EcoSynthetix Reports 2026 Third Quarter Results

BURLINGTON, ON, Nov. 3, 2026 /CNW/ -- EcoSynthetix Inc. (TSX: ECO) ("EcoSynthetix" or the "Company"), a renewable chemicals company that produces a portfolio of commercially proven bio-based products, today announced its financial and operational results for the three months (Q3 2026) and nine months (YTD 2026) ended September 30, 2026. Financial references are in U.S. dollars unless otherwise indicated.

Highlights
(Comparison periods in each case are the three months ended September 30, 2025)

• Recorded net sales of $3.6 million, down 38%, primarily due to lower volumes.
• Recorded Adjusted EBITDA¹ of $0.04 million.
• Won a new commercial account with a global top five tissue producer that is running SurfLock™ strength aids at one facility and is extending trials into additional facilities.
• Expanded our distribution partner relationships in South America with expertise in pulp and paper to accelerate conversion of SurfLock™ strength aids.
• Purchased and cancelled 23,000 and 329,595 common shares in Q3 2026 and YTD 2026, respectively, under the normal course issuer bid for total consideration of $0.03 million and $0.8 million.
• Maintained a strong balance sheet with cash and term deposits of $29.4 million as at September 30, 2026.

"While our trial activity and development progress remain strong, the macro dynamics in our key end markets continue to weigh on our sales volumes which our third quarter results demonstrate," said Jeff MacDonald, CEO of EcoSynthetix. "Our biopolymers have been validated commercially across multiple applications with a range of large global manufacturers and regional players. Their technical performance is proven. They replace entrenched legacy petroleum-based binders that have been used for decades in complex industrial manufacturing. The carbon footprint reduction benefits they offer are validated. However, the rate of adoption is clearly slower than we anticipated. Our two key strategic accounts in the pulp and wood composites end markets continued to use our biopolymers in the quarter at reduced levels. We continue to work with these two market leaders as well as our key commercial accounts in the pulp, tissue and paperboard and the personal care end markets to deliver additional value to support higher usage. We already have commercial relationships with the right customers to drive significantly higher volumes. Driving adoption within our existing and new customers is our key priority to return to a growth trajectory that matches the attractive performance profile of our biopolymers." 

Financial Summary

Net Sales

Net sales were $3.6 million and $12.0 million for Q3 2026 and YTD 2026, respectively, compared to $5.8 million and $14.9 million for the corresponding periods in 2025. The $2.2 million decrease, or 38% change in the quarterly period and the $2.9 million, or 20%, change in the YTD period were due to lower sales volumes of 41% and 23%, respectively, reflecting lower sales in key end markets and challenging macroeconomic conditions. In wood composites, the key strategic account is prioritizing manufacturing efficiency during a period of softer end-market demand. In pulp, the unusually narrow price spread between hardwood and softwood pulp has reduced the economic incentive for premium products. A higher average selling price, driven by product mix and foreign exchange movements, partially offset the volume declines.

Gross Profit

Gross profit was $1.1 million and $3.3 million for Q3 2026 and YTD 2026, respectively, compared to $1.7 million and $4.0 million for the corresponding periods in 2025. The decreases of 36% and 17%, respectively, were primarily due to lower sales volumes, partially offset by a higher average selling price.

Gross profit as a percentage of sales was 30.7% and 28.0% for Q3 2026 and YTD 2026, respectively, compared to 29.9% and 27.1% in the corresponding periods last year. Gross profit as a percentage of sales adjusted for manufacturing depreciation was 37.8% and 34.1% for Q3 2026 and YTD 2026, respectively, compared to 34.2% and 31.9% for the corresponding periods in 2025. The improvement across both metrics in the two periods was due to a higher average selling price.

Selling, General and Administrative

Selling, general and administrative expenses (SG&A) were $1.4 million and $4.6 million for Q3 2026 and YTD 2026, respectively, compared to $1.8 million and $4.5 million for the corresponding periods in 2025. The 23% decrease in the quarterly period reflects a $0.4 million reduction in salaries and benefits, driven by lower variable compensation. The 3% increase in the YTD period was primarily due to an unfavorable change in foreign exchange gains and losses which increased expenses by $0.2 million, while lower salaries and benefits reduced expenses by $0.2 million. The decrease in salaries and benefits included a $0.5 million reduction in variable compensation, partially offset by increases in other salary and benefit costs. Variable compensation was lower because the Company has not achieved its performance objectives in the current year.

Research and Development

Research and development (R&D) costs were $0.3 million and $0.8 million for Q3 2026 and YTD 2026, respectively, compared to $0.4 million and $1.2 million in the corresponding periods in 2025. The decrease in the quarterly period was primarily due to a reduction in variable compensation when compared to the prior-year period. The decrease in the YTD period was primarily attributable to refundable SR&ED tax credits of $0.3 million and a $0.1 million reduction in variable compensation. R&D expenses as a percentage of sales were 7% in both periods, compared to 7% and 8% in the corresponding periods in 2025. The Company's R&D efforts continue to focus on further enhancing value for its existing products and expanding its addressable opportunities.

Adjusted EBITDA¹

Adjusted EBITDA was a nominal amount, $39,400, for Q3 2026, compared to $0.2 million for the corresponding period last year. In the YTD period, Adjusted EBITDA loss was $0.5 million compared to a loss of $0.1 million in the corresponding period last year. The changes in both periods were primarily attributable to lower gross profit, due to lower volumes, partially offset by lower operating costs adjusted for non-cash items.

Net Loss

Net loss was $0.3 million, or negligible per common share, for Q3 2026 compared to $0.1 million, also negligible per common share, for the same period last year. Net loss was $1.3 million, or $0.02 per common share, for YTD 2026 compared to $0.6 million, or $0.01 per common share, for the same period in 2025. The increase in net loss of $0.2 million and $0.7 million, respectively, in each period was due to a higher loss from operations as well as lower interest income. Lower interest income in both periods reflected declining interest rates compared to the prior-year period.

Liquidity

Cash on hand and term deposits were $29.4 million as at September 30, 2026, compared to $29.6 million as at December 31, 2025. The Company purchased and cancelled 23,000 and 329,595 common shares in Q3 2026 and YTD 2026, respectively, under the NCIB for total consideration of $0.03 million and $0.8 million.  

Notice of Conference Call

EcoSynthetix will host a conference call Wednesday November 4, at 8:30 am ET to discuss its financial results. Jeff MacDonald, CEO, and Robert Haire, CFO, will co-chair the call. All interested parties can instantly join the call by phone, by following the URL https://emportal.ink/3U1C0BI to easily register and be connected into the conference call automatically or the conventional method by dialling [phone] or [phone] with the conference identification of 29225#. Please dial in 15 minutes prior to the call to secure a line. A live audio webcast of the conference call will also be available at www.ecosynthetix.com or https://app.webinar.net/10qZ6J7NgKv. The presentation will be accompanied by slides, which will be available via the webcast link and the Company's website. Please connect at least 15 minutes prior to the conference call to ensure adequate time for any software download that may be required to join the webcast.

¹Non-IFRS Financial Measures

This press release makes reference to certain non-IFRS measures. These non-IFRS measures are not recognized measures under IFRS, do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing a further understanding of results of operations of EcoSynthetix from management's perspective. Accordingly, they should not be considered in isolation nor as a substitute for analysis of the financial information of EcoSynthetix reported under IFRS. The Company uses non-IFRS measures such as Adjusted EBITDA to provide investors with a supplemental measure of operating performance and thus highlight trends in its core business that may not otherwise be apparent when relying solely on IFRS financial measures. Management also believes that securities analysts, investors and other interested parties frequently use non-IFRS measures in the evaluation of issuers. Management also uses non-IFRS measures in order to facilitate operating performance comparisons from period to period, prepare annual operating budgets and assess the Company's ability to meet its capital expenditure and working capital requirements.

Adjusted EBITDA is not a measure recognized under IFRS and does not have a standardized meaning prescribed by IFRS. See "IFRS and Non-IFRS Measures." The Company presents Adjusted EBITDA because the Company believes it facilitates investors' use of operating performance comparisons from period to period and company to company by backing out potential differences caused by variations in capital structures (affecting relative interest expense), the book amortization of intangibles (affecting relative amortization expense) and the age and book value of property and equipment (affecting relative depreciation expense). The Company also presents Adjusted EBITDA because it believes it is frequently used by securities analysts, investors and other interested parties as a measure of financial performance. Adjusted EBITDA as presented herein are not recognized measures under IFRS and should not be considered as an alternative to operating income or net income as measures of operating results or an alternative to cash flows as measures of liquidity. Adjusted EBITDA is defined as consolidated net income (loss) before net interest expense, income taxes, depreciation, amortization, gain or loss on disposals of property, plant and equipment and other non-cash expenses and charges deducted in determining consolidated net income (loss).

The following table reconciles net loss to Adjusted EBITDA (loss) for the three and six months ended September 30, 2026, and September 30, 2025:

	Three months ended September 30, 2026	Three months ended September 30, 2025	Nine months ended September 30, 2026	Nine months ended September 30, 2025
Net loss	(258,668)	(91,028)	(1,281,125)	(586,550)
Depreciation	324,652	265,525	933,987	811,711
Share-based compensation	231,073	365,891	686,109	781,333
Interest income	(257,620)	(338,608)	(795,128)	(1,067,514)
Adjusted EBITDA (loss)	39,437	201,780	(456,157)	(61,020)

About EcoSynthetix Inc. (www.ecosynthetix.com)

EcoSynthetix offers a range of sustainable engineered biopolymers that allow customers to reduce their use of harmful materials, such as formaldehyde and styrene-based chemicals. The Company's flagship products, DuraBind™, Surflock™, Bioform™, and EcoSphere®, are used to manufacture wood composites, personal care, paper, tissue and packaging products, and enable performance improvements, economic benefits and carbon footprint reduction. The Company is publicly traded on the Toronto Stock Exchange (T:ECO).

Forward-Looking Statements

Certain statements in this Press Release constitute "forward-looking" statements that involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance, objectives or achievements of the Company, or industry results, to be materially different from any future results, performance, objectives or achievements expressed or implied by such forward looking statements. The forward-looking statements in this Press Release include, but are not limited to, statements regarding the Company's plans to execute its commercial strategy, deliver meaningful growth across all three product categories, convert high-value strategic prospects into customers, and other statements regarding the Company's plans and expectations in 2026. These statements reflect our current views regarding future events and operating performance and are based on information currently available to us, and speak only as of the date of this Press Release. These forward-looking statements involve a number of risks, uncertainties and assumptions and should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such performance or results will be achieved. Those assumptions and risks include, but are not limited to, the Company's ability to successfully allocate capital as needed and to develop new products, as well as the fact that our results of operations and business outlook are subject to significant risk, volatility and uncertainty. Many factors could cause our actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including the factors identified in the "Risk Factors" section of the Company's Annual Information Form dated February 17, 2026. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described in this Press Release as intended, planned, anticipated, believed, estimated or expected. Unless required by applicable securities law, we do not intend and do not assume any obligation to update these forward-looking statements.

EcoSynthetix Inc.
Consolidated Balance Sheets
(expressed in US dollars)
	September 30, 2026	December 31, 2025
Assets
Current assets
Cash	7,662,412	8,420,285
Term deposits	21,708,314	21,161,145
Accounts receivable	2,140,431	3,234,911
Inventory	3,831,692	3,767,661
Prepaid expenses	188,163	204,272
	35,531,012	36,788,274
Non-current assets
Property, plant and equipment	5,714,241	5,943,242
Total assets	41,245,253	42,731,516
Liabilities
Current liabilities
Trade accounts payables and accrued liabilities	1,935,414	2,355,358
Non-current liabilities
Lease liability	1,418,027	1,786,798
Total liabilities	3,353,441	4,142,156
Shareholders' Equity
Common shares	489,272,798	488,725,570
Contributed surplus	11,248,159	11,211,810
Accumulated deficit	(462,629,145)	(461,348,020)
Total shareholders' equity	37,891,812	38,589,360
Total liabilities and shareholders' equity	41,245,253	42,731,516

EcoSynthetix Inc.
Consolidated Statements of Operations and Comprehensive Loss
For the three and nine months ended September 30, 2026 and 2025
(expressed in US dollars)
	Three months ended September 30,			Nine months ended September 30,
	2026	2025		2026	2025
Net sales	3,645,064	5,833,596		11,960,226	14,880,268
Cost of sales	2,527,540	4,092,113		8,615,800	10,847,910
Gross profit on sales	1,117,524	1,741,483		3,344,426	4,032,358
Expenses
Selling, general and administrative	1,365,884	1,784,332		4,624,055	4,486,489
Research and development	267,928	386,787		796,624	1,199,933
	1,633,812	2,171,119		5,420,679	5,686,422
Loss from operations	(516,288)	(429,636)		(2,076,253)	(1,654,064)
Net interest income	257,620	338,608		795,128	1,067,514
Net loss and comprehensive loss	(258,668)	(91,028)		(1,281,125)	(586,550)
Basic and diluted loss per common share	(0.00)	(0.00)		(0.02)	(0.01)
Weighted average number of common shares outstanding	58,782,768	58,672,511		58,866,604	58,594,020

EcoSynthetix Inc.
Consolidated Statements of Cash Flows
For the three and nine months ended September 30, 2026 and 2025
(expressed in US dollars)
	Three months ended September 30,			Nine months ended September 30,
	2026	2025		2026	2025
Cash provided by (used in)
Operating activities
Net loss and comprehensive loss	(258,668)	(91,028)		(1,281,125)	(586,550)
Items not affecting cash
Depreciation	324,652	265,525		933,987	811,711
Share-based compensation	231,073	365,891		686,109	781,333
Other	(13,053)	27,520		51,752	(125,307)
Changes in non-cash working capital
Accounts receivable	326,923	202,465		1,094,480	(61,260)
Inventory	(605,334)	(812,881)		(32,526)	(1,265,288)
Prepaid expenses	102,606	(217,779)		16,109	(333,254)
Trade accounts payables and accrued liabilities	313,762	761,605		(434,128)	621,959
Interest on term deposits
Interest received on term deposits	78,411	291,473		879,234	1,333,322
Accrued interest on term deposits	(230,371)	(272,092)		(689,913)	(893,830)
	270,001	520,699		1,223,979	282,836
Investing activities
Purchase of property, plant and equipment	(37,130)	(341,430)		(723,622)	(506,718)
Receipts on matured term deposits	3,750,000	6,950,000		24,277,774	26,500,000
Purchase of term deposits	(3,750,000)	(3,022,274)		(25,014,264)	(23,477,774)
	(37,130)	3,586,296		(1,460,112)	2,515,508
Financing activities
Payments made on lease liability	(100,368)	(77,906)		(300,989)	(238,781)
Common shares repurchased	(32,619)	(359,729)		(766,286)	(1,049,088)
Exercise of common share options	-	-		663,754	43,238
	(132,987)	(437,635)		(403,521)	(1,244,631)
Effect of exchange rate changes on cash	16,240	(24,214)		(118,219)	137,450
Change in cash during the period	116,124	3,645,146		(757,873)	1,691,163
Cash - Beginning of period	7,546,288	5,767,420		8,420,285	7,721,403
Cash - End of period	7,662,412	9,412,566		7,662,412	9,412,566

SOURCE EcoSynthetix Inc.

For further information, please contact: Investor Relations, Ross Marshall, Phone: [phone], E-mail:  [email protected]