EnWave Reports 2026 First Quarter Consolidated Interim Financial Results
MWN-AI** Summary
EnWave Corporation (TSX-V:ENW | FSE:E4U) reported its first quarter financial results for the year 2026, revealing a positive trajectory in its revenue streams. For the quarter ending December 31, 2025, EnWave recorded revenues of CAD 1,600,000, indicating a notable increase of 36% from the previous year, attributed largely to successful large-scale machine sales and enhanced royalty agreements.
The company's base royalty revenues amounted to CAD 500,000, up 18% year-over-year, while total royalty income reached CAD 627,000, demonstrating a 12% increase. This growth can be linked to a broader partnership network as well as heightened production from existing partners. EnWave's gross margin improved to 37%, significantly enhanced from 29% in Q1 2025, corresponding to a favorable production mix and expanded royalty revenues.
Despite the overall positive financial outlook, SG&A costs rose by CAD 200, mainly due to an expanded sales team and other professional fees. The company reported an Adjusted EBITDA loss of CAD 585,000, reflecting an improvement of CAD 50 compared to the prior year’s losses.
During the quarter, EnWave successfully commissioned a large-scale machine and fabricated two others. Additionally, the company entered into new Commercial Licensing Agreements (CLA) with several organizations, highlighting its strategic efforts in global markets, including partnerships in Australia and New Zealand.
EnWave's focus remains on innovating its Radiant Energy Vacuum (REV™) technology to provide superior drying solutions across various industries, including food and cannabis. The company's robust growth strategy, showcased through its financial improvements and expanding partnerships, indicates a strong potential for future revenue generation.
MWN-AI** Analysis
EnWave Corporation (TSX-V: ENW) reported its first-quarter 2026 financial results, highlighting its ongoing growth trajectory, particularly through increased revenues and improved gross margins. With revenue reaching CAD $1,600, an increase of 36% year-over-year, and a significant uptick in base royalty revenues to CAD $500 (up 18%), the company appears well-positioned to capitalize on the growing demand for its innovative vacuum microwave dehydration technology.
The improved gross margin of 37%, up from 29% in the prior year, indicates operational efficiency and effective cost management, largely attributed to higher royalty income and a favorable production mix. However, it’s essential to note a rise in SG&A costs by 16%, primarily due to increased sales personnel and timing-related expenses. This signals proactive investment in growth; however, investor sensitivity to rising operational expenses should be monitored.
While EnWave's Adjusted EBITDA loss of CAD $585 shows a modest improvement, the company continues to operate at a net loss, which could raise concerns among potential investors. Nevertheless, the ongoing strategic partnerships—such as the recently signed collaborations with various growers and snack manufacturers—signal a robust pipeline and market penetration potential, particularly in the food and cannabis sectors.
Investors should weigh these positive operational indicators against the financial losses. The growing trend in demand for innovative drying technologies suggests that EnWave is on an upward trajectory that could translate into long-term profitability, particularly if its technology adoption accelerates across its target markets. Given the current financial metrics, a cautious buy-and-hold strategy might be prudent, allowing for growth while closely tracking the company's ability to manage costs and expand its partner network.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
VANCOUVER, British Columbia, Feb. 20, 2026 (GLOBE NEWSWIRE) -- EnWave Corporation (TSX-V:ENW | FSE:E4U) (“EnWave”, or the "Company") today reported the Company’s consolidated interim financial results for the first quarter ended December 31, 2025.
All values in thousands and denoted in CAD unless otherwise stated.
- Reported revenue for Q1 2026 of $1,600, representing an increase of $423 relative to the comparable period in the prior year due to large-scale machine sales and increased royalties. During the period, the company commissioned one large-scale machine and completed the fabrication of two large-scale machines on contract.
- Reported royalties, excluding exclusivity payments (“Base Royalties”), for Q1 2026 of $500, an increase of $75, or 18% relative to the comparable period in the prior year. Reported total royalty revenue for Q1 2026 of $627, an increase of $68 or 12% relative to total royalty revenue in the comparable period in the prior year. Royalties grew due to increased royalty partners, product sales, partner production, and exclusivity payments for the quarter.
- Gross margin for the three months ended Q1 2026 was 37% compared to 29% for the three months ended Q1 2025. The increase in margin was a result of higher royalties and the production mix of large machines at various stages of commissioning and fabrication.
- Reported an increase in Selling, General & Administrative (“SG&A”) costs (including Research & Development (“R&D”)) of $200 for Q1 2026 relative to the comparable period in the prior year, with the increase primarily related to more sales personnel, the timing of patent maintenance fees and professional fees. In the comparative period, legal costs associated with the Term Loan and Credit Facility were capitalized as part of the transaction.
- Reported an Adjusted EBITDA(1) loss of $585 for Q1 2026, an improvement of $50 from the comparable period in the prior year.
Consolidated Financial Performance:
| ($ ‘000s) | Three months ended December 31, | |||||||
| 2025 | 2024 | Change % | ||||||
| Revenues | 1,600 | 1,177 | 36 | % | ||||
| Direct costs | (1,006 | ) | (837 | ) | 20 | % | ||
| Gross margin | 594 | 340 | 75 | % | ||||
| Operating expenses | ||||||||
| General and administration | 516 | 424 | 22 | % | ||||
| Sales and marketing | 553 | 486 | 14 | % | ||||
| Research and development | 399 | 358 | 11 | % | ||||
| 1,468 | 1,268 | 16 | % | |||||
| Net loss - continuing operations | (1,108 | ) | (938 | ) | 18 | % | ||
| Net loss - discontinued operations | (6 | ) | (8 | ) | (25 | %) | ||
| Adjusted EBITDA(1) loss | (585 | ) | (635 | ) | (8 | %) | ||
| Loss per share: | ||||||||
| Continuing operations – basic and diluted | $ | (0.01 | ) | $ | 0.00 | |||
| Discontinued operations – basic and diluted | $ | 0.00 | $ | 0.00 | ||||
| Basic and diluted | $ | (0.01 | ) | $ | 0.00 | |||
(1) Adjusted EBITDA is a non-IFRS financial measure. Refer to the Non-IFRS Financial Measures disclosure below for a reconciliation to the nearest IFRS equivalent.
EnWave’s consolidated interim financial statements and MD&A are available on SEDAR+ at www.sedarplus.ca and on the Company’s website www.enwave.net
Significant Corporate Accomplishments in Q1 2026 and Subsequently:
- Signed a CLA with Gowen Gumlu Grower’s Association (“BGGA”) in North Queensland, Australia. BGGA acquired a 10kW REV™ machine from EnWave’s Australian third-party machine re-seller, Scitek.
- Signed a CLA with Shinyway International Limited, a service provider of cannabis processing based in New Zealand.
- Signed a CLA with a U.S. snack company and an equipment purchase agreement for a 10kW REV™ machine.
Non-IFRS Financial Measures:
This news release refers to Adjusted EBITDA which is a non-IFRS financial measure. We define Adjusted EBITDA as earnings before deducting amortization and depreciation, stock-based compensation, foreign exchange gain or loss, finance expense or income, income tax expense or recovery, non-recurring income and expenses, restructuring and severance charges, and discontinued operations. This measure is not necessarily comparable to similarly titled measures used by other companies and should not be construed as an alternative to net income or cash flow from operating activities as determined in accordance with IFRS. Please refer to the reconciliation between Adjusted EBITDA and the most comparable IFRS financial measure reported in the Company’s consolidated interim financial statements.
| Three months ended December 31, | ||||||
| ($ ‘000s) | 2025 | 2024 | ||||
| Net loss after income tax | (1,114 | ) | (946 | ) | ||
| Amortization and depreciation | 289 | 293 | ||||
| Stock-based compensation | 55 | 143 | ||||
| Foreign exchange loss (gain) | 104 | (147 | ) | |||
| Finance income | (20 | ) | (47 | ) | ||
| Finance expense | 95 | 72 | ||||
| Non-recurring income | - | (11 | ) | |||
| Discontinued operations | 6 | 8 | ||||
| Adjusted EBITDA | (585 | ) | (635 | ) | ||
Non-IFRS financial measures should be considered together with other data prepared in accordance with IFRS to enable investors to evaluate the Company’s operating results, underlying performance and prospects in a manner similar to EnWave’s management. Accordingly, these non-IFRS financial measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. For more information, please refer to the Non-IFRS Financial Measures section in the Company’s MD&A available on SEDAR+ www.sedarplus.ca.
About EnWave
EnWave is a global leader in the innovation and application of vacuum microwave dehydration. From its headquarters in Delta, BC, EnWave has developed a robust intellectual property portfolio, perfected its Radiant Energy Vacuum (REV™) technology, and transformed an innovative idea into a proven, consistent, and scalable drying solution for the food, pharmaceutical and cannabis industries that vastly outperforms traditional drying methods in efficiency, capacity, product quality, and cost.
With more than fifty partners spanning twenty-four countries and five continents, EnWave’s licensed partners are creating profitable, never-before-seen snacks and ingredients, improving the quality and consistency of their existing offerings, running leaner and getting to market faster with the company’s patented technology, licensed machinery, and expert guidance.
EnWave’s strategy is to sign royalty-bearing commercial licenses with food producers who want to dry better, faster and more economical than freeze drying, rack drying and air drying, and enjoy the following benefits of producing exciting new products, reaching optimal moisture levels up to seven times faster, and improve product taste, texture, color and nutritional value.
Learn more at EnWave.net.
EnWave Corporation
Mr. Brent Charleton, CFA
President and CEO
For further information:
Brent Charleton, CFA, President and CEO at +1 (778) 378-9616
E-mail: [email protected]
Dylan Murray, CPA, CA, CFO at +1 (778) 870-0729
E-mail: [email protected]
Safe Harbour for Forward-Looking Information Statements: This press release may contain forward-looking information based on management's expectations, estimates and projections. All statements that address expectations or projections about the future, including statements about the Company's strategy for growth, product development, market position, expected expenditures, and the expected synergies following the closing are forward-looking statements. All third-party claims referred to in this release are not guaranteed to be accurate. All third-party references to market information in this release are not guaranteed to be accurate as the Company did not conduct the original primary research. These statements are not a guarantee of future performance and involve a number of risks, uncertainties and assumptions. Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
FAQ**
How might the recent growth in royalties and large-scale machine sales impact Enwave Corp Canada NWVCF's overall financial performance in the upcoming quarters?
Given the increase in Selling, General & Administrative costs, how will Enwave Corp Canada NWVCF manage its operating expenses while pursuing growth opportunities?
With the signing of new commercial license agreements, what strategies will Enwave Corp Canada NWVCF implement to enhance relationships with its partners and expand its market reach?
How does Enwave Corp Canada NWVCF plan to mitigate risks associated with future growth in an evolving market, especially in light of its recent financial results?
**MWN-AI FAQ is based on asking OpenAI questions about Enwave Corp Canada (OTC: NWVCF).
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