California Nanotechnologies Announces Q2 2026 Results

Executive Summary

• Cal Nano reported Q2 FY2025 revenue of US$779,916, a 49% YoY decline driven by the loss of its “green steel” customer.
• Adjusted EBITDA improved to a loss of US$80,909 from a positive US$808,970 in the prior year, reflecting lower overhead and warrant‑related gains/losses.
• The company announced a non‑binding LOI for approximately US$1 million of Spark Plasma Sintering (SPS) commercial production services for high‑performance military brakes, marking its first SPS contract.

Key Details

• Revenue: US$779,916 for the quarter ended Aug 31 2025 vs. US$1,522,185 YoY (-49%).
• Cost of Goods Sold: US$297,196 (+11% YoY).
• Gross Profit: US$482,720 (62% margin, down 20 bps from prior year).
• Adjusted EBITDA: Loss of US$80,909 (previous year positive US$808,970).
• Net Loss: US$292,423 vs. US$655,031 YoY (55% improvement).
• Manufacturing revenue excluding “green steel” customer: US$779,916 – a 100% YoY increase.
• Green steel customer revenue: $0 this quarter vs. US$1,122,350 in the same quarter last year (previously 74% of total revenue).
• LOI Announcement: Non‑binding Letter of Intent to provide ~US$1 million worth of SPS commercial production services for high‑performance military brakes, slated to start calendar year 2026.
• Prior Commercial Orders: Earlier in FY2025 the company secured cryomilling production orders from Oerlikon Metco (U.S.) Inc. and AbTech Industries Inc.
• Patent Activity: Filed a provisional patent application for advanced armor applications leveraging SPS technology.
• Capital Expenditure: Over US$2 million invested in recent equipment purchases to support FY2026 growth plans.
• Share‑based Compensation & Warrant Activity: Realized loss on share purchase warrants of US$82,776; unrealized loss of US$(175,072) affecting Adjusted EBITDA.

Notable Quotes

“This quarter was affected by the full decrease in activity from our green steel customer,” said CEO Eric Eyerman.
“Our team is working hard to diversify and transition toward longer‑term, recurring commercial contracts… Sub­sequent to the quarter, we also announced a Letter of Intent for our first Spark Plasma Sintering (SPS) commercial production contract for high‑performance military brakes.”