EnWave (ENW) Q4 2025 earnings summary

Executive summary

• Q4 2025 revenue reached CAD 6.2 million, up 71% year over year, driven by machine sales, production mix, and repeat large-scale orders from existing royalty partners.

• Fiscal year 2025 revenue was CAD 13.8 million, a 69% increase year over year, marking the highest annual revenue for the licensing royalty business, primarily from equipment contracts and tolling fees.

• Q4 adjusted EBITDA was CAD 1.4 million, up CAD 950,000 year over year; annual adjusted EBITDA improved to CAD 309,000 from a CAD 1.5 million loss in 2024.

• Growth was supported by expansion into new geographies and verticals, and a robust pipeline of partner agreements.

Financial highlights

• Q4 2025 gross margin was 41%, up from 40% in Q4 2024; annual gross margin for 2025 was 34%, up from 33% in 2024.

• Net income from continuing operations for Q4 2025 was CAD 928,000, up 58% year over year; annual net loss narrowed to CAD 1.5 million from CAD 2.4 million in 2024.

• Q4 base royalties were CAD 481,000, up 31% year over year; annual base royalties rose 14% to CAD 1.8 million.

• SG&A expenses, including R&D, were CAD 1.5 million in Q4, up 17% year over year, mainly due to increased sales and marketing activities.

• Cash and cash equivalents at quarter-end were CAD 6.4 million, with net working capital of CAD 9.7 million.

Outlook and guidance

• Anticipates superior machine sale performance in fiscal 2026, targeting six to eight large-scale machine sales.

• Conservative estimate for fiscal 2026 base royalties is CAD 2.3 million, assuming current machine utilization.

• Expects further royalty growth as new and existing partners increase capacity utilization.

• Profitability is expected if more than four large-scale machines are sold annually and royalty run rate improves.

• Management highlights forward-looking statements regarding growth strategy, product development, and market position, noting risks and uncertainties.