Reiterated Full-Year Revenue Guidance
Management reiterated 2026 revenue guidance of $23.0M to $27.0M, implying approximately 39% to 64% growth versus full-year 2025.
Sequential Improvement — Q1 vs Q4 2025
Quarter-over-quarter improvement: revenue up ~32% vs Q4 2025 and gross margin expansion of roughly 1,290 basis points (per management commentary), indicating improving business momentum and mix.
Year-over-Year Margin and Gross Profit Improvement
Gross profit increased to $0.4M with gross margin of 9.5% in Q1 2026 versus $0.1M and 2.7% in Q1 2025 — gross margin expanded by ~280 basis points year-over-year and gross profit dollars rose despite lower revenue.
Commercial Pool Momentum and New U.S. Entry
Commercial pool revenue grew to ~$0.8M from ~$0.3M YoY (+~167%); company secured first U.S. pool system order (3 systems for Weston County School District #1) and expects record commercial pool revenue in Q2 2026 based on order book.
Strong Marine Growth and China JV Support
Marine revenue increased to ~$0.8M from ~$0.2M YoY (+~300%); delivered 2 systems in Q1 and expects 2 more in Q2, with sustained order flow supported by a joint venture in China and localized capabilities.
DPF & Membrane and Components Strength
DPF and membrane revenue increased to $1.3M from $1.0M YoY (+30%). Plastic/components revenue was about $1.0M (≈+5%), driven by external interest, notably in food processing—providing more stable recurring revenue.
Clear Strategic Shift to Repeatable Markets
Management emphasized focus on standardized, repeatable end markets (commercial pool, marine, DPF/membrane, components) to improve revenue visibility, margins and scalability over time.