Aluula Composites (AUUA) Q2 2026 earnings summary

Executive summary

• Achieved record Q2 2026 revenue of $3.1M, up 94% year-over-year and 31% sequentially, driven by commercialization and new customer acquisitions.

• Gross margin reached 44% in Q2 2026, reflecting improved manufacturing efficiency and product mix.

• Delivered materials to 12 new customers in Q2, expanding the sales pipeline and supporting multiple brand partner launches.

• Performance Outdoor remained the largest sales channel, while Commercial Industrial's share increased, reflecting diversification.

• Cash balance at quarter-end was $13.7M, supporting ongoing growth initiatives and manufacturing expansion.

Financial highlights

• Q2 2026 revenue: $3.1M, up 94% year-over-year and 31% sequentially.

• Gross margin: 44% in Q2 2026, compared to 42% in FY2025 and 41% in FY2024.

• Cash balance: $13.7M at the end of Q2 2026.

• OPEX as a percentage of revenue: 58% in Q2 2026, up from 53% in Q1 2026, reflecting scaling investments.

• Net loss from continuing operations for Q2 2026 was $475,493, compared to $343,381 in Q2 2025.

Outlook and guidance

• New Vancouver manufacturing facility expected to be operational by end of fiscal 2026, targeting a 10x increase in production capacity.

• Anticipates revenue contribution from new facility in 2027, with expansion into commercial shipping, defense, and aerospace markets.

• Fiscal 2026 is positioned as an investment year, focusing on capacity expansion and scalable growth for 2027 and beyond.

• Continued investment in R&D and sales to accelerate commercialization and expand product offerings.

• Focus on gross margin discipline and controlled operating expenses during expansion.