Management Commentary:
"The third quarter of 2025 demonstrated continued progress toward commercialization of our optical engine and light source products. The placement of two successive initial production orders from two key customers valued at over $5.6 million is the beginning of a revenue ramp which we expect to increase steadily throughout 2026," said Dr. Suresh Venkatesan, Chairman & CEO of POET Technologies.
"The introduction of our 1.6T optical receiver, developed in collaboration with Semtech, enhances POET's product leadership into the highest-performance segments of the AI interconnect market. We are also evolving our light-source product in partnership with Sivers Semiconductors, and expanding into the mobile AI telecom space with NTT Innovative Devices. These engagements form a foundation for accelerated customer adoption and revenue growth in high-volume AI networking solutions."
"Having developed one of the most flexible, high-performance assembly platforms available in the photonics space today, we are now focused on adding to our Optical Interposer advanced components to produce highly differentiated engines and modules for both high-speed interconnect and light-based chip-to-chip data communication. To support this strategy, we recently closed US$250 million in equity financing from three institutional investors, enabling both internal expansion of development and manufacturing capabilities and inorganic growth through acquisitions."
Notable Business Highlights:
Introduced 1.6T optical receivers with Semtech supporting next generation AI clusters and data-center interconnects.
Advanced POET Starlight light-source strategy through new partnerships with Sivers Semiconductors.
Entry into the front-haul mobile networking space in collaboration with NTT Innovative Devices.
Secured a US$5,000,000 initial order for 800G transmit and receive engines, confirming readiness for volume production.
Successfully completed three rounds of equity financing with three institutional investors at prices ranging from $5.00 to $7.25 per share for gross proceeds of $250,000,000.
Non-IFRS Financial SummaryThe Company reported non-recurring engineering ("NRE") and product revenue of $298,434 in the third quarter of 2025 compared to $3,685 for the same period in 2024 and $268,469 in the second quarter of 2025. Historically the Company provided NRE services to multiple customers for unique projects that are being addressed utilizing the capabilities of the POET Optical Interposer™. The Company only had small product revenue in Q3 2025.
The Company reported a net loss of $9.4 million, or $0.11 per share, in the third quarter of 2025 compared with a net loss of $12.7 million, or $0.20 per share, for the same period in 2024 and a net income of $17.3 million, or 0.21 per share, in the second quarter of 2025. The net loss in the third quarter of 2025 included research and development costs of $3.7 million compared to $1.8 million for the same period in 2024 and $3.1 million in the second quarter of 2025. Fluctuations in R&D for a Company of this size and this stage of growth is expected on a period-over-period basis as the Company transitions from technology development to product development.
The Company reported non-cash loss in the fair value adjustment to derivative warrant liability of $2.4 million in the third quarter of 2025, compared to a loss of $6.2 million in the same period in 2024 and a loss of $7.5 million in the second quarter of 2025. This non-cash item relates to warrants issued in a foreign currency and is periodically remeasured.
Other non-cash expenses in the third quarter of 2025 included stock-based compensation of $1.9 million and depreciation and amortization of $0.9 million. Non-cash stock-based compensation and depreciation and amortization in the same period of 2024 were $1.5 million and $0.5 million, respectively. First quarter 2025 stock-based compensation and depreciation and amortization were $1.2 million and $0.8 million, respectively. The Company had non-cash finance costs of $31,000 in the third quarter of 2025 compared to non-cash finance costs of $30,000 in the third quarter of 2024 and non-cash costs of $31,000 in the second quarter of 2025.
The Company recognized other income, including interest of $1.0 million in the third quarter of 2025, compared to $0.2 million in the same period in 2024 and $0.5 million in the second quarter of 2025.
Cash flow from operating activities in the third quarter of 2025 was ($2.8) million compared to ($5.5) million in the third quarter of 2024 and ($7.7) million in the second quarter of 2025.
Summary of Financial PerformanceThe following is a summary of the Company's operations over the five quarters ending September 30, 2025. This information should be read in conjunction with the Company's financial statements filed on Sedar + on November 13, 2025.
POET TECHNOLOGIES INC.PROFORMA, NON-IFRS AND IFRS PRESENTATION OF OPERATIONS(All figures are in U.S. Dollars)
For the Quarter ended:
30-Sep-25
30-Jun-25
31-Mar-25
31-Dec-24
30-Sep-24
Revenue
298,434
268,469
166,760
29,032
3,685
Research and development
(3,735,703
)
(3,150,044
)
(4,360,192
