WINDSOR, Ontario, Jan. 29, 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 ended November 30, 2025 ("Q2 2026").
The quarter reflects continued progress in NEXE's transition from proof-of-concept to scalable commercialization, highlighted by revenue growth, decreasing unit costs, disciplined cost control, and a strong balance sheet. Building on this momentum, the Company is evaluating a strategy intended to improve commercialization timelines, including potential collaborations, licensing opportunities, and selective strategic acquisitions. NEXE is engaged in several discussions relating to these initiatives.
Q2 2026 Results
- Revenue Growth: Revenue increased to $198,644, compared to $70,754 in Q2 2025, reflecting continued adoption of NEXE's next-generation compostable coffee pod launched in late 2024 and the addition of a customer targeting the big box retail channel. Revenues for the first half of fiscal 2026 of $319,128 have surpassed total full-year 2025 revenues of $307,543, underscoring growing market validation and customer traction.
- Gross Margin: Gross margins in the quarter were modestly negative, primarily due to one-time setup costs associated with onboarding a new client and fulfilling a large initial order for big box retail. However, on a per-pod basis, unit costs improved, down 25% from Q1 2026. As we continue to build scale, we expect costs to decrease.
- Cost Control: NEXE continues to maintain a focus on cost control. Selling, general, and administrative expenses declined 42.6% year-over-year to $520,145, reflecting ongoing expense management.
- Strong Balance Sheet: NEXE exited the quarter with cash and GIC investments totaling $10.6 million, and minimal debt. This balance sheet strength supports the Company's ability to evaluate partnerships, licensing arrangements, and other growth opportunities.
Unlocking Scale Faster
NEXE recognizes that the onboarding process for new materials from coffee brands and companies is rigorous and time-intensive, often spanning nine months to two years from initial validation to full retail rollout. To support potential improvements in commercialization timelines, NEXE is in discussions and actively exploring faster scaling strategies that mirror the successful growth trajectory of industry leaders like Keurig®*. By prioritizing collaborations, licensing opportunities, and potential strategic acquisitions, NEXE aims to push its proprietary compostable technology through established, high-volume distribution channels rather than relying solely on traditional B2B sales cycles.
Expanding Beyond Single-Serve Coffee
Alongside the Company's strategy for scaling coffee, it is also considering a shift towards a partnership-led scaling model for other opportunities that will leverage the proprietary compostable technology. NEXE is positioning itself to be more than a single-product manufacturer. Management believes this approach will allow the Company to reallocate resources toward its broader materials science portfolio, exploring high-performance applications for its proprietary resins beyond the compostable single-serve realm.
"We believe that 2025 provided the commercial proof-of-concept for our technology; in 2026, we will focus on evaluating pathways to advance market access," said Ash Guglani, President of NEXE. "We understand the reality of industry onboarding timelines. By looking at the partnership and licensing models that historically allowed the single-serve market to explode, we believe we can drive a faster ROI on our assets."
Corporate Update
Mr. Haytham Hodaly, who joined the Board of Directors in December 2020 has submitted his resignation from the board in order to focus on his promotion to President of Wheaton Precious Metals Corp. The Board thanks Mr. Hodaly for his contributions and service during his tenure, including his support during the period in which the Company became a publicly listed issuer and transitioned from a R&D, pre-revenue company to a company with a commercialized BPI-certified compostable coffee pod.
"I want to thank Haytham for his guidance and commitment to NEXE over the years. His insight and counsel were valuable as we evolved from an R&D-stage company into a commercial business. We are grateful for his service and wish him continued success in his new role," said Ash Guglani, President of NEXE-
The Company's Q2 2026 financial statements 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
VP, 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 the Company's evaluation of potential collaborations, licensing opportunities, and strategic acquisitions; assessment of strategies intended to improve commercialization timelines; potential improvements in unit costs; the Company's ability to support commercialization through its current liquidity position; anticipated access to large-format retail channels; and the evaluation of opportunities for additional applications of the Company's compostable materials technology. 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, the Company's ability to execute on its business strategy, maintain and grow partnerships, onboard new customers, and respond to market conditions, and those risks set out in the Company's management's discussion and analysis for year ended May 31, 2025 and the quarter ended August 31, 2025 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. Factors that could cause the actual results to differ materially from those in forward-looking statements include receipt of necessary approvals and general economic, market or business conditions. 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.
