ALUULA Reports Third Quarter 2025 Financial Results

Executive Summary

• ALUULA Composites Inc. reported financial results for the three and nine months ended July 31, 2025, highlighting significant sales growth and improved gross margins.
• Q3 2025 sales surged 64% year-over-year to $2.12 million, driven by strong demand in performance outdoor and commercial industrial sectors, with open sales orders increasing 245% compared to the prior fiscal year.
• The company announced a leadership change, with CFO Briony Bayer resigning effective October 31, 2025, and Director of Finance Dale Graham stepping into the CFO role on November 1, 2025.

Key Details

• Q3 2025 Sales: $2,121,588, a 64% increase from $1,291,938 in Q3 2024.
• Q3 2025 Gross Margins: 41%, within the targeted range of 40%-45% and an improvement from 38% in Q3 2024.
• Sales Channel Growth (Q3 2025 vs Q3 2024):
  • Performance Outdoor: +61% growth.
  • Commercial Industrial: +106% growth.
• Vertical Market Growth (Q3 2025 vs Q3 2024):
  • Windsport: +62% (driven by demand for kites and wings).
  • Pack and Bag: +68% (doubling of commercial stage brand partners).
  • Sailing: +22% (continued orders for spinnaker sails).
• Open Sales Orders: Approximately $3 million at July 31, 2025, representing a 245% increase compared to October 31, 2024.
• Operating Expenses (Q3 2025): $963,902 excluding non-cash share-based compensation, a decrease of $553,419 from Q3 2024 ($1,517,321).
• Share-Based Compensation (Q3 2025): $586,431, an increase of $528,509 from Q3 2024 ($57,922), primarily due to modifications to stock option grants to attract and retain talent.
• Discontinued Operations (Ocean Rodeo): Net loss of $34,620 in Q3 2025, compared to net income of $91,930 in Q3 2024.
• YTD Q3 2025 Sales: $4,956,794, a 6% increase from $4,692,368 in YTD Q3 2024.
• YTD Q3 2025 Gross Margins: 42%, consistent with the prior year period.
• YTD Q3 2025 Operating Expenses: $2,584,836 excluding non-cash share-based compensation, a decrease of $1,143,113 from YTD Q3 2024.
• YTD Q3 2025 Share-Based Compensation: $666,870, an increase of $580,051 from YTD Q3 2024.
• Warrant Exercise: Accelerated vesting of recently repriced warrants triggered by market capitalization/share price increases resulted in gross proceeds of $987,372 subsequent to July 31, 2025.
• Leadership Change: Briony Bayer resigned as CFO effective October 31, 2025; Dale Graham appointed as new CFO effective November 1, 2025.

Notable Quotes

• "Our Q3 2025 results reflect the strong market demand and sales orders for ALUULA's ultra-light, high-performance, and recycle-ready composite materials," said Sage Berryman, CEO and President at ALUULA. "With the increased demand, we are implementing operational efficiencies to streamline procurement of raw materials and manufacturing processes as we continue to work closely with our partners and customers to fulfill their needs. We have successfully established our new method of manufacturing to enable 1.5-meter products to help manage some of the demand above our current facility's capacity."