NanoXplore Reports Results for its Q1-2026

Core Insights - NanoXplore Inc. reported a significant decrease in total revenues for Q1-2026, amounting to $23,442,651, which is a 30% decline compared to $33,665,414 in Q1-2025 [4][12] - The company is experiencing historical low volume demand from its two largest customers, with recovery expected in the second half of the fiscal year [3][4] - New contracts with Chevron Phillips Chemical and Club Car are anticipated to generate revenue starting in Q2-2026, partially offsetting the current decline [3] Financial Performance - Total revenues decreased by $10,222,763, or 30%, from the previous year, primarily due to lower volume and tooling revenues [12][13] - Adjusted gross margin on revenues from customers fell to 17.3% from 20.9% year-over-year, reflecting a decrease of $3,074,190 due to lower sales volume [4][17] - The company reported a loss of $3,776,330 for Q1-2026, compared to a loss of $2,719,012 in Q1-2025 [4][7] Segment Performance - Revenues from the Advanced Materials, Plastics and Composite Products segment decreased by 31%, from $33,635,593 in Q1-2025 to $23,163,536 in Q1-2026 [10] - The Battery Cells and Materials segment saw a significant increase in revenues, rising by 836% to $279,115 from $29,821 in the previous year [10][11] - Adjusted EBITDA loss for the Advanced Materials segment was $1,318,758, a decline of 187% compared to the previous year, while the Battery Cells segment improved its adjusted EBITDA loss to $71,343, a 82% improvement [10][14] Strategic Initiatives - The company has entered into a multi-year supply agreement with Chevron Phillips Chemical for its proprietary product, Tribograf, which is expected to enhance long-term growth [3] - The commissioning of a new facility in Statesville, North Carolina, is seen as a key milestone for scaling graphene volume sales [3] - The transition of CEO roles is aimed at focusing on long-term strategic growth and enhancing shareholder value [3]