Highest Ever Gross Margins of 90%, compared to 74% in Q1 2025.
General & Administrative (G&A) expenses declined 73%, to $427,892 compared to $1,589,086 in Q1 2025.
Sales & Marketing (S&M) expenses decreased 63%, to $146,467 compared to $392,022 in Q1 2025.
Operating Loss improved by 70%, to ($511,041) compared to ($1,687,019) in Q1 2025.
Company Sees a Clear Path to Profitability as sales accelerate in the second half of the year and 2026
NEW YORK, NY AND TORONTO, ON / ACCESS Newswire / August 29, 2025 / Nextech3D.ai (CSE:NTAR)(OTCQX:NEXCF)(FSE:1SS) (the "Company" or "Nextech3D.ai"), a diversified spatial computing company leveraging proprietary AI to scale 3D modeling and event management solutions, today announced its unaudited financial and operating results for the three months ended June 30, 2025 ("Q1 2026").
The Company delivered strong gross margins of 90%, significantly reduced operating expenses, and a narrower net loss compared to the same period in 2025, reflecting continued progress toward sustainable profitability.
Q1 2026 Financial Highlights
Gross Margins were 90%, compared to 74% in Q1 2025.
General & Administrative (G&A) expenses declined 73%, to $427,892 compared to $1,589,086 in Q1 2025.
Sales & Marketing (S&M) expenses decreased 63%, to $146,467 compared to $392,022 in Q1 2025.
Research & Development (R&D) expenses were reduced 50%, to $172,399 compared to $345,151 in Q1 2025.
Operating Loss improved by 70%, to ($511,041) compared to ($1,687,019) in Q1 2025.
Net Loss narrowed by 71%, to ($497,763) compared to ($1,719,041) in Q1 2025.
Revenue was $328,092, compared to $1,108,941 in Q1 2025.
Operational Highlights
Strong Gross Margins: Margins increased to 90% from 74% last year, underscoring the scalability of Nextech's AI-first model.
Deferred Revenue Growth: Deferred revenue rose to $521,739 compared to $498,171 at March 31, 2025, providing forward visibility.
Lean Cost Structure: Operating expenses declined over 60% year-over-year, reflecting disciplined restructuring across Sales & Marketing, G&A, and R&D.
Future Outlook - Profitability in 2026 Driven by AI Scale and Strategic Contracts
With the foundation of financial discipline now firmly in place, Nextech3D.ai is accelerating its path to profitability in 2026, fueled by breakthrough advancements in AI, new enterprise demand, and expanding revenues:
AI-Driven 3D Margin Expansion
Proprietary AI tech has reduced 3D model production costs to, yielding gross margins of 50%-86%.
Additional automation underway aims to bring unit costs unlocking even greater scale and profit potential.
Exclusive Multi-Year 3D Modeling Contract Announced.
Nextech3D.ai has been selected as the exclusive 3D supplier for a tech partner serving big box major retailers.
2025 production target: 50,000-100,000 models driven by demand in the second half of 2025.
2026 forecast: Output expected to double, with long-term potential growth.
Map D Event Tech Platform Scaling Rapidly
500+ active customers on the platform with industry-leading 95% gross margins.
Revenue from Map D is projected to double in the next 12 months.
Ongoing rollout of premium features: attendee matchmaking, ticketing, mobile navigation, and in-app lead retrieval.
Production Scaling Roadmap
Current production stabilizes at 1,000-5,000 models/month.
Targeting 10,000+ models/month by year-end 2025.
Operational capacity, team, and AI infrastructure are in place to support mass enterprise adoption.
ARway Synergy and Growth
ARway (CSE: ARWY) recently reported its first profitable quarter, a historic milestone that underscores the strength of its AR navigation and event-tech platform. By combining with Nextech3D.ai, the two companies will unlock powerful synergies across 3D modeling, spatial computing, and AR navigation, creating a unified AI-first business positioned to grow quickly.
Evan Gappelberg, CEO of Nextech3D.ai.Commentary:
"While we are disappointed with sales being down we see this as a reset as it is strictly due to Amazon ending its contract in late 2024.Our Q1 shows the strength of our transformation into a lean, high-margin AI-first company which was no small feat to accomplish. We have now finally set the stage for profitability. He continues "We dramatically improved gross margins to 90%, dramatically and diligently cut costs by more than 60%, which resulted in narrowing our net loss by over 70%. As we look forward we are excited with ARway's first profitable quarter and the clear synergies from combining our platforms. With this combination we believe that we are creating an even stronger foundation for rapid growth and profitability in 2026."
About Nextech3D.ai
Nextech3D.ai (CSE:NTAR)(OTCQX:NEXCF)(FSE:1SS) is a diversified spatial computing company that leverages proprietary AI to create 3D models at scale. Its technology portfolio includes:
Map D - Event management and ticketing platform.
Nextech3D.ai serves customers across retail, e-commerce, real estate, cultural institutions, and enterprise events, driving digital transformation with immersive 3D and spatial computing technologies.
For further information, please visit: www.Nextech3D.ai.
See full report on SEDAR
About Nextech3D.AI
Nextech3D.AI is a leading AI-powered 3D modeling and spatial computing company transforming e-commerce, enterprise, and digital engagement. Through its suite of 3D solutions, Nextech3D.AI enables scalable model production, immersive product visualization, and innovative spatial experiences across industries. The company leverages proprietary AI to scale production of 3D assets for some of the world's largest retailers including Amazon, and digital ecommerce platforms Shopify, BigCommerce and WooCommerce.
Investor Relations: investors@nextechar.com
Media Contact: media@nextechar.com
For more information, visit Nextech3D.ai.
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For more information and full report go to
https://www.sedarplus.ca
For further information, please contact:
Nextech3D.ai
Evan Gappelberg /CEO and Director
866-ARITIZE (274-8493)
Forward-looking Statements The CSE has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. Certain information contained herein may constitute "forward-looking information" under Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as, "will be" or variations of such words and phrases or statements that certain actions, events or results "will" occur. Forward-looking statements regarding the completion of the transaction are subject to known and unknown risks, uncertainties and other factors. There can be no assurance that such statements will prove to be accurate, as future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. Nextech will not update any forward-looking statements or forward-looking information that are incorporated by reference herein, except as required by applicable securities laws.
SOURCE: NexTech3D.AI Corp
View the original press release on ACCESS Newswire:
https://www.accessnewswire.com/newsroom/en/computers-technology-and-internet/nextech3d.ai-announced-its-financial-and-operating-results-for-th-1066851
