BluMetric Announces Q2 2026 Financial Results

• BluMetric Environmental Inc. reported Q2 2026 financial results showing a 15% year-over-year revenue increase to CA$18,277 thousand.
• The Company posted a net loss of CA$1,134 thousand for the quarter compared to a CA$60 thousand loss in the prior year period.
• Adjusted EBITDA swung from a profit of CA$600 thousand in Q2 2025 to a loss of CA$(626) thousand in Q2 2026.
• Gross Margin improved to 31% from 27% in the prior year period, driven by Military market revenues up 78%.
• DS Consultants acquisition contributed $3,893 thousand to revenue growth.
• Free Cash Flow outflow increased significantly to CA$(649) thousand for Q2 2026 versus CA$(129) thousand in the prior year period.
• Net Cash position stands at CA$2,859 thousand at March 31, 2026, a 28% increase from prior year but insufficient to cover high burn rates if sustained.
• Option grants of 1,078,000 common shares were issued to employees and executives at $0.81 per share.

• The widening net loss from CA$(60) thousand to CA$(1,134) thousand despite revenue growth indicates significant operational inefficiency or high integration costs associated with the DS Consultants acquisition.
• Adjusted EBITDA deterioration from +$600k to -$626k is a negative deviation from Q1 2026 results which showed profitability ($912k EBITDA), suggesting Q2 was an anomaly or structural issue rather than seasonal.
• Free Cash Flow burn of $649 thousand per quarter puts the company's CA$2,859 thousand net cash runway at approximately 4 to 5 quarters without additional financing.
• The acquisition targets set in December 2025 (EBITDA of $4M, $5M, and $6M over three years) are now under threat given the current quarterly loss trajectory.
• While revenue growth is positive, the cost structure expansion appears to be outpacing margin improvements, creating a risk of further dilution through equity financing in the near term.

• BluMetric Environmental Inc. operates in environmental services, water technology, and defense contracting sectors.
• Flagship Project includes Mission Ready Water systems for military applications (Rheinmetall partnership) and professional engineering services via DS Consultants acquisition.
• The company is transitioning from seasonal Professional Services to recurring O&M services through acquisitions like Whitteker Environmental Services and Caribbean contracts.
• Manufacturing footprint expansion planned in U.S. (WaterTech USA) to 50,000 sq. feet to meet rising demand.