Earnings call transcript: EnWave’s Q3 2026 revenue rises as losses narrow

EnWave Corp. disclosed improved financials in its Q3 2026 earnings call. Revenue rose 21% year-over-year to CAD 3.33 million, primarily driven by a large machine sale and higher royalty income. Adjusted EBITDA narrowed significantly to a loss of CAD 93,000, down from CAD 575,000 a year earlier. Base royalty revenue increased 24% to CAD 536,000, with normalized base royalties amounting to about CAD 600,000.

Gross margin improved to 25% from 19% the previous year. Management anticipates royalty income could reach CAD 3 million by fiscal 2027, as operating expenses are targeted to fall by over CAD 1 million by fiscal 2028. The company reported new commercial licenses and evaluation agreements with major partners, including General Mills, Rhizome, and The Dry Hub of Egypt.

Despite the revenue increase, EnWave's stock fell 4.26% to $0.225, trailing near the low end of its 52-week range. Management attributed the positive trend to better cost control and broader momentum across its installed base, with most royalty partners seeing higher payments and some customers expanding production.