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Highlights

  • CNO’s quarterly revenue declined 59% YoY to USD 716,553 due to reduced green steel orders.
  • Adjusted EBITDA showed a loss of USD 152,707 versus a profit of USD 754,467 in the prior year.
  • Manufacturing revenue excluding green steel customer increased 156% YoY to USD 572,355.

California Nanotechnologies Corp. (TSXV:CNO) reported revenue of USD 716,553 for the first quarter of fiscal 2026, a 59 percent decline from USD 1.75 million in the same period last year. The decrease was primarily driven by a reduction in business from the company’s green steel customer and fewer equipment deliveries.

Adjusted EBITDA for the quarter was a loss of USD 152,707, compared to a positive USD 754,467 in Q1 of the previous year. The company posted a net loss of USD 447,887, reversing a net income of USD 696,042 reported in the year-ago quarter. Cash flow from operations improved to USD 71,589, compared to negative USD 283,520 in Q1 FY2025.

A key change in the quarter was the shift in revenue composition. The green steel customer contributed USD 144,198, or 20 percent of total revenues, down from USD 1.53 million, or 87 percent, in the prior-year quarter. In contrast, manufacturing revenue from all other customers rose 156 percent to USD 572,355. The company attributed this improvement to efforts to diversify its customer base and reduce revenue concentration.

Gross margin declined to 57 percent from 65 percent YoY, reflecting higher overhead from the Santa Ana facility and investments in operational capacity, including ISO9001 certification and over USD 2 million in new equipment purchases.

Cal Nano continues to develop commercial production relationships, having recently delivered initial product batches to Oerlikon Metco (US) Inc. and AbTech Industries Inc. The company is in advanced talks with additional clients in automotive, defense, energy, and industrial sectors.

Looking ahead to Q2 FY26, California Nanotechnologies expects improvement in revenue and adjusted EBITDA, driven by its ongoing diversification and scaling strategy.