California Nanotechnologies Announces Q1 2026 Results

Executive Summary

• California Nanotechnologies Corp. reported quarterly revenues of US$716,553 for the period ended May 31, 2025, a 59% decrease year-over-year, primarily driven by a slowdown in its "green steel" customer and reduced equipment deliveries.
• The company posted a net loss of US$447,887 and an Adjusted EBITDA loss of US$152,707, compared to a net income of US$696,042 and positive Adjusted EBITDA of US$754,467 in the prior year period.
• Despite overall revenue declines, manufacturing revenues excluding the green steel customer surged 156% year-over-year to US$572,355, indicating successful diversification efforts and improved customer concentration.

Key Details

• Revenue Performance:
  • Total Revenue: US$716,553 (vs. US$1,748,826 in prior year; -59%).
  • Revenue from "Green Steel" Customer & Equipment Deliveries: US$144,198 (20% of total revenue), down significantly from US$1,526,410 (87% of total revenue) in the prior year.
  • Manufacturing Revenues (excluding green steel): US$572,355, representing a 156% year-over-year increase.
• Profitability Metrics:
  • Gross Profit: US$408,061 (vs. US$1,149,673 in prior year; -64%).
  • Gross Margin: 57% (vs. 65% in prior year).
  • Net Loss: US$447,887 (vs. Net Income of US$696,042 in prior year).
  • Adjusted EBITDA: Loss of US$152,707 (vs. Positive Adjusted EBITDA of US$754,467 in prior year).
  • EBITDA: Loss of US$247,021 (vs. Positive EBITDA of US$874,941 in prior year).
• Cash Flow:
  • Cash Flow from Operations: Positive US$71,589 (vs. Negative US$283,520 in prior year).
• Operational Updates:
  • Secured first commercial production orders for cryomilling technologies with Oerlikon Metco (US) Inc. and AbTech Industries Inc.
  • Successfully delivered first product batches to these partners; subsequent purchase orders expected.
  • In advanced discussions with existing and new customers in automotive, defense, energy, and industrial sectors.
  • ISO9001 certification recently announced as part of growth investments.
• Financial Context:
  • Prior year results included a US$141,829 non-cash, unrealized gain on share purchase warrants.
  • Diluted EPS: $0.00 (vs. $0.02 in prior year).
  • Company expects Q2/FY2026 to show progress in diversification and improved revenue/Adjusted EBITDA.

Notable Quotes

• "This quarter was impacted by a reduction in revenues from our green steel customer as previously disclosed... We saw progress from this initiative with manufacturing revenues, excluding the green steel client, growing 156% year-over-year and customer concentration down significantly." — Eric Eyerman, CEO
• "While we cannot predict when or if the green steel customer will resume their previous level of activities, Cal Nano is focused on improving the overall utilization of equipment and contribution margin with a larger portfolio of customers." — Eric Eyerman, CEO