EcoSynthetix (ECO) investor relations material

Executive summary

• Q2 2026 sales were $4.5 million, down 9% year-over-year due to lower volumes in key end markets and challenging macroeconomic conditions.

• Adjusted EBITDA loss was $0.2 million, a decline from a positive $0.2 million in Q2 2025.

• Net loss for Q2 2026 was $0.4 million ($0.01 per share), compared to net income of $0.1 million in Q2 2025.

• Biopolymer products maintained strong technical viability, with an expanded prospect pipeline and continued commercial trials at top-tier global producers.

• Key end markets include pulp, tissue, wood composites, and personal care, with notable progress in trials and customer adoption.

Financial highlights

• Net sales for Q2 2026 were $4.5 million, down from $5.0 million in Q2 2025; YTD 2026 net sales were $8.3 million, down from $9.0 million YTD 2025.

• Gross profit margin for Q2 2026 was 28.6%, up from 28.4% in Q2 2025; adjusted gross margin (excluding manufacturing depreciation) reached 34.0%.

• SG&A expenses for Q2 2026 were $1.7 million, up from $1.2 million in Q2 2025, mainly due to FX losses, higher salaries, and maintenance.

• R&D expenses for Q2 2026 were $0.3 million, down from $0.4 million in Q2 2025, reflecting tax credits.

• Cash and term deposits stood at $29.1 million as of June 30, 2026.

Outlook and guidance

• Management expects market dynamics to normalize, with strong interest and a robust prospect pipeline positioning for future growth.

• Commercial relationships and trial pipeline are expected to support a return to meaningful growth as adoption accelerates.

• No specific timeline for pulp price spread normalization; historical cycles suggest 6–12 months.

• Dow, a key partner in personal care, anticipates continued growth in 2026 following normalized order patterns.