WINDSOR, ON, Oct. 30, 2025 (GLOBE NEWSWIRE) — NEXE Innovations Inc. (“NEXE”, “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 August 31st. 2025 (“Q1 2026”). The company reported revenue growth, positive gross margins, maintained a strong balance sheet and achieved a significant independent food safety audit result, which we believe reflects progress in operational compliance and commercial readiness.
Results for the 1st quarter of 2026:
- Revenue growth: Revenue increased to $120,484 from $3,147 in the first quarter of 2025, reflecting the continued adoption of NEXE's next-generation compostable coffee capsules, launched in late 2024.
- Positive gross profit: NEXE reported its first positive gross profit of $16,453 for a gross margin of 13.7%, which we believe represents an early step toward scalable profitability.
- Cost control: Selling, general and administrative expenses decreased 3% year-over-year to $735,484, driven by disciplined management of professional benefits and payroll.
- Strong liquidity: NEXE maintained a strong balance sheet with $11.45 million in cash and GIC investments and minimal debt.
- Food Safety Certification: Successfully completed a third party safety audit of small food suppliers (a requirement for one of North America's largest retailers) with an overall pass rate of 99%.
“This quarter marks an important step forward for NEXE,” said Ash Guglani, President of NEXE. “We achieved positive gross margins, expanded our partnerships and demonstrated compliance with leading food safety standards. With a strong balance sheet and what we believe is growing market interest, we are well positioned to continue to accelerate our momentum towards our long-term growth goals.”
In the first quarter of 2026, NEXE's revenue increased to $120,484 from $3,147 in the first quarter of 2025 as it ramps up production of its next-generation BPI-certified biodegradable capsules. We expect earnings to continue to grow as the first quarter, especially June, is a seasonally weak time for the coffee industry. Since the end of the first quarter, NEXE has received purchase orders exceeding the first quarter of 2026, and customers have begun to place repeat orders. NEXE also announced a new partnership with West Coast-based roaster—a respected British Columbia company recognized for its sustainability leadership and commitment to the circular economy—with an initial order of 100,000 compostable pods.
In the first quarter of 2026, NEXE allocated resources to work with one of our clients to conduct food supplier safety audits for one of North America's largest retailers. NEXE successfully passed the small food supplier audit conducted by a third-party auditor, with an overall pass rate of 99% and 100% in seven of nine categories. We believe this will benefit all of our customers as they will be able to target one of North America's largest retailers and retail distribution channel to stock their products with the NEXE Pod. We expect this will encourage more coffee companies and brands to consider switching to NEXE's fully compostable capsules.
As our partners and customers continue to convert their coffee products to our compostable technology and we attract new customers, we are seeing an increase in incoming inquiries. One of our major clients, who initially began working with us at the beginning of calendar year 2025, initially transferred six SKUs, and we expect this to increase to 17 SKUs by the end of November 2025.
As NEXE continues to scale its operations, it continues to focus on cost management, process optimization and operational efficiency. The company reported positive gross profit for the first time of $16,453 and a gross margin of 13.7%. Selling, general and administrative expenses were another highlight, with cost control declining 3% to $735,484 year-over-year. A key area of investment is research and development, where NEXE continues to develop its composting technology platform, targeting new verticals.
At the end of the first quarter of 2026, we will have total cash of $2,780,912 and GIC investments of $8,673,468 with minimal debt and liabilities. Given our current expected volumes and cost structure, we believe sufficient funding is available to address our strategic priorities in the near term.
The Company's first quarter 2026 financial statements and management's discussion and analysis are available on NEXE's SEDAR+ profile at: wwwsedarplus.ca and the company 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 SA.
About NEXE Innovations Inc.
NEXE Innovations specializes in providing innovative solutions and biodegradable packaging to the B2B segment to help businesses achieve their sustainability goals. NEXE Innovations has developed a patented compostable material that can withstand heat, pressure and water. Our flagship product, NEXE Pod, a BPI certified compostable coffee pod, demonstrates the durability of our material and is an ideal replacement for plastic. The NEXE capsule is compatible with major coffee machines and is manufactured in NEXE's vertically integrated facility located in North America. Discover our innovative approach to sustainability at www.nexeinnovations.com and join our journey on social media @nexeinnovations. #compostable coffee capsules #sustainability #greentech
On behalf of the Company:
Ash Guglani
President and Director
For questions regarding interaction with investors, please contact:
Thu Mangat
Vice President of Investor Relations and Corporate Strategy
[email protected]
For questions regarding media relations, please contact: [email protected]
Neither the TSX Venture Exchange nor its Regulation Services 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 constitute forward-looking statements or information, which include, but are not limited to, statements regarding
the Company's product development and expansion plans, expected customer demand, expected timing of additional SKUs and potential launches, strategic partnerships, use of working capital, financial condition and the Company's ability to scale operations and expand 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 forward-looking statements such as “may”, “expect”, “estimate”, “anticipate”, “intend”, “believe” and “continue” or the negative thereof or similar variations thereof. The reader is cautioned that the assumptions used in preparing any forward-looking information may prove to be incorrect. Events or circumstances could cause actual results to differ materially from those projected as a result of numerous known and unknown risks, uncertainties and other factors, many of which are beyond the Company's control, including, without limitation, the Company's ability to implement its business strategy, maintain and develop partnerships, attract new customers and respond to market conditions, as well as those risks set forth in the Company's management's discussions and analysis for the year ended May 31, 2025 under the headings “Risk.” and uncertainty.” Such statements and information are based on numerous assumptions regarding the Company's current and future business strategies and the environment in which the Company will operate in the future, including demand for its products, expected costs and ability to achieve objectives. Factors that could cause actual results to differ materially from forward-looking statements include the receipt of required approvals and general economic, market or business conditions. Forward-looking statements contained in this press 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 press release are made as of the date of this press release. Except as required by law, the Company disclaims any intention and undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
