All amounts in this press release are in Canadian dollars, unless otherwise stated.
Key Financial Highlights Q2-2026
Total revenues of $27,580,290 compared to $33,120,886 last year, representing a 17% decrease;
Adjusted gross margin(1) on revenues from customers of 21.5% compared to 21.3% last year;
Loss of $3,836,406 compared to a loss of $2,894,922 last year;
Adjusted EBITDA(2) of $224,355 compared to $1,102,050 last year;
Adjusted EBITDA(2) of $180,967 compared to $1,319,926 last year for the Advanced Materials, Plastics and Composite Products segment;
Adjusted EBITDA(2) of $43,388 compared to an adjusted EBITDA loss(2) of $217,876 last year for the Battery Cells and Materials segment;
Total liquidity of $40,144,435 as at December 31, 2025, including cash and cash equivalents of $30,144,435;
Total long-term debt of $13,922,418 as at December 31, 2025, higher by $9,609,494 compared to June 30, 2025.
Overview
Rocco Marinaccio, President & Chief Executive Officer, stated: "Fiscal Q2 marked an important inflection point for NanoXplore as we delivered sequential improvements across revenue, margins, and adjusted EBITDA, reflecting stronger execution and improving fundamentals. Our on time and on budget installation of our dry-process graphene platform plus new customer program launches position us well for a stronger second half and long-term value creation for our shareholders. After careful review, our disciplined approached to capital allocation has led to the strategic decision not to pursue the previously contemplated $100 million active anode material (CSPG) initiative."
Pedro Azevedo, Chief Financial Officer, stated: "After a challenging fiscal Q1, I am pleased with our Q2 performance delivering sequential revenue growth along with a return to positive adjusted EBITDA. The quarter saw volumes from our largest two customers stabilize and new revenues from CP Chem and Club Car start to produce visible results. We will continue to build on the momentum generated by new customers to deliver continued sequential financial improvement over the coming quarters."
* 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 and six-month periods ended December 31, 2025 and 2024.
IFRS "Loss" to Non-IFRS "Adjusted EBITDA"
Q2-2026
Q2-2025
YTD 2026
YTD 2025
$
$
$
$
Loss
(3,836,406
)
(2,894,922
)
(7,612,736
)
(5,613,934
)
Current and deferred income tax expenses (recovery)
(350,783
)
400,155
(1,267,279
)
874,769
Net interest expenses
441,592
118,181
778,403
157,023
Foreign exchange
681,567
201,920
447,619
232,002
Share-based compensation expenses
271,421
366,182
475,967
883,718
Non-operational items (1)
(116,000
)
115,000
(76,000
)
155,000
Depreciation and amortization
3,132,964
2,795,534
6,088,280
5,537,771
Adjusted EBITDA
224,355
1,102,050
(1,165,746
)
2,226,349
- From Advanced Materials, Plastics and Composite Products
180,967
1,319,926
(1,137,791
)
2,832,030
- From Battery Cells and Materials
43,388
(217,876
)
(27,955
)
