operations | (1,149 | ) | (362 | ) | 217 | % | (2,257 | ) | (1,300 | ) | 74 | % | |||||
| Net income (loss) - discontinued operations | - | 1,126 | (100 | %) | (6 | ) | 1,118 | (101 | %) | ||||||||
| Adjusted EBITDA(1)(loss) income | (775 | ) | 112 | (792 | %) | (1,360 | ) | (523 | ) | (160 | %) | ||||||
| Loss per share: | |||||||||||||||||
| Continuing operations – basic and diluted | $ | (0.01 | ) | $ | 0.00 | $ | (0.02 | ) | $ | (0.01 | ) | ||||||
| Discontinued operations – basic and diluted | $ | 0.00 | $ | 0.01 | $ | 0.00 | $ | 0.01 | |||||||||
| Basic and diluted | $ | (0.01 | ) | $ | 0.01 | $ | (0.02 | ) | $ | 0.00 | |||||||
| Note: | |
| (1) | Adjusted EBITDA is a non-IFRS financial measure. Refer to the Non-IFRS Financial Measures disclosure below for a reconciliation to the nearest IFRS equivalent. |
EnWave’s consolidated interim financial statements and MD&A are available on SEDAR+ at www.sedarplus.ca and on the Company’s website www.enwave.net
Key Financial Highlights for the Six Months Ended March 31, 2026 (expressed in 000’s)
- Reported revenue of $2,759, a decrease of $2,107 relative to the comparable period in the prior year. The decrease was primarily related to fewer machine sales.
- Reported Base Royalties of $934, an increase of $35 or 4% relative to the comparative period in the prior year. Reported total royalty revenues of $1,092, an increase of $59 or 5% relative to the comparative period in the prior year. Royalties grew due to increased royalty partners, product sales, partner production, and exclusivity payments.
- Reported an increase in SG&A costs of $278 for the six months ending March 31, 2026, relative to the comparable period in the prior year, with the increase primarily related to more sales personnel, patent maintenance fees, and recruitment fees. In the comparative period, legal costs associated with the Term Loan and Credit Facility were capitalized as part of the transaction.
- Reported an Adjusted EBITDA(1) loss of $1,360 for the six months ended March 31, 2026, a decrease of $837 from the comparable period in the prior year.
Significant Corporate Accomplishments in Q2 2026 and Subsequently:
- Signed a Technology Evaluation and License Option Agreement with one of the world’s largest multinational food companies.
- Signed a Commercial Licence Agreement (“CLA”) and Equipment Purchase Agreement (“EPA”) for a 10kW REVTM machine with The Dry Hub (“DryHub”), an Egyptian food processing Company.
- Signed a Research and Development License Agreement (“RDLA”) with Rhizome Food and Farming LLC (“Rhizome”), a North American food Company led by renowned chef Dan Barber. Rhizome acquired a 3.6kW REVTM machine for commercial and product development.
- Signed a RDLA and EPA for a 10kW REVTM machine with Teagasc, the Agriculture and Food Development Authority of Ireland.
- Signed a CLA with Gowen Gumlu Grower’s Association (“BGGA”) in North Queensland, Australia. BGGA acquired a 10kW REV™ machine from EnWave’s Australian third-party machine re-seller, Scitek.
Non-IFRS Financial Measures:
This news release refers to Adjusted EBITDA which is a non-IFRS financial measure. We define Adjusted EBITDA as earnings before deducting amortization and depreciation, stock-based compensation, foreign exchange gain or loss, finance expense or income, income tax expense or recovery, non-recurring income and expenses, restructuring and severance charges, and discontinued operations. This measure is not necessarily comparable to similarly titled measures used by other companies and should not be construed as an alternative to net income or cash flow from operating activities as determined in accordance with IFRS. Please refer to the reconciliation between Adjusted EBITDA and the most comparable IFRS financial measure reported in the Company’s consolidated interim financial statements.
| Three months ended March 31, | Six months ended March 31 | |||||||||
| ($ ‘000s) | 2026 | 2025 | 2026 | 2025 | ||||||
| Net (loss) income after income tax | (1,149 | ) | 764 | (2,263 | ) | (182 | ) | |||
| Amortization and depreciation | 294 | 302 | 583 | 595 | ||||||
| Stock-based compensation | 115 | 128 | 170 | 271 | ||||||
| Foreign exchange (gain) loss | (91 | ) | 6 | 13 | (141 | ) | ||||
| Finance income | (14 | ) | (30 | ) | (34 | ) | (77 | ) | ||
| Finance expense | 96 | 68 | 191 | 140 | ||||||
| Non-recurring (income) expense | (26 | ) | - | (26 | ) | (11 | ) | |||
| Discontinued operations | - | (1,126 | ) | 6 | (1,118 | ) | ||||
| Adjusted EBITDA | (775 | ) | 112 | (1,360 | ) | (523 | ) | |||
Non-IFRS financial measures should be considered together with other data prepared in accordance with IFRS to enable investors to evaluate the Company’s operating results, underlying performance and prospects in a manner similar to EnWave’s management. Accordingly, these non-IFRS financial measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. For more information, please refer to the Non-IFRS Financial Measures section in the Company’s MD&A available on SEDAR+ www.sedarplus.ca.
About EnWave
EnWave is a global leader in the innovation and application of vacuum microwave dehydration. From its headquarters in Delta, BC, EnWave has developed a robust intellectual property portfolio, perfected its Radiant Energy Vacuum (REV™) technology, and transformed an innovative idea into a proven, consistent, and scalable drying solution for the food, pharmaceutical and cannabis industries that vastly outperforms traditional drying methods in efficiency, capacity, product quality, and cost.
With more than fifty partners spanning twenty-four countries and five continents, EnWave’s licensed partners are creating profitable, never-before-seen snacks and ingredients, improving the quality and consistency of their existing offerings, running leaner and getting to market faster with the company’s patented technology, licensed machinery, and expert guidance.
EnWave’s strategy is to sign royalty-bearing commercial licenses with food producers who want to dry better, faster and more economical than freeze drying, rack drying and air drying, and enjoy the following benefits of producing exciting new products, reaching optimal moisture levels up to seven times faster, and improve product taste, texture, color and nutritional value.
Learn more at EnWave.net.
EnWave Corporation
Mr. Brent Charleton, CFA
President and CEO
For further information:
Brent Charleton, CFA, President and CEO at +1 (778) 378-9616
E-mail: [email protected]
Dylan Murray, CPA, CA, CFO at +1 (778) 870-0729
E-mail: [email protected]
Safe Harbour for Forward-Looking Information Statements: This press release may contain forward-looking information based on management's expectations, estimates and projections. All statements that address expectations or projections about the future, including statements about the Company's strategy for growth, product development, market position, expected expenditures, and the expected synergies following the closing are forward-looking statements. All third-party claims referred to in this release are not guaranteed to be accurate. All third-party references to market information in this release are not guaranteed to be accurate as the Company did not conduct the original primary research. These statements are not a guarantee of future performance and involve a number of risks, uncertainties and assumptions. Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.
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