EnWave Corp (TSX-V:ENW, OTC:NWVCF, FRA:E4U) delivered stronger quarterly results, with a large-scale equipment sale and rising royalties driving revenue growth and a sharply narrower loss.
The Vancouver-based dehydration technology company reported third-quarter revenue of $3.3 million, up $569,000 from the same period last year, driven by the sale of a fully fabricated large-scale machine that had been held in inventory, along with higher royalties.
Base royalties, which exclude exclusivity payments, rose 24% to $536,000 in the quarter on higher product sales and partner production. Gross margin improved to 25% from 19% a year earlier, helped by lower fabrication costs tied to fewer large-scale machines on contract.
Selling, general and administrative costs, including research and development, fell $205,000 from the year-ago quarter, as lower personnel and third-party commission costs offset higher professional development fees and tradeshow attendance.
Adjusted EBITDA loss narrowed to $93,000, an improvement of $482,000 from the prior year.
For the nine months ended June 30, 2026, revenue totaled $6.1 million, down $1.5 million from the comparable period on fewer machine sales. Base royalties for the nine-month period rose 10% to $1.5 million, while total royalty revenue climbed 10% to $1.6 million, reflecting growth in royalty partners, product sales, partner production and exclusivity payments.
Adjusted EBITDA loss for the nine-month period was $1.5 million, a decrease of $355,000 from the comparable period.
EnWave also highlighted several commercial agreements signed during and after the quarter. The company signed an equipment purchase agreement with Procescir for a second 120kW REV machine, and technology evaluation and license option agreements with Swiss Cannabis Selection and one of the world's largest multinational food companies.
It also signed a commercial license agreement and equipment purchase agreement for a 10kW REV machine with Egyptian food processing company The Dry Hub, and a research and development license agreement with Rhizome Food and Farming, a North American food company led by chef Dan Barber, which acquired a 3.6kW REV machine for commercial and product development.
Subsequent to the quarter, EnWave signed a research and development license agreement with the University of Limerick in Ireland, which acquired a small-scale REV machine to support research and product development.