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As our partners and customers continue to transition their coffee products to our compostable technology and we onboard new customers, we have observed an increase in inbound inquiries. One of our main customers, which initially started working with us at the beginning of calendar year 2025, had initially transitioned six SKUs, and by the end of November 2025 we expect it will increase to 17 SKUs.
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As NEXE continues to scale its operations, it remains focused on cost management, process optimization, and operational efficiency. The Company reported positive gross profit for the first time, amounting to $16,453 and a gross margin of 13.7%. Selling, general, and administrative costs were another highlight of cost control decreasing by 3% to $735,484 from the year-ago period. A key investment focus is R&D, where NEXE continues to develop its compostable technology platform to target new verticals.
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At the end of Q1 2026, our total cash is $2,780,912, and GIC investments are $8,673,468, with minimal debt and commitments. Based on our current expected volumes and cost structure, we believe there is sufficient funding to meet our strategic priorities in the short-term.
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The Company’s Q1 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.
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*NEXE Innovations Inc. is not affiliated with, endorsed, or sponsored by Keurig®. Keurig® is a registered trademark of Keurig Dr Pepper Inc.
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**NEXE Innovations Inc. is not affiliated with, endorsed, or sponsored by Nespresso®. Nespresso® is a registered trademark of Société des Produits Nestlé S.A
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About NEXE Innovations Inc.
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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
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On behalf of the Company:
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Ash Guglani
President & Director
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For investor relations contact:
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Kam Mangat
VP, Investor Relations & Corporate Strategy
[email protected]
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For media relations contact: [email protected]
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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.
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Cautionary Note Regarding Forward-Looking Statements
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Certain statements in this release are forward-looking statements or information, which include, but are not limited to, statements regarding
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the Company’s product development and expansion plans, anticipated customer demand, expected timing of additional SKUs and potential launches, strategic partnerships, use of working capital, financial position, and the Company’s ability to scale operations and grow its market presence. 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 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.
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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.
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English (US)