NEXE Innovations Inc (TSX-V:NEXE, OTC:NEXNF) has reported a jump in fiscal first quarter 2026 revenue as demand grows for its BPI-certified compostable coffee pods.
Revenue for the quarter ended August 31, 2025, rose to $120,000, compared with $3,000 in the year-ago quarter, as production of its compostable coffee pods ramped up.
NEXE reported a gross profit of $16,000, representing a 14% gross margin, the company’s first positive gross margin.
Selling, general, and administrative expenses totaled $735,000, down about 3% year-over-year, attributed to reduced professional fees and salary costs.
NEXE ended the quarter with $11.5 million in cash and GIC investments and minimal debt.
During the quarter, NEXE highlighted that it successfully completed a third-party Food Safety Small Supplier Audit, achieving an overall 99% pass rate. The audit was conducted to qualify NEXE as a supplier for one of North America’s largest retailers.
Ash Guglani, NEXE president, described the quarter as “an important step forward” for the company.
“We achieved positive gross margins, expanded our partnerships, and demonstrated compliance with leading food safety standards,” Guglani said.
“With a strong balance sheet and what we believe is growing market interest, we are well positioned to continue building momentum toward our long-term growth goals.”
The company said it continues to see growing demand for its compostable technology. Since quarter-end, NEXE has received purchase orders exceeding its Q1 revenue and reported repeat orders from customers.
It also announced a partnership with a British Columbia–based coffee roaster, with an initial order of 100,000 compostable pods.
NEXE said it remains focused on cost control, operational efficiency, and expanding its compostable materials technology into new applications.