EcoSynthetix Reports 2025 Second Quarter Results

Executive Summary

• EcoSynthetix reported strong financial performance for Q2 and YTD 2025, driven by a 57% increase in net sales and a significant improvement in Adjusted EBITDA compared to the prior year.
• The company secured new commercial momentum, including a $0.8 million purchase order for SurfLock™ from a global pulp manufacturer and two new accounts in the tissue market.
• The company maintained a robust balance sheet with $30.7 million in cash and term deposits, while continuing its share buyback program under the Normal Course Issuer Bid (NCIB).

Key Details

• Net Sales: $5.0 million for Q2 2025 (up 57% or $1.8 million from $3.2 million in Q2 2024); $9.0 million for YTD 2025 (up 15% from $7.9 million).
• Sales Drivers: Volume increases accounted for $1.6 million of the quarterly growth (50% higher volumes), while average selling price increases contributed $0.2 million (7% increase).
• Gross Profit: $1.4 million for Q2 2025 (up 66% from $0.9 million); Gross margin improved to 28.4% from 27.0% in the prior year period.
• Adjusted EBITDA: $0.2 million for Q2 2025, an improvement of $1.0 million from a loss of $0.8 million in Q2 2024. YTD Adjusted EBITDA loss narrowed to $0.3 million from $1.3 million.
• Net Income: $0.1 million (or $0.00 per share) for Q2 2025, compared to a net loss of $0.7 million ($0.01 per share) in Q2 2024.
• Operating Expenses: SG&A decreased to $1.2 million (from $1.4 million) due to the absence of prior-year asset relocation costs. R&D costs decreased to $0.4 million (from $0.6 million) due to lower scale-up costs and depreciation.
• Balance Sheet & Liquidity: Cash and term deposits stood at $30.7 million as of June 30, 2025.
• Share Repurchases: Purchased and cancelled 121,200 common shares in Q2 2025 under the NCIB for total consideration of $0.4 million.
• Commercial Updates:
  • Received a new $0.8 million purchase order for SurfLock™ from a leading global pulp manufacturer for immediate delivery, with additional orders expected in H2 2025.
  • Won two new commercial accounts for SurfLock™ strength aids in the tissue end market.
  • Continued positive progress with key strategic accounts in pulp, wood composites, and personal care markets.

Notable Quotes

• "We are building momentum within our strategic end markets of pulp, tissue and paperboard and wood composites with increased volumes driving higher sales in the quarter," said Jeff MacDonald, CEO of EcoSynthetix. "We continue to see strong progress at our key strategic account using SurfLock™ in pulp production with the new purchase order which puts them well ahead of the initial plan for the year."