Nextech3D.ai Announced Its Financial and Operating Results for the Three Months Ended June 30, 2025 ("Q1 2026")

Executive Summary

• Nextech3D.ai reported unaudited financial results for Q1 2026 (three months ended June 30, 2025), highlighting a significant improvement in profitability metrics despite a decline in revenue.
• The company achieved record gross margins of 90% (up from 74% in Q1 2025) and reduced operating expenses by over 60% year-over-year through disciplined restructuring.
• Management cites the end of a major Amazon contract in late 2024 as the primary driver for lower sales, while positioning the company for accelerated growth and profitability in 2026 driven by AI scale and strategic partnerships, including a synergy with ARway.

Key Details

• Revenue: $328,092, a decrease from $1,108,941 in Q1 2025.
• Gross Margins: 90%, compared to 74% in Q1 2025.
• Operating Expenses:
  • General & Administrative (G&A): $427,892 (down 73% from $1,589,086 in Q1 2025).
  • Sales & Marketing (S&M): $146,467 (down 63% from $392,022 in Q1 2025).
  • Research & Development (R&D): $172,399 (down 50% from $345,151 in Q1 2025).
• Losses:
  • Operating Loss: ($511,041), an improvement of 70% from ($1,687,019) in Q1 2025.
  • Net Loss: ($497,763), a narrowing of 71% from ($1,719,041) in Q1 2025.
• Deferred Revenue: Increased to $521,739, up from $498,171 at March 31, 2025.
• Operational Metrics & Outlook:
  • 3D Modeling: Proprietary AI has reduced production costs, yielding gross margins of 50%-86% for 3D models.
  • New Contract: Selected as the exclusive 3D supplier for a tech partner serving major big-box retailers.
  • Production Targets: 2025 target is 50,000-100,000 models; 2026 forecast expects output to double. Current production stabilizes at 1,000-5,000 models/month, targeting 10,000+ models/month by year-end 2025.
  • Map D Platform: 500+ active customers with 95% gross margins; revenue projected to double in the next 12 months.
  • ARway Synergy: ARway (CSE: ARWY) reported its first profitable quarter; Nextech3D.ai plans to combine platforms to unlock synergies in 3D modeling, spatial computing, and AR navigation.

Notable Quotes

• Evan Gappelberg, CEO: "While we are disappointed with sales being down we see this as a reset as it is strictly due to Amazon ending its contract in late 2024. Our Q1 shows the strength of our transformation into a lean, high-margin AI-first company which was no small feat to accomplish. We have now finally set the stage for profitability."
• Evan Gappelberg, CEO: "We dramatically improved gross margins to 90%, dramatically and diligently cut costs by more than 60%, which resulted in narrowing our net loss by over 70%. As we look forward we are excited with ARway's first profitable quarter and the clear synergies from combining our platforms. With this combination we believe that we are creating an even stronger foundation for rapid growth and profitability in 2026."