All amounts in this press release are in Canadian dollars, unless otherwise stated.
Key Financial Highlights Q1-2026
Total revenues of $23,442,651 compared to $33,665,414 last year, representing a 30% decrease;
Adjusted gross margin(1) on revenues from customers of 17.3% compared to 20.9% last year;
Loss of $3,776,330 compared to $2,719,012 last year;
Adjusted EBITDA(2) loss of $1,390,101 compared to an adjusted EBITDA(2) of $1,124,299 last year;
Adjusted EBITDA(2) loss of $1,318,758 compared to an adjusted EBITDA(2) of $1,512,104 last year for the Advanced Materials, Plastics and Composite Products segment;
Adjusted EBITDA(2) loss of $71,343 compared to $387,805 last year for the Battery Cells and Materials segment;
Total liquidity of $20,091,924 as at September 30, 2025, including cash and cash equivalents of $10,091,924;
Total long-term debt of $6,967,018 as at September 30, 2025, higher by $2,654,094 compared to June 30, 2025.
Overview
Pedro Azevedo, Chief Financial Officer, stated: "After a strong Q1 last year, the reduction in volume demand from our two largest customers that began this year accelerated during the summer and significantly impacted our Q1 performance. Current volumes are at historical low levels; recovery is expected sometime during the second half of our fiscal year. However, new contracts announced with Chevron Phillips Chemical as well as with Club Car will begin generating revenues in Q2 partially offsetting this impact."
Soroush Nazarpour, President & Chief Executive Officer, stated: "As previously announced, the CEO role will transition to Rocco Marinaccio, our current COO. This strategic transition is nearly complete and is being done with NanoXplore's long-term growth and success firmly in mind. Over the past 15 years, I've had the privilege of founding and leading NanoXplore from a bold idea to the thriving company we are today. A pivotal moment in our recent success came in September, when we announced our largest-ever graphene powder sales agreement with Chevron Phillips Chemical, a contract that's progressing very well. After consultation with our board, I've decided that it was the right time for me to step aside from my day-to-day role as CEO and transition to Vice Chair of the Board. I'll focus my energies on long-term strategic growth plan and closely work with current management to achieve our long-term objectives of organic growth and financial performance with a clear objective of creating shareholder value."
Rocco Marinaccio, Chief Operating Officer & incoming Chief Executive Officer, stated: "This quarter marked several key milestones that position us for sustainable long-term growth, and profitability. We entered into a multi-year supply agreement with Chevron Phillips Chemical for TribografTM, a proprietary carbon product specially developed by NanoXplore for the global lubricant market and have already commenced deliveries under this contract. We also successfully commissioned our new Statesville, North Carolina facility, and welcomed Club Car as a new customer. We believe securing these two customers represents a significant milestone as we enter the scaling phase of graphene volume sales. In parallel, we continue to advance discussions with prospective customers, including opportunities in insulation foam applications. We are encouraged by the growing momentum across these initiatives and the growth potential they represent in new and expanding markets. While we expect fiscal 2026 to be weighted toward the back half of the year, we anticipate our growth initiatives will begin contributing as early as the second quarter. As the incoming CEO, my focus will be on driving disciplined growth and flawless execution, with an unwavering commitment to creating long-term value for our shareholders."
* Non-IFRS Measures
The Corporation prepares its financial statements under IFRS. However, the Corporation considers certain non-IFRS financial measures as useful additional information in measuring the financial performance and condition of the Corporation. These measures, which the Corporation believes are widely used by investors, securities analysts and other interested parties in evaluating the Corporation's performance, do not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similarly titled measures presented by other publicly traded companies, nor should they be construed as an alternative to financial measures determined in accordance with IFRS. Non-IFRS measures include "Adjusted EBITDA" and "Adjusted gross margin".
The following tables provide a reconciliation of IFRS "Loss" to Non-IFRS "Adjusted EBITDA" and of IFRS "Gross margin" to Non-IFRS "Adjusted Gross margin" for the three-month periods ended September 30, 2025 and 2024.
IFRS "Loss" to Non-IFRS "Adjusted EBITDA"
Q1-2026
Q1-2025
$
$
Loss
(3,776,330
)
(2,719,012
)
Current and deferred income tax expenses (recovery)
(916,496
)
474,614
Net interest expenses (revenues)
336,811
38,842
Foreign exchange
(233,948
)
30,082
Share-based compensation expenses
204,546
517,536
Non-operational items (1)
40,000
40,000
Depreciation and amortization
2,955,316
2,742,237
Adjusted EBITDA
