In This Article:
-
Revenue: $3.7 million, a 456% increase from Q2 2024.
-
Adjusted EBITDA: $112,000, compared to a loss of $1.3 million in Q2 2024.
-
Net Income: $764,000, primarily due to an employee retention tax credit payment.
-
Gross Margin: 33%, improved from negative 25% in the prior year.
-
Third-Party Royalties: $474,000, up 14% from the previous quarter.
-
SG&A Expenses: $1.4 million, consistent with the prior year.
-
Cash and Cash Equivalents: $3.8 million as of March 31, 2025.
-
Net Working Capital Surplus: $7.9 million as of March 31, 2025.
-
REVworx Revenue: $140,000 for the quarter, $259,000 year-to-date.
Release Date: May 22, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
EnWave Corp (NWVCF) reported a significant revenue increase to $3.7 million in Q2 2025, up from $0.7 million in Q2 2024, marking a 456% growth.
-
The company achieved a net income of $764,000, largely due to an employee retention tax credit payment from the US government.
-
Third-party royalties grew by 14% to $474,000, the largest base royalties for any quarter historically.
-
EnWave Corp (NWVCF) sold two large-scale REV machines, including a 120-kilowatt unit to Procescir and a 60-kilowatt machine to MicroDried, indicating strong sales momentum.
-
The gross margin improved to 33% in Q2 2025, a significant increase from negative 25% in the previous year, driven by higher machine sales and royalties.
Negative Points
-
EnWave Corp (NWVCF) needs to sell and deliver four large-scale machines annually to break even, highlighting a dependency on consistent machine sales.
-
The company faces risks and uncertainties related to forward-looking statements and market conditions, as noted in their cautionary statements.
-
Despite the revenue growth, the company still relies on maintaining its current G&A expense structure to achieve profitability.
-
The exclusivity-related royalties were not paid in Q2, as these payments typically occur in Q1, indicating potential cash flow timing issues.
-
EnWave Corp (NWVCF) is still in the early stages of penetrating the pharmaceutical market, with ongoing evaluations and no significant sales yet.
Q & A Highlights
Q: Why were there no exclusivity-related royalties paid for Q2? A: Brent Charleton, CEO, explained that most exclusivity top-up royalty payments are typically made in Q1, at the end of each calendar year. Last year, an exclusivity payment was made in Q3 for rights in a separate country, and similar payments are expected in Q4 of this year and Q1 of next year.