WINDSOR, Ontario, April 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 February 28, 2026 ("Q3 2026").
The quarter reflects the seasonal softness typical of the North American coffee industry in the post-holiday period, and the negative impact of tariffs that were implemented post-Q3 2025. However, management believes Q3 results reflect the continued structural improvement in unit economics, disciplined cost control, and meaningful progress toward scale. Most significantly, subsequent to quarter-end, NEXE announced that a key commercial partner has committed to transitioning the majority of its single-serve pod volumes from plastic to NEXE's BPI-certified compostable platform - a development management believes represents meaningful validation that the Company's capital-efficient commercialization strategy is progressing as intended.
Q3 2026 Results
- Revenue Growth: Revenue for Q3 2026 was $142,758, compared to $173,721 in Q3 2025. Q3 is impacted by the seasonal dynamics of the North American coffee trade cycle, where commercial buyers historically manage inventory levels in the December-February period ahead of spring re-orders. This year the impact of the U.S. tariffs further impacted results. On a trailing nine-month basis, revenues of $461,886 represent an 86.5% increase over the comparable prior-year period of $247,622, and exceed total full-year fiscal 2025 revenues of $307,543 - with one quarter remaining in the fiscal year.
- Gross Margin: Gross loss narrowed to $(6,392), compared to $(88,675) in Q3 2025 - an improvement of 92.8%. Management believes this improvement reflects the benefit of production scale, process optimization, and a more normalized order mix relative to the prior year period, which carried outsized setup and fulfillment costs. NEXE shipped pods across eight SKUs during the quarter, including two newly launched products, fulfilling orders for ecoBeans Coffee, Bridgehead Coffee, and a North American office coffee services distributor.
- Cost Control: Selling, general and administrative expenses declined 20.6% year-over-year to $1,004,033, reflecting continued discipline in overhead management. Total operating expenses decreased 8.4% to $1,669,356 compared to $1,822,205 in Q3 2025.
- Balance Sheet: NEXE exited the quarter with cash and GIC investments of $9.8 million and minimal debt of $0.4 million. Management believes existing financial resources are sufficient to support operating and capital requirements for at least 12 months and to execute on the strategic initiatives currently under evaluation.
Commercial Update: Anticipated 10-15 Million Pods
Subsequent to the end of Q3 2026, NEXE announced that a key commercial partner has committed to transitioning the majority of its single-serve coffee pod volumes from plastic to NEXE's BPI-certified compostable platform. The identity of this partner has not been disclosed for commercial confidentiality reasons. This commitment followed an extensive market validation process in which over 10,000 cases were tested across multiple distribution channels, generating strong consumer feedback.
Combined with growing volumes across NEXE's existing customer base, committed partner volumes are anticipated to increase annual production to approximately 10 to 15 million compostable coffee pods - a step change from 1.8 million pods produced in calendar year 2025. This trajectory continues a consistent pattern of compounding annual volume growth since commercial launch: 232,000 pods in 2023, 573,000 in 2024, and 1.8 million in 2025.
Repeat orders from existing partners continued to represent the majority of commercial activity during the quarter, with average order sizes trending upward over time - consistent with partners progressively increasing their NEXE Pod allocations as consumer acceptance data accumulates.
Outlook
NEXE believes it has completed its proof-of-concept phase. The Company's focus has shifted to executing a capital-efficient platform strategy - partnering with established coffee operators, roasters, and distributors who bring existing customer relationships, established distribution channels, and immediate volume potential. This approach is intended to compress the traditional B2B coffee sales cycle by bypassing cold prospecting in favour of warm, relationship-driven conversions.
The Company is actively evaluating strategic opportunities to accelerate commercialization and maximize shareholder value, including potential partnerships, licensing arrangements, and other capital-efficient growth initiatives. Management believes the combination of NEXE's proprietary technology, certified compostable platform, debt-free facility, and strong cash position provides a foundation from which management intends to pursue these initiatives.
NEXE enters Q4 fiscal 2026 with a strong balance sheet, a growing customer base, an accelerating volume trajectory, and a well defined strategic outlook.
"Q3 played out as expected from a seasonal standpoint, but the story of this quarter is what happened immediately after it closed," said Ash Guglani, President of NEXE. "A partner committing to transition the majority of their pod volumes to our compostable platform - after putting over 10,000 cases through a rigorous validation process - is an encouraging commercial development that we believe aligns with the Company's long term strategy. We enter Q4 with more conviction in our model than ever."
The Company's Q3 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 anticipated production volumes, expected demand from existing and prospective customers, the scope and timing of customer commitments, the Company's commercialization strategy, the evaluation and pursuit of strategic opportunities, including partnerships and licensing arrangements, expected operating and capital requirements, 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, 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 February 28, 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. 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.
