EnWave Corporation has announced a robust financial performance for the first quarter of 2026, marking a substantial increase in its revenue figures. The growth is primarily attributed to strong sales of its proprietary machinery and a notable rise in royalty earnings. This positive financial trajectory reflects the company's expanding market presence and the increasing adoption of its technology across various sectors.
For the quarter ending December 31, 2025, EnWave reported total revenues of C$1.6 million, an impressive C$423,000 increase compared to the same period in the previous year. This surge in revenue underscores the effectiveness of their business model, which combines the direct sale of advanced equipment with a steady stream of royalty payments from its partners. The company's unique technology continues to attract new collaborations and foster increased production from existing clients, driving financial success.
A key contributor to the revenue growth was the significant uptick in royalty income, which reached C$627,000. This figure represents a 12% increase from the first quarter of 2025. Excluding exclusivity payments, base royalties alone amounted to C$500,000, an 18% year-over-year rise. This consistent growth in royalties is a testament to the expanding network of EnWave's royalty partners, higher production volumes from these partners, and the successful sales of their products in the market.
Furthermore, EnWave demonstrated an improved gross margin of 37% for the quarter, up from 29% in Q1 2025. This enhancement in profitability is a direct result of a more favorable revenue mix, with a greater proportion of high-margin royalty contributions and efficient management of production costs related to large-scale machines that are in various stages of commissioning and fabrication.
Despite reporting an adjusted EBITDA loss of C$585,000 for Q1 2026, this actually signifies a C$50,000 improvement compared to the same period in the prior year. The narrowing of the EBITDA loss indicates improved operational efficiency and a healthier financial outlook as the company continues to scale its operations and enhance its profitability margins.
During and immediately following the first quarter, EnWave actively expanded its global footprint by securing several new commercial license agreements. These strategic partnerships include collaborations with the Gowen Gumlu Grower’s Association in North Queensland, Australia, and Shinyway International Limited in New Zealand. Additionally, a significant agreement was signed with a US snack company, which also committed to an equipment purchase agreement for a 10kW REV™ machine, further solidifying EnWave's market penetration and future revenue streams.
The first quarter of 2026 has been a period of substantial achievement for EnWave Corporation. The company's financial results demonstrate a strong upward trend in revenue, primarily fueled by successful machine sales and an expanding base of royalty income. These positive indicators, coupled with strategic new partnerships, position EnWave for continued growth and market leadership in its sector.