California Nanotechnologies loses $1.09M (U.S.) in Q3

Executive Summary

• California Nanotechnologies reported a significant decline in Q3 FY2026 revenue and profitability, driven by delayed manufacturing services and a complete drop in revenue from its green steel client.
• The company announced strategic progress in new high-value sectors, including a Letter of Intent for military brake disc production and its first purchase order for nuclear control rods from a U.S. SMR developer.
• Management expects a rebound in Q4 FY2026 with revenues projected to exceed $800,000, citing the resolution of customer delays and new government funding approvals.

Key Details

• Revenue: $392,481 (U.S.) for the quarter ended Nov. 30, 2025, a 78% decrease compared to the prior year.
• Adjusted EBITDA: Loss of $747,021 (U.S.), compared to a positive $826,454 (U.S.) in the prior year.
• Net Loss: $1,094,650 (U.S.), compared to a net income of $113,140 (U.S.) in the prior fiscal year.
• EPS: Diluted loss of $0.04 per share, compared to nil earnings per share in the same period last year.
• Revenue Drivers: The decline was primarily due to manufacturing service revenues being pushed to the subsequent quarter and zero revenue from the green steel client and equipment deliveries (which were $1,228,060 or 68% of Q3 FY2025 revenue).
• Q4 Outlook: Revenues are expected to exceed $800,000 (U.S.) in Q4 FY2026 as delayed Q3 revenues are recognized and other customer programs proceed.
• Military Contracts: Signed a Letter of Intent to provide commercial spark plasma sintering (SPS) production services for high-performance military brake discs. The customer received Department of Defense Appropriations Act funding, and an initial $1-million (U.S.) purchase order is expected this calendar year.
• Nuclear Sector: Announced its first purchase order for nuclear control rods from a leading U.S.-based small modular nuclear reactor (SMR) developer. The company is in discussions with other nuclear companies for similar control rods and radiation shielding.
• Strategic Partnerships: Deepened relationship with Germany-based Dr. Fritsch to strengthen position in the U.S. SPS market, focusing on R&D manufacturing and aftermarket parts rather than direct equipment sales.
• Balance Sheet: The company has no interest-bearing debt (except lease liabilities) and holds over $2-million (U.S.) in equipment to support manufacturing scale-up.

Notable Quotes

• "This quarter, we saw lower revenues than expected due to customer delays as we execute our growth strategy to secure larger commercial contracts," said chief executive officer Eric Eyerman. "We expect the subsequent quarter (Q4 FY 2026) to show significantly higher revenues and, more importantly, provide us with added visibility on commercial manufacturing contracts in calendar year 2026."
• "For example, our U.S. military brakes customer recently received necessary government funding approvals, and we are making important progress in the fast-growing nuclear energy industry."