California Nanotechnologies Announces Q3 2026 Results

Executive Summary

• Cal Nano reported Q3 FY2026 revenue of US$392,481, a 78% YoY decline, driven by delayed manufacturing services and loss of the green‑steel customer.
• Adjusted EBITDA recorded a loss of US$747,021 versus an adjusted EBITDA gain of US$826,454 in the prior year; net loss was US$1.09 M.
• The company announced a US$1.0 M purchase order pending for military brake discs and its first purchase order for nuclear control rods, indicating potential revenue recovery in Q4 FY2026 and beyond.

Key Details

• Revenue: US$392,481 (Q3 FY2026) vs. US$1,806,205 YoY – 78% decline.
• Cost of Goods Sold: US$329,096 (down 21% YoY).
• Gross Profit / Margin: US$63,385; gross margin fell to 16% from 77% YoY.
• Net Loss: US$1,094,650 vs. net income of US$113,140 in the prior year.
• Diluted Loss per Share: $0.04 (previously $0.00).
• Adjusted EBITDA: –US$747,021 (vs. +US$826,454 YoY).
• EBITDA: –US$883,971 (vs. +US$327,570 YoY).
• Operating Outlook: Management expects Q4 FY2026 revenue to exceed US$800,000 as delayed Q3 orders materialize and new customer programs ramp up.

Commercial Updates

• Letter of Intent – Military Brake Discs: Cal Nano signed an LOI to provide Spark Plasma Sintering (SPS) production services for high‑performance military brake discs; Department of Defense funding approved; anticipated initial purchase order of US$1.0 M this calendar year.
• Nuclear Control Rod Order: Received first purchase order from a U.S. small modular reactor (SMR) developer for control rods; company is in discussions with additional nuclear firms for similar parts and shielding solutions.

Strategic Partnerships & Capacity

• Deepened relationship with Germany‑based Dr. Fritsch to strengthen presence in the U.S. SPS market; equipment sales remain ancillary but support R&D, aftermarket services, and revenue diversification.
• No interest‑bearing debt (aside from lease liabilities); over US$2.0 M of manufacturing equipment available for scale‑up.

Forward‑Looking Statements

• Management expects “significantly higher revenues” in Q4 FY2026 and added visibility on commercial contracts throughout calendar 2026, particularly with U.S. military brakes customer and nuclear industry opportunities.

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 CEO Eric Eyerman.
“We expect the subsequent quarter (Q4/FY2026) to show significantly higher revenues, and more importantly, provide us with added visibility on commercial manufacturing contracts in calendar year 2026.”

Materiality Assessment: Material – Negative (the release contains a full quarterly earnings disclosure with substantial revenue decline, loss of profitability, and forward‑looking guidance that could influence investor decisions).