NEXE Innovations reports Q4 and fiscal 2026 results
WINDSOR, Ontario, Sept. 28, 2026 (GLOBE NEWSWIRE) -- NEXE Innovations Inc. ("NEXE", the "Company", "we", "us" or "our") (TSX.V: NEXE) (Frankfurt: NX5) (OTC: NEXNF), a compostable and innovative materials company, is pleased to announce its financial results for the three-month period and year ended May 31, 2026 ("Q4 2026" and "fiscal 2026", respectively).
Fiscal 2026 was NEXE's first full year of production of its current-generation, BPI-certified compostable coffee pod, which was commercialized in November 2024. Revenue for the year increased 121.2% to $680,363, and Q4 2026 revenue of $218,477 was the highest quarterly revenue in the Company's history. Management believes the year's results reflect improving unit economics as volumes scaled and a lower operating cost base. Subsequent to year-end, NEXE added new partners and based on current customer interest and commercial opportunities in progress, management currently expects annual pod volumes to exceed 15 million pods.
Q4 and Fiscal 2026 Results
Revenue Growth: Revenue for Q4 2026 was $218,477, compared to $59,921 in Q4 2025. Volumes from a commercial partner's transition to the NEXE platform (as described below under "Commercial Update" and first announced in March 2026) contributed to growth during the quarter, alongside repeat orders from existing partners. Revenue for fiscal 2026 was $680,363, compared to $307,543 in fiscal 2025, an increase of 121.2%, reflecting the first full year of production of the current-generation NEXE Pod, repeat orders across the partner base, the onboarding of a major new customer, and a growing SKU count.
Gross Margin: Gross loss for fiscal 2026 narrowed 40.0% to $(283,714), compared to $(472,485) in fiscal 2025, as cost of goods sold increased 23.6% against revenue growth of 121.2%. As partner volumes increased through the year, per-pod unit costs declined by more than 30% year over year, which in management's view was primarily attributable to higher production volumes, process optimization, and a more normalized order mix. Q4 2026 gross loss was $(244,490), compared to $(227,424) in Q4 2025.Management believes the narrowing of gross loss reflects the continued benefit of production scale and anticipates further improvement in unit economics as volumes continue to grow.
Cost Control: Selling, general and administrative expenses declined 25.6% year over year to $2,968,620 in fiscal 2026 and declined 29.9% to $706,242 in Q4 2026. Total operating expenses for fiscal 2026 decreased 17.6% to $5,409,301, compared to $6,563,895 in fiscal 2025, and operating loss before other items improved 19.1% to $(5,693,015), compared to $(7,036,380).
Net Loss: Net loss for Q4 2026 improved 8.7% to $(1,585,323), compared to $(1,736,866) in Q4 2025. Net loss for fiscal 2026 was $(5,624,480), compared to $(2,845,233) in fiscal 2025. The prior year included a $3,700,554 gain on the sale of the Surrey facility and $458,921 of other income, partially offset by $449,873 of related income tax expense; none of these items recurred in fiscal 2026.
Balance Sheet: NEXE ended fiscal 2026 with cash and cash equivalents of $5.4 million and GIC investments of $3.7 million and working capital of $8.5 million. Cash used in operating activities decreased to $3.3 million from $3.8 million in fiscal 2025. Management believes the Company's existing financial resources, combined with projected cash inflows, are sufficient to meet its operating and capital requirements for at least 12 months. The Company has minimal capex requirements, and a minimal debt position related to an interest free government loan. The Company also maintains a 54,000-square-foot advanced manufacturing facility (including real estate) based in Windsor, Ontario. The facility is vertically integrated and is equipped for compounding resin, injection molding key components of NEXE’s proprietary single-use fully compostable pod, and dosing and sealing the pods for commercialization.
Commercial Update: Management Expects Annual Pod Volumes to Exceed 15 Million
The partner transition first announced in March 2026, under which a key commercial partner committed to moving the majority of its single-serve coffee pod volumes from plastic to NEXE's BPI-certified compostable platform, is now under way. The identity of this partner has not been disclosed for commercial confidentiality reasons.. In June 2026, the Company reported that additional purchase orders had been placed and that two additional brands, one Canadian and one U.S.-based, had begun transitioning to the NEXE platform with anticipated combined volumes of approximately 1.5 million pods annually.
Subsequent to year-end, NEXE entered into a partnership with Just Us! Coffee Roasters, an East Coast fair-trade organic coffee co-op that previously had no single-serve offering. To date, NEXE has delivered approximately 200,000 pods to Just Us!. Management believes this relationship reflects an emerging opportunity for the Company - sustainability-focused coffee brands that have historically avoided single-serve formats can now consider entering the category while maintaining their sustainability positioning. NEXE has also onboarded a U.S. coffee chain with multiple locations, including New York City and Boston, and is in discussions with several additional coffee companies, including an established coffee brand.
NEXE has previously provided guidance that it expects an annual pod volume run-rate of 10 million to 15 million pods. Based on current customer interest and opportunities in progress, management now expects to exceed the upper end of this range.
Outlook
Management’s focus for fiscal 2027 is converting the Company’s commercial pipeline into higher production volumes while continuing to pursue improvements in manufacturing efficiency and unit economics. The Company intends to continue pursuing a capital-efficient platform strategy, partnering with established coffee operators, roasters, and distributors who bring existing customer relationships, established distribution channels, and volume potential. Management expects that sales will increase and operating performance will improve as the Company's customer base and production volumes scale.
The Company is also evaluating strategic opportunities that management anticipates would accelerate commercialization and enhance shareholder value, including potential partnerships, licensing arrangements, and other capital-efficient growth initiatives.
"Fiscal 2026 was our first full year producing the current-generation NEXE Pod, and revenue more than doubled," said Ash Guglani, President of NEXE. "Unit costs declined as volumes built, the partner that committed to transitioning the majority of its pods to NEXE started the process, and we have added new partners since year-end. Our priority for fiscal 2027 is to continue growing our revenue base and converting our commercial pipeline into production volume."
The Company's audited consolidated financial statements for the year ended May 31, 2026 and related management's discussion and analysis are available on NEXE's SEDAR+ profile at www.sedarplus.ca and the Company's website at www.nexeinnovations.com.
*NEXE Innovations Inc. is not affiliated with, endorsed, or sponsored by Keurig®. Keurig® is a registered trademark of Keurig Dr Pepper Inc.
**NEXE Innovations Inc. is not affiliated with, endorsed, or sponsored by Nespresso®. Nespresso® is a registered trademark of Société des Produits Nestlé S.A
About NEXE Innovations Inc.
NEXE Innovations is focused on providing innovative compostable material solutions and packaging to the B2B segment to help businesses achieve their sustainability goals. NEXE Innovations has developed a proprietary and patented compostable material that can withstand heat, pressure, and water. Our flagship product, the NEXE Pod, a BPI-certified compostable coffee pod, showcases our material's durability and is an ideal substitute for plastic. The NEXE pod is compatible with major coffee brewing machines and is manufactured at NEXE's vertically integrated facility based in North America. Discover our innovative approach to sustainability at www.nexeinnovations.com and join our journey on social media @nexeinnovations. #compostablecoffeepods #sustainability #greentech
On behalf of the Company:
Ash Guglani President & Director
For investor relations contact:
Kam Mangat Vice President, Investor Relations & Corporate Strategy invest@nexeinnovations.com
For media relations contact: media@nexeinnovations.com
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Note Regarding Forward-Looking Statements
Certain statements in this release are forward-looking statements or information, which include, but are not limited to, statements regarding anticipated production volumes, including expected annual pod volumes relative to the Company's previously stated range, expected demand from existing and prospective customers, the scope and timing of customer commitments and partner transitions, Company’s commercialization strategy, expected improvements in manufacturing efficiency and unit economics, the evaluation and pursuit of strategic opportunities, including partnerships and licensing arrangements, expected operating and capital requirements, including management’s belief that the Company’s existing financial resources are sufficient to meet its operating and capital requirements for at least 12 months, and the Company’s ability to execute its business strategy. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Such information can generally be identified by the use of forwarding-looking wording such as "may", "expect", "estimate", "anticipate", "intend", "believe" and "continue" or the negative thereof or similar variations. The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company, including but not limited to, business and economic conditions in the markets in which the Company operates, the Company's ability to execute on its business strategy, maintain and grow partnerships, onboard new customers, and respond to market conditions, the Company’s ability to achieve anticipated production volumes and improve unit economics, the availability and cost of raw materials and changes in consumer demand for compostable products, and those risks set out in the Company's management's discussion and analysis for the year ended May 31, 2026 under the headings "Risk and Uncertainties". Such statements and information are based on numerous assumptions regarding present and future business strategies and the environment in which the Company will operate in the future, including the demand for its products, anticipated costs, and the ability to achieve goals, that the Company’s current partners will continue to increase order volumes, that new customer relationships will result in recurring revenue, that the Company will be able to maintain or reduce per-pod unit costs as production scales, and that general economic and market conditions will not deteriorate. Factors that could cause the actual results to differ materially from those in forward-looking statements include, without limitation, loss of key customer relationships, disruptions to supply chains or manufacturing operations, adverse changes to tariff or trade policies, general economic, market or business conditions, and other factors beyond the Company’s control. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The reader is cautioned not to place undue reliance on any forward-looking information.
The forward-looking statements contained in this news release are made as of the date of this news release. Except as required by law, the Company disclaims any intention and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
This press release was published by a CLEAR® Verified individual.
GlobeNewswire
September 28, 2026 - 7:49 PM PDT
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