Management Commentary:
"During the first quarter of 2026, we made significant progress in expanding POET's strategic position within the AI and hyperscale data center ecosystem," said Dr. Suresh Venkatesan, Chairman & CEO of POET Technologies. "Our partnerships with industry leaders such as LITEON, Lessengers and Lumilens validate the growing demand for POET's Optical Interposer platform and our ability to enable next-generation photonic integration solutions.
The joint development agreement with Lumilens, including an initial $50 million purchase order for EOI-based optical engines, represents an important commercial milestone for the Company and establishes the framework for what we believe could become a substantial long-term supplier relationship supporting frontier AI infrastructure."
"We also continued to advance our product roadmap through the joint development of a 1.6T transceiver platform with Lessengers, while strengthening our global market position through our collaboration with LITEON. Combined with our plan to domicile our headquarters in the U.S., these initiatives further align POET with the evolving requirements of customers, partners and investors as demand for AI networking infrastructure accelerates."
Notable Business Highlights:
Announced a strategic collaboration with LITEON Technology, one of the world's leading providers of optoelectronic semiconductor components and high-power optical systems. The partnership aims to co-develop next-generation optical communication modules built on POET's patented optical interposer technology and integration platform.
Announced the joint development of a 1.6T 2×DR4 optical transceiver module designed for next-generation AI clusters and hyperscale data center networks with Lessengers.
Announced its intention to move the Company's headquarters to and domicile the Company in the U.S. so that it will no longer be a foreign corporation, which would eliminate the possibility of the Company being classified as a PFIC in future years.
Entered into a supply agreement that establishes a strategic joint development and commercial technology partnership to advance a new class of wafer-level photonic integration for frontier AI infrastructure. The supply agreement between Lumilens and the Company establishes a commercial framework to support the joint development program, and, as part of that framework, Lumilens has placed an initial purchase order with the Company for the manufacturing of EOI-based engines valued at $50 million. This purchase order represents the first phase of a broader supplier relationship that could scale to $500+ million in cumulative purchases from the Company over five years.
Non-IFRS Financial SummaryThe Company reported non-recurring engineering ("NRE") and product revenue of $503,389 in the first quarter of 2026 compared to $166,760 for the same period in 2025 and $341,202 in the fourth 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 reported a net loss of $12.3 million, or ($0.08) per share, in the first quarter of 2026 compared with a net income of $6.3 million, or 0.08 per share, for the same period in 2025 and a net loss of $42.7 million, or ($0.32) per share, in the fourth quarter of 2025. The net income in the first quarter of 2026 included research and development costs of $4.5 million compared to $4.3 million for the same period in 2025 and $4.6 million in the fourth 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 largest component of the Company's income in the first quarter of 2025 was from the non-cash gain in fair value adjustment to derivative warrant liability of $15.4 million. The derivative liability adjustment in the first quarter of 2026 was a gain of $1.6 million. The Company reported a loss of $30.7 million in the fourth 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 first quarter of 2026 included stock-based compensation of $3.4 million and depreciation and amortization of $1.0 million. Non-cash stock-based compensation and depreciation and amortization in the same period of 2025 were $0.8 million and $0.7 million, respectively. Fourth quarter 2025 stock-based compensation and depreciation and amortization were $2.2 million and $0.9 million, respectively. The Company had non-cash finance costs of $47,000 in the first quarter of 2026 compared to non-cash finance costs of $33,000 in the first quarter of 2025 and non-cash costs of $49,000 in the fourth quarter of 2025.
The Company recognized other income, including interest of $4.0 million in the first quarter of 2026, compared to $528,000 in the same period in 2025 and $2.5 million in the fourth quarter of 2025.
Cash flow from operating activities in the first quarter of 2026 was ($8.8) million compared to ($8.9) million in the first quarter of 2025 and ($11.6) million in the fourth quarter of 2025.
Summary of Financial PerformanceThe following is a summary of the Company's operations over the five quarters ending March 31, 2026. This information should be read in conjunction with the Company's financial statements filed on Sedar+ on May 14, 2026.
POET TECHNOLOGIES INC.PROFORMA, NON-IFRS AND IFRS PRESENTATION OF OPERATIONS(All figures are in U.S. Dollars)
For the Quarter ended:
31-Mar-26
31-Dec-25
30-Sep-25
30-Jun-25
31-Mar-25
Revenue
503,389
341,202
298,434
268,469
166,760
Research and development
(4,499,556
)
(4,621,450
