Q1 2026 Results:
Revenue Growth: Revenue increased to $120,484, compared to $3,147 in Q1 2025, reflecting continued adoption of NEXE's next-generation compostable coffee pod launched in late 2024.
Positive Gross Margin: NEXE reported its first-ever positive gross profit of $16,453 with a 13.7% gross margin, which we believe represents an early step toward scalable profitability.
Cost Control: Selling, general, and administrative expenses decreased 3% year-over-year to $735,484, driven by disciplined management of professional fees and salaries.
Strong Liquidity: NEXE maintained a solid balance sheet with $11.45 million in cash and GIC investments, and minimal debt.
Food Safety Certification: Successfully passed a third-party Food Safety Small Supplier Audit—a requirement for one of North America's largest retailers—achieving an overall 99% pass rate.
"This quarter marks an important step forward for NEXE," said Ash Guglani, President of NEXE. "We achieved positive gross margins, expanded our partnerships, and demonstrated compliance with leading food safety standards. With a strong balance sheet and what we believe is growing market interest, we are well positioned to continue building momentum toward our long-term growth goals."
In Q1 2026, NEXE's revenues increased to $120,484, up from $3,147 in Q1 2025, as production ramps up for the next-generation BPI-certified compostable coffee pod. We expect revenues to continue to improve, as the Q1 period, particularly June, is a seasonally weak time for the coffee industry. Since the end of Q1, NEXE has received purchase orders that exceed Q1 2026, and customers have begun placing repeat orders. NEXE also announced a new partnership with a West Coast–based roaster—a respected British Columbia company recognized for its sustainability leadership and commitment to the circular economy—with an initial purchase order of 100,000 compostable pods.
In Q1 2026, NEXE allocated resources to work with one of our customers to conduct a food ...
