MONTREAL, May 13, 2025 (GLOBE NEWSWIRE) — NanoXplore Inc. (“NanoXplore” or “the Corporation”) GRA, a world-leading graphene company, reported today financial results for the three-month and nine-month periods ended March 31, 2025.
All amounts in this press release are in Canadian dollars, unless otherwise stated.
Key Financial Highlights Q3-2025
- Total revenues of $30,446,165 compared to $33,867,747 last year, representing a 10% decrease;
- Adjusted gross margin(1) on revenues from customers of 22.4% compared to 20.9% last year;
- Loss of $1,747,714 compared to $3,089,430 last year;
- Adjusted EBITDA(2) of $1,420,555 compared to $571,968 last year;
- Adjusted EBITDA(2) of $1,318,149 compared to $1,259,990 last year for the Advanced Materials, Plastics and Composite Products segment;
- Adjusted EBITDA(2) of $102,406 compared to an adjusted EBITDA loss of $688,022 last year for the Battery Cells and Materials segment;
- Total liquidity of $30,704,859 as at March 31, 2025, including cash and cash equivalents of $20,704,859;
- Total long-term debt of $4,940,740 as at March 31, 2025, down by $1,405,763 compared to June 30, 2024.
Overview
Pedro Azevedo, Chief Financial Officer, stated: “Despite slower sales than anticipated in Q3, I’m pleased with the improvements in our adjusted EBITDA and in the underlying business development. We’ve been working closely with new customers on graphene powder sales and expect commercialization very soon. In addition, startup of new programs that were delayed by our customers will soon start production as well as new awards at our new Statesville, North Carolina facility. While Q4 activity remains low for our biggest customers, we see stronger activity in the beginning of the new fiscal year.”
Soroush Nazarpour, President & Chief Executive Officer, stated: “Our third quarter results demonstrate our ability to adapt to a rapidly evolving macroeconomic environment. While sales volumes were lower than anticipated, we are actively working on improving our operational efficiency. We remain focused on creating long-term value for all stakeholders and are encouraged by the progress made with our partners in two key growth areas for our graphene products: oil and gas drilling fluids, and insulation foam. These segments represent significant growth drivers for NanoXplore. Our U.S. expansion is progressing well and is especially timely given the changing tariff landscape. Overall, I’m pleased with our performance this quarter, particularly given the ongoing economic uncertainty.”
* Non-IFRS Measures
The Corporation prepares its financial statements under IFRS. However, the Corporation considers certain non-IFRS financial measures as useful additional information in measuring the financial performance and condition of the Corporation. These measures, which the Corporation believes are widely used by investors, securities analysts and other interested parties in evaluating the Corporation’s performance, do not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similarly titled measures presented by other publicly traded companies, nor should they be construed as an alternative to financial measures determined in accordance with IFRS. Non-IFRS measures include “Adjusted EBITDA” and “Adjusted gross margin”.
The following tables provide a reconciliation of IFRS “Loss” to Non-IFRS “Adjusted EBITDA” and of IFRS “Gross margin” to Non-IFRS “Adjusted Gross margin” for the three-month periods ended March 31, 2025 and 2024.
IFRS “Loss” to Non-IFRS “Adjusted EBITDA”
| Q3-2025 | Q3-2024 | YTD 2025 | YTD 2024 | ||||||
| $ | $ | $ | $ | ||||||
| Loss | (1,747,714 | ) | (3,089,430 | ) | (7,361,648 | ) | (9,243,896 | ) | |
| Current and deferred income tax expenses (recovery) | (638,838 | ) | 89,655 | 235,931 | (253,644 | ) | |||
| Net interest expenses (revenues) | 138,462 | (64,710 | ) | 295,485 | (112,655 | ) | |||
| Gain on disposal of property, plant and equipment | — | — | — | (18,260 | ) | ||||
| Foreign exchange | 433,114 | 121,556 | 665,116 | 175,374 | |||||
| Share-based compensation expenses | 299,769 | 531,292 | 1,183,487 | 1,058,770 | |||||
| Non-operational items (1) | 115,000 | 190,000 | 270,000 | 270,000 | |||||
| Depreciation and amortization | 2,820,762 | 2,793,605 | 8,358,533 | 8,155,141 | |||||
| Adjusted EBITDA | 1,420,555 | 571,968 | 3,646,904 | 30,830 | |||||
| – From Advanced Materials, Plastics and Composite Products |
1,318,149 | 1,259,990 | 4,150,179 | 1,846,644 | |||||
| – From Battery Cells and Materials | 102,406 | (688,022 | ) | (503,275 | ) | (1,815,814 | ) | ||
(1) Non-operational items consist of professional fees mainly due to debt renegotiation and to prospectuses related fees.
IFRS “Gross margin” to Non-IFRS “Adjusted Gross margin”
| Q3-2025 | Q3-2024 | YTD 2025 | YTD 2024 | |||||
| $ | $ | $ | $ | |||||
| Revenues from customers | 29,239,999 | 33,617,106 | 95,204,015 | 90,883,248 | ||||
| Cost of sales | 22,677,052 | 26,595,763 | 74,732,162 | 72,674,574 | ||||
| Adjusted gross margin | 6,562,947 | 7,021,343 | 20,471,853 | 18,208,674 | ||||
| Depreciation (production) | 1,750,221 | 1,623,878 | 5,015,485 | 4,704,724 | ||||
| Gross margin | 4,812,726 | 5,397,465 | 15,456,368 | 13,503,950 |
Reporting Segments results
NanoXplore reports its financials in two distinct segments: Advanced Materials, Plastics and Composite Products and Battery Cells and Materials.
| Q3-2025 | Q3-2024 | Variation |
YTD 2025 | YTD 2024 | Variation |
|||||||||||
| $ | $ | $ | % | $ | $ | $ | % | |||||||||
| From Advanced Materials, Plastics and Composite Products | ||||||||||||||||
| Revenues | 29,920,598 | 33,866,162 | (3,945,564 | ) | (12 | %) | 96,665,557 | 91,839,059 | 4,826,498 | 5 | % | |||||
| Non-IFRS Measure * | ||||||||||||||||
| Adjusted EBITDA | 1,318,149 | 1,259,990 | 58,159 | 5 | % | 4,150,179 | 1,846,644 | 2,303,535 | 125 | % | ||||||
| From Battery Cells and Materials | ||||||||||||||||
| Revenues | 525,567 | 1,585 | 523,982 | 33,059 | % | 566,908 | 27,743 | 539,165 | 1,943 | % | ||||||
| Non-IFRS Measure* | ||||||||||||||||
| Adjusted EBITDA | 102,406 | (688,022 | ) | 790,428 | 115 | % | (503,275 | ) | (1,815,814 | ) | 1,312,539 | 72 | % | |||
A. Results of operations variance analysis – Three-month periods
Revenues
| Q3-2025 | Q3-2024 | Variation | Q2-2025 | Variation | |||||||||||||||||
| $ | $ | $ | % | $ | $ | % | |||||||||||||||
| Revenues from customers | 29,239,999 | 33,617,106 | (4,377,107 | ) | (13 | %) | 32,636,947 | (3,396,948 | ) | (10 | %) | ||||||||||
| Other income | 1,206,166 | 250,641 | 955,525 | 381 | % | 483,939 | 722,227 | 149 | % | ||||||||||||
| Total revenues | 30,446,165 | 33,867,747 | (3,421,582 | ) | (10 | %) | 33,120,886 | (2,674,721 | ) | (8 | %) | ||||||||||
All revenues are coming from the Advanced Materials, Plastics and Composite Products segment, except for $525,567 of other revenues [Q3-2024 – $1,585] from the Battery Cells and Materials segment.
Revenues from customers decreased from $33,617,106 in Q3-2024 to $29,239,999 in Q3-2025. This decrease is mainly due to lower tooling revenues and lower volume offset by a positive FX impact.
Other income increased from $250,641 in Q3-2024 to $1,206,166 in Q3-2025. The variation is due to grants and refundable tax credits received for Research & Development (“R&D”) programs.
Adjusted EBITDA
1) From Advanced Materials, Plastics and Composite Products
The adjusted EBITDA increased from $1,259,990 in Q3-2024 to $1,318,149 in Q3-2025. The variation is explained as follows:
- Higher Other income of $431,543;
- Lower Selling, general & administration expenses and R&D expenses (“Operational expenses”) of $176,778 mainly due to lower professional fees;
- Partially offset by a decrease in Adjusted Gross margin on revenues from customers of $475,167 due to lower revenues from customers as described above.
2) From Battery Cells and Materials
The adjusted EBITDA improved from a loss of $688,022 in Q3-2024 to an adjusted EBITDA of $102,406 in Q3-2025. The variation is explained by an increase of Other income of $523,982 and a decrease in Operational expenses of $249,680
B. Results of operations variance analysis – nine-month periods
Revenues
| YTD 2025 | YTD 2024 | Variation | |||||||
| $ | $ | $ | % | ||||||
| Revenues from customers | 95,204,015 | 90,883,248 | 4,320,767 | 5 | % | ||||
| Other income | 2,028,450 | 983,554 | 1,044,896 | 106 | % | ||||
| Total revenues | 97,232,465 | 91,866,802 | 5,365,663 | 6 | % | ||||
All revenues are coming from the Advanced Materials, Plastics and Composite products segment, except for $566,908 of other income [YTD 2024 – $27,743] from the Battery Cells and Materials segment.
Revenues from customers increased from $90,883,248 in the last year period to $95,204,015 in the current period. This increase is mainly due to a higher tooling revenues and a positive FX impact.
Other income increased from $983,554 in the last year period to $2,028,450 in the current period. The variation is due to grants received for R&D programs.
Adjusted EBITDA
1) From Advanced Materials, Plastics and Composite Products
The adjusted EBITDA increased from $1,846,644 in the last year period to $4,150,179 in the current period. The variation is explained as follows:
- Gross margin on revenues from customers increased by $2,246,408 compared to the last period due to higher sales as described above, improved productivity and cost control;
- Higher Other income of $505,731; and
- Partially offset by higher Operational expenses of $448,609 mainly due to higher wages, including higher accrued variable compensation.
2) From Battery Cells and Materials
The adjusted EBITDA loss improved from a loss of $1,815,814 in the last year period to a loss of $503,275 in the current period. The variation is explained by an increase of Other income of $539,165 and a decrease in Operational expenses of $756,908.
C. Other
Additional information about the Corporation, including the Corporation’s Management Discussion and Analysis for the three-month and nine-month periods ended March 31, 2025 and 2024 (“MD&A”) and the Corporation’s consolidated financial statements for the three-month and nine-month periods ended March 31, 2025 and 2024 (the “financial statements”) can be found at www.nanoxplore.ca.
Webcast
NanoXplore will hold a webcast tomorrow, May 14, 2025, at 10:00 am EST to review its three-month and nine-month periods ended March 31, 2025. Soroush Nazarpour, CEO and President of NanoXplore, and Pedro Azevedo, Chief Financial Officer, will host the event. To access the webcast please click on the link https://edge.media-server.com/mmc/p/ngnxomuc or you can access through our website in the Investors section under Events and Presentations. A replay of this event can be accessed via the above link or on our website.
About NanoXplore
NanoXplore is a graphene company, a manufacturer and supplier of high-volume graphene powder for use in transportation and industrial markets. Also, the Corporation provides standard and custom graphene-enhanced plastic and composite products to various customers in transportation, packaging, electronics, and other industrial sectors. The Corporation is also a silicon-graphene-enhanced Li-ion battery manufacturer for the Electric Vehicle and grid storage markets. NanoXplore is headquartered in Montreal, Quebec with manufacturing facilities in Canada, the United States and Europe.
Forward-Looking Statements
This press release contains forward-looking statements and forward-looking information (together, “forward-looking statements”) within the meaning of applicable securities laws. All statements, other than statements of historical facts, are forward-looking statements, and subject to risks and uncertainties. All forward-looking statements are based on our beliefs as well as assumptions based on information available at the time the assumption was made and on management’s experience and perception of historical trends, current conditions and expected future developments, as well as other factors deemed appropriate in the circumstances. No assurance can be given that these assumptions and expectations will prove to be correct. Forward-looking statements are not facts, but only predications and can generally be identified by the use of statements that include phrases such as “anticipate”, “believe”, “continue”, “could”, “estimate”, “foresee”, “grow”, “expect”, “plan”, “intend”, “forecast”, “future”, “guidance”, “may”, “predict”, “project”, “should”, “strategy”, “target”, “will” or similar expressions suggesting future outcomes.
Forward-looking information is not a guarantee of future performance and involves a number of risks and uncertainties. Such forward-looking information necessarily involves known and unknown risks and uncertainties, including the relevant assumptions and risks factors set out in NanoXplore’s most recent annual management discussion and analysis filed on SEDAR+ at www.sedarplus.ca, which may cause NanoXplore’s actual results to differ materially from any projections of future results expressed or implied by such forward-looking information. These risks, uncertainties and other factors include, among others, the uncertain and unpredictable condition of global economy. Any forward-looking information is made as of the date hereof and, except as required by law, NanoXplore does not undertake any obligation to update or revise any forward–looking statement as a result of new information, subsequent events or otherwise.
Forward-looking statements reflect management’s current beliefs, expectations and assumptions and are based on information currently available to management. Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the future circumstances, outcomes or results anticipated or implied by such forward-looking statements will occur or that plans, intentions or expectations upon which the forward-looking statements are based will occur. By their nature, forward-looking statements involve known and unknown risks and uncertainties and other factors that could cause actual results to differ materially from those contemplated by such statements.
No securities regulatory authority has either approved or disapproved the contents of this press release.
For further information, please contact:
Pierre Yves Terrisse
Vice-President Corporate Development
py.terrisse@nanoxplore.ca
Tel: 1 438 476-1965
(1) Adjusted gross margin is a non-IFRS measure and a reconciliation can be found in the “Overall Results” section.
(2) Adjusted EBITDA is a non-IFRS measure and a reconciliation can be found in the “Overall Results” section.
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